Option Buying & Selling - Advantages & Disadvantaged Explained!
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- čas přidán 2. 01. 2020
- Options Buying vs Selling - Which is better for you? Advantages and Disadvantages of Option Buying and Selling explained in very simple terms by Trading Expert P R Sundar.
► 2-Day Options Trading WORKSHOP - workshop.prsundar.com
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This is a pre-requisite for P R Sundar's Options Trading Workshop. Do watch this video before attending the workshop.
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In this video we talk about the advantages and disadvantages of Option Buying and Option Selling.
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thanks to youtube for giving option of 1.5x or 2x...please use it
sk ns that helped
😆😆😂😂
I'm using 2x till frm 1st video
Haha
🤣🤣
Respect sir, have not seen a single person explain his concept in so simple and convincing way... Hat off Teacher... Love your confidence
Very nice explained about buying and selling. Thank you so much for your information Sir.
SHORT SELLING OF GOLD AND SILVER SEEN IN THIS WEEK... silver will fall to 18$/oz.// GOLD WILL FALL TO 1800$....//////
@@rajabanu9428 learn little English, now all over the world English so no choice
@@rajabanu9428 neraya tamil channels iruku bro liek tamil share tamil traders athu maari please check out if required.
This is the most underrated channel n this legend is so humble ❤️
P
So true
Bank manager story is awesome example of risk n reward ratio sir....😆👌👌
Ya Today I come to know My Stock Market GURU is Mathematical Guines....Sunder sir desperate to meet you onces in life time...Biggest fan of you. K. Shivchandra, Maharashtra ❤️❤️❤️
I feel like listening to you all day! the way you speak is so peaceful and yet effective !
Becareful not to fall asleep😂
Same here
Sir good evening, i would like to say You are breaking our (traders)misconception of option selling , 14:32 mins excellent video for every traders thank you for your dedication sir.
Waste video. There are best videos like #powerofstocks
I don't think I have listened to a better explanation than this. Well done sir
Highly appreciated.
Beautifuly & calmly explained in a very simple & practical way .Great Going . All the Best .
Probably, this is one of the top-class productions on YT on the subject. Lacking that atypical 'I know it all' humbug approach and a superfluous representation, this production spreads the words and concept in an effective communication, utmost clear way and confident style.
This channel deserves and requires to be in the top five channels of the 'Equity Market' segment.
I usually dont take time to comment, but the examples of lottery and bank robbery are seriously very accurate and perceptive.
Thank you, it was very helpful.
Sundar sir. A small suggestion. Since this a new initiative, please give a video no. And video date in video discription because it would be easier for person following you to have a sequential path. Would really appreciate you doing this.
Puneet Ahuja I completely agree with you Puneet
Check the date in the description!! 😅😅😅
@ 14:12 conclusion 🙂
Sir simple and clear explanation about option selling. Last two days my mind thinking about option selling that waves helped me to see your videos timingly. Thanks bro
Awesome. You nail each thought with great articulation.
Clear as Daylight.....Brilliant Presentation without Exaggeration...Hats off
I saw ur 45 lakhs video as 1st on this channel n this as 2nd video u.
Sir everything is perfectly explained great video ....
Thums uppp for youuuu
, Truly genuine honest teacher, Rewards
Very logical explained, Thank you
I am a great fan of you for least two years. Follow your Twitter and blogspot on daily basis. Please keep showering your ray of knowledge and experience on us. Thank you so much for being with us.....
Awesome lecture. You explain everything that everybody will understand.
Very glad to see that you have started the videos on CZcams channel, hope it will act as a milestone for many new options sellers
Sunder sir, 👏🏼👏🏼. This is an eye opener for those who are in dilemma! The point which has not got clarified /discussed is "decay of the premium". Please cover in next video why there's a decay? It's am advantage for option seller right? Also please reply will I be learning the practical trade example, and risk management in your work shops? How long is a session? Please reply
Knowledge of truth will set one free. Despite all advantages for option buying if you are an option writer, it's because of incredible clarity of concepts and comprehensive understanding of option selling, Sir.
The teaching is very simple and lucid. Thank you.
Thankyou sir for teaching this method. I always loss in Bank nifty option because I never exit in profit waiting to gain more than 100 points. You're right. When I exit at 100 points profit the price jumps to another 100 more. That's the reason greed overpowered me and at the end of the day I loss.
Dear Sundar Sir, Firstly thanks for all the videos which are simply very educative. Would you be kind to answer the below query.
