Options could be a complex exercise.
Option premium paid includes an intrinsic value and a time value. Time value decays down to zero on expiry. Any longs will have to take this into consideration. Time value also decreases towards deeper in the money. So the amount of profits in futures may not / will not be equal to the futures move. For example, if Nifty moves 50 points, the option may not move 50 points (moves around 30 pts, just to give you an example - also depends on where the strike is). But the profit percentage can be substantial due to lower investments. With current levels of volatility, during beginning of the month, if you are buying in the money as mentioned, you may have to cough up premium almost equal to futures margin! Of course, you can take the reverse, and, write options with time value working for you!
A small note - if you intend trading options in Nifty go for strikes of multiples of 100, and, NOT the in between 50s, where the volumes are low, spread is high.
However, with an excellent system like Nadodav's, option strategy can be formed, which could minimise loss and maximise returns. You need to be dynamic, and, need to change course during the day - that is my view. But before getting in, you need to be quite conversant in options. I have posted some material on options, maybe from cboe, quite old though. It is in 4shared, search for obook.zip.
