reasons why i do option buying weeklies even after all the odds against me. 1:- i don't need to keep my entire Capital in Broker account almost 75% of my capital is unblocked and can be kept in a bank.
2:-much safer in-case broker goes down weekly option are dirt cheap and in-case i loose entire premium as well its not that much to wipe out my capital but a sold option at 100 can become 1000 as well.
3:- position size is decided by my Risk appetite and not Exchange rules which keeps on changing
remember option buying ride is much difficult than synthetic future or future coz during loosing streak u loose more and DD almost doubles of future backtest. avg nifty point 13 and banknifty point 42 gives me cushion to absorb theta
if ur avg point in nifty is in range of 6-7 and in banknifty around 20-25 better stick to future or synthetic future otherwise during loosing streak u might end-up in really big DD
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