5.5.08

call writing and put writing

i never short sell in options actually the technical word is call writing and put writing. the biggest thing i dont like in put or call writing is that u have to pay the margin money which we usually pay in future trading..instead buying call or put option is much better where the investment is only the premium amount which is very less compared to the margin money .the extra money can be invested some where else .i options i dont keep open position for a long period and i dont even trade in big quantity i trade in small parts and book profits regularly ,sometimes loss also .keeping open position in option is not possible because as the expiry of the contract comes closer the premium comes down ,so there is a time lag here which has to be kept in mind

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