Comment on Option buying: The riskiest trade out there

Nithin Kamath commented on 04 Jul 2021, 11:56 AM

hmm.. while what you can lose is limited to the premium, how fast/easy you can lose is based on the total exposure. I am not saying don’t buy options, but don’t buy them for more than 5% of the capital. Buying options is almost like buying a lottery ticket. If you had 1lk in your bank, you would not go buy Rs 1lk worth of lottery, is it?

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