Nifty or Banknifty for option selling? 🧵
There are times when i have traded exclusively in bnf for atleast a couple of yrs, when the weeklies got introduced.
Stopped trading in it for an yr when nf weekly got introduced & bnf started having price freeze issues on expiry days.
There are times when i have traded exclusively in bnf for atleast a couple of yrs, when the weeklies got introduced.
Stopped trading in it for an yr when nf weekly got introduced & bnf started having price freeze issues on expiry days.
Idea has always been to master just one index.
Before the introduction of bnf weeklies, there was no other choice than nf monthly options. Bnf monthly didn't have good liquidity as compared to nf at that time.
Even next month nf options had better liquidity than bnf options.
Before the introduction of bnf weeklies, there was no other choice than nf monthly options. Bnf monthly didn't have good liquidity as compared to nf at that time.
Even next month nf options had better liquidity than bnf options.
But now the liquidity is not an issue in any of the index. Option prices don't freeze in bnf anymore.
Currently I'm flexible enough to trade in both, many a times switching from one to another in intraday itself.
Have also tried cross hedging them, but the results were varied.
Currently I'm flexible enough to trade in both, many a times switching from one to another in intraday itself.
Have also tried cross hedging them, but the results were varied.
Not limiting to one index increases the opportunities manifold.
It is a misconception that bnf is only wild which is why it gives better premiums. Nf sometimes can be a beast in itself & give better directional moves or better falling premiums to write specially during high vix.
It is a misconception that bnf is only wild which is why it gives better premiums. Nf sometimes can be a beast in itself & give better directional moves or better falling premiums to write specially during high vix.
So if you are stuck with one index, i would suggest to not completely ignore the other index.
Better opportunities keep coming if we expand our horizon.
| would still not look at stock options though because of liquidity issues, but with indices there isn't a problem at all.
Better opportunities keep coming if we expand our horizon.
| would still not look at stock options though because of liquidity issues, but with indices there isn't a problem at all.
It would make a lot of difference if finnifty gets some liquidity as well. And having a different expiry day can be a game changer for indian option market.
But until that happens or not, keep looking at both the indices for the best opportunities in option selling.
But until that happens or not, keep looking at both the indices for the best opportunities in option selling.
It sounds tough when one is unable to properly track one index. But there are days when trading in one particular index is useless.
So try to objectively find which one is currently giving better moves best suited for your strategies.
No index gives smooth ride each time.
So try to objectively find which one is currently giving better moves best suited for your strategies.
No index gives smooth ride each time.
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