| Author |
Message |
   
Pplsuck
Side Hero Username: Pplsuck
Post Number: 4800 Registered: 07-2008 Posted From: 99.228.110.205
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 10:42 pm: |
    |
Jackjill:antha avasaram ledhu mesharu, pagala kottakunda unte maaku adhe padhi velu
antey mari adhi.....mana chetullo emuntundi maastaaru....dorikey chance ni batti untadi.......DB annaaka, kottadam kottinchukodam alaa invariable gaa jaruguthoo untaayi.........manam nimitthamaatrulam........ |
   
Jackjill
Side Hero Username: Jackjill
Post Number: 9000 Registered: 03-2008 Posted From: 209.6.89.215
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 10:25 pm: |
    |
Pplsuck:anyways, u r the financial guru................so I will just shut up...........but still assuming that I am mistaken and think of option sizes as uniform and type of blanket statements konchem too far emo..........u r the judge, jury and executioner in these matters.......so nuvvu elaa chepthey alaa....
antha avasaram ledhu mesharu, pagala kottakunda unte maaku adhe padhi velu  |
   
Pplsuck
Side Hero Username: Pplsuck
Post Number: 4799 Registered: 07-2008 Posted From: 99.228.110.205
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 10:20 pm: |
    |
Jackjill:edho keliki evadino correct cheyyali ani tamari tapatrayam tappithe, nenu oka padi saarlu chadiva, ponile ekkada aina typo undedho ani
sarele relax avvu.......I haven't seen any example of option equations without mentioning contract size.........or contract size not being part of calculation..........never heard of contract size 1......and the way option equation explained.......so it didnt make sense...........so most commonly used size that fits into your equation made sense......... anyways, u r the financial guru................so I will just shut up...........but still assuming that I am mistaken and think of option sizes as uniform and type of blanket statements konchem too far emo..........u r the judge, jury and executioner in these matters.......so nuvvu elaa chepthey alaa.... |
   
Conquas
Side Hero Username: Conquas
Post Number: 5570 Registered: 11-2011 Posted From: 99.82.251.78
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 10:16 pm: |
    |
Rajusk:i just wanted to understand why different Option strategies are used..
nenu meeku icchina link lo examples kooda vunnayi... stock tickers use chesi cheppadu... aa strategies enduku use chestharu ani kooda cheppadu aa link lo... meeku inka detailed ga kavali ante... http://www.optionseducation.org all opinions expressed here are mine.. |
   
Jackjill
Side Hero Username: Jackjill
Post Number: 8999 Registered: 03-2008 Posted From: 209.6.89.215
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 10:13 pm: |
    |
Rajusk:actually Pricing model ane word ni vaadi nenu mee iddarni confuse sesinattu unna
No worries, pricing has nothing to do with trading. But even these days lots and lots of floor options traders use Calculators. Asalu mee business ento telisthe kaani meeku elanti info avasaram untadho cheppalenu raju gaaru
Rajusk:i never meant to understand how Option prices are derived for a given stock..i just wanted to understand why different Option strategies are used..and how exchanges have to execute these..
Exchanges execute cheyyavu raaju garu, meeku oka market maker untadu vaadu chestaadu - Any of the option strategies consist of options of different strike price or on some calendar bets consists of different expiration dates, but mostly on the same underlying. Market maker/exectution broker ki each and every leg is a trade, but mee trader gaadiki net loss/gain/cost anedhi is based on one position(say in this example straddle). does this help? |
   
Jackjill
Side Hero Username: Jackjill
Post Number: 8998 Registered: 03-2008 Posted From: 209.6.89.215
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 10:06 pm: |
    |
Pplsuck:options explain chesthaa contract size em chesthaav.....equation lo gaayab antaavaa?........or you think Raju can understand all other variables that you mentioned....and contract size makes it complex?......... that too while talking stuff like this............I do not think anyone says this to a novice.......
samaja vara gamana hoy hoy samaja vara gamana enni yallo enni yallo hoy hoy endhi brother nee baadha, ippudu contract size mention cheyyakapothe emayyindhi -- what is the problem? Edho kelakataniki tappithe tamari post endhuku paniki vastadhi asalu - Raju gaariki futures ardhamayinayi because one sided derivatives avi, calls and puts antha easy kaadu - looks at the questions he is asking so step by step explain chesthe tappu emundhi and nenu contract size imply chesaanu annavu ekkada chesano koncham choopi - I said 200* 0.5 =100, and 100* 1 = 100, indulo implication emundhi , unte ignorance undaali kaani edho keliki evadino correct cheyyali ani tamari tapatrayam tappithe, nenu oka padi saarlu chadiva, ponile ekkada aina typo undedho ani |
   