We know that when an option is bought & then not squared off by expiry then the entire premium is lost. So when an option(say call option) is sold & if it is not squared off by expiry then will the entire premium along with the margin money be automatically credited in his/her account, provided the strike price was not hit (was less than strike price) at 1:30 pm on expiry date.
Listening to you is a Grate Experience. First Time Feel that CZcams Gives Me Golden Opportunity. Thankuuu Sir!
Hats off to your teaching methods. You make the concepts so much easy.🔥🔥🔥🔥
You're self given Brilliant explanation🎶
00:49 Every new learner is discouraged from becoming a option seller.
Thank you sir for demystifying and to explain what they meant by unlimited loss and limited profit and vice versa. 🙏.
Hey. I have a question. I am new to options trading. I don't have enough to get into options selling. What should I do?
@@pranavkamath Hi Pranav, I can only advise to myself and I feel that knowledge is enough..and of course Good health.
Fantastic explanation sir. You’re a great teacher.
Thank you, I’ll be taking your courses online soon.
Absolutely a superb explanation. Thanks for sharing your knowledge.
Sir, Thanks for sharing your knowledge I am proud that you were from our local area (Tondiarpet). You are my inspiration sir, In 2019 mid of august I started to do Options trading without any knowledge I lost 30K in 3 months but what i learned was before trading I keep watching the global market and pre-market open status then I started to do trading though I failed. I am office goer simultaneously doing this trade made me more failure. Now in this lock down I got a good chance to learn about options and hedging strategy I started to earn profit last month and this month. So I understood that to do options or trade I must not do any other work simultaneously concentrate on the market, If failure happen how to Overcome it is the key to success.
How are you doing in trading now ?
I did not know you have a CZcams channel 😄. Just subscribed.
Have seen many of your videos but this one is the finetuned superbly explained...Thank you so much Sirjee. There is only one P R Sunder..hats off..
Sir. I happened to view yr video now only. U ve explained very very simple way and gave advise for small traders. No one will take initiate to explain this way. Thank u. TK BALAJI..
The lecture is slow and steady which is required for a subject like this.Thank you for your analysis.Wish you all the best.
Hi sir, what are new SEBI changes regarding intraday margin.
This clarifies so much for me, I have a capital of 30lakhs but I was not sure how to go about it. Now I know. Thank you Mr. P R Sundar.
Brilliance in simplicity. Very nicely explained.
Sir, I would say, You are the most credible person in India, from whom to hear about option selling. Please keep posting. Your videos surcharge my dormant passion for market.
how much you lost to become dormant player 😂
Sir kindly explain how ADR effects on indian market.
Effects of crud price up and down in indian market
Specifically company
A great teacher with deep knowledge and international standards
Thank you so much for the lesson
Much appreciated!
Wow, an eye opener video. I entered into another dimension. What a brief. Keep it up.
After watching this video I am inspired to become an 'option seller'.
Or phir kiya bhaii option seeling ??
@@sachinchauhan9028 Haan
Thank you so much sir for this video.I have loose my all savings for buying options. 5k-10k repeatedly.now lose goes to 3.5lakh. That is huge for me as a mediocre family.
Same here bro..
@@ganeshj6386 now I am suffering very bad situation. Its really happened with me and also happens with 95% of people in derivatives market.few huge gain makes me lifetime panics with huge losses.
Do you know the risk of option selling? Have you ever seen a stock opening in gap? option buying and selling both instruments are same unless you trade in good time and momentum.
Sundar sir,you are the great adviser on CZcams or stock market scenario I have ever seen,your suggestions and points were absolutely right,iam a buyer about 3years and ultimately my capital is zero,you are right, option seller is making money.
Wow, honest opinions and he summed it up nicely. "If you have extraordinary capital be an option seller, if you have low capital but extraordinary skill then only be an option buyer".
sir perfect knowledge of options!! thanks a lot
If everyone leave option buying as it is like lottery or gambling then how would you survive as a option seller??
Inderpal Singh for every buyer there will be seller for a contract complete
Institutional buyers like pension funds, who are long on shares, who are not allowed to short the market by law, in order to protect their investments, can and will buy put options. Also in a situation like now, when the whole stock market is down due to corona virus, one can buy long term options for very long periods say 2 years. Because the general expectation is that the whole market will rise in those 2 years. After having bought the long term options (which act as backup), one can sit tight and do nothing or sell short term options against those long term options and make money periodically.
