Does anyone have experience with monthly options?

Monthly is good only with covered call or cash secured put, weekly gives good ROI in selling.

Eg. Usually weekly has 1X premium and monthly has 2X premium so 3 weeks premium is 1X and last week is 1X . So , ROI in weekly is good.

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I usually do it. First I brought the calls strikes closer because for Feb expiry I am at 17800pe. So could aggressively sell calls.
Around 8 points in total during the day. I come closer only when my existing position premium has less than 2 points left. And may be shift that to 2.5 to 3 points wala strike.

Yes. I do month here. In fact as I have mentioned above, I go two months away.
If I wanna do a cash secured put at 17000 I feel 2 monthly away better than 1 month away. Otherwise there is hardly any premium.

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In nifty weekly expiry , whats the average point you usualy target and whats max loss in points you have experienced by rolling up to 2-3rs every half and hour or so?was thinking how you manage those gamma moves when 3 rs becomes 6 0r some time 20 in no time. Have sl in system?or in mind

Around 5 points. Am very conservative.

That’s fine. I hold. It will be there just for some time and then it will cool down usually. SL will depend on the spot. Not on the option pricing. So if I see nifty breaching a particular level then I square off.

Only once in last 3 years. Because I didn’t follow my rule. I waited and waited and waited. Overall lost around 15 points that day on net basis. So on one side it went from 3 to 30. But since I cover it from the other side on net basis only 15.

But there could be more volatility in the option than what is happening in the index?

I have told this before. Option is the most complex product out there. There are a lot of factor determining option pricing.

I know that, I am experiencing that :face_in_clouds:

My question is, if I took a position in an option and the price is falling and I am in loss, which would be better to look at in terms of SL, option price or index price. I did not look at index price before and following only option price. So asking.

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Imo, the simple answer is:
if it’s a longer dated option then looking at index price is enough.

If it’s a shorter dated option, you need to look at the index & option price depending on its delta.

I would also add volatility (vega) to this.

By longer you mean monthly option or next week option?

If you are a directional trader then use index price. You might lose here and there but, over all long term there is higher probability of making good gains.

I am also doing scalping :grin:

So the question.

longer dated: 2 months and higher
Anything below will be highly affected by theta and exponentially so as you get closer to expiry.

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Scalping is directional :grin:

Not necessarily. In a long direction, on a longer time frame, if there are a few short opposite directions, on a shorter time frame, I am trying them.

Of course, following price is directional, and I am following price :grin: