Unbiased View

Definitely for an Investor, there should be growth in the company and one should not invest in a company which has negative forecast.

Unbiased view for any trader is exceptionally important to make money or to safe capital. You can notice many influencers talk about the market up / down after it has actually happened, but no one can tell what is going to happen tomorrow or in a month, because market is irrational and unpredictable.

Being Unbiased is more difficult but safer in the economic world. When we work towards success, below 6 points to be considered

1. Unbiased view

2. Discipline

3. Confidence

4. Consistency

5. Patience

6. Passion

Let's say I take a positive view ( Sell Put being an Option Seller / Hedger ) and when the market goes against me for a day or a week, I need to wait for the market to return back to its position or wait for the Theta to play its role.

In the above case, the biggest enemy is impatient and that might come out with loss, hence if I go with an unbiased view or taking an Iron Condor ( I would always sell the call option far away from the spot strike and sell the put option bit closer during the start of the month - also will take care of the Open Interests ) that will balance my profit / loss and in a long run near to the expiry, Theta will work and give the benefits both ways.

Point to note is the Margin, where the Option sellers will be benefited more for an Iron Condor, margin will be around 65% than compared to the biased view margin for any stock or indices. 

Another point for success in Unbiased positions is to select the stock / index which doesn't have high volatility and has consistent grow. Mainly the stock should not be on the news.

Need not to worry on high liquidity on the stock, I would prefer the medium liquid stocks rather than high liquid stocks. Better to consider the stock whose Bit price and Ask price of the Premium are closer. 😊

Best Regards,

B G Nareshkumar