Comment on Option buying: The riskiest trade out there

Nalin commented on 23 Jan 2022, 10:40 AM

I think the biggest problem for all retail traders is the tricky route thay have go to implement stretegy. If i have 3 lakh capital and i just like to prefer to do short strangle or straddle. Which i can only do with 2-2 lots of NiFTY each. Now if supposed there are days when i want to make deep OTM short iron condor with more lots i cant use the 3 lakh capital even when the inbuilt calculator is saying i need 2.8 lakh or something to execute with 10-10 lots. The issue is buying 10-10 call-put of Deep OTM option is what required 1st to get margin benefit but according to the system i HAVE TO short 1st for that you need 1 lakh per lot. This is nonsense. And even if i start executing this 1 by 1 the brokerage generation will be huge and my profit very less and probably neutral or loss most days. 😑 Theres nothing good in Zerodha if u want to work on stretegy but if u want to do straddle or strangle or directional trade it is just fine. Still i hate that normal people dont see the Major fault that result in losses in stretegy but only zerodha or some big brokerages for the company from single client. Im gonna find someone else who can let me do what i want. 2 years people were doing short intraday with 20 k per lot now its above 1 lakh for nifty and BN at 1.5 lakh its all a ploy to suck small capital trader to trade with buying and ultimately loose money in options.

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