Options Buying Vs Selling - L3 | Free Options Trading Course
Published: 2024-09-11
Status:
Available
|
Analyzed
Published: 2024-09-11
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Option selling requires a minimum capital of ₹1 lakh.
"For option selling, you need a minimum capital of ₹1 lakh."
Pending
Option buying can be done with small capital, while option selling requires substantial capital.
"you can buy option even with a very small amount in option buying, for option selling you need a huge capital without It's not possible for large capital."
Pending
The success rate for options buyers is 33%, while for option sellers it's 67%.
"in the stock market the probability of an options buyer being successful is 33 and the probability percentage of an option seller being successful is 67"
Pending
Option sellers don't need to predict market direction, but rather where it won't go.
"as an option seller you do not have to predict where the market will go. You just have to predict where the market will go."
Pending
Option sellers focus on predicting market limits, while option buyers must predict exact price movements.
"what the option seller has to be told is that even if the market goes up or down, it won't go above this level. But the option buyer has to be told exactly where and how much the market will rise or fall."
Pending
Option selling requires at least ₹1 lakh in capital.
"option selling requires a lot of capital, a minimum of ₹1 lakh."
Pending
A future lecture will cover a method to start option selling with significantly reduced capital, potentially 30-50% of the usual requirement.
"In the next lecture, I'm going to tell you a method by which you can start option selling with very little money. Although it wo n't be as low as buying options, but it can be more than 50, 60, or 70 percent."
Pending
Combining both option buying and selling to create a personalized trading strategy is recommended.
"I suggest is combining both buying and selling options. By combining them to create your own trading strategy, creating a proper plan and framework."
Pending
Selling one lot of options costs around ₹140,000, significantly more than buying options.
"for selling one lot of option, it is costing you ₹ 2380, that is, what was being done there for ₹ 800 or ₹ 6000, here it is costing ₹ 140000"
Pending
There is a significant difference in capital required for option buying (around ₹5,000,000) versus option selling (around ₹87 for the same call option).
"in option buying it is costing ₹ 5000000, something close to that and for selling the same call option, it is costing you ₹ 87"
Pending
Option sellers profit by predicting that the market will not go beyond a certain level, rather than predicting exact price movements.
"option seller does n't have to be told what's going to happen in the market; instead, they have to be told what can't happen in the market. ... the option seller feels that it can't go above ₹150."
Pending
Option sellers, often institutions with teams and data, have a higher probability of becoming profitable due to their analytical capabilities.
"Because it's believed that option sellers have a team ... they have data on the market ... the chances of an option seller becoming profitable are higher"
Pending
Options trading can be used effectively for hedging equities, with put options costing a small premium (e.g., ₹10) and potentially saving significant losses if the stock price falls.
"you can use options trading in a very profitable and economical way in your trading career or trading journey. If you trade only equities, suppose you have hdfc0005010, then at most, the premium you have paid to purchase the put option will be ₹10. But if your analysis is correct and that price actually falls, then you can save yourself a huge loss"
Pending
A method to start option selling with significantly less capital (50-70% reduction) will be taught in the next lecture.
"in the next lecture, I'm going to tell you a method by which you can start option selling with very little money. Although it wo n't be as low as buying options, but it can be more than 50, 60, or 70 percent. You can sell options by reducing your price."
Pending
An option seller's prediction is that the market will not exceed a specific level (e.g., ₹150).
"the option seller feels that it can't go above ₹150."
Pending