'. .. is trading option against trading equities a bad choice ?"
- Sorry, cant say, I dont know, As I hardly trade equities intraday. But you are right, most part of profit (or loss
) goes to cost of trade (brokerage, if per trade and taxes etc)
"Now this is i want to ask ... that can an option behave inversely to stock price in ANY CASE ??"
- Yes, it can, particularly on big event days, like company results, Fed meet, RBI meet etc, when IV is on the higher side and so the options prices (both call and put) are on the higher side than it should be. So for option buyers, the strategy will be different in such cases, to get out of trade a bit early, how much early, that depends on market movement. Or a novice can avoid to trade on such days, it is not necessary to trade all events. And secondly on sideways.narrow range days.
BTW, these are the cases, when there are full chances that both put writers and call writers may make money (but not 100% foolproof). Otherwise, in most of the trades either of one will make money and other side may loose heavily.
.. will the greeks help me out here ? If that it is the case ...then i will learn it .
I dont know. Knowledge in any form is good, and one should get it, gain it.
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hmmmm, on SL
Will you let me know
what will be your SL (I mean how far it will be in points) when you are trading Reliance, SBI (equity, future and ITM options), BN (future and ITM options),, Nifty (future and ITM options),)
This question is open to all for their comments
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