Comment on Basics on Options Shorting/Writing

Digvijay commented on 10 Jun 2015, 06:00 PM

Hi Nitin,

First of all, I have no words to appreciate your initiatives in the form of Varsity, PI, Nest, Span Calculators, Blogs, low brokerage, sustained credibility and many more. However, I would still use much underplay word against your work as “THANK YOU”

My questions are regarding trading:

1. Do you suggest options are less riskier than future trading?
2. Do you suggest options writing is better than option buying?
3. I have been trading options buying, delivery & Futures but would like to venture in Options Writing. So my query is: Nifty Spot – 8100; I believe that it will not go beyond 8700; so I shorted Call of strike price 8700 at (for e.g.) 2.90 means 72.5 apx premium received. Now, if I see that nifty is trending upwards, so can I buy that call back if nifty strikes 8700 to limit my loss and close the position at the breakeven? If this works then why we say there are unlimited losses in option shorting when people can watch and close their trades at the breakeven all the time?

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