Hotness Futures & Options Discussion in Stock Market

Hot Deal Futures & Options Discussion in Stock Market

957°
Missing
Deal Subedar
43
1518
26
Futures & Options Discussion in Stock Market

I have created a thread for f&o trading experience. Any one having strategies or their experience they want to share please try to share it .

Thanks https://cdn0.desidime.com/attachments/photos/616988/original/shutterstock_555531376-1024x536.jpg?1589517881

83 Comments  |  
46 Dimers
Missing
Deal Cadet
60
118
0

My suggestion to all option traders, you must follow some indicators like vwap, rsi & macd. I hope it will be helpful to all. Also another indicator money flow is important.
But at the end I believe no one is perfect in option trading, but only practice and self made strategies can make some differences.

Missing
Deal Cadet
188
572
6

My 2 cents here…
Been into future and options for 5 years, its the riskiest segment of all, newbies should avoid it at all cost. Me myself have blown my account twice trading it. Have got ZERO success in Buying options, and I haven’t meet or know one guy who has made a fortune out of it. Have made 50k from 10k and have lost 20k in secs many times..so  buying options is a big NO.

Secondly, one should only get into f&o if they are serious about trading as it needs full time dedication. It isn’t like equities, there are many factors which affects options pricing.

After a losing streak for straight 2 years, I tried my hands in short selling f&O( Even MORE riskier, and needs More margins), had made automated excel sheets, opted option trackers, tried every strategy which was present in the book. Had made custom multi leg spreads and what not. The only strategy that looked promising was iron condors in less volatile stocks but returns were not worth the time and efforts. Than there was weekly butterfly Bank Nifty spreads by guessing it’s expiry strike price using maxpain calculations and indicators but all were just based on luck. Tried Hedging future with options and vice versa. All in vain.

JUST WHEN YOU REALISE YOU HAVE CRACKED IT, THE VERY NEXT TRADE WILL PROVE YOU WRONG – many traders will agree upon this.

So long story short…
1.F and Options buying needs your complete attention, market can change anytime, u need to be on your toes otherwise u could lose a wining trade
2. get ready for many sleepless nights if you take deliveries.
2.selling f&O can only be done by pros, hedging needs timely adjustments, otherwise can can screw the deltas it has to be neutralized timely if one is looking for theta benifits.
SO untill and unless you are “comfortable” losing all funds and you won’t regret losing it you are most welcomed in this segment, IF you have witnessed some fancy trades like “making lacs with few thousands”, “Buying low at 5-10 rs and selling 100-200 rs” trades BETTER STAY AWAY, u will loose all funds coz that’s like buying lottery tickets and happens once in a blue moon.

Missing
Deal Newbie
140
85
1
flawlessking wrote:

My 2 cents here…
Been into future and options for 5 years, its the riskiest segment of all, newbies should avoid it at all cost. Me myself have blown my account twice trading it. Have got ZERO success in Buying options, and I haven’t meet or know one guy who has made a fortune out of it. Have made 50k from 10k and have lost 20k in secs many times..so  buying options is a big NO.

Secondly, one should only get into f&o if they are serious about trading as it needs full time dedication. It isn’t like equities, there are many factors which affects options pricing.

After a losing streak for straight 2 years, I tried my hands in short selling f&O( Even MORE riskier, and needs More margins), had made automated excel sheets, opted option trackers, tried every strategy which was present in the book. Had made custom multi leg spreads and what not. The only strategy that looked promising was iron condors in less volatile stocks but returns were not worth the time and efforts. Than there was weekly butterfly Bank Nifty spreads by guessing it’s expiry strike price using maxpain calculations and indicators but all were just based on luck. Tried Hedging future with options and vice versa. All in vain.

JUST WHEN YOU REALISE YOU HAVE CRACKED IT, THE VERY NEXT TRADE WILL PROVE YOU WRONG – many traders will agree upon this.

So long story short…
1.F and Options buying needs your complete attention, market can change anytime, u need to be on your toes otherwise u could lose a wining trade
2. get ready for many sleepless nights if you take deliveries.
2.selling f&O can only be done by pros, hedging needs timely adjustments, otherwise can can screw the deltas it has to be neutralized timely if one is looking for theta benifits.
SO untill and unless you are “comfortable” losing all funds and you won’t regret losing it you are most welcomed in this segment, IF you have witnessed some fancy trades like “making lacs with few thousands”, “Buying low at 5-10 rs and selling 100-200 rs” trades BETTER STAY AWAY, u will loose all funds coz that’s like buying lottery tickets and happens once in a blue moon.

bacha liya re baba blush

Missing
Deal Subedar
83
1678
38
…vERY RISKY…….

