- This is a specific trade, and as an RA, we cannot advise on a specific trade
2&3. Adjusting is a tricky business, and I have never really thought it is a good idea. The reason is simple. Say you sold a call and market went up. Either you are right, or you are wrong in stopping out. If market reverses, you should have kept the same call. If it continues trending, you have no business selling a higher call as that will also go in losses. In a trended market, the higher call sell adjustment will be a bad idea. The only time when this works is the market becomes still and you sell a call with strike at the point of market going still. Seems like a lot of ifs and buts. I would rather stop out than adjust, and wait for the next trade
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What do you thik is ideal IV to short Dollar options, given my small capital I want to trade in Dollar options but with strategy that earns by time decay, but Dollar OTM options have too less value and hence very little depreciation of prices.
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Hey Shubh,
There is no ideal IV to short anything if you ask me. That “ideal IV” makes sense only when you are doing a continuously delta hedge portfolio. But even there, the answer is no.
Speaking from both, USDINR IVs have been between 3.5(at 44 USDINR) and 17 (Greek Crisis). Incidentally, I have traded both in the past. If 7 looked high to you in 2011 August, you were welcomed with 10+ in 2012 December.
So rather than looking at ideal IV, I would say invest your time in getting a sense of direction/ support resistance, and go long/ short according to premium, than IV
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Thanks for the reply for my previous query.
One small suggestion. It would be really helpful if you added strategies which didn’t require a lot of capital.
One such great thing is the USD/INR in EasyOptions. Seriously kudos to you for doing that.
If you added strategies which required around 20-30k capital, a lot more people would imply those strategies. Which would help you roping in customers in hordes.
I don’t know if the above said thing is possible. I don’t even know if my tiny brain can comprehend your business model or if I should be giving you business suggestions in the first place.
I just know implementing that would benefit someone like me immensely.
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Hey @Hrituraj_Kalsekar
You are absolutely right here. The prohibitively high margins keep people out of the market. Even worse, they force them to be option buyers. There is some respite hopefully when the margins will be revised in the near future.
We will keep you posted on this soon!
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@Sensibull Sir, all these P/L you show in Easy Options screen, is it counted for brokerage and other charges? If yes then good but if you don’t will you please add ability to see P/L in Easy Options screen with and without brokerage and other charges fitted in.
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Hello sensibull, your work is always appreciable.
Come to mobile form soon.
My question is how i can backtesty option strategy from back, where i get back data of option expiry may be weekly or monthly, i want to backtest something in option back data
@Sensibull
Short Straddle/Strangle on banknifty turing into loss its becoming hard to maintain profit.
So that’s why ask how to manage it.
I have studied that delta helps you in selecting right strike price to buy options like select strike price having delta above 0.5 something like that , is this information useful for day trade in options?
One more question say If i am bearish on banknifty today
Which is better choice to buy put or sell call?
Will I get any extra advantage if I sell call?
Please clarify
hai abid , can you come inbuild watchlist like nifty 50, next 50 and all and its want to show long builup or short build up , come with full fledge future market information in single page , and come with all strategies inbuilt
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in your opinion, which is a better choice as underlying for options, spot or futures ?
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what and who “really” decides the premium of futures and options? i know all about greek stuffs and pricing models. does market supply and demand by default makes premium fall in line with pricing theory or is there someone who regulates the pricing?
Hey @Riyas_Ahamed ,
Thank you for the suggestions. As usual, everytime I get a suggestion from you and cant do it immediately because of time pressures, it feels bad . This time we will be faster
- You mean to say a sector in screener which is Nifty 50 and Nifty Next 50? Sure, we will do it
- We are releasing a page in the next 2-3 days which lists all the F&O and technical info about a stock in a single page. I am guessing that is what you want. Please let me know otherwise.
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Hey @varun_g
- Futures, by far. Captures expectations, dividends etc. Much much cleaner price
- Honestly, Greeks and pricing models are smokescreens created by people who probably have an incentive to confuse you and teach you that
Its is always demand and supply. Premium comes first, and IVs, greeks etc come from premium. That said, IVs are easy way for traders to understand mispricing. For example if you tell me Feb Nifty ATM Call is priced at 250 Rs I have no idea if it is high or low. But if you tell me it is at IV 16 I know it is high
Finally, no one regulates the pricing. Everything is market
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Hey @Himanshu_Gupta1
Delta tells you how much your option price changes with change in underlying. Another way of looking at delta is, it tells you how many futures one option is equivalent of. So if you are trading with 0.5 delta, it means it is as good as having 0.5 future. So if you make 20 Rs on one lot Bank Nifty with that, you will make 10 Rs with option. So yes, knowing delta helps in the sense that it tells you how many futures you are playing with, and what to expect in terms of P&L
Buy put versus sell call - Intraday, honestly not much of a difference. In fact I would even say that buying option is better because the delta keeps increasing as your position goes more in the money. So as you are more right, your profits compound. And when you are wrong your delta will reduce because position gets smaller due to decrease in delta.
It is a llittle complex to get it initially. May I suggest you this?
https://web.sensibull.com/analyser
This thing helps you decide Call Vs Put. It is a paid feature, but if write to us [email protected] and we will give you a trial
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The brokerage is usually less than 100 rupees for most of the options there, which is why we ignored it. Also in some of our partner brokers other than Zerodha. the fees vary from client to client. But point taken. Let me see if we can implement it. You can see the charges here meanwhile - Brokerage calculator – Zerodha
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Hey @Rajendra_Birkhede - Slightly controversial topic. I am not sure if option backtesting is of any use at all, to be honest. Most people who actually trade options seem to agree with that. Since I am not an expert in backtesting, I will pass this. Internally, in Sensibull, our view has always been that there are way better ideas to make money in options than backtests
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We ask abid something and he comes up with something better
Kudos…
@Sensibull
Thanks i really appreciate i love the way you design thanks ,
one more thing why zerodha like only white background , all zerodha products are high bright white theme ,
please implement light grey backgroud , our eyes are tearing please consider , please request to nitin also for kite
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I second this, dark mode in absolutely needed across Zerodha platforms. they have integrated it well in Kite mobile app but no word on when Kite’s web version will get one.
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