If we look at just buying or selling, we see what you think now, but fii dii are buying options to hedging not for naked option buying, it continues in different ways based on their strategies as not like retail investors, we need to think like fii dii not like retail investors
Huge trades in futures are hedged by options...... And cash positions are hedged by futures so.... Highly liquid and huge volume game is on in both sell n buy side
For option selling you need huge margin, you need 300000 for selling 5 lots of bnf at 100 , for selling value of 100*100 = 10000. Same thing if your on buy side, you need only 10000 for buying 5 lots of bnf. Option selling is risky only when you don't have stop loss. But your probability of making money is more in selling.
Thanks for clarity and ur examples are really interesting
Especially about sellers u have given definition is very perfect judgement thanks u sir
So seeing ur videos I am getting information and confidence.so thank u
thank you sir my complete dilemma is cleared about option buying and selling
தங்கள் பங்குசந்தை அனுபவம் என்று தமிழில் ஒளிபரப்பாகும் ஆவலோடும் எதிர்பார்ப்போடும் தமிழர்கள் ஆகிய நாங்கள் எதிர்பார்த்து இருக்கிறோம்
"Why don't you buy a lottery ticket"
Gold..
Thanks sir , please keep posting videos.very simple language ,no confusion ... thanks
Thanks a lot sir for starting video series again!!
You’ll never understand how profitable options trading is until you start investing in the share market
Even with the price fluctuation people are still benefiting from options trading,how is that even possible?
Options trading is 100 % profitable,I invest with trading Expert Erin and i get good profit in return,she is a financial advisor and she handles trades reach her out she’ll help you earn
Erinsawtell1 @ g mail, insta gram Erinsawtell1
Excellent Sir. Option buying vs selling explained in very lucid manner. I have one question that - "Which stock broker accepts bank FD as collateral for index option selling?". Thanks in advance Sir.
As a rule every broker .
As of my knowledge only direct nse members can do this
This is not revealed. But you must have 25 lakhs
Contact sir he is helping collateral in fd
My respect to you. This is the best explanation of the psychology of buying and selling options. I'm grateful I came across this video and can't wait to learn more from you.
Sir
Finnly I understand the option buying and selling easily from you
You are great sir
Thanks a lots for teaching us in simple way
Options price derive from three things - Stock Price, Time & Volatility. Most of the traders consider only stock price and ignore time & volatility.
If you are buying - Time is against us, buy at high volatility & sell at low volatility
If you are selling - Time will favor us, sell at low volatility & buy at high volatility
You are a master of option game,, 👍👍👍
Don't try to degrade an option buyer just because that u r an option seller. All ur points were correct but comparing a buyer with lottery is not right. Iam an option buyer, i love buying
importantly r u a profitable buyer
@@kaushikdana4593 yes that's why I said I love buying options
@@bhaskarmaishale I am loser in buting option will You help me and be my guide
He's portraying option buying almost as a sin🤣🤣🤣🤣
hey, buddy, can u tell me how to set target and stop-loss for premiums when trading in options..
Great Video Sir... A lot of Learning from this video
Thank you Sir, waiting more learning videos
Really applaud for who suggested speed 1.25x and 1.5x
It seems quite normal 🙂
Important points, quotes, myths could have been displayed in the background
superb sir. Fantastically explained. தமக்கு நிகர் தாமே. தமக்கு மிக்காரும் ஒப்பாரும் இலர். உளமார வாழ்த்துகிறோம்.🙏🙏
Perfect is the only word i can use . 👏🏻👏🏻👏🏻👏🏻
Sir risk =(probability × severity of consequence). So for option buyer the probability is very thin and severity is very high which pulls risk to extraordinary levels.
Thanks for the video it changed my perception on option derivatives. Wether be extremely skilful or capital rich to choose the side of battle.
Sir , me almost bankrupt due to shorting the options ... always SL hits even i put 2X price in icicidirect platform.... so option selling is suicide
Sir,
In ICICI Direct there system generated stop loss also. If your premium moves up then your position will be automatically squared off without your knowledge also. I have faced this issue also.
Open Demat account in Angel or Ventura.
You'll not face this kind of issue
U r wrong bro..we fail bcz of lack of knowledge..
@@manojmohole1896 I have zerodha but margin required for shorting is too much ...so for retailers there is no hope in the market
@@sunilnavelkar433 what kind of knowledge i need to improve bro.
@@SpiritOfIndiaaa whith 10 quantity u can earn brother
Very beautifully explained! Thank you so much sir!
Excellent explanation with understandable examples, thank you🙏💕
Is this a trap to retailers for your training, after the newly margin requirements.
Subhendu Sahu this guy never buys options so he obviously is biased towards selling which can sweep you
With new Sebi margin policy it will be tough time for option sellers
What are the policy?
