If you don't understand the premium volatility.... you will never make money in naked option buying...
We have to allow the market to react and premium has to shrink and settle in one point... (white/red bottom level)..
After premium shrinkage, if you concentrate on naked option buying... you can able to make money...
Last week.... Put Option premium fallen 500 points from hitting the top...same time call option premium has also fallen 140 points..... (call option has not moved, because, premium shrinkage not yet over as per white/red)...
Check white/red chart at your end and follow ...
Call and Put charts are self explanatory....
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.