Conquas
Side Hero Username: Conquas
Post Number: 5569 Registered: 11-2011 Posted From: 99.82.251.78
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 10:01 pm: |
    |
Jackjill:knowledhe kosam aithe
just knowledge kosam.... aa cocept ante ento telusukundhamu ani.. all opinions expressed here are mine.. |
   
Rajusk
Megastar Username: Rajusk
Post Number: 23464 Registered: 02-2008 Posted From: 24.185.0.74
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 10:00 pm: |
    |
Pplsuck:
Jackjill:
actually Pricing model ane word ni vaadi nenu mee iddarni confuse sesinattu unna i never meant to understand how Option prices are derived for a given stock..i just wanted to understand why different Option strategies are used..and how exchanges have to execute these.. |
   
Jackjill
Side Hero Username: Jackjill
Post Number: 8997 Registered: 03-2008 Posted From: 209.6.89.215
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:57 pm: |
    |
Conquas:emanna links vunte ivvacchu ga brother...
enti trade seseddam ane.. I suggest against trading these things bro, knowledhe kosam aithe google chesko chaala literature dorukutundhi seriously, you may need atleast 50k to trade these, and some may have exposure to 1 mil, movement of a tick may result in gain/loss of 5K.. nee deggara antha portfolio unte OK ! but derivatives are like drugs, you think you are very smart everytime you trade them and each and every time you loose money you think you have done some very small mistake. |
   
Pplsuck
Side Hero Username: Pplsuck
Post Number: 4798 Registered: 07-2008 Posted From: 99.228.110.205
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:57 pm: |
    |
Pulibongaram:urjent gaa koti roopaayal vache idea seppandi
nenu kooda JJ emannaa chepthaademo ani reading his posts....he is confusing me more..... |
   
Pplsuck
Side Hero Username: Pplsuck
Post Number: 4797 Registered: 07-2008 Posted From: 99.228.110.205
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:56 pm: |
    |
Jackjill:yaadiki poyinav, nenu yaada imply sesanu koosintha seepiyandi lekkala messharu gaaru
options explain chesthaa contract size em chesthaav.....equation lo gaayab antaavaa?........or you think Raju can understand all other variables that you mentioned....and contract size makes it complex?......... that too while talking stuff like this............I do not think anyone says this to a novice....... Jackjill:pricing mostly done on Black scholes model or real options model, so check which model you guys are using - Anyway, ee madhya Financial Engineers started to look for arbitrage opportunities in Option prices so they are writing their own models.
|
   
Conquas
Side Hero Username: Conquas
Post Number: 5566 Registered: 11-2011 Posted From: 99.82.251.78
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:47 pm: |
    |
Jackjill: commodity structered notes
emanna links vunte ivvacchu ga brother... all opinions expressed here are mine.. |
   
Jackjill
Side Hero Username: Jackjill
Post Number: 8996 Registered: 03-2008 Posted From: 209.6.89.215
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:47 pm: |
    |
Pulibongaram:urjent gaa koti roopaayal vache idea seppandi
very veezy, ekkadiki aina velli evarinaina adigi vallu isthe techuko  |
   
Jackjill
Side Hero Username: Jackjill
Post Number: 8995 Registered: 03-2008 Posted From: 209.6.89.215
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:46 pm: |
    |
Pplsuck:
yaadiki poyinav, nenu yaada imply sesanu koosintha seepiyandi lekkala messharu gaaru  |
   
Pulibongaram
Side Hero Username: Pulibongaram
Post Number: 3795 Registered: 03-2012 Posted From: 98.27.57.223
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:45 pm: |
    |
Jackjill:
Pplsuck:
urjent gaa koti roopaayal vache idea seppandi |
   
