After an amount of time and experiments with money only I understood the relation between stock price and its derivative value . Also I got an understanding over the time decay and volatility effect on the option price.
With this I suggest everyone always short options when nearing the expiry .
And the shorting is very effective than buying.
Ex: If you the stock is growing then short the put.
Ex: If the the stock is losing then short the call.
The point here is that short on the out of the money option with a good theta.
The dangerous factor lurking here is the beta, i.e. volatility.
With this I suggest everyone always short options when nearing the expiry .
And the shorting is very effective than buying.
Ex: If you the stock is growing then short the put.
Ex: If the the stock is losing then short the call.
The point here is that short on the out of the money option with a good theta.
The dangerous factor lurking here is the beta, i.e. volatility.
