Kripakar kumble
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Option trading - concepts and how to use it ?

Kripakar Kumble at 05:10 PM - Jun 27, 2018 ( ) Views: 1,862

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Hi.. friends..

I am still learning  Option trading   and  its concepts.

Though i  know  PUT,  CALL, Open interest data,  and basic concepts of Gama, Theta,  Vega  etc...  

Can somebody explain how to use all these information conclusively to  get  a clear picture of the trend of stock or indices please...

All are welcome to post...


From: Kripakar kumble at 05:12 PM - Jun 27, 2018( )


Request all technical experts , Critics  and all freinds  to throw some light on these concepts please...


(1 to 20 out of 31) - Latest Replies on Top | First | << Previous | Next >> | Last |
Chennaraghavendra Raja at 08:25 PM - Jul 05, 2018 ( )

Copy Pasted.

Price Volume Open Interest Market Trend
Rising Up Up Strong
Rising Down Down Weak
Declining Up Up Weak
Declining Down Down

Strong

K.chandrasekaran K at 12:01 PM - Jun 30, 2018 ( )

When Put OI is more at any strike price than Call OI, Bull has upper hand.If Call OI is more than Put OI,

then Bears have upperhand. This is the general concept.

Kripakar Kumble at 10:36 AM - Jun 30, 2018 ( )

Am i correct  stephen  ji ?

Kripakar Kumble at 10:35 AM - Jun 30, 2018 ( )

Rakesh ji..

"Max pain "  point means....where a contract expires worthless  means zero.

This happens mainly when a contract buyer  holds his positions till expiry  and the value becomes zero

Stephin David at 10:26 AM - Jun 30, 2018 ( )
Kripakar Kumble at 10:14 AM - Jun 30, 2018 ( )

I have one question  or say doubt....... this may be elementary..... but please dont laugh at my ignorance..

For eg:

For every  sell  or buy  in option,  there is a buy  or sell  on the opposite side or not ?

ie.            If  somebody BUYing a PUT  means there is a SELLer  on the otherside ?

similarly  if   somebody SELLing a PUT  means there is BUYer on the otherside ?

Same applies to CALLs  also....

If open interest of  PUT has increased means,  who was stronger ?  SELLER   or BUYER ?  Is there anyway to conclusively know this ?  i mean  whether FII's  or DII's were sellers or buyers ?

 

Rakesh Dedhia at 10:11 AM - Jun 30, 2018 ( )

@Stepehn Ji

what is "MAX PAIN" where can we find that infromation or how is it calcualted.

Rakesh Dedhia at 10:11 AM - Jun 30, 2018 ( )

@K.chandrasekaran K

Many retialers will benefit form what u say!!! 

 

BUT,

option buying loss is limited n known so there only premium is enough.

option selling is like future trading unlimited loss and so some margin is required. 

 

Margin itself can change but justt not for selling options then for normal future also it has to change and that decission should be taken based on safety measures considerations.

 

Instead of chanding margin:

i feel actlly what is needed is change in lot sizes where the lost size is less then 1/2  half of what its currnetly is.

Beneift will be less margin required and also once the trade gets into loss big lot size creates panic whereas in small lot size retailers can wait and dont panic.

 

 

Kripakar Kumble at 09:58 AM - Jun 30, 2018 ( )

Thank you Pradip daa..  Stephen ji... Chandrasekharan ji...  for your comments

K.chandrasekaran K at 08:49 AM - Jun 30, 2018 ( )

In my view writing( selling ) options is the most profitable proposition most of the times, but it requires huge 

margin. That is why most of the retailers are not sellers, but only institutions and FIIs. And that is the reason

why retailers mostly end in losses. For buying either Put or Call, small margin will do. That is why option

option trading is heavily loaded against retailers. Margin is decided by I think NSE. So all retailers should

take up the matter with NSE or SEBI. In case MTM falls on selling, brokers can square up the position of 

retail sellers against thr margin money. i hope my above view is correct, if wrong, members can give

their views. My point is that same margin should be required for both buying and selling by retailers. 

Stephin David at 08:31 AM - Jun 30, 2018 ( )

Use the MAX PAIN only for positional trading or during expiry.

For the positional trade if current nifty value is away from MAX PAIN around 4-5% in nifty then take a trade which will leads to the you MAX PAIN. Otherwise do not give the much importance to the MAX PAIN when series is just now starting.

Stephin David at 08:21 AM - Jun 30, 2018 ( )

Abv 2 strategies might not work during the last week of expiry.

Stephin David at 08:19 AM - Jun 30, 2018 ( )

For positional/swing trading use the OI instead of CHG in OI.

Stephin David at 08:17 AM - Jun 30, 2018 ( )

For INTRADAY.

If the max (chg in OI at PE) > max (CHG in OI at CE) then it is a bullish market.

If the max (CHG in OI at PE)<max (CHG in OI at CE) then it is a bearish market.

I am in office will post more when i get the free time.

 

Pradip Ray at 10:11 PM - Jun 29, 2018 ( )

Kumble, you can take 10900 to 10500 as the range. Short term trader like me would uy a put near 10800 and a call near 10700. 

Alex R at 02:50 PM - Jun 29, 2018 ( )

Now a days away. But will update during free time and full access to systems.

Kripakar Kumble at 11:23 AM - Jun 29, 2018 ( )

Except  two members ........No posts.....??

Does this mean that nobody knows  ....about options ?

Kripakar Kumble at 11:06 AM - Jun 29, 2018 ( )

All are welcome to post...

Not only experts....all learners like me,  novice traders,  ...are  all welcome to post....

.

Kripakar Kumble at 11:01 AM - Jun 29, 2018 ( )

Hi...guys..good morning

Option experts...technical experts...

kindly post your views basis below data.... how to use all option trading tools to conclude that .where nifty  is heading.....?

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