Just for knowledge how do you sell exactly when you say SELL at CMP 10800 ??? Buy a put ? if yes, what will be the strike price ? 10700 PE or 10600 PE ? Can you please elaborate ?
thanks in advacne
Greg
viky.mat
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@gregferns, offcourse , sell means u need to buy PUT, choice is urs, to buy PUT for 10600 or 10500 or 10700. IV & Time Decay plays important factor though
UnknownUnicorn3947190
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@gregferns, You can buy put, if your risk reward favors. For us we generally deal in futures or in the money options.
So basically you can either BUY a PUT or SELL ITM CE ?? or deal in FUTURES (which if i'm not mistaken requires a lot of margin money) ??
regards
UnknownUnicorn3947190
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@gregferns, Correct. If you think stock will go down. Then you can sell call option or buy put option (both have some benefits & drawbacks).
Yes, for futures you need substantial margin.
thanks in advacne
Greg