Jackjill
Side Hero Username: Jackjill
Post Number: 8994 Registered: 03-2008 Posted From: 209.6.89.215
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:44 pm: |
    |
Rajusk:raboye future lo aithe only Options ae...
have fun with IRs and CDS, ee madhya CDX, commodity structered notes kummio market lo ardham aithe mastu untayi lekapothe BTW, naaki fixed mein kaam karthi - I may be of help, if you need any. |
   
Rajusk
Megastar Username: Rajusk
Post Number: 23462 Registered: 02-2008 Posted From: 24.185.0.74
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:35 pm: |
    |
Jackjill:Not sure, if you deal with credit derivatives, but if you have to
raboye future lo aithe only Options ae... |
   
Jackjill
Side Hero Username: Jackjill
Post Number: 8993 Registered: 03-2008 Posted From: 209.6.89.215
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:34 pm: |
    |
Rajusk:10 years back eppudo maa exchange lo ee Complex strategies specs raasina BA gaani dimak kaa dum biryani sesi..adi ippudu nenu samajh sesukovalani ani naa boss aadesam... vaadu emo Trader nunchi BA ayyindu...manam Trader kaadu kada..anduke..appudu appudu vaadu use chese terms bouncers padthai..melliga ade alavatu aithade le ani aaguthunna..
10 yrs back ante kastam raju gaaru, market have evolved quite a bit - exotics have taken over the market - Barrier options, Knock- Ins, Knock-outs, Swaptions laantivi Not sure, if you deal with credit derivatives, but if you have to. That is an whole other world. |
   
Rajusk
Megastar Username: Rajusk
Post Number: 23459 Registered: 02-2008 Posted From: 24.185.0.74
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:30 pm: |
    |
Jackjill: He may execute different trades with different counter parties - Zero price anedhi, not quite guaranteed, as the Options prices also fluctuate.
aa algorithm sarigga execute aithunda leda anedi soodalsina pane naadi...anduke ee tippal.. |
   
Jackjill
Side Hero Username: Jackjill
Post Number: 8992 Registered: 03-2008 Posted From: 209.6.89.215
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:29 pm: |
    |
Rajusk:kaakunte..zero priced straddle orders pampistaru traders...(for whatever reason)..vaaniki correct execution price elthunda leda anedi verify avvali ante...manaki vaadu aa order enduku pampisthadu...vaatini enni rakalu gaa execute sestharu anedi telvale kada..ade ee prayatnam...
meeru etla cheptaaru, Raju gaaru, executing broker issue adhi - He may execute different trades with different counter parties - Zero price anedhi, not quite guaranteed, as the Options prices also fluctuate. |
   
Rajusk
Megastar Username: Rajusk
Post Number: 23457 Registered: 02-2008 Posted From: 24.185.0.74
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:27 pm: |
    |
Jackjill: you will create another "Knight capital"
10 years back eppudo maa exchange lo ee Complex strategies specs raasina BA gaani dimak kaa dum biryani sesi..adi ippudu nenu samajh sesukovalani ani naa boss aadesam... vaadu emo Trader nunchi BA ayyindu...manam Trader kaadu kada..anduke..appudu appudu vaadu use chese terms bouncers padthai..melliga ade alavatu aithade le ani aaguthunna.. |
   
Jackjill
Side Hero Username: Jackjill
Post Number: 8991 Registered: 03-2008 Posted From: 209.6.89.215
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:26 pm: |
    |
Pplsuck: paguluddi (brahmi squeezing icon).........yedo cheppaav morning.......okay le anukuni lite teesukunnaa......malla naa peru techchi....."mistaken" bokka bolu ani comments enduku chesaav?.............okka comment chesaanaa about global option sizes or option size being uniform........ in the example you have given, you implied 100 size and thats the only thing I spoke about........adi kooda honest mistake ani lite teesukunnaa when u said something earlier.........
edisav, ekkada 100 contract size imply chesaano seepi  |
   
