Derivatives Trading and CAS: Something retail traders need to think seriously

Derivatives trading has always been Big players Game, and that's why we have CAS

Indian markets have this unique problem. The volume is stocks is much less than derivative volume (all thanks to NSE satta expiry game).

What happened over the years is that the retail traders got into selling options which was easy money. There is no research, no logic, no skills needed for option selling, just few basics, good capital and need to know how to manage tailwind and you are set.

Now compared to stock investing/stock trading, this was quite easy and many I know we're making easy money which is basically taking the share out from that of exchange sponsors (basically for whom derivatives are created) which the big guys did not liked, so they introduced CAS.

If you just look clearly using a little common sense, you will clearly see thru that steps taken by SEBI is not to prevent retailers from trading, but to prevent them from taking profits out of biggies bucket, and this is not surprising.. Derivatives were created for them only and unless you are part of them, things will be always against you.

Having said this, I know most people just buy options as lottery ticket in name of trading.. that's gambling and I am not talking about you.. you are not taking anyone's share, you are just giving your money like those lottery buyers, so you are safe.. don't worry.. the problem is for option sellers.

As of now, the best thing for retail trader is just stick to cash buying stocks, and it always has been.