Option Buying & Selling - Advantages & Disadvantaged Explained!
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- เผยแพร่เมื่อ 26 ก.ย. 2024
- 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.prsun...
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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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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
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
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
🤣🤣
I don't think I have listened to a better explanation than this. Well done sir
Highly appreciated.
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 ❤️❤️❤️
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
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 🙂
Bank manager story is awesome example of risk n reward ratio sir....😆👌👌
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.
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 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
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.
Great lesson
Beautifuly & calmly explained in a very simple & practical way .Great Going . All the Best .
Clear as Daylight.....Brilliant Presentation without Exaggeration...Hats off
Very glad to see that you have started the videos on TH-cam channel, hope it will act as a milestone for many new options sellers
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
The lecture is slow and steady which is required for a subject like this.Thank you for your analysis.Wish you all the best.
thank you sir my complete dilemma is cleared about option buying and selling
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
Awesome lecture. You explain everything that everybody will understand.
, Truly genuine honest teacher, Rewards
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..
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.
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.
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
Perfect is the only word i can use . 👏🏻👏🏻👏🏻👏🏻
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.
Very crisp and clear message with no biasing
Awesome. You nail each thought with great articulation.
Nice explanation of option selling sir
Very logical explained, Thank you
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.
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 ?
So nicely explained.
You're self given Brilliant explanation🎶
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.
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.
Listening to you is a Grate Experience. First Time Feel that TH-cam Gives Me Golden Opportunity. Thankuuu Sir!
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.
Buying is not like purchasing lottery ticket if it is backed by good technical analysis skills and without greed.
I know you are trading with huge capital so in your case its very hard to buy options for short span of time but in case of retail trader its not a problem. He easily can buy good quantity for very short span of time from 30 mins to 3 hours. Within this period of time option Greeks are not going to change drastically until and unless there is no wild move.
Do not give your opinion here.
Go and make money in market
@@tanmaysharma3285 🤣If this platform is not for opinions, then what is Sundar sir doing here?😛
A great teacher with deep knowledge and international standards
Mr Sunder, I am working in markets past 5 years, I am option buyer and tried working efficiently, option buying is very very tough and requires high concentration, it is profitable. I always thinks of risk about selling options, things that worries me are instances where nifty breaks for fraction seconds, what if that fraction continue for longer
Hi sir, what are new SEBI changes regarding intraday margin.
Brilliance in simplicity. Very nicely explained.
After watching this video I am inspired to become an 'option seller'.
Or phir kiya bhaii option seeling ??
@@sachinchauhan9028 Haan
Insightful trader and wellwisher of all traders.Thanks.
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
You are a gem .seems being a mathematics teacher
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,, 👍👍👍
It's different experience gaining knowledge from a mature person like you Sir.
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
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....😀😀😀
தங்கள் பங்குசந்தை அனுபவம் என்று தமிழில் ஒளிபரப்பாகும் ஆவலோடும் எதிர்பார்ப்போடும் தமிழர்கள் ஆகிய நாங்கள் எதிர்பார்த்து இருக்கிறோம்
Sundar sir,you are the great adviser on TH-cam 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.
Really applaud for who suggested speed 1.25x and 1.5x
It seems quite normal 🙂
Thank you so much for the lesson
Much appreciated!
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
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.....
sir perfect knowledge of options!! thanks a lot
Sir Is that possible if option writer chance of wining 80% of time as time decay is in his favor. Then we can trade in future or cash segment by analyzing particular option data[writer] on particular strike ... as price comes near resistance we can sell[stock] or price comes near to support we can buy[stock]. is this one of the right way.. please guide me regarding. Thank you Sir.
I did not know you have a TH-cam channel 😄. Just subscribed.
Superb narration sir.!
Thank you so much! 💐
"Why don't you buy a lottery ticket"
Gold..
Excellent explanation about option buy & selling even a person dont know anything about stock market can understand very easily by watching you videos. It is very useful to me & THANKS.
True! Inspires me to improve my articulation in the videos I make as well
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
Absolutely a superb explanation. Thanks for sharing your knowledge.
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
Thankyou sir , one of the best explanation in youtube
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
@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.
selling workshops has become a trend ..
You don't know him, that's why you saying this....
Very nice , touching and eye opening video on option buyer and seller
Important points, quotes, myths could have been displayed in the background
Mr. Sundar great presentation, your anology of revolver and placing it on Bank Manager's head to make money was full of common sense and wisdom.
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
Hats off to your teaching methods. You make the concepts so much easy.🔥🔥🔥🔥
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.
Excellent and Awesome Video... Whatever he explained it is 100% true... I experienced it also... Hats off you 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
Great PR Sunder Sir, Your explanation and market knowledge incredible , thanks
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 .
Very informative video, nicely explained with simple examples......loved the simplicity of speaking .....
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.
Super explanation and examples are fantastic
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..
Fantastic explanation sir. You’re a great teacher.
Thank you, I’ll be taking your courses online soon.
sunder sir what a knowldge you have great ankhe khol di aapne option buying aur selling ki salute sir
Sir, Can I get your mail I’d, I want to communicate regarding straddle and strangle adjustment.
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.
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
Wow what an explanation it's has washed my brain I will regularly watch your video
Disliker are option buyers😂
Nice information abt options buyer & seller, looking more videos from you sir ..
sending rs. 10000/- to you, send me a revolver... preferably in black ... LOL
Thank you sir, your explanation on option selling changed my mindset about it
You are obsolutely correct. Either u should have knowledge for trade or should have alittle bit huge money. We can manage inclined profit.
Thanks for expliang in simplest way :)
Thanks sir , please keep posting videos.very simple language ,no confusion ... thanks