Jackjill
Side Hero Username: Jackjill
Post Number: 8990 Registered: 03-2008 Posted From: 209.6.89.215
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:23 pm: |
    |
Conquas:akkada JJ cheppina dhanilo tappu emi vundhi..... i didn't get you...
I ignored contract size, ante most equity option contract size is 100 shares kada, but mana raju gaariki simple gaa seppdam ani I ignored it - mana pplsuck as usual, Mr.Right tried to correct me - kaadu andi - this is not an universal contract size ani seppio, daaniki ayaniki kaalindhi. Raju gaaru - Please check with your Data Integrity/Security Set up/TRade processing kind of data entry teams - mee Contract size set ups, Price multiplier set ups - vellu cheppinattu professional world lo hard code cheesaru ante - you will create another "Knight capital"  |
   
Pplsuck
Side Hero Username: Pplsuck
Post Number: 4796 Registered: 07-2008 Posted From: 99.228.110.205
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:23 pm: |
    |
Conquas:akkada JJ cheppina dhanilo tappu emi vundhi..... i didn't get you...
chinna tappundile brother......... Trade 1: Write (short) 200 Put options @ 0.5 = + 100 it should be 2 Put options not 200...........typo mistake anuko..... |
   
Pplsuck
Side Hero Username: Pplsuck
Post Number: 4795 Registered: 07-2008 Posted From: 99.228.110.205
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:20 pm: |
    |
Jackjill:ayya tamaru enjoy, subject lo nenu evvadithonu poti padalsina avasaram ledhu ikkada
paguluddi (brahmi squeezing icon).........yedo cheppaav morning.......okay le anukuni lite teesukunnaa......malla naa peru techchi....."mistaken" bokka bolu ani comments enduku chesaav?.............okka comment chesaanaa about global option sizes or option size being uniform........ in the example you have given, you implied 100 size and thats the only thing I spoke about........adi kooda honest mistake ani lite teesukunnaa when u said something earlier.........
Jackjill:and yah, thanks for correcting me without knowing the exchange of the option I was discussing was traded on
you are strongly welcome  |
   
Rajusk
Megastar Username: Rajusk
Post Number: 23454 Registered: 02-2008 Posted From: 24.185.0.74
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:18 pm: |
    |
Jackjill:Contract size is not consistent among the markets, pplssuck bro may have mistaken that we are just talking about Equity Options, but overall gaa options have no uniform global options contract size - Australian Options have 1K contract size, US options have 100 contract size, FX options some people go by Pips.
Contract sizes..for Futures/Options ivvanni baye haath kaa khel...akkada confusion ledu.....endukante adantha market data related kabatti..market data and equities market aithe ..twin towers padakamundu nunchi pani sesthunnam kaakunte..zero priced straddle orders pampistaru traders...(for whatever reason)..vaaniki correct execution price elthunda leda anedi verify avvali ante...manaki vaadu aa order enduku pampisthadu...vaatini enni rakalu gaa execute sestharu anedi telvale kada..ade ee prayatnam... |
   
Conquas
Side Hero Username: Conquas
Post Number: 5562 Registered: 11-2011 Posted From: 99.82.251.78
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:13 pm: |
    |
Pplsuck:In these above equations, you were using a contract size of 100 albiet in a wrong way............and I am the one mistaken.....
akkada JJ cheppina dhanilo tappu emi vundhi..... i didn't get you... all opinions expressed here are mine.. |
   
Jackjill
Side Hero Username: Jackjill
Post Number: 8989 Registered: 03-2008 Posted From: 209.6.89.215
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:12 pm: |
    |
Pplsuck:
ayya tamaru enjoy, subject lo nenu evvadithonu poti padalsina avasaram ledhu ikkada and yah, thanks for correcting me without knowing the exchange of the option I was discussing was traded on  |
   
Pplsuck
Side Hero Username: Pplsuck
Post Number: 4794 Registered: 07-2008 Posted From: 99.228.110.205
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:03 pm: |
    |
Jackjill:Contract size is not consistent among the markets, pplssuck bro may have mistaken that we are just talking about Equity Options, but overall gaa options have no uniform global options contract size
hehehe......nice comedy there...........
Jackjill:Trade 1: Write (short) 200 Put options @ 0.5 = + 100 Trade 2: Buy 100 Call Options @ $1 = -100
In these above equations, you were using a contract size of 100 albiet in a wrong way............and I am the one mistaken..... neelo maanchi kaamedy kooda undi...emo anukunnaa..... |
   
