Futures & Options Discussion in Stock Market
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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 
I am using this free app it helps all time https://play.google.com/store/apps/details?id=c...
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 
…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)….
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.
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.
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.
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?
I think they take spot price from FBIL . FBIL daily publishes RBI reference rate.
https://www.vcharting.com/metatrade...hp
This is a good place to get real time market data. 
for 400/month.
No recommendation or anything. But this should be a must have tool for day traders.
🙂
Is anyone part of a stock market group on whatsapp?
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.
Start trading with zero hero option strategies which have minimum risk and maximum gains.
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.
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?
SEBI has now mandated Compulsory delivery of Shares. But not all brokers allow it. Many square off position one or two day before to avoid this. As you need full margin in your account and in case you are selling futures you need shares in your account on expiry day.
For more https://zerodha.com/z-connect/queries/policy-on...
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?
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.
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
There’s hardly any difference between Trading and Gambling. Novices are bamboozled by Professional Gamblers. Similar stuff happens here. Anyone who thinks its free money and are entitled to income just for showing up will be for rude awakening.
Stock market is a zero sum game….so if I loose money someone else has earned that money….so if someone is saying he/she has become crorepati he is waiting for someone like us to loose money so he gets that money
Yes. But winners are 5% which gets the share of income of rest 95%.
I have seen veteran traders running training business…if someone is so good in trading earning crores why the hell is he wasting time in training…not sure if he earns money in trading but earns lacs in training for sure…just think
Trading is too much Stress . Training on other hand is stress-free business. It doesn’t matter if your trainees fail or succeed you get your regular paycheck stress free.
You can visit wallstreetbets on Reddit. You will see numerous folks turning few thousand dollars into 600-700K USD and some losing it all in options.
They also have cheapest software with free trial for desktop give it try if anyone thinks will help..(it always helped me)
Brother, I am currently doing OTM PE selling for damn good stocks to enjoy premium, if they come to selling price, i buy the stock lot . Only problem is, I am unable to indentify at what premium I need to sell and also when i need to sell, If you have any views, Please do share bro.
You will learn that only through practical application and experience. I’m following the same strategy and facing same issues but with time my trades are getting better
Also share from where to start it ???
I have something to share to this thread. I am trading in F&O for last 4 years and also have investment experience of 4 years. It may not be much but i have learnt a good strategy to make regular income from stock market.
Strategy – Let’s say you wish to invest in hdfc bank, whos current price is 1000 rs but you want to enter at lower level, let’s say at 900.
So what you can do is sell put option of 900 at 10rs (hypothetical) for current month expiry. So if the stock price falls below 900 in the same series, you can take the delivery of those shares at expiry. If it doesn’t fall below 900, you will anyhow earn the 10 Rs that you have sold the option for.
You can continue this strategy forever. The only problem is that lot size is little big so you would need a decent amount of capital.
Option buying is like gambling but selling is like owning a casino and allowing others to gamble. Mostly sellers earn but sometimes buyers win too. You can apply this strategy stock u want to invest
Once otm become itm, do u buy in equity or future long.
Wow i didn’t know desidime had so many stock market guys.. Dd should keep a permanent thread to discuss about fundamentals, news etc regarding stock. Like stockedge. I hope they take this suggestion as there is good money to be made from such service
Check this out
One must have confidence like as Its your own and drive business. Stocks are like your products. You must know how and when to sell. F&O is a tough game. But share market is good for investors. One must be greedy… If stock reaches as per the target sell and make profit. People get struck thinking it will give more return always ..stay invested in good sticks. Out of 10…stocks 7 would give profit
in recent days, selling bank nifty call and puts had become in-fashion for people who wanted to become rich overnight. just selll option 3-4 days before settlement and enjoy premium drying up, cover when premium is 1 re to 5 paisa on last day. today, many call sellers are trapped and will lose everything in market, lifetime earning will be lost. no one expected bank nifty will be up and up by 3% and there is even 1 more day left for settlement. tomorrow, if bank nifty rises, call sellers will be doomed, if it falls, put sellers will lose all money they had. matlab waat lagna dono taraf se pakka. paisa kamana itna asaan hota to dalal street mein ecperience aur finance padhne wale nahi, dunia bhar ke anpadh baithe hote. 
Aaj hi itna rise ho gaya..bank nifty near 18500 …option sellers ke toh lag gaye aaj
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.