So I took my first trade today. Watched some videos, thought I understood a few basic things, so want to trade options. Buying required less capital, selling required more, but as selling apparently has more chance of winning, and I understood more about selling than buying, took a trade.
Sold 1 lot of Nifty, 6th Oct 16700 PE.
Never checked how price moves in derivatives until today, so was surprised and uneasy looking at the rapid movements of ups and down in price. I was expecting price to change before the expiry, I was also prepared for a loss, but in a week’s time, but to see such super duper fast movements happening in less than seconds, was scary. Did not know about this, so did not expect this. I wouldn’t be surprised if HFT happens here, does it?
The thought of intraday price movement happening in options, just like with a stock, did not cross my mind. How else can price change without intraday movement?
Converted the position to intraday, closed the trade for a little profit.
Mistakenly sold put instead of call, as I expected the market to go down. I think this has happened while adding the option to the list, not because of not knowing what to sell, as I took a screenshot before market opened
Want to learn more before I take another trade.
Got a tiny teeny hang of the thing, my first step, so I would have been glad even if I had made some loss
FnO, here I come
So can you experienced traders have anything to say regarding my trade.
@AlgoEye @Jason_Castelino @raoawesome @ronin_sha @SpacemanSpiff @t7support @VijayNair and everyone else who can say something.