Comparison of #Nifty & 10000 CE
When Nifty created a higher low from 7511 to 8055 then you can see even after 500 points rally, 10000 CE price dropped from 87 to 16 (81% drop), that shows clearly that everytime is not a option buying time. Image
After that when Nifty moved up from 8055 to 9131 then after 1100 points rally 10000 CE price appreciated upto 97 that is roughly 10 points higher than the price when nifty was trading near 7511 level on 25th March,2020
In layman terms, Nifty rallied 7511 to 9131, that is great up-move of 1600+ points in a few days and Nifty 10000 CE appreciated by 10 points only!
There are many people who are highly interested to buy far money CE or PE with an expectation of 10x or 20x return in short span of time, ultimately they end up with losing their hard earned money. We must accept that stock market is well prepared with their instruments.
We shall look into the time when the options are offered to buy or sell, if uncertainty is higher then you have you pay extra premium to buy the option, so only blind betting won't help in long run to create wealth. Volatility plays a vital role in calculation of premium.
Delta, Theta, Gamma, Vega are variable in nature and a retail trader who normally buy an option, can't track or use them properly. So, an option buyer shall understand the time when he is buying option, if uncertainty is higher, then very less chance is there to make profit.

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Joy Mukherjee ❄️

Joy Mukherjee ❄️ Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @JoyMukherje

Jun 19, 2020
How to Make Money in Stock Market❓

• Fix Your Loss: How much loss you can afford? Fix that amount and trade with that much amount of risk. Risk reward ratio shall be calculated.
• Be Ready to Book Loss: Once stop loss is triggered, exit. Because you know that in next few trades you'll make much more than the previous loss. Be happy when market makers beat you.
• Follow a Proven Technique: Trade with a technique that works with 50% accuracy or higher. Most of the professional traders are happy with only that much accuracy, retail traders are searching for a sure-fire means of beating the market.
Read 5 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!

:(