Comment on Basics on Options Shorting/Writing

Nithin Kamath commented on 09 Dec 2014, 11:18 PM

Manju, Option writing has definitely better odds of winning compared to buying options, even if it is for intraday. Typically time value keeps reducing even during intraday and hence you benefit as an option writer. The only tricky thing is, if the volatility picks up, option premiums can suddenly shoot up. So short options when you think markets won’t be too volatile and buy options if you think otherwise,even for intraday.

View the full comment thread »