A Beginner's way to trade options.

a1b1trader

a1b1trader

Well-Known Member
#451
#451
ashutosh.krsrivastava said:
I am trading in MInifty futures by using SH's 315 system.. and i m doing ok.. I just take 1 minifty position as I m learning rt now.... :D
Now about the bear put spread that I posted, I got it from icicidirect site which i use to trade.... If you want to know about any specific spread, pls post it.. will try to keep you updated.. :)
And I will close my eyes and jump into options from 1st october :D
