Trading Options

[SuperTrader]

Not a predictor MirAtt bhai. So can't put a time line.

[H.K]

Kya breakout hai :cheer:

ST Bhai, SM Bhai, general question about option strike price - I was carrying long 4800 CE, added long 5000 CE today morning. Now when 4800 is ITM, should one square off this and build positions with more OTM options as per one's views on market direction or continue holding options that have turned ITM? reason for this question is that change in OTM calls seems to be much more than ITM calls. Your views?

- HK

[SuperTrader]

Since Options are speculative instruments, options of strike prices OTM will always fall and rise more. It just reflects the anticipation, time value and the speculative quotient the option beholds. I won't advise to switch to OTM options. But next time, when you know something is going to breakout, try and buy OTM options. That is more cost effective and rewards in general are more.

If one is unsure or not that certain, then always be in ITM options.

In general,

Extremely certain about range expansion - OTM options
Uncertain about range expansion - ITM options.

[MurAtt]

Nifty ...





ST bhai .. now whats yr view wrt STER. 98-100 in 2/3 days dikhta hai ....

[SuperTrader]

Mere hisaab se to Nifty is just starting. Aage dekhte hain kya hota hai.

Re STER or any other beaten down counter, sab bhaagenge Nifty bhagega to.

Bears still have their pants on. So lets see how it goes.

[WULF]

Since Options are speculative instruments, options of strike prices OTM will always fall and rise more. It just reflects the anticipation, time value and the speculative quotient the option beholds. I won't advise to switch to OTM options. But next time, when you know something is going to breakout, try and buy OTM options. That is more cost effective and rewards in general are more.

If one is unsure or not that certain, then always be in ITM options.

In general,

Extremely certain about range expansion - OTM options
Uncertain about range expansion - ITM options.

Nice info...thanks!!!