We are all saying the same thing. @GB26 you are failing to understand our point.
Whether you will be profitable or not isn’t what we are saying. We are only saying the advantage of smaller lot being an advantage is absolutely wrong. In fact it’s the other way round. Contract size of bank nifty is much bigger than nifty.
Anyways. It’s your call.
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I just wanted to know the differences between Nifty and BN, and capital wise if I can learn by investing less I would choose BN, if BN fits my requirement, if not I will look at Nifty. I have never looked at BN till now, and the OTM buying is with Nifty, not BN.
If options are options, irrespective of the underlying, and if I get to pay 100 for learning with BN, and 200 with Nifty, I will choose BN is what I am saying, nothing else 
Honestly, you are still not getting our point. It’s okay.
You are right. 
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I know nothing about options, I want to learn, and I have watched some videos, OTMs are cheap as they don’t have IV, so if I buy OTMs which are liquid, and observe them in real time, I get to know a few things. And if a Nifty option is available at a price of 10 meeting the above criteria, I need 500 to buy the option, and if a BN option is available at 10 meeting the criteria, I need only 250 is what I thought. Nothing more.
So can you explain?
Buy MRF with premium of 10. It has a lot size of 10. So total premium is only 100.
Does it make sense ? This is believe should answer your question.
Who said this to you ? Tell me what’s IV according to you.
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There is a call available at 10 but not liquid enough, OI is also my criteria, so not selecting it.
BTW, does this mean you have MRF in our PF 
OTM at the time of buying has only time value, no intrinsic value, as they are above the price of the underlying 
You’re trying to learn options by taking random speculative bets. All this doesn’t matter until you understand what options are and how they are priced.
I am looking at PCR data, I am looking at the direction, then deciding on the strikes, buying, and if the direction changes midway, changing my option along with it, call or put, looking at charts, using Fibonacci, looking at price, so I can tell you I am not taking random speculative bets
You most definitely are if you don’t understand options pricing and how they work.
IV also stands for Implied volatility. One of the main factor for option pricing.
What I was trying to say is smaller lot size need not mean smaller contract size.
To learn share trading will you start with Vodafone because it’s trading below 10? To buy one share of Airtel you need 750. But Vodafone it’s just 10 rupees.
You are not seeing the contract size. You are only seeing the premium. You are getting it totally wrong my friend.
Am repeating again. You are taking bigger exposure with bank nifty with lot size of 25 than you are taking with nifty with lot size of 50.
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I don’t have to understand every nuanced bit that exists with options in and only then make the step. I have got a fairly basic idea, and I am creating a small system, so to speak, and I am observing, I have no greed, I am well aware of the time decay, but I cannot yet sell, I will be there but not yet, so I am going forward, taking small steps, and I believe I will be there in time, with time.
Yes, that is true, I get that.
Yes, people do that, if learning is the only objective, and not profit, it is prudent to go with highly liquid names with small price.
I am a buyer, not a seller, so my risk is limited in that sense, and I am not taking any positions, I am doing intraday, so even my that particular trade is wrong, I will not lose much.
I am yet to learn about implied volatility.
what i said above wasn’t a criticism. You don’t know enough about options yet and are trading it. You are gonna lose money, we all did at some point and so will you.
I will not, I can say that. I will not be losing money in the traditional sense of losing.
For argument sake, if I spend 3 lacs in a year for options, and lose it all, and gain good knowledge and experience, I will be glad. I will consider that as tuition fee. And it has been 3 weeks, and I have learnt some, made some and lost some.
I don’t have blind greed, I am not taking multiple lots, I am not chasing money. I do momentum trading, that is small, this FnO is even smaller. I am an investor and have some fundamental knowledge.
So there is a certain base and a certain method, not conventional, but sure there is one.
I will give it a last try.
Rs. 5 premium on nifty is not same as Rs. 5 on bank nifty.
Note down the strike which has Rs. 5 premium on nifty and bank nifty respectively.
See how far it is from the spot of nifty and bank nifty in percentage terms.
Let’s say you get nifty premium of 5 when strike is away by 3 percent. For same 5 premium on bank nifty, it will be away from spot by at least 6 percent if not more.
As you go deeper and deeper OTM, as an option buyer your risk of losing increases.
Am done. This was my last try. You asked for our opinion and I tried my best just like others did too to make you understand that you are not right in the way you have interpreted option premium.
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Got it.
I know this.
They did not explain like you did, only you did 
I do some explanation too, if you haven’t noticed
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That is true, as stated.
But what everyone is reading in that statement is that you are implying the 10 rupee option of Nifty is equivalent to a 10 rupee option of BankNifty. Hence the confusion.
Since BN index is double the N index, and it’s more volatile… the 10 rupee BN option will have a way lower probability of ending ITM.
That my 2 cents after reading both sides of this debate.
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Yes. I was not implying anything, they are 2 different indices, and one is a sectoral index, so I was not comparing the underlying, I was just talking money wise