Farmer
Side Hero Username: Farmer
Post Number: 5515 Registered: 03-2012 Posted From: 174.253.144.94
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:00 pm: |
    |
Jackjill:
eval nuv...bombaii loo emi chese vaadivi |
   
Jackjill
Side Hero Username: Jackjill
Post Number: 8988 Registered: 03-2008 Posted From: 209.6.89.215
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 08:33 pm: |
    |
Rajusk:vaakey...samajh ayyindi..like Futures trades..the underlying is never traded...antavu..
Basics ki velthe, adhi correct inference and conclusion kaadu Raju gaaru. It depends on the security. I saw you mention Futures, so I am assuming meeku OTC - Forward contracts kooda idea untaayi ani, just like FWD's can setlle either in Cash or in-kind(physical) - The exchange Traded options can settle either way depending on the underlying. Let us take Stock Options, so the Underlying is an Asset, stock ane daniki oka value undhi - so even if the Options have to be exercised there is an underlying/physcial comoddity whicch can be delivered. But what about Index options ? index by itself is an "Imaginary Portfolio" - sarle kothaga people started using Options on ETF's such as SPDR, but okappudu QQQ meedha options ante they settled in cash. And please do not fall for the assumptions our brothers are putting into your head here, Contract size is not consistent among the markets, pplssuck bro may have mistaken that we are just talking about Equity Options, but overall gaa options have no uniform global options contract size - Australian Options have 1K contract size, US options have 100 contract size, FX options some people go by Pips. But basics, ardham avvali ante, what is a call and what is a put anedhi ardham chesukovadam very important. |
   
Rajusk
Megastar Username: Rajusk
Post Number: 23445 Registered: 02-2008 Posted From: 208.54.87.140
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 02:46 pm: |
    |
Jackjill:
vaakey...samajh ayyindi..like Futures trades..the underlying is never traded...antavu.. Migatha brokerage terminology avidea undi le.. Option pricing strategies okkate zara confusion |
   
Jackjill
Side Hero Username: Jackjill
Post Number: 8985 Registered: 03-2008 Posted From: 209.6.89.215
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 10:18 am: |
    |
Jackjill:ANthe raju gaaru, but Option Traders do not hardly exercise the option - most of them just sell the option the day before expiration.
i meant to say hardly exercise the option, because they trade options - they are tying to make money on their option positions not on the stock positions. They will get stock if they exercise, but most of the time option traders opt out of it. |
   
Jackjill
Side Hero Username: Jackjill
Post Number: 8984 Registered: 03-2008 Posted From: 209.6.89.215
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:50 am: |
    |
Pplsuck:2 put options and 1 call option. not 200 and 100.
- Akkada ayana ni Option position directional bet ee sarigga idea ledhu, nenu Contract size,Exchange Traded, difference between clearing broker and executing broker laanti sollu cheppatam avsarama, aha avasarama anta
Rajusk:Nee example lo, if underlying stock price goes above the cost of the transaction..then trader executes his Call option..avuna ?
ANthe raju gaaru, but Option Traders do not hardly exercise the option - most of them just sell the option the day before expiration. |
   
Pplsuck
Side Hero Username: Pplsuck
Post Number: 4793 Registered: 07-2008 Posted From: 99.228.110.205
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 09:12 am: |
    |
http://www.amazon.com/gp/offer-listing/0131871358/ref=sr_1_1 _olp?ie=UTF8&qid=1350825130&sr=8-1&keywords=options+made+eas y&condition=used Considered one of the most decent books to learn options.
Jackjill:Trade 1: Write (short) 200 Put options @ 0.5 = + 100 Trade 2: Buy 100 Call Options @ $1 = -100
2 put options and 1 call option. not 200 and 100. |
   
Rajusk
Megastar Username: Rajusk
Post Number: 23443 Registered: 02-2008 Posted From: 24.185.0.74
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 08:31 am: |
    |
Jackjill:
JJ, Nee example lo, if underlying stock price goes above the cost of the transaction..then trader executes his Call option..avuna ? |
   
