Thinking about NIFTY put options.

by | Jan 25, 2019 | Dear old dad, Learning Module 2, Topic 8: The Basics of options | 0 comments

January 2019 has been quite a run in equity markets, worldwide and in India. I look at equity options to consider buying Dad some put protection for his over-extended large caps- the spreads are so wide you could drive a truck through! NIFTY options are where the action seems to be, while the spreads are smaller, the option premiums are huge. And the NSE has quickly introduced weekly options. With large premiums, a lot of option selling is going on. Margin rules are incomprehensible, designed to make it difficult. Retail participation in NIFTY options is through the roof. I take a stab at some NIFTY puts, quick nice trade, beginner’s luck once more. An 85-year old trader uncle wants me to teach him options, I refuse. FIIs always sell in February he tells me. Do they? Among the many things I don’t know.