Strategies with Liquid Options only
Illiquid options are those without frequent trading. Most of the Options are illiquid. And that gets us into traps such as:
- Not getting a trade to exit when you want to get an exit
- Getting a wide bid-offer spread, and paying for it
- If you are stuck in an illiquid single stock option towards the expiry and not getting an exit, you will have to take physical delivery of the stock. That will be super expensive
Long story short, you should be staying far away from illiquid options
So which ones are liquid options?
- Nifty, Bank Nifty, a few big stocks, or stocks where there is news or events
- At the money options (ATMs) and Out of the Money Options (OTMs) near the ATM. In the money options (ITMs) are usually illiquid
- Near month expiry for stocks, weekly expiries for Bank Nifty and near weeklies and monthlies for Nifty
How do you know if an option is liquid?
Simple. Look at the bid-offer ladder. If the price difference between the bid and offer is wide. How much this difference is, varies from stock to stock, and requires a little bit of experience.
Sounds tough. Is there an easy way out?
Yes, there is! You can forget all of this and just trade in only those stocks which are liquid, with the Strategies Wizard by Sensibull
How does it work?
Very simple.
- You tell us your prediction on an index or stock
- We will tell you the best liquid option trade for that.
That’s it! Simple as that
We create options strategies using only liquid options. We have our internal secret sauce for filtering the illiquid ones, which is a combination of trading frequency, volume, OI, etc.
Strategies Wizard
Try the New and Improved Strategies Wizard here
Regards,
Team Sensibull
Why ” making profit in derivatives market for a retail trader is absurd dream “?
Using ur internal secret sauce , I lost huge amount ..u told one stock is liquid and I entered ..then could not exit due to big spread and lost money …pls don’t recommend wrong thing if u are not sure ..and at least have a customer care service
I had a similar issue while trading index options. So the only way out is.. When you enter the trade the options might be liquid but the situation might not be the same while exiting the trade So you need to have constant look at the spread when you see the spread is increasing it is better to exit the trade than to wait till expiry. Sensibul will be useless in that case you will have to monitor this by yourself.
Would it be a good strategy to buy nifty bees for long term (as an investment) and keep selling call options month after month to improve returns?
created curiosity to get more details..need to know complete information. Interested to work as per this strategy. Tell me how
If you are a beginner you can trade by just saying if the market is up down or neutral https://web.sensibull.com/easyoptions
Free advisory service by trusted experts with good profits and small losses – https://web.sensibull.com/advice
Practice futures and options trading without real money – https://web.sensibull.com/linktopaper
Set real-time price and P&L alerts on Whatsapp – https://web.sensibull.com/alerts
Tell us a stock’s direction, we tell you the best option strategy to trade – https://web.sensibull.com/options
Create custom strategies to trade your view and visualize the P&L – https://web.sensibull.com/builder
Track your positions and do scenario analysis of your trades – https://web.sensibull.com/positions
Get great trading opportunities with advanced tools like Option chain, FII data, Open Interest, IV, IVP etc
Become an expert with free education in Hindi and English- https://web.sensibull.com/education
Watch a 4-minute demo video here – https://youtu.be/6IP-3PkEXI4
Kite- kindly work on your orders during 3-30 pm timings..I have lost almost 70k as my exit orders were not executed during 3:15 time frame…it says error while executing the order..what bullshit .. instead of giving alternative options to the customer why don’t you work and make your existing portal better..
What is the error you see when placing orders?
What’s the minimum capital required and your charge details. Thanks n regards.
Depends on what you trade. USDINR can be done for as less as 3000 Rs.
What is your charges on one request
Depends on what you trade. USDINR can be done for as less as 3000 Rs.
You can see that here:
https://web.sensibull.com/profile
Team Zerodha, what happens when I sell a XYZ share option and on expiry if it is worthless? Will there be any share settlement? When I sold the option I got the contract note with the required charges. May I know or direct me to other link where I can see the said document with required charges on expiry. Thanks.
Banknifty weekly options are world’s most liquid , highest multibagger and lowest brokerage option in equity.
i want know about itc, SBI & INFY, AXIS BANK
Its created curiosity to get more details..need to know complete information…
Sensibull is India’s first and largest Options Trading Platform. We made Sensibull to make small traders like you and us win in stock markets.
Options trading has more profit potential than stocks, mutual funds, intraday trading, etc. You can trade options with small losses – which means trading with peace of mind. Options can make money when markets go up or down.
