If I sell BANK NIFTY NOV 25700 PE @ 100.8. Now the expiry is on 30th November 2017. How long can I hold the sell position? Can I hold till the expiry date that is 30/11/2017 or I may have to sell it by the end of the day?
Of course you can hold it till 30th of Nov - the last day of expiry. You can also buy back to exit your position, anytime until 30th Nov
Bro, R u writing BankniftyNov 25700Put along with any Option strategy or as a standalone trade?
Yes I am doing stand alone trade
What option strategy can be used can you pls suggest. I am new and just learning things…
Bro, for the time being what I can advise is first LEARN the difference between Learning Option trading & Real Option trading.
I rest my case with this!
I will not say that I’ve been through all the Zerodha Varsity Materials… I’m studding owly and gradually at the same time, I’m trying my hands in real market as well as through paper trading. Thanks for the advise!
risk to reward is defnitely not in our favor in this trade , instead we can go long in futures …
personaly i find its better to be on the longer side of the weekly options
Thanks for the advise. I know that there is a lot of risk involved so I am doing paper trading currently… Putting no money… I am studying as much as I can and try all out with paper trading. Only when I am confident I’ll go ahead and put my hard earned money.
These are the options strategies which involve options selling:
Bull Call spread = buy ATM call and sell OTM call – in 1:1 ratio of same expiry, same underlying
Bear Call spread = buy OTM call and sell ITM call - in 1:1 ratio of same expiry, same underlying
Bull Put spread = buy OTM put and sell ITM put - in 1:1 ratio of same expiry, same underlying
Bear Put spread = buy ITM put and sell OTM put - in 1:1 ratio of same expiry, same underlying
Call ratio backspread = sell ITM call and buy OTM call - in 1:2 ratio of same expiry, same underlying
Put ratio backspread = sell ITM put and buy OTM put, in 1:2 ratio of same expiry, same underlying
Short straddle = sell ATM Call and sell ATM Put - in 1:1 ratio of same strike, same expiry, same underlying
Short strangle = sell OTM call and sell OTM put - in 1:1 ratio of same expiry, same underlying
Synthetic long = buy ATM call and sell ATM Put - in 1:1 ratio of same expiry, same underlying
Bear Call Ladder = sell ITM call, buy ATM call, buy OTM call - in 1:1:1 ratio of same expiry, same underlying
Read the strategy notes to learn which market scenario suits which option strategy, study the pay-off graphs and learn how to choose the right strikes to effectively execute these strategies. Find it in the options strategies module in Varsity.
Thank you Srinivas sir! I have finished reading one module about options in varsity. I will start the second one i.e. strategies of option tomorrow.
Thank you for the post. It really helpful.