Rajusk
Megastar Username: Rajusk
Post Number: 23442 Registered: 02-2008 Posted From: 24.185.0.74
Rating: N/A Votes: 0 (Vote!) | | Posted on Sunday, October 21, 2012 - 08:28 am: |
    |
One:
nenu trade cheyyadaniki kadu...office l lo pani cheyyadaniki |
   
One
Hero Username: One
Post Number: 16040 Registered: 09-2008 Posted From: 199.19.107.183
Rating: N/A Votes: 0 (Vote!) | | Posted on Saturday, October 20, 2012 - 10:29 am: |
    |
Rajusk:
its not easy bro....Need to spend lot of time or learn costly lessons (by losing money)..dont get into it |
   
Rajusk
Megastar Username: Rajusk
Post Number: 23439 Registered: 02-2008 Posted From: 208.54.87.220
Rating: N/A Votes: 0 (Vote!) | | Posted on Saturday, October 20, 2012 - 10:21 am: |
    |
Jackjill:
Thanks...digest sesukoneeki trying sestha |
   
Jackjill
Side Hero Username: Jackjill
Post Number: 8978 Registered: 03-2008 Posted From: 209.6.89.215
Rating: N/A Votes: 0 (Vote!) | | Posted on Friday, October 19, 2012 - 10:45 pm: |
    |
Rajusk:but each daaniki underlying price up poyinappudu em aithadi..does trader make money or loose money..etc scenarios is where the confusion is... 0 net price...strategies types kooda trying to understand
OK, before we discuss this topic, you not have to meet Mr.Call and Mrs.Put, but have to become good friends with them. Call - Right but NOT an obligation to BUY the underlying at a certain price(strike/exercise) on or before certain date. Put - Right but NOT an obligation to SELL the underlying at a certain price(strike/exercise) on or before certain date. American Options can be exercised on or before the date of expiration, where as European options can only be exercised on the date of expiration. Two primary attributes of these instruments are 1) Strike Price 2) Maturity/date of expiration. So when the underlying moves up, generally speaking, Price of a call options should move up and Put option should move down and vice versa when the underlying goes down. Zero cost Strategies - Conquas bro already edho link ichaadu, but simple terms lo meeku oka chinna example chepta, let us see if it makes sense to you. BTW, I am trying to keep it simple by picking an Equity Option strategy. Current Stock(underlying) Price: $100 Strike : $100 Maturity : Nov 2012(most of the equity options expire on third friday of the month) Call Premium : $1 Put Premium : $0.5 Bullish on stock(underlying) -- I neither have money to buy the stock nor the Call option(this what we buy when we are expecting the stock to go up). Trade 1: Write (short) 200 Put options @ 0.5 = + 100 Trade 2: Buy 100 Call Options @ $1 = -100 This is a synthetic Long Stock position, individual traders ki manaku transaction costs untaayi, professionals ki very minimal avi Does this make sense?? If you want to go deep into Greeks - elta,Gamma, Theta, Vega,Rho, we can discuss more. |
   
Rajusk
Megastar Username: Rajusk
Post Number: 23435 Registered: 02-2008 Posted From: 24.185.0.74
Rating: N/A Votes: 0 (Vote!) | | Posted on Friday, October 19, 2012 - 07:02 pm: |
    |
Conquas:
Jackjill:
Thanks bros |
   
Chintu002
Junior Artist Username: Chintu002
Post Number: 760 Registered: 04-2010 Posted From: 122.169.235.30
Rating: N/A Votes: 0 (Vote!) | | Posted on Friday, October 19, 2012 - 06:24 pm: |
    |
Options Indian markets lo manaki ooo madiri experience undhi  Chiranjeevi is my God! Jai Chiranjeeva! |
   
