Comment on Greek Interactions

Ranjan Malav commented on 21 Sep 2017, 09:42 AM

Hi Karthik,

I have following questions.
1. If I want to use volatility cone to find trading opportunities, do I have to calculate this cone for each underlying in which I’m interested or these values are readily available? I know IndiaVIX is volatility index of all the stocks but I feel it won’t depict correct conditions of any particular stock.
2. I know you told there is no particular checklist while trading options, but I was hoping if you can give some steps to do before starting a trade. I read all the chapters and have understood all the concepts but when it comes to trade I still feel I might miss something since there are many factors to look at.
So not a strong checklist like you mentioned in TA but just a few steps for newbies.
Something like this I have in mind for naked trades-
Step1 – find your view on underlying ofc
Step2 – choose a expiry based on liquidity and trading time
Step3 – pick put/call strikes based on time to expiry and check premiums
Step4 – check volatility, buy when volatility is low, short when volatility is high


View the full comment thread »