Risks in Options Trading
Time decay eats premium if direction isn’t quick.
Volatility crush reduces premium post-events (like RBI policy).
Unlimited risk for sellers if market moves sharply.
Liquidity issues in some stock options.
Options Trading Psychology
Requires discipline & patience—most beginners lose by overtrading.
Emotions like fear of missing out (FOMO) or greed destroy capital.
Successful option traders often specialize in 1–2 instruments (e.g., Bank Nifty weekly options).
Role of Retail vs Institutional Traders
Retail traders mostly buy options (lottery-ticket approach).
Institutions & HNIs dominate selling (because they can hold margins).
Data shows: retail traders lose premium, institutions earn it—but smart retail traders can also make money by following disciplined strategies.
Time decay eats premium if direction isn’t quick.
Volatility crush reduces premium post-events (like RBI policy).
Unlimited risk for sellers if market moves sharply.
Liquidity issues in some stock options.
Options Trading Psychology
Requires discipline & patience—most beginners lose by overtrading.
Emotions like fear of missing out (FOMO) or greed destroy capital.
Successful option traders often specialize in 1–2 instruments (e.g., Bank Nifty weekly options).
Role of Retail vs Institutional Traders
Retail traders mostly buy options (lottery-ticket approach).
Institutions & HNIs dominate selling (because they can hold margins).
Data shows: retail traders lose premium, institutions earn it—but smart retail traders can also make money by following disciplined strategies.
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Contact : +91 7678446896
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Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Publications connexes
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Publications connexes
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.