Short options questions

Discussion in 'Options' started by sukhen, Apr 18, 2004.

  1. sukhen


    I am new in options market, I do not look for big profits out of one trade and do not play overnight.

    1. Usually I sell options favoring the trend like sell call in a bear trend and it usually gives me profit. As I do not stay in the market for long, I need your advice what option to sell. Suppose it's a bear market and I generally sell just ATM calls and sell ATM put in a uptrend. If I use this strategy, can you please suggest if the profit may be higher if I sell VERY DEEP in the money options. I trade in NIFTY of India and that's highly liquid.

    2. I like the idea of reverse straddle if the premiums are good (never did it so far). I'd like to give a shot but need to know
    the best time to do it (sometimes I see the market is too range bound and the time value drops significantly in 2/3 days). I don't know if any forecast tools are available for price (range bound/breakout etc).

    - Sukhen