…Buy 8500 put at 56…and sell 2 lot of 8000 put at 18 each….so the net flow is 20 rs….Sl nifty 7999

…Max profit 480 rs( if nifty expires at 8000)…..max loss 20 rs(if nifty expires above 8500)….
Missing
Entertainer
103
15060
385

there is new poison back in market after killing many people last year (someone proudly showed in another thread, i want to learn STOCK), is selling weekly bank nifty options 3-4 days before expiry and letting it as it is so they expire at 0 and people make quick profits because you are not supposed to cover shorts if prices are below your selling price.

in comes 3 news, 1 was corporate tax package, 2nd bank recapitalization and 3rd bank restructuring and all money earned multiplied by 75 is lost within a second. i know 2 such guys, 1 who had to sell flat and another lost all his money, 27 lacs to be precise in no time.

fno is good for hedging when volatility is at low and there is a normal market. it looka awesome when volatility is high and people in whatsapp, telegram and desk next to you if you are in office flaunt about profits but when there is a profit maker, there is a loss maker too. so one should strictly avoid such gambles in options until you learn stategy to use so minimum loss occurs. futures on other hand is good for hedging though requires large amount and thus retailers run behind cheaper thing, option. only if cheap was best.

Missing
Deal Subedar
110
1609
86
marketdimer wrote:

there is new poison back in market after killing many people last year (someone proudly showed in another thread, i want to learn STOCK), is selling weekly bank nifty options 3-4 days before expiry and letting it as it is so they expire at 0 and people make quick profits because you are not supposed to cover shorts if prices are below your selling price.

in comes 3 news, 1 was corporate tax package, 2nd bank recapitalization and 3rd bank restructuring and all money earned multiplied by 75 is lost within a second. i know 2 such guys, 1 who had to sell flat and another lost all his money, 27 lacs to be precise in no time.

fno is good for hedging when volatility is at low and there is a normal market. it looka awesome when volatility is high and people in whatsapp, telegram and desk next to you if you are in office flaunt about profits but when there is a profit maker, there is a loss maker too. so one should strictly avoid such gambles in options until you learn stategy to use so minimum loss occurs. futures on other hand is good for hedging though requires large amount and thus retailers run behind cheaper thing, option. only if cheap was best.

Agree. I lost more than 6 months’ earning on just 1 day of corporate tax cut announcement.

I was lucky in the sense, it was not 75 times but it took away everything i earned.

Missing
Deal Cadet
26
431
7

Options are most risky, in the beginning with small bets i earned but later the strategies i was started getting failed. Ultimately tried the strategy again not working so withdrawn all the funds from my account and exit now doing paper trading to relearn and reenter with some good strategy. And this time i will go with futures.

Missing
Deal Cadet
26
431
7

Most important thing for options is it time value. Premium getting decayed every minute because of time value of money. If market remain stable or earn 10 or 20 points ur option will loose money. Beacause of time value. Options are like betting. Chance of winning is very low because it requires huge moment as per your prediction.

Missing
Deal Subedar
110
1609
86

Does anyone here trade in Currency F&O?

If yes, I have few queries. Like stock F&O where expiry is Thursday, here in currency it is Friday, right at what time ?

For weekly expiry in stocks, settlement happens base on spot price. But how settlement is done in Currency market for option trade? Is there any spot rate of currency? Because I can only see future price of USDINR & that too monthly contract. Then how they calculate ITM, ATM, OTM options at expiry?

Also I guess BSE & NSE both of currency trades available. Out of both where is better volume? How to search for BSE & NSE currency separately in say Upstox broker?

@marketdimer @flawlessking

Missing
Blogger
377
3030
63
flawlessking wrote:

My 2 cents here…
Been into future and options for 5 years, its the riskiest segment of all, newbies should avoid it at all cost. Me myself have blown my account twice trading it. Have got ZERO success in Buying options, and I haven’t meet or know one guy who has made a fortune out of it. Have made 50k from 10k and have lost 20k in secs many times..so  buying options is a big NO.

Secondly, one should only get into f&o if they are serious about trading as it needs full time dedication. It isn’t like equities, there are many factors which affects options pricing.

After a losing streak for straight 2 years, I tried my hands in short selling f&O( Even MORE riskier, and needs More margins), had made automated excel sheets, opted option trackers, tried every strategy which was present in the book. Had made custom multi leg spreads and what not. The only strategy that looked promising was iron condors in less volatile stocks but returns were not worth the time and efforts. Than there was weekly butterfly Bank Nifty spreads by guessing it’s expiry strike price using maxpain calculations and indicators but all were just based on luck. Tried Hedging future with options and vice versa. All in vain.

JUST WHEN YOU REALISE YOU HAVE CRACKED IT, THE VERY NEXT TRADE WILL PROVE YOU WRONG – many traders will agree upon this.

So long story short…
1.F and Options buying needs your complete attention, market can change anytime, u need to be on your toes otherwise u could lose a wining trade
2. get ready for many sleepless nights if you take deliveries.
2.selling f&O can only be done by pros, hedging needs timely adjustments, otherwise can can screw the deltas it has to be neutralized timely if one is looking for theta benifits.
SO untill and unless you are “comfortable” losing all funds and you won’t regret losing it you are most welcomed in this segment, IF you have witnessed some fancy trades like “making lacs with few thousands”, “Buying low at 5-10 rs and selling 100-200 rs” trades BETTER STAY AWAY, u will loose all funds coz that’s like buying lottery tickets and happens once in a blue moon.

