Be an Opportunist ;)

Off late there has been a war like situation between the so called smart guys (Sellers of options) Vs dumb people who are happyily referred to as options buyers. I mean seriously, for every buyer there is a seller. Then how come one side of the coin is going to be bad and the other will be good, in fact I have realized people take it so seriously that they want them to referred as a buyer or seller.

Now why options selling is not bad after all, for a simple reason, You have odds in your favour. Options are decaying asset and with time they are likely to lose their value (time value, theta)

Then why are so many retail traders looking to buy options, because it’s cheap 🙂 And it’s like lottery, if it works out you have mind boggling risk reward. But then there are obvious risks, like what if underlying does not move, what if volatility goes down.

After spending about 14 years on the street I have come to the conclusion that both sides have their merit and demerits. Don’t get hooked to just one side, in different market types different strategies work.

In the current fall if you were a seller of options (naked) I am sure you would have definitely had a difficult time managing your positions. Cause along with markets moving so fast, volatility was also hitting the roof. But then from 2016 to 2019, Options Sellers ruled.

Again even if you are an options buyer, could you simply buy at any price? The answer is NO. During march 2020 ATM PE were quoting above 500 Rs on Nifty, and day to expiry was just 2. Now can you imagine you needed 500 points to move just to make money on Expiry day. It was momentum which was favouring but then pricing was definitely absurd. Then why is there a camp who would like to call them self sellers and buyers particularly.

I think you have to understand that if you are trading momentum, buying options makes sense. And If you are selling options with proper hedge (strategies) that’s also a great way to consistently generate return. In a longer run both are simply strategies, when IV is low Options Buying makes sense and IV’s are high options selling is also not a bad idea but with proper hedge.

One more factor which matter is what is your risk capital

-> Higher Capital, Lower Risk – Market Neutral Strategies (Risk Defined)
-> Higher Capital, Moderate Risk – Undefined strategies on one side
-> Higher Capital, Higher Risk, – Undefined Strategies
-> Smaller Capital, Higher Risk – Naked Options Buying
-> Smaller Capital, Moderate Risk – Risk Defined Options Strategies

So in conclusion, I Prefer not to be a part of any gang 😉 Be an opportunist whatever is the market type change your stance accordingly.

Be an Opportunist 😉

23 thoughts on “Be an Opportunist ;)

  1. Sir mere pas 1 lec capital hai me es market me 10 lec har chuka hu muje mera loss cover karna hai. M- 7014616595

  2. Nice article. It is important to know when to buy or sell option and how to manage risk in both cases. Main aim in market should be trade successfully with predefined risk. It should not matter whether you are buyer or seller of option. Everybody cannot do option selling as large capital is required and return are less compared to option buying.

  3. Excellent. Precise and brief..Sir would like to see more of your advice on market neutral strategies for different scenarios.. looking forward..thanks 🙏

  4. Respected sir your thought to be a opportunist is really an eye opener thanks for your valuable guidance free of cost. Salute to you. Not be in gang but becomes a opportunist with defined risk. This is the tag line for me always.

  5. Hi sir ,
    I m from Gujarat my name harshad madariya
    Form surat
    I observed u since last 2 day after watching you on elearnmarkets video
    Since I respect u lot becoz u from Gujarat as well u have pure heart
    I will want attened ur web series but ther is so many people out here
    I just started my trending since last 3 month
    My first seminar was with pr sundar at Ahmedabad but I didn’t get proper guidance from him
    I like ur trading style n system but I couldn’t focus on one so will I plz help me out
    I have no money problem but I want clear n proper mentor who guide me n teach me
    If u help me out so I m thanking u so much
    I am sharing u my personal contact details to you
    09825991929
    h.masariya@gmail.com
    I am waiting for your bless I need it

  6. Hi sir ,
    I m from Gujarat my name harshad madariya
    Form surat
    I observed u since last 2 day after watching you on elearnmarkets video
    Since I respect u lot becoz u from Gujarat as well u have pure heart
    I will want attened ur web series but ther is so many people out here
    I just started my trending since last 3 month
    My first seminar was with pr sundar at Ahmedabad but I didn’t get proper guidance from him
    I like ur trading style n system but I couldn’t focus on one so will I plz help me out
    I have no money problem but I want clear n proper mentor who guide me n teach me
    If u help me out so I m thanking u so much
    I am sharing u my personal contact details to you
    #######
    #####@gmail.com
    I am waiting for your bless I need it
    I want just posted it but your web said that I copied bt I didn’t I mean it
    Thanking you
    God bless u

  7. Dear sir very precise and nice way of describing the way of options trading.
    Would like to know wat will the mini. capital requirement for options trading to generate decent returns.

  8. Respected sir,
    I m Arun Singh chauhan from Gwalior ….Your trading idea n views are great …..I m following you since last one year ….I m very much interested to attend your option workshop ….Hope it will resume soon ….

  9. Hello sir, First of all i would like to thank you for your kind support in educating us about financial markets. I was continuously watching you on Zee biz and then i saw your idea of watching charts in Zee cafe during budget. From then onwards i started following you and I realised you as my mentor. Today i saw your programme on you tube on elearn and purchased your recored webinar. I also attended long options webinar and learnt a lot from all these. Sir i believe in all your ideas. I just want to watch you and learn all aspects of life. I admire you for your kind gesture. Your idea of risk and all aspects to be looked for is really fantastic. I don’t know how much i will be able to adopt to your ideas but i will work really hard to learn all aspects taught by you whether it be of financial markets or life. Once again thank you sir thank you so much. I do not have word to describe about you but i want to just say whatever I felt in my mind about trading all i got to learn from you. All my doubts vanish by just watching you. Thank you sir

  10. We shouldn’t be emotionally excited when market going up like CNBC anchors do 🙂 and sad otherwise. In both directions, we need to make money as a trader. I really loved this short and crisp article, but it came from a lot of experience, I can feel it.

    Thank you Vishvesh ji for taking time and sharing your valuable experience!

  11. Yes you are right since last year I was doing option selling with hedge for consistent returns.during this recent market volatility it was very difficult to adjust the positions by selling options.hence I switched to Option buying along the market Direction and recovered my little losses which I made in options selling.Hence I agree we should be an opportunist. We cannot be smarter than the Market by defining ourselves as only Buyer/Seller.

      1. I purchased your webinar in elearn and going through it,Hope it will be helpful on my Options tradings in future.

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