How do we read chart in option trading. Spot price chart OR Premium price chart?
As option premium derives there value through the underlying spot
You should look at underlying spot chart
And not premium price chart !
Mehdi Abbas thanking you…
But Abbas sir most of the time that will be difference so i asked.
Some Time Premium Price Variation in Option Trading. like below
On 08-May-2020 Just Dial Price was 340. Same time Premium was 7.7 for Just Dial May 400 CE . When i check today Stock has reached 349.85 But premium is 5.95. How it is possible?
Gautham Bro defiantly will read you given link and thank for your answer.
Brother if Just dial reach 400 before expiry day and on expiry day if it close below 400 . shall i loss premium paid?
If Justdial has good price move like you said above 5-6% only possible earn premium point right?
Bro which one is low risk good return Option Trading or Equity Trading?
Finally bro, Which one is easy to option trading intraday wise or have to wait till expiry?
Brother. If Stock is trading low till 2 before expiry then it suddenly it rise towards strike price. In this case also we can not earn premium right bro?
I think stock moving speed important for premium earns.
If i through about stock will reach the strike price defiantly , in this case How to trade in option?
I think, There are two kind of option trading
-
Trade on premium earning
-
wait till expiry (if stock will earns strike price + Premium points after can make money(that is also in one day)
If i do like above same day i have exit or may i hold till what ever i want?
Goutham bro still i did not read on your reply i just got notification really thank for you reply in this time. thank you really bro … . will read your reply now Good Night…