@Manoj Joshi share link of new policy plz
It's different experience gaining knowledge from a mature person like you Sir.
King : Good Explanation...Hats off u sir...All of ur videos are awesome...Ur english was so cool..I can able to easily understand...Thank u sir...Keep Rocking in our MARKET... Definitely u will get a MARKET KING as a name in future sir....😀😀😀
Akshay: Ha scheme chillake chillake sab ko bata de 😂😂
Wahi toh...sab bechenge to kharidega kaun🤣🤣🤣
@@devhota jisne ye video nahi dekha
@@devhota hahahahaha
Akshay kaun hai
@@pranavtemp1569 akshay kumar you'll know if you followed memes
selling workshops has become a trend ..
You don't know him, that's why you saying this....
Sir, excellent explanation, no one can replace you in teaching option trading. Keep it up sir. Sir, why don't you do a video in Tamil for the benefit of our trading community. May God bless you sir to have very long and healthy life. I am your great fan sir.
@P R Sundar - Sir I dunno if you'll read my comment. Seeing this video today after loss and having low margin as a beginner, I feel this is very informative and helpful. Thank you.
now for selling every product need full margin upcoming day painful to earn more money for every one and most volatility will decrease badly . monday lets see .
Sir if you tell everyone about option selling then India will become Singapore lol
Option seller need HUGE money to sell first, but they makes a good return.
123 8979 even I am scared of this 😂😂
"there r no option buyers in singapore" is completely a crap statement..singapore exchange has options on many products but not on sgx due to other reasons..
Have you even sold option and seen your MTM in loss? Its been more than 12 years since iam working in capital market. And its not that easy to sell options. Once a stock opened in gap up or gap down your whole capital will be swiped. Practically you find it so easy but the emotions and psychology will test you everytime you are going to sell options.
@@bunty19881 Precisely, I was waiting for such narrative for Option Sellers.
Thank you very very much sir. I will start option selling after lockdown complete. See you one day.
No words, sir.! Mind blowing... Hats off..
SIR WHATS THE MINIMUM CAPITAL REQUIRED TO BECOME A OPTION SELLER???
Depends on lot size
To short BankNifty 1 lot u may need minimum 50k. But ur 50K will be blown out if trade gone wrong and doing naked selling.
U may check margin required on zerodha calculator
I have 1 doubt sir pls reply
Q) If you can make lakhs from stock market then why do you charge 25k and conduct workshops ?
An average millionaire has 7 sources of income.
If ambani is earning billions, why he is charging RS.250.00??? No charity....
Ask..Ambani...why he charge so much on his telecom...he earns more on relaince
@@kunalnitin5229 by charging 250 rupees from each user and 1 million jio users
250*1 million = 250 million
By adding these millons he earns billions
@@businesslyf There is a scope of earning more profits in Telecom industry than petrochemical industry
Thank You Sir for sharing your knowledge. This helps a lot.
I appreciate this video
This is exactly what I need as motivation
When you invest you're buying a day you don't have to work
i loose my money last 3 year buying call and put
on expiry days trying selling an option once 1 lot you try
and you will never buy options in your life time.
Shiva kumar P correct
You can make money in options only during breakouts.Otherwise on all other days its better write options.You may get 100-150 points but that should be enough if we write 1 or 2 lots.Daily + 2k overall P&L into 22 days means its a good money.Also Aliceblue gives good margin for writing every wednesday and thursday based on special request.Like for 23 K we can write 2 lots of BNF options on Wednesday and Thursday and its Worth.
I loose my 1 lakh in options buying, loss cover karne ke chakkar me loss hota gya😭😭😭
@@pshivaku75 thank you sir suggestion dene ke liye
Sir, Can I get your mail I’d, I want to communicate regarding straddle and strangle adjustment.
Nice information abt options buyer & seller, looking more videos from you sir ..
"Thank you very much Sir" Sharing for thise video.Now I cleard options buying & selling which is best way to earn money. Thank so much again sir 🙏👍
Disliker are option buyers😂
sending rs. 10000/- to you, send me a revolver... preferably in black ... LOL
Very precise point on the table sir, thank you so much. This is right time, right details reached me
Very informative video, nicely explained with simple examples......loved the simplicity of speaking .....
Wow just amazing video sir , thank you for sharing knowledge ,,,,, this is what experience knowledge
Nice explanation about sellers risk and probability , thanks a lot
Really effective way of explaining things. Appreciate.
Thanks for the valuable info sir... Was searching for your videos many times.. finally its here. Thanks again..