Can anyone explain how premium is changed to 5000% in one day with the stock moves on 5 to 6%… on 15th Jan HDFC 1880 series moved 6900%…on 18th mindtree moved 5000%… but all the series will not move equally
Can you provide exact numbers? Like HDFC option with strike price X was trading at price Y on date D, and that price changed to Z on date D+W which resulted in a 6900% increase?
Having those details will help in answering ur question.
Option HDFC Jan 1880 CE series
On 12th Jan 2018 ( Friday) session it was closed .5
On 15th went up to 30 RS… Nearly 6000%… Only this particular series is rised to 6000% in premium… how it is possible???
Don’t get me wrong - but from your question you seem to be completely new to Options trading.
It a risky trade business, so advice you to please go through the various tutorials available on the net for option trading. What you are seeing as 6000% profit is true, as ONLY ONE contract of HDFC CE 1880 was traded on 11Jan at Rs. 0.5.
After HDFC declared quarterly results, the stock price jumped more than 100 Rs., so the price of option jumped to a high of Rs. 35.35 on 15Jan.
Remember, it was only 1 option contract that got traded at Rs. 0.5. Impossible to trade in reality for individuals like you and me.
Don’t get lured by the high profit potential that you are seeing. If so much profit is visible, the loss can be much more.
Advice you to go for tutorials first.
Thank you… Yes I am new to options… can you guide me with best tutorial which can I learn completely. Write now I am following zerodha varisity apart from that can u suggest me one good one…
zerodha varsity is good.
I have been personally following the articles on this site:
Along with detailed examples, it also contains a lot of video tutorials:
Hope this helps
Ok thank you so much