I know something’s more than you and most other things, I don’t. So let’s interact and learn from each other. Don’t get too offended if I call a spade a spade.
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In covered call, the underlying view is bullish but not too bullish. So suppose you buy Nifty ETF and keep writing call options, the hope is that market rises but not my too much. But that’s the tricky part because sudden spikes can make short call options ITM and thus eroding profits from the underlying position. How to manage this dilemma successfully?
On a broader level I understand that someone who owns a stock can lending it and make money and the person borrowing shares has to pay interest. But beyond this, how does it work exactly and how much money can stock lender make?
When trading breakouts, which is a better indicator to gauge volatility. Is it better to use beta Or standard deviation? Is Average True Range any good in comparison?
I have been trying to learn more about breakout trading and preparing for major breakouts on the downside in the markets. My concern is that every sharp sell off is being bought into with vengeance, almost. Many potential breakouts have failed in my observation. What are the best ways to identify false breakouts and ways to trade them.
It’s pretty obvious that many retail traders use pivot points extensively to day trade. The pivot point logic seems dubious to me mainly because it’s just a simple formula without a proper rationale according to me. Just want to get some feedback from traders. Does it really work and if yes, in what ways? Do you use it for indices only or evens stocks? Does anyone have any backtested results?
