The moment is here! Our first-ever LIVE AMA session is happening right now on the Upstox Community. Got questions about Futures & Options (F&O)? This is your chance to get them answered in real-time by none other than Mike Akeroyd, VP of Product at Upstox.
Time: 6 PM – 7 PM (LIVE for just an hour!) Topic: F&O Strategies, Market Trends, Upstox Features
Meet Your Host:
Mike Akeroyd has 20 years of trading experience, an MBA from the University of North Carolina, and has led a quantitative fund. He’s also worked in Product at Amazon and Disney and served as an Army officer in Iraq.
Drop your questions in the comments below—Mike is here to answer them LIVE! But hurry, this session is only open till 7 PM.
Suppose I bought an index option at 50 on expiry day, at the end of the day the price of the strike which i bought , reached at 200, but still I had not squared off.
What will happen?
We don’t currently offer tools to backtest F&O strategies. In the interim, we are working to introduce a bar replay feature. We will post more information here about that as it gets closer to release.
Hi @Shweta -
Taking a position size that is too large and overtrading are the 2 biggest “offenders” that come to mind. With stocks, you may lose 1-2% on a rough day (could be more depending on how risky the stock is). With options, you could lose a significant amount on expiry (up to 100% if you are long; potentially more if you are short). You need to allocate your capital and only use a small portion for each trade assuming that it is possible to have a large loss.
Another point is overtrading - once you get into the rhythm of trading, you may feel that you have to keep going. This could be because you are making money and want to make more in the day or maybe you are losing, and you want to fight your way back. Or perhaps nothing is happening, and you just feel the “need” to do something. You have to fight that temptation.
I believe upstox can do better adding new AI technology embedded in App that can answers any random queries related to stock exchange, technical analysis or fundamental analysis. Would you please share your thoughts on this
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.
Options trading does carry risks but a few ways to minimize them include starting out small and trading further out from expiry.
Risking only a small portion of your capital on a single trade is always a good idea when trading options - whether you are a beginner or advanced.
When you trade near expiry, contracts are less expensive which can be attractive. However, option contracts can move a lot due to certain exposures (gamma and theta). At a minimum, trading 2+ days out from expiry can be helpful in minimizing the amount of loss (if you have them) if you are just starting out. Remember - on expiry a contract is either valuable (>+0%) or worthless (-100%).
Hi @deeeepak -
This is a good callout and something that we are actively working on. We have partnered with Microsoft Azure to develop our Customer Support CoPilot found on our contact-us page (this will be rolled out to our new Help Center in 2 weeks).
We are examining a number of proof of concepts that cut across fundamental analysis and technical analysis. One of the first will be associated with News - I’m hoping that this will be out in May.
Time: 6 PM – 7 PM (LIVE for just an hour!)
Topic: F&O Strategies, Market Trends, Upstox Features