Conquas
Side Hero Username: Conquas
Post Number: 5544 Registered: 11-2011 Posted From: 99.82.251.78
Rating: N/A Votes: 0 (Vote!) | | Posted on Friday, October 19, 2012 - 06:20 pm: |
    |
Rajusk:
Raju gaaru... http://www.optiontradingpedia.com/options_strategy_library.h tm meeku ee link lo vunna starategies.... general ga andharu follow avutharu.... veetilo konni complex strategies vunnayi... meeku books kavalante.... naa daggara chala vunnayi..... but i don't think.... avi meeku anthaga use avuthayi ani..... aa paina link lovi chadavandi..... meeku emanna doubts vunte..... we can discuss here.... all opinions expressed here are mine.. |
   
Rajusk
Megastar Username: Rajusk
Post Number: 23433 Registered: 02-2008 Posted From: 24.185.0.74
Rating: N/A Votes: 0 (Vote!) | | Posted on Friday, October 19, 2012 - 05:46 pm: |
    |
Jackjill:Not sure what kind of business is yours, Strategies to execute ante chaala type untaayi - Naked Put, Covered Call, Stradle, strangle, butterfly laantivi.. is this what you are looking for?
ee complex vaati definition wise gaa naak telusu... but each daaniki underlying price up poyinappudu em aithadi..does trader make money or loose money..etc scenarios is where the confusion is... 0 net price...strategies types kooda trying to understand |
   
Jackjill
Side Hero Username: Jackjill
Post Number: 8977 Registered: 03-2008 Posted From: 209.6.89.215
Rating: N/A Votes: 0 (Vote!) | | Posted on Friday, October 19, 2012 - 05:38 pm: |
    |
Rajusk:maa kaada complex pricing ...strategies to execute unnai...avi samajh sesukoniki trying..
pricing mostly done on Black scholes model or real options model, so check which model you guys are using - Anyway, ee madhya Financial Engineers started to look for arbitrage opportunities in Option prices so they are writing their own models. Not sure what kind of business is yours, Strategies to execute ante chaala type untaayi - Naked Put, Covered Call, Stradle, strangle, butterfly laantivi.. is this what you are looking for? |
   
Rajusk
Megastar Username: Rajusk
Post Number: 23431 Registered: 02-2008 Posted From: 24.185.0.74
Rating: N/A Votes: 0 (Vote!) | | Posted on Friday, October 19, 2012 - 05:34 pm: |
    |
Jackjill:ardham avvakapothe db lo post cheyyandi nenu explain cheyyataniki try chestaanu, naadhi finance background
avvani sadivina... maa kaada complex pricing ...strategies to execute unnai...avi samajh sesukoniki trying... ade ae vere asset class aithe ...manaki baayen haath kaa khel.. options manaki eek point.. |
   
Jackjill
Side Hero Username: Jackjill
Post Number: 8976 Registered: 03-2008 Posted From: 209.6.89.215
Rating: N/A Votes: 0 (Vote!) | | Posted on Friday, October 19, 2012 - 05:33 pm: |
    |
dont waste money on books, investopedia.com or even wikipedia ki velli oka link taruvaatha inko link chadavandi ardham avvakapothe db lo post cheyyandi nenu explain cheyyataniki try chestaanu, naadhi finance background |
   
Rajusk
Megastar Username: Rajusk
Post Number: 23428 Registered: 02-2008 Posted From: 24.185.0.74
Rating: N/A Votes: 0 (Vote!) | | Posted on Friday, October 19, 2012 - 05:25 pm: |
    |
Ustad:
Bump for Conq/ New_user need info on what books to read to understand trading..of Options... basically to understand from a Trading perspective... need it for my job..not for real trading.. |
   
Ustad
Hero Username: Ustad
Post Number: 11328 Registered: 07-2008 Posted From: 76.173.42.79
Rating: N/A Votes: 0 (Vote!) | | Posted on Friday, October 19, 2012 - 03:42 pm: |
    |
Rajusk:evaraina unte attendance ivvandi fleez
New_User, Con & few other folks. Fan of Fab 5: Sachin, Rahul, Saurav, Laxman and Kumble.
|
   
Rajusk
Megastar Username: Rajusk
Post Number: 23409 Registered: 02-2008 Posted From: 24.185.0.74
Rating: N/A Votes: 0 (Vote!) | | Posted on Friday, October 19, 2012 - 03:25 pm: |
    |
evaraina unte attendance ivvandi fleez |