What are the must things known before doing selling on nifty options on expiry day, what kind of fundamentals, techniques, ratios, and things i should know before involving in it,
thank you.
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I am telling you the easiest way one can master option writing, weekly are good because they will give you new chance every week.
First thing, sell any option on expiry day that is OTM, i am sure you know what is otm.
Second, do it with only one lot, keep losses in rupess not in points
Slowly you will start reading charts and will understand behaviour of options and spot.
It will take you around 1 year to learn everything.
High intelligent persons learns into 6 month, because they do homework after every day.
I always read charts in the evening why this thing go up and down.
In 1 year, you will start remaining in profits.
Also, you can do your daily job as expiry trading one day event.
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Check highest OI on which call and put, get an idea of levels in play
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Chart or technical analysis. Check previous candlesticks (daily chart) and get an idea what can happen on Thursday.
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If market moves wildly then option writers go in big trouble. That time you should know how to handle your positions, some write the opposite side options to control their losses, so for that big capital needed. However this scenario happens only 5-10%, and Nifty anyways is less volatile than Bank Nifty
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Well @ADITYA_VASISTHA,
wowsome explanation, thanks a lot,…
in what way does max pain and pcr influence option writers, are they any more things available other than this two which is very useful for option writers.
If you follow what i suggested, you dont even need to see oi and pcs or max pain. I dont even remember how many times max pain changed in a hour, same with oi and pcr. Trade cautious when there is events like rbi policy. Let me tell you what i do, i place order and sit only untill my orders get executed, then place sl and logout. Around 3 pm i log in again and see what happens. You need this kind of comfort when trading securities. My trading pays me more than 3 times than my salary. I do job only to kill boredom.
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thanks a lot @ADITYA_VASISTHA
sometimes when i sell OTM at expiry date, sometimes it gradually moves to ATM, and rarely one or 2 times it goes to ITM.
i put stop loss, but watch the market. it does happens sometimes like that.
Do not worry. This is a process. Dont expect profit in first 3 months. When your chosen strike went into loss, see what made it to go loss and why another strike remained in profit. Read price action where you can exit. What is the pattern a strike makes which will be profitable at the end. That’s why i told you short any strike at the first because you don’t know what will be the outcome.
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well @ADITYA_VASISTHA
thanks a lot sir,
ill do this for a year or so, at least 6 months and ill come back and share my experience and profits gained for that 6 months and message you the outcome, thanks a lot.
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Hello ! Sharing a GOLDEN (in my view) indicator for you & all Zerodha clients.
Everyone knows the importance of moving averages. Some knows SMA, EMA, etc. etc.
Few must be knowing Hull Moving Average.
How to set HMA with buy & Sell signals ? …
- Search tradingview.com (not in Zerodha platform).
- Go to chart & thereafter any stock or index.
- Search HMA in ‘Indicators & strategies’.
- At right hand hand side, search “HMA trend colors”.
- Move the cursor on HMA trend color to find “SETTINGS”.
- From “INPUTS”, change period to 20 (in place of 16).
- Set colors & darkness from “STYLE” as per your wish.
- Time frame : 5 minutes.
You will get clear indications of Buy & Sell.
Please do not trade at open. Trade at reversal.
You can use to trade in stocks, indices, futures, options, cash.
You can use to buy as well as sell options, not only on expiry day but everyday !
I earn regularly by using this Golden Stick.
Hope, it will help you all.
…Maharaj.
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