Sir in intraday strategy u said that at ATM writing is done while at OTM buying is done. But in option chain videos u also say that professional traders sell(write) FAR OTM . This is confusing. Please clear this doubt if I am able to convey my doubt.
The answer depends on how much premium, I would like to pocket. There is No confusion, Pls try to understand the concept. If i don’t want too much risk, I will write far OTM contract & it is safe option selling strategy to eat the premium as i explained in the Option selling strategy.
If i want to take high risk and eat maximum premium then i will write near ATM.
Author
Posts
Viewing 1 reply thread
The topic ‘option chain buying selling confusion’ is closed to new replies.