True

Missing
Deal Cadet
51
200
0

Hame ye sab nahi karna.

Apna long position hi sahi hai. With little capital, its nice entertainment. You earn less, you lose less.
Sleep tight.

Missing
Deal Cadet
51
200
0

Daal roti khao, prabhu ke gun gaoo

Missing
Deal Newbie
50
20
1
drjpatwa wrote:

Does anyone here trade in Currency F&O?

If yes, I have few queries. Like stock F&O where expiry is Thursday, here in currency it is Friday, right at what time ?

For weekly expiry in stocks, settlement happens base on spot price. But how settlement is done in Currency market for option trade? Is there any spot rate of currency? Because I can only see future price of USDINR & that too monthly contract. Then how they calculate ITM, ATM, OTM options at expiry?

Also I guess BSE & NSE both of currency trades available. Out of both where is better volume? How to search for BSE & NSE currency separately in say Upstox broker?

@marketdimer @flawlessking

I think they take spot price from FBIL . FBIL daily publishes RBI reference rate.

Missing
Deal Subedar
33
2868
61

Is anyone part of a stock market group on whatsapp?

Missing
Deal Subedar
101
1185
15

Options are very risky..if u are starter then you have to get knowledge about theta,vix. Firstly don’t trade directly do paper trades if u sure then start trading. Options kisiko brbaad bhi kr skte h or aabad bhi.

Missing
Deal Subedar
101
1185
15

Start trading with zero hero option strategies which have minimum risk and maximum gains.

Missing
Deal Cadet
62
188
3

Get into F&O only if you have already mastered technical analysis and can profitably trade into equities market with 100% cash. Otherwise, it is too risky.

Missing
Deal Subedar
110
1609
86
Expand
anshu40485682 wrote:

I think they take spot price from FBIL . FBIL daily publishes RBI reference rate.

FBIL?

Is there any way to check this rate at real time during market hour?

Missing
Deal Cadet
83
260
3

Sorry for the noob query,

If I buy in future then will the stock delivered at expiry…how is it..

My assumption is if I buy ITC 28th May at 187, irrespective of price on that day I can get the stock into my delivery portfolio ?


Also can you please explain what is corporate tax effect?

Missing
Deal Newbie
50
20
0

I am an option seller. I work for a big firm which I can’t disclose. Option selling looks like a risky business but it’s not. You can always hedge your positions to avoid black swans. The only thing bad with option selling is huge margins. However I trade with a capital of 2cr and I short only index options. There are some strategies and some exit points.

Missing
Deal Cadet
255
650
41

I have learnt that buy only those options which has a low IV, generally less than 80. Also I prefer to buy only small options… generally around 1-2 rupees, so that if I loose, I loose less.

Further one more precaution I take is I never sell a option. Selling exposes to unlimited risk…buying limits the risk to the cost of option. Depending on your view…buy CALL or PUT.

Missing
Blogger
377
3030
63
int86 wrote:

Hame ye sab nahi karna.

Apna long position hi sahi hai. With little capital, its nice entertainment. You earn less, you lose less.
Sleep tight.

🙂

Missing
Deal Subedar
110
1609
86
Theoptionguy wrote:

I am an option seller. I work for a big firm which I can’t disclose. Option selling looks like a risky business but it’s not. You can always hedge your positions to avoid black swans. The only thing bad with option selling is huge margins. However I trade with a capital of 2cr and I short only index options. There are some strategies and some exit points.

Great to know that.
Can you share some knowledge here. Like how u hedge positional trades from black swan. How u adjust trade when it goes wrong? U do positional or intraday option selling? Weekly or monthly expiry?

Missing
Deal Subedar
28
2368
89
Expand
drjpatwa wrote:

Great to know that.
Can you share some knowledge here. Like how u hedge positional trades from black swan. How u adjust trade when it goes wrong? U do positional or intraday option selling? Weekly or monthly expiry?

Someone just said it right people who are in science background are more into this actually toungueout

Missing
Deal Newbie
72
31
0

mere bahot sare dost share market me lakhpati ban gaye, (by the way share market se pahle vo sab karodpati the.)

Missing
Deal Subedar
64
1220
5
apsaradoms47 wrote:

mere bahot sare dost share market me lakhpati ban gaye, (by the way share market se pahle vo sab karodpati the.)


https://cdn0.desidime.com/attachments/photos/618588/original/images_%287%29.jpeg?1590425962

Missing
Deal Lieutenant
57
5535
41
apsaradoms47 wrote:

mere bahot sare dost share market me lakhpati ban gaye, (by the way share market se pahle vo sab karodpati the.)

and many of my friend including me become crorepati only due to options

Missing
Deal Lieutenant
57
5535
41

be clear that market is not atm machine before coming to market make sure how much you can afford to loose and if any problem persist then work with me for single month definitely you may change your views

Missing