Options doubt- strike price & buy/sell


#1

I don’t know the Target price.
i don’t know the Time. i.e. when my target achieved.

i only know the trend and i wanted to square-off my position as per TA.

  • it is better to Sell the options or Buy ? Which strike price is better ATM or slightly OTM ?
    :slightly_smiling_face:

@Sensibull @Karthik @Option traders


#2

@Darshan

As a retail trader , ALWAYS look to buy ATM options based on your analysis.

DO NOT LOOK TO GENERATE INCOME FROM SELLING OPTIONS!!


#3

Frankly, if you can predict the trend, then you are better off buying the futures :slight_smile:

Generally speaking, you sell options,

  1. To benefit from the passage of time (time decay)
  2. To benefit from higher premiums owing to higher volatility. In other words, you’d expect the volatility to cool off and benefit from the decline in premium.

If you are confused about which strike to buy, I’d suggest you stick to ATM :slight_smile:

Good luck!


#4

Hello @Darshan

May I suggest this video? Answers the exact question you asked