Options Learner

Trading since 10 years. Always Learning new ways of making money through Options Trading.

[Options Learner @OptionsLearner2]

This can be easily backtested and is sold for 15000. What is going on now a days?

[Stockmock.in (Backtesting, Simulator & Builder) @stockmock_in]

F&O Stocks are now live in the StockMock Simulator..

With the ₹250/month Analytics plan you get:

✅ Simulator – Index + Stocks
✅ Builder – Index + Stocks + Live Trading
✅ Option Chain
✅ Charts – Rolling Straddle, 4-in-1, OI, Multi Strategy

All in one plan.

https://t.co/NzDetpGGEp

[Stockmock.in (Backtesting, Simulator & Builder) @stockmock_in]

OI In Payoff Chart Added to Simulator & Builder. You will see OI Checkbox on top right.

[Stockmock.in (Backtesting, Simulator & Builder) @stockmock_in]

CAS & Options — The Problem

🔴 What is happening?

CAS is creating a new problem for option traders.

Right now, options are starting to price CAS risk higher than overnight risk.

Think about that.

A 20-minute auction is becoming a bigger risk for an option seller than holding the position overnight.

That doesn’t feel normal.

⚠️ Why is CAS more complicated in India?

We cannot simply say that CAS works in other countries, so it should work the same way in India.

Our market is different.

1. Cash market vs F&O market

Our derivatives market is huge compared to the depth available in individual stocks in the cash market.

But ultimately, prices discovered in the cash market can impact settlement of a much larger derivatives market.

This creates an imbalance.

A relatively small amount of activity during CAS can potentially have a much bigger impact on F&O positions.

2. Short sellers are missing

In India, you cannot normally carry a short position in stocks overnight.

So an important group of sellers is effectively missing from the auction.

If buyers and sellers don't have the same freedom to participate, we should at least ask:

Is CAS really giving us the fairest possible closing price?

🔴 The bigger question — Why 3%?

This is the part I find difficult to understand.

Why has the CAS price band been kept at 3%?

Why 3% and not 1%?

Or 0.5%?

What data supports 3%?

Do these stocks normally move anywhere close to 3% in the last 20 minutes?

If the answer is no, then option traders are being forced to price a risk which normally doesn't even exist.

And that is exactly what we are seeing in option premiums.

As 3:15 approaches, sellers have to protect themselves against what could happen during CAS.

Naturally, premiums stay high and liquidity can reduce.

💡 Possible Solutions

I don't think CAS needs to be removed.

The problem can possibly be solved with much smaller changes.

Solution 1: Expire 0DTE options at 3:15 PM

Take the reference price at 3:15 PM and use that for settlement of expiring options.

After that, CAS can continue normally for the cash market.

This keeps CAS and 0DTE settlement separate.

OR

Solution 2: Reduce the CAS band from 3% to around 0.3%

If historical movement during these 20 minutes is small, why allow a 3% band?

A 0.3% band would make the maximum possible CAS movement much more predictable.

For option sellers, this makes a huge difference.

Once they know that CAS cannot suddenly create a very large settlement move, they will be more comfortable providing liquidity even after 3:15 PM.

And if sellers stay in the market, option premiums should also start becoming normal.

The Point

CAS itself may not be the problem.

The way CAS interacts with our derivatives market is the problem.

If a 20-minute auction carries more risk premium than holding a position overnight, we should seriously look at the design again.

CAS can stay.

But it should be designed around how the Indian market actually works.

The goal should always be simple:

Fair price discovery, without creating unnecessary risk for the derivatives market.

#CAS #Options #IndianMarkets #SEBI #Derivatives

@IRITA_india

[pj @BeingPractical]

Boring startups make money.
Hot startups make noise.

You decide...!

[Stockmock.in (Backtesting, Simulator & Builder) @stockmock_in]

Firstock is also integrated ... @firstockbroking

7 Brokers now:

Zerodha
Upstox
Angel
Kotak
Dhan
Shoonya
Firstock

https://t.co/qWnLXD5hVX

IIFL is next!

[pj @BeingPractical]

So my home-loan experience unexpectedly ended up being published by few news publications and made it’s way to some WhatsApp forwards.

Now my family and friends think - our business is not doing well, that’s why the bank rejected the loan application 🥲

On the loan, senior officials from this bank and few more banks called up to help, it will get sorted.

Yeah, I might have got bit lucky here but the fact remains that for founders, entrepreneurs and promoters access to credit remains a challenge.

Many who are small business operators, free-lancers, consultants, full-time traders, and likes have difficulty even getting a simple credit card. Hope things change in the future ☺️🙏

in-pic: colleague spotted this in mumbai local train.

[Nitish Narang @nitishnarang]

I trade. I take loss. I ask why. And I trade again.

[Nitish Narang @nitishnarang]

Some market days are deceptively unpredictable. The moment you're convinced it's a Max Loss Day... it decides to recover 😅

[Stockmock.in (Backtesting, Simulator & Builder) @stockmock_in]

Total 4 brokers integrated on Stockmock Builder now: Zerodha, Upstox, Angel and Kotak.

Dhan is next.

https://t.co/m3vBINOMTL

[TechnoWatermelon @pranavvk]

Now Chintu on his Amazon EC2 free tier instance can compete with Jane Street with their FPGAs, PhDs, Colocated Servers, and AI farms.

[TradingAlgo @Souvik131]

One of the biggest challenges in retail algo trading has always been market data latency. Even the best broker feeds often came with delays of up to a second.

Access to a faster feed can be a genuine game changer for retail traders and developers building execution-sensitive strategies.

Really impressed by what the Arrow team has built @vivbajaj 👏

Link below:

[Stockmock.in (Backtesting, Simulator & Builder) @stockmock_in]

The number of orders flowing to Zerodha via our Strategy Builder is crazy…

and we never even promoted this integration.
Organic adoption hits different. 🚀

https://t.co/vrrSkRyZhc

#StrategyBuilder

[Stockmock.in (Backtesting, Simulator & Builder) @stockmock_in]

Launched one of the Most Requested Feature in Backtest: Basket SL/TP

We rolled out this feature in 20% of the accounts in phase 1. Check it out to see if you got the access & play around..

Steps to check & enable Basket SL:

1) In Change Settings Pop up enable checkbox “Show Basket SL/TP”..

2) Now Run any basket, and after results come you will see button “Add Basket SL/TP”...

https://t.co/aBMMY2jwuz

[Options Learner @OptionsLearner2]

@Anirbban @BeSensibull You should also try @stockmock_in Builder. Quite good experience so far.

[Sarang Sood @SarangSood]

Kitne tejaswi log hai hamare pas

[pj @BeingPractical]

So many podcasts, so little time.
Guessing we may have overdone this thing.

End up with a feeling that we are talking more and doing less.

[Options Learner @OptionsLearner2]

@BeingPractical But Not before the Budget Announcement

[Options Learner @OptionsLearner2]

@swing_ka_sultan @BJP4India Aise hi 13000 crore allienaces ko baantti rhi to mujhe 400 ki umeed h next time kynki INDIA ki bhi saari alliance bhi jud jaengi inke sath paise lene

[Sarang Sood @SarangSood]

🤣🤣

[Jitendra Jain @jitendrajain]

What's better way to accumulate gold?

Physical gold
Sgb
Goldcase
Goldetf
Other?