How to trade nifty index in options

General
21

Dude. Knowledge without wisdom can be counterproductive :slightly_smiling_face:

22

Mr.Nair
This is a public forum and I m not your dude . Can u please show me a buy strategy with 80 or 90 percent plus POP . High probability trades are always highly reliable and being neutral than directional .

Learn then earn policy is better for the person who started this forum . Trading will turn gambling dude sir.

23

lol . My dude? You are overthinking :upside_down_face:

Anyways, I do both short and long options. Short options have high probability, but long options can give better Roi if done right.

The way you described long options looking only at price at expiry made me suspect you are either new to derivatives or haven’t explored long options practically (which is okay too, whatever you like.)

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24

Absolutely :joy: :+1:. POP is overrated and unable to stand on its own without looking at other metrics of a trading system.

I know people who got popped out of trading because they went in looking only at the POP :rofl:

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25

Thanks for sharing your knowledge and experience :slightly_smiling_face:

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27

knowledge sharing is always wealth

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28

never really. This is theory and as per this theory you need to hold till expiry. no naked buyer IMO is holding till expiry unless few people(less knowledge about options) who expect some magic to happen.

most of the buying on thursdays are short covering and hedges.

she has asked for intraday and I too have mentioned intraday for naked buying.

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29

Hey sorry for the late reply, just joined the community.
Anyway for you question, look into what In the money, Out of the money and At the money options are. There will be numerous videos on YouTube for the same.

As a beginner I would suggest you buy only ITM (in the money) options.
Let’s say nifty is trading at 17000 and your view on the market is long. If you select any strike price below 17000 that would be an ITM strike price as the market is already trading above it.

Hope this helps.

30

But buying ITM will cost more compare to OTM AND ATM

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32

But ITM will have less time value component which will offset the higher transaction cost.

33

buying OTM is probability of 1 win out of 1000 times, you will never know when that probability will occour. one who understand how options works will never buy OTM, all OTM option buying are mostly for hedging and margin benefit.
Either ATM or ITM is ok for buying, If one is not having money to buy option itself then he can better stay out of option trading. strictly no offence.

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34

OTMs is for option writers. :stuck_out_tongue_closed_eyes:

35

I guess for the both , as OI is combination of buy and sell position of same contract.
It depend on whether position is for hedging or margin.

36

Lol. Obviously. You didn’t get it. Never mind. :hugs:

37

Bro did you hedge your PE short position?

38

I suggest you research and think for yourself, will you be able to handle the risk in buying ITM? If you can, then go for it. If you doubt, the best thing you can do is learn about it. Many channels on YouTube and articles on google.

39

Ok. Give me some good sources where to learn then.

41

@anon99108009 i am asking abt options.

N you are cash market hero. So, off topic for you.

42

I was not asking for index nor cash. I’m Pleading for your your “Assets”. :heart_eyes::smiling_face_with_three_hearts::sunglasses::sunglasses::sunglasses::cowboy_hat_face::cowboy_hat_face::cowboy_hat_face::speak_no_evil::speak_no_evil::speak_no_evil::speak_no_evil::see_no_evil::see_no_evil::see_no_evil::see_no_evil:

43

Market has really made some people insane. Like real insane.

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