A Beginner's way to trade options.

[Satyen]

thanks vineet bhai

regards
Satya

 

[Smart_trade]

DA, isn't it a better choice to sell ATM put when we go long & sell ATM call when we go short ..thats way we earn both directional move+ time decay..

the BETA may not be same but we can compensate that with time decay in put\call..

reagrds

vineet

Your risk too increases....Vineet, If you go long in call and sell ATM put,and the market tanks, you will loose on both positions...so in effect you are taking double positions...

ST

 

[jamit_05]

LVG,

Straddle is a simultanous buing/selling of call and put of the same strike price....strangle is simultanous buing/selling of call and put of the different strike price....

We will be selling straddle in the first week, then after premiums decay,we will buy the straddle to take advantage of price movements.....In the last week we will play with 2 spreads (calls Condors) ....Lets see how it develops....

Regards,

Smart_trade

Excellent. Really looking forward to it. It will be an immense learning experience. I will read up as much as I can, like what is a strangle, straddle and condors on the net... I am sure they are just two line definitions, good enough to get me familiar.

Looking forward to a great start. I am sure several others too are with me in this excitement.

 

[jamit_05]

nice nice ............ thanks ST da and amit for this thread i was thinking 60 min flow with option but dont know abc of option plz give some link or e-book so that can learn some option basic in this holiday thanks again ........

Regards
Satya

Harsh has given several links on the following post... very helpful.

http://www.traderji.com/options/28384-beginners-way-trade-options-3.html#post303849

 

[myvineet]

Your risk too increases....Vineet, If you go long in call and sell ATM put,and the market tanks, you will loose on both positions...so in effect you are taking double positions...

ST

no DA, you got me wrong here ..

what i mean is when 60 min flow signal long we will sell ATM PUT

& when flow signal short we will sell ATM CALL..

its only single position..

regards

vineet

 

[manojkch]

Thanks Amit and ST Sir for this thread. Another great learning experience!:clapping:

Best Wishes
Manoj

 

[jamit_05]

Thanks Amit and ST Sir for this thread. Another great learning experience!:clapping:

Best Wishes
Manoj

Yes, Manoj. I am glad to see the enthusiasm. It is going to be a new territory and lots more to learn. All thank-yous go to ST da and Vineet for being encouraging. :clap:

 

[jamit_05]

no DA, you got me wrong here ..

what i mean is when 60 min flow signal long we will sell ATM PUT

& when flow signal short we will sell ATM CALL..

its only single position..

regards

vineet

Vineet bhai,

I think what ST da is suggesting is "What happens in the time period between the PUT is sold and CALL is bought". In that time period we will be bearing a risk (probably an unlimited one). However, I am sure with your good knowledge of miniflow and 60 min flow both you can design a system around this. But for the rest of us... we are glad he is selling these options simultaneously

<Rambling>
What ST da is going to do today is simultaneously sell a PUT and a CALL with strike prices at least 200 pts apart. So in case of a directional move if one gains the other will lose. If there is no direction as such, then the premiums will decay.

It gets even more interesting to see what the maestro does when the NF price comes at par with the strike prices some days down the line. He has mentioned the word Condor, I am sure it has something to do with that.

Let see...

 

[myvineet]

Vineet bhai,

I think what ST da is suggesting is "What happens in the time period between the PUT is sold and CALL is bought". In that time period we will be bearing a risk (probably an unlimited one). However, I am sure with your good knowledge of miniflow and 60 min flow both you can design a system around this. But for the rest of us... we are glad he is selling these options simultaneously

<Rambling>
What ST da is going to do today is simultaneously sell a PUT and a CALL with strike prices at least 200 pts apart. So in case of a directional move if one gains the other will lose. If there is no direction as such, then the premiums will decay.

It gets even more interesting to see what the maestro does when the NF price comes at par with the strike prices some days down the line. He has mentioned the word Condor, I am sure it has something to do with that.

Let see...

thats exactly what i want to clear ..

i am not asking about selling of put+buying of call..

i will only sell put\call when 60 min signal ....

what DA is trying to do now is different then trading 60 min flow with options..

vineet

 

[jamit_05]

what DA is trying to do now is different then trading 60 min flow with options..

vineet

A valid point. However, I think that is for the best.

ST sir uses options as a tool when the flows are not performing in non-trending times. Which is what we had reqeuested him to teach us, this level of diversification.