@ My Kids,
read DISCLAIMER !
#MarketLesson
x.com/RiSi16J14/stat…
@grok,
how to use options to trade scrips as multibagger/winner.
first & foremost, u have to know chart reading & shud have fair idea bout TIMING.
Lets assume YHR (F&O) stock is @ 50, based on analysis, in near future, i see it doing +7, so target is 57.
now lets say its lot size in F&O is 8000.
using cash 8000qty x 50 = 4L reqd + charges (of coz u can buy less qty if u have less cash)
by using options if i buy 52ce @ 1.50, amount used is 12000+ charges. now the day option hits 6.00, i wud get out.
if my chart reading or timing was wrong, i wud make a loss of 12000+ charges
but then i wud get to live another MONTH & may try again.
Same principle applies if i anticipate a fall...but in cash, u can not short sell to carryover....