Trade boycott on 12th Aug!

I think this would be the first time i am hearing something like this !

Let see how many people actually follow .
But in twitter its seems like a actual movement!

Hope fully SEBI institution of mental torture should listen to retail traders!

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they would move the market so much that those participating in the movement would become tempted to trade on that day.

This would not even effect the market by 0.000000001%

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If my memory is right, when Rakesh Jhunjhunwala died, there also was a similar movement for not to sell anything the next trading day in honor of the Big Bull. Well guess what people sold:))

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:rofl::rofl:

On a serious note, how does this even make sense?

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Organizing something like Gamestop is worth the hassle, but abstaining 1 day, even if possible, does nothing to no one.

It does not. :smiling_face_with_tear:
Boycotting trades won’t fix the fundamentals that are broken now. :broken_heart:
At least SEBI is focused on deepening cash market liquidity and improving SLB, though I would say SLB needs to be as easy as buying stocks. :white_check_mark:

With the rise in STT and the prevailing artificially inflated lot sizes for stocks, the FnO market is not performing its primary duty - to hedge risk. :hedgehog:

  • Futures is almost useless for hedging due to high STT.
  • Options liquidity is comically concentrated in the weeklies (again due to high STT) which makes it useless for long term hedging.
  • Artificially inflated lot sizes for stocks and lack of options on ETFs discourages investors from using FnO responsibly to reduce their cost basis and hedge risk using simple strats such as cash secured puts and covered calls.

Even addressing the last point alone would dramatically improve cash market liquidity. :pouring_liquid:

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STT on exercised options is even more and broker regulations on expiry are complex. So cash secured puts strategy becomes non-viable.

For covered call, there is no margin benefit even if person owns the underlying stock.

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Exchange margin benefits for CSP and CC should be worked out! :white_check_mark:

Very True ; realised this very late
Exercised 5 Stock PUT options recently ; While checking my contract note the charges were through the roof. I have mailed Z ; Only to realize later that this was the charges on exercised options.

@nithin ; Take this up with higher ups in your next meeting

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My demands

  1. Frequent changes in rules and regulations and implementation directly in the market hours with out proper educating the retail people

  2. They should utilise mock / special sessions on few Saturdays to implement new systems and give more educated guess works rather just typing endless English in plain pdfs

  3. STT should be abolished

  4. New systems should be introduced only once in a year and not randomly whenever they feel like .

  5. More policing requires on mafia / gangs who are advising and making money on reverse trades and internal trading .

  6. One single portal / link for all corporate voting rather than random links

  7. Single portal for all quarterly results in single format where layman can easily understand

  8. All quarterly results should be declared only on Saturdays so that people can study on sat and sunday and should not be released randomly on any day they feel like .
    All numbers should be reported in rupees not in dollars, if they have to mention they must mention both in rupees and dollors ( its quite irritating )

  9. For any glitch either of exchange or broker there has to be a return mechanism atleast the brokerage part and punishment should be given to responsible party mostly brokers as they dont care ( i belive they purposely glitch to get some outcome )

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Here is my Bet,
→ CAS is here to stay. Get used to it.
–>New Rules and regulations will come and changes are going to happen whether retail likes it or not.
→ STT is not going to be abolished. Lets just Pray/Hope no new charges are going to get added.
–>Fake advisory/Scams/Pump&Dump are here to stay. As long as people r greedy there nothing much to do here.
–>Charges(Brokerage) for Equity Delivery is coming in the future wether u like it or not.

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Your demands are not including some of the more important things because you are not fully aware of the loopholes in the system.

The payoff for a covered call is the same as that of a short naked put, but shorting a put scares me a lot more than a covered call :sweat_smile:. Does this even happen to u?

yes because bad news comes suddenly. “the market takes the stairs up and the elevator down” is a famous Wall Street maxim describing how stock prices rise slowly and steadily during a bull market but plummet rapidly and violently during a sell-off or panic.

But after Oct 2021 and Sept 2024 , we have not seen a strong bull market yet.

Believe me , a time will come when shorting a put scares you lesser than selling a covered call.

normally , market falls —> vix rises —> put premiums increase disproportionately

but i believe there must be situations when rising market —> vix rise ? @BB789 Your insights will be useful.

Probably only in case of “known” events like RBI policy or more demonstrably elections results. The move prior to the event may have iv rise + rising market. In those cases, even when market falls put premiums won’t rise as much - when the event is over, the same goes for call premiums - it’s a race between iv crash and market crash/rocket at that point - Delta move is usually underwhelming compared to sky high iv and iv crash “usually” wins!

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I always use futures for a covered call. As long as the market is efficient, no matter what happens to the VIX, the unrealized P&L of both positions will be the same. So I think it’s purely a psychological issue.

but can’t IV rise because the market rallied up more than expected, suddenly. Like an overextended bull run situation.

Or in a situation when everyone expected market to be mild bearish / sideways but it suddenly gave an unexpected up spike ?

It’s better to use equity holdings for covered call.

The downside risk is too much in futures.

What would you do if the stock suddenly crashes 10 % ?

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Can, but rare, especially with index. Because there is always a inherent simplistic assumption that index will rise. That’s why futures trade at a higher level than spot most of the time. If the expected interest over a month is 1%, near month futures will trade 1% above.

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