Query on how to solve this Option Problem

Bro. m enjoying as someone can be so entertaining!

He’s going on n on to put lacs of rupees buying PUTs. :joy: :rofl:

Some kids are back hiding in new usernames here.
Someone is so badly angry with me. I m laughing literally. :joy: :rofl:

Sorry man…
You dont know how to get the historical data and cant differentiate between October and November contract, but talk about trading options :joy:

Your older posts are funnier and ignorant just like this …
Seriously man., How long are you trading ? :grinning:

And the other kid don’t know how to get the historical data :rofl::rofl:
Don’t know the difference between monthly options :ok_hand:

My stomach is paining man :rofl::rofl::rofl:

Sorry dude …
We really got a bill ackman kind of fund manager here entertaining us

Haha yes ur stomach is paining thats why u r crying here nonstop!
:joy: Hiding your frustrations n anger behind fake smiles wont help u.

I know how to get historical data. Read my posts.

:rofl: But seems u r really angry hell burnt with me.

I dont really use options historical data bcuz I focus more on present. And its a flaw in NSE , why blame me! I never found a need to use historical data for options in so many years.

I m done wasting my time with kids worth 20,000 trading capital & advocating to buy naked puts worth 5Lacs.

:joy: we have clowns everywhere. They are all taking out their frustrations at u.
One word = Loser, a person making losses n still don’t want to learn . That’s why they keep loosing all their life! :smile:

Some kid is hell burnt with me but I m loving it. :smile: :joy:

He’s trying very hard. :rofl: :joy:
He’s still looking for a comeback but failing miserably to counter anything which makes sense.

@Bhuvan please lock this thread. Enough laughter for today. :smile: :joy: :rofl:

Peace !

Protective Collar is definitely an apt strategy for this case since there is significant holding in stocks that have run up quite a bit.

1 Like

Fun at your expense, peace :v:

CAN SOMe1 verify this please

@tushjain00

yours is so far perfect. Add another column settlement/expiry ( given in blue )…

1900 CE will expire worthless( 0.0Rs ) and 1840 PE will be settled for 93.25 Rs. Rest all fine and we are not including any brokerages here )

Great. just a clarification i need. I have calculated daily profit/loss keeping option premium on 3rd october as the base, i mean each day premium has been calculated by deducting premium as on 3rd october day of entering trade. is that correct, cause there is no daily settlement of options right?

Daily settlement will be there because writing an option brings you unlimited risk & limited profit.

Read my earlier posts, M2M settlement would be there on a daily basis.

Oh okay. but then how do i calculate gain/loss for a particular day

like on 3rd oct if put is worth 2 rs and on 4th it is 4 rs, profit for the day is 2 rs
now on 4th oct premium is 7 rs, so for that day profit would be compared with the base 3rd when option was bought or with the previous day? that is 7 -2 = rs 5 or 7-4 =3 rs

confused

M2M is calculated on daily basis settlement price.

If there is MTM on options , then it will be tallied with the previous days close. ( NSE dont have MTM for options but NASDAQ have MTM for options - googled )

For ex:
Assume an independent position with just a short/sell of 1900 CE. We sold 1900 CE for 48 on october 3rd.
On October 4th it closed at 43.25 Rs , lower than yesterdays close. Our account will be Credited 4.85 Rs ( 48Rs - 43.25 Rs).
On October 5th it closed at 46.4 Rs, higher than yesterdays close. So 3.15 Rs will be Debited ( 43.25 Rs - 46.4 Rs = 3.15 Rs ).

pft/loss for a particular day will be comapred with the previous day price.
I will make it even more simpler for you,

  1. october 3rd you bought a put for 2Rs and it closed it 2Rs ( MTM is zero )
  2. october 4th , put closed at 5Rs. MTM is 3Rs ( current close - previous day close … 5Rs - 2Rs = 3Rs )
  3. october 5th , put closed at 15Rs. MTM is 10Rs ( current close - previous day close … 15Rs - 5Rs = 10Rs )
  4. october 6th , put closed at 12Rs. MTM is -3Rs ( current close - previous day close … 12Rs - 15Rs = -3Rs )

@nithin is it true that there is no M2M on nse for options ? !!
No offense to anyone :smile: :rofl:

have you ever sold/bought options and carried it for the next day ? :joy::joy::joy:

answer this honestly plz … if yes , i can help you

Oh boy please leave me now!! :smile: Why are u so after me if I didn’t like your strategy for buying PUTS in bulk for hedging the position!!

If u have such a confidence then why not show us a strategy on the beginning of next month futures options contracts. Everyone will also learn from u but having a position open in options will get u into roller coaster rides & if a position goes into good loss would you still keep it alive paying up high m2m everyday. You yourself wont practically follow it when you will see your positions swinging in deep losses! And right strategy is where your position goes in your favour after entering into a trade. Here till more than 1 week the position was swinging in LOSS & would anyone still dare to keep it alive!!

Why are you getting personal , I really have no issues with anyone here including u. :smile: I m enjoying my stay. If u have anything personal with me then you can pvt message me or speak on phone or meet up. You will see me & get a fair idea of my trade size. I dont bluff. Why waste time getting into arguments with someone you have never known.

@Spaceship

i am full time option trader and these are my trades for this month :sunglasses:
i am not crapping here like you buddy …

you really dont know the ABCs of options and think that others guys are as dumb as you ?
keep exposing your stupidty to the whole world boy !!! :clap::clap::clap: