Only buying, not short selling options?

General
1

I still don’t have the guts to short sell options… :slight_smile: So these are thoughts hold me back.

  1. Time decay, Expiry, STT etc.
  2. It needs around 50-80k
    Can we make equal profits, if only BUY deep in money calls/puts ? I hear most of option buyers loose money…
2

Buying deep ITM calls is as good as buying futures. So you might as well trade the future.

There are several option strategies that cater to option buying only. So you could use these strategies while buying options to maximize your chances of staying profitable.

Understanding time decay, volatility etc are key while taking an options trade - whether it is buying options or writing options. STT for allowing ITM buy option positions to expire is not an issue anymore. If the intrinsic value of your expired option is lesser than the STT at expiry, then your option will not be exercised.

3

Can you give an example of this month nifty PUTs…

And one such example…

4

Example for intrinsic value being lesser than STT given in the below post:

And options strategies which involve options buying: Long straddle and Long strangle among others.

Long straddle = buy ATM Call and buy ATM Put - in 1:1 ratio of same strike, same expiry, same underlying

Long strangle = buy OTM call and buy OTM put - in 1:1 ratio of same expiry, same underlying

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