19-04-2024 09:11 AM | Source: PR Agency
Comment on Black swan event for Option Sellers as they run for cover by Shrey Jain, Founder & CEO, SAS Online
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Below the Comment on Black swan event for Option Sellers as they run for cover by Shrey Jain, Founder & CEO, SAS Online
Thursday being Nifty expiry lot of traders who write near to money Options hoping to profit from Options expiring worthless were in for a rude Shock as they saw their accounts see drawdowns of over 5% in a single day
Market tanked suddenly at 1:26pm and premium of ATM Put Options went up almost 10 times in a matter of seconds without giving traders opportunity to square off
No Stop losses be it Individual SL or strategy level SL's none of them proved to be useful as traders did not get an opportunity to square off as prices jumped.
Thursday saw traders experience LIVE what they work usually consider in theory to be max drawdown and use as simulation to build worst case scenarios. Think it's time for retrospection and going back to the drawing board to reconsider the risks of option selling specially plain vanilla expiry trading
Market tanked suddenly at 1:26pm and premium of ATM Put Options went up almost 10 times in a matter of seconds without giving traders opportunity to square off
No Stop losses be it Individual SL or strategy level SL's none of them proved to be useful as traders did not get an opportunity to square off as prices jumped.
Thursday saw traders experience LIVE what they work usually consider in theory to be max drawdown and use as simulation to build worst case scenarios. Think it's time for retrospection and going back to the drawing board to reconsider the risks of option selling specially plain vanilla expiry trading
Above views are of the author and not of the website kindly read disclaimer
Latest News
American Express to open its largest office built fr...
Quote on GST April collection numbers by Gunjan Prab...
Views on Bajaj Finserv Q4 FY24 Results by Shreyansh ...
Adani Wilmar clocks 67 per cent surge in PAT for FY2...
CPI(M) leader Brinda Karat greets workers on May Day
It`s really cool Sania Mirza as Women`s Premier Leag...
Newlyweds Arti Singh, Dipak Chauhan give major coupl...
Odisha: Badminton Player Saina Nehwal visits Puri Ja...
Hyundai`s India unit, Tata Motors post higher April ...
Ola Electric captures over 52 pc market share in EV ...
Tag News
Quote on GST April collection numbers by Gunjan Prabhakaran, Partner & Leader, Indirect Tax,...
Daily Market Commentary : Nifty after recording a fresh high of 22783 levels, witnessed profit booking at higher zone Says Mr. Siddhartha Khemka, Motilal Oswal
Comment on SEBI`s Revised Regulations Enhance Financial Disclosure in Non-Convertible Securities Offer Documents by Makarand M Joshi, Founder MMJC & Associates - a corporate compliance firm
Comment on SEBI`s Move Towards Employee Benefits in Infrastructure & Real Estate Investment Trusts by Makarand M Joshi, Founder MMJC & Associates - a corporate compliance firm
More News
Views on US Fed`s December 2023 Policy By Dr. Manoranjan Sharma, Infomerics Ratings
Global Corn Production Hits Record High Amidst Surging Demand by Amit Gupta, Kedia Advisory
The successive messaging by the MPC over its last 3-4 policies Says Unmesh Kulkarni, Julius Baer India
RBI MPC Reaction : Amidst global uncertainties, the RBI`s decision to maintain the repo rate aligns with our expectations says ...