We built a simple, super-fast trading software for beginners and experts. Here is what you get:
If you are a beginner you can trade by just saying if the market is up down or neutral https://web.sensibull.com/easyoptions
Free advisory service by trusted experts with good profits and small losses – https://web.sensibull.com/advice
Practice futures and options trading without real money – https://web.sensibull.com/linktopaper
Set real-time price and P&L alerts on Whatsapp – https://web.sensibull.com/alerts
Tell us a stock’s direction, we tell you the best option strategy to trade – https://web.sensibull.com/options
Create custom strategies to trade your view and visualize the P&L – https://web.sensibull.com/builder
Track your positions and do scenario analysis of your trades – https://web.sensibull.com/positions
Get great trading opportunities with advanced tools like Option chain, FII data, Open Interest, IV, IVP etc
Become an expert with free education in Hindi and English- https://web.sensibull.com/education
Watch a 4-minute demo video here – https://youtu.be/6IP-3PkEXI4
I want to know about sbi, ICICI, and Tata motor
Why not showing my portfolio.
I am interested in it. Eager to know more.
Interested to get call / put option of Banknifty & Nifty.
Hi!, I am your user since last few months and as you do work on the potential improvement feedbacks/suggestions given by the clients, I request you ‘to improve the trading view charts, they have a lot of bugs and especially if you could put an option of auto-saving the analysis on the charts like in the Zerodha original charts’.
Thanks for your service.
Want to know more about it….
Sensibull is India’s first and largest Options Trading Platform. We made Sensibull to make small traders like you and us win in stock markets.
Options trading has more profit potential than stocks, mutual funds, intraday trading, etc. You can trade options with small losses – which means trading with peace of mind. Options can make money when markets go up or down.
We built a simple, super-fast trading software for beginners and experts. Here is what you get:
If you are a beginner you can trade by just saying if the market is up down or neutral https://web.sensibull.com/easyoptions
Free advisory service by trusted experts with good profits and small losses – https://web.sensibull.com/advice
Practice futures and options trading without real money – https://web.sensibull.com/linktopaper
Set real-time price and P&L alerts on Whatsapp – https://web.sensibull.com/alerts
Tell us a stock’s direction, we tell you the best option strategy to trade – https://web.sensibull.com/options
Create custom strategies to trade your view and visualize the P&L – https://web.sensibull.com/builder
Track your positions and do scenario analysis of your trades – https://web.sensibull.com/positions
Get great trading opportunities with advanced tools like Option chain, FII data, Open Interest, IV, IVP etc
Become an expert with free education in Hindi and English- https://web.sensibull.com/education
Watch a 4-minute demo video here – https://youtu.be/6IP-3PkEXI4
How can I reach your help
help at sensibull dot com. There is also chat support
Banknifty 32000 ce dec 19 expiry can buy ?
what about PC jewelers
I AM INTERESTED IN IT TO GIVE THE BEST IDEAS.
Need to understand what is derivate trade and also how to proceed
May I help you with this? https://zerodha.com/varsity/ 🙂
Derivate trade can be profitable if done with a trade plan and be in the Plan
Yes, Stanley. Planning and position sizing is everything
Hi Abid..how to abide by risk to reward ratio while in trading in stock options strategies…position size is fixed already
Interesting wanted to know more about it
BANKNIFTY
ITC,AXIS bank,7NR ???Need to know for these 3.
Hi Dhyan, you can know more about it here:
https://sensibull.com/
Sensibull is India’s first and largest Options Trading Platform. We made Sensibull to make small traders like you and us win in stock markets.
Options trading has more profit potential than stocks, mutual funds, intraday trading, etc. You can trade options with small losses – which means trading with peace of mind. Options can make money when markets go up or down.
We built a simple, super-fast trading software for beginners and experts. Here is what you get:
If you are a beginner you can trade by just saying if the market is up down or neutral https://web.sensibull.com/easyoptions
Free advisory service by trusted experts with good profits and small losses – https://web.sensibull.com/advice
Practice futures and options trading without real money – https://web.sensibull.com/linktopaper
Set real-time price and P&L alerts on Whatsapp – https://web.sensibull.com/alerts
Tell us a stock’s direction, we tell you the best option strategy to trade – https://web.sensibull.com/options
Create custom strategies to trade your view and visualize the P&L – https://web.sensibull.com/builder
Track your positions and do scenario analysis of your trades – https://web.sensibull.com/positions
Get great trading opportunities with advanced tools like Option chain, FII data, Open Interest, IV, IVP etc
Become an expert with free education in Hindi and English- https://web.sensibull.com/education
Watch a 4-minute demo video here – https://youtu.be/6IP-3PkEXI4