look at today banknifty call options some of the otm calls have rise 10 to 150 ,8 to 100 thats why many people buys them to generate extraordinary returns
My point is, if one knows how to make profit (9/10) by selling options then he also knows how to avoid the loss or big loss.
Also, instead of posting such replies, u can share the strategy which will help others as well as to you.
BEING NEUTRAL I WOULD JUST SAY
BUYING DEEP OTM CALL or PUT is just like Lottery Ticket but with the probability of winning much more than BUYING a LOTTO TICKET for winning.
IF SOMEONE BUYING LOTTO than JUST avoid and BUY DEEP OTM CE PE and WIN JACKPOT.
You are absolutely correct.
But here the point is of selling the Options (call and put) with predefined strategy and not buying.
Lot of the buyers could also be short sellers being margin called out of the trade when it moves against them!
I am in favour of fundamentals and not technicals. If one can invest properly after studying the Balance Sheet and Market conditions then it is highly possible to make much money than this.
But here my point is please do not add unnecessary posts which you feel or experienced may be because of lack of study or guidence.
If you had experienced any, then add the posts with proper reasoning.
Haha. See this.
PS: I didn’t do option buy. I merely closed the sell positions. But when I saw this I was thinking of this thread haha.
So another important thing is, in option buying it is more important to know when to close for maximum impact.
people who know how to make money can make money in shorting options as well as going long in options ( though i do mostly shorting ) …
people who don’t know about how to make money will lose in both buying and shorting options …
today except 8k profit , rest came from net credit strategies …
yesterday i was positional net short and booked pfts and exited at opening itself …
then seeeing the global cues , decided to stay away …
Dhfl has fell 50% in 3 sessions. RIP to all PUT sellers