Just one more question I am just graduated
I didn’t have any salary slip or past 6 months bank statement as I have recently opened my bank account
Now my query is for trading in f&o which document i should submit?
Can i fill nil itr?
Please help on this
which week Nifty/Banknifty option is better for intraday trading…Near week or next week or month end option,To my limited understanding i see near week options has less time value hence less decay during the day…I am trying to replace directional futures trade by naked options buying without any strategies…Need some advise…
Hey @profit
Near week, ITM options are the best to do this.
Your objective is to play direction. To do that you need to trade options with Delta close to 1, for call options and delta close to -1 for put options.
This is usually weekly in the money options of the current week. You need to keep Vega (effect of IV) and Theta (time value) close to Zero.
Hey sorry to say this single IV for call and put is really useless for scalpers like me , I scalp IV , I find skew by comparing call and put IV , yes PUT IV is always higher , but still.
When Call IV is greater , I enter only when my directional view is down … and also if I have doubt to choose which strike to sell obviously I gotta see which is over brought , which I see via IV , if you have single IV for both… It makes the point useless.
I dont know why u merged the IV , maybe be for positional users , I dont know… but for scalpers like me its really useless.
Also you told it will bring arbitrage oppurtunities , yes it does bring for intraday based on my past 6 month experience.
Another thing is you plot IV based on futures , yes options follow futures price , but during expiry day it follows index at the end , example is IV shoots up or falls when index breaks the round numbers like 12000 , 12050 etc ,and not when futures breaks out from round numbers , so it would be nice to give options to user settings where they set plot IV based on futures or index.
On expiry days futures converges to spot. So it does not really matter, IMHO.
On a side note, IV increase is not really because of levels breaking (because that would happen only when levels break downside). IV increase is because of the skew coming into play. Just my $.02
On expiry day, if we look at IVs as IVs then it is very misleading. When Vega is a small number, any increase in premium will translate to a huge jump in IV
You can play with this calculator and see for yourself with days to expiry as a fraction http://option-price.com/