Got burning questions about F&O strategies, market trends, or Upstox features? Now’s your chance to get them answered directly by Mike Akeroyd, our VP of Product.
About Mike:
Mike Akeroyd is the VP of Product at Upstox, boasting 20 years of trading experience. An MBA from the University of North Carolina, he previously led a quantitative fund, worked in Product at Amazon and Disney, and served as an Army officer in Iraq.
This is just the first in our AMA series, so your active participation will set the tone. Drop your questions during the live session and let’s make this an engaging and insightful hour. Just make sure you do this within 6 - 7 PM since it’s a LIVE session.
Thank you for your question! This is a LIVE AMA session from 6PM to 7PM. So make sure you ask all your questions then. Will let you know once we go LIVE. Stay tuned
Thanks for the question @PRADEEP_LA_9502090 -
With stock options, they are physically settled on expiry. So, unlike with index options, we only allow until 2DTE because the extreme loss margin (ELM) associated with it.
Hi @ASHRAF_11903533 - What specifically are you interested in? Are you looking to understand what drives the up / down movement or how to forecast it?
In terms of what drives the movement, it is a combination of factors - the underlying, change in time until expiry, change in implied volatility (which can be thought of as the “demand” for the option contract itself vs. the underlying), and to some degree, interest rates.
Thanks for the feedback @Avinash_Jadhav - This is something that I’m seeing more and more of in terms of requests.
I can’t promise you a specific timeline, but I am definitely looking into it. If you have specific needs or ideas associated with this feature, feel free to open another post and tag myself and / or some of the other PMs active in the Community.
Hi sir , I have a question, I executed a GTT order with 6% stoploss with trailing stoploss of 0.2 points today at 3.29pm , the question is in the morning of next trading day if value of options goes up i will get benefitted if it opened with loss more than 6% I e., 10% can I get loss of 6% or 10% ? Please explain me..
Hi sir , I have a question, I executed a GTT order with 6% stoploss with trailing stoploss of 0.2 points today at 3.29pm , the question is in the morning of next trading day if value of options goes up i will get benefitted if it opened with loss more than 6% I e., 10% can I get loss of 6% or 10% ? Please explain me. Please
When you enter into a call option, you will pay a premium. You need the price of the contract to rise enough in order for you to cover the cost of that premium as well as to make a profit.
You can look to the ‘Delta’ of the option in the Greeks. Let’s say that it is 0.50. This means that for every 1 unit move upward in the underlying, the option contract will move up by approximately 0.50. You can use this to estimate how much you need the underlying to move in order to cover the premium + turn a profit. By looking at the price chart of the underlying, you should get an idea of whether you think the index/stock will break out enough to complete the move. Of course, if you are trading on expiry or a longer horizon, you would need to consider the other greeks as well (theta, gamma, vega).
In terms of chart, that completely depends on the timeframe and how volatile you think the underlying is (and how liquid the option contract is). While many traders focus on intraday options, there are still some that buy and hold calls following major events for several days so hourly candles may be good enough for them.
Hi @PAVAN_25792332 - IIRC, if the future moves against you, there will be more margin required with every point move in loss. However, we will confirm and get back to you with a definitive answer.
Hi @VIDYASAGAR_12600983 -
In this case, your GTT order will be triggered around 6% (Considering the MPP). If the market is trading below the SL price, then the order will stay open. The order will not get executed at 10% immediately.
Date: Friday, March 21
Time: 6 PM – 7 PM
Topic: Futures & Options (F&O)
