Thursday, October 30, 2014

dilemma of buying when premium is high

dear dheeraj,

whatever is at premium has good value....

also, when u will sell, u will get good part of premium back. premium will not become zero at the blink of eye.

plus, high premium indicates that somewhere in the series market will enter a range.....that helps in trading (ranges). you interpret technicals accordingly, in that light.

i am more jittery buying when premium is too low. generally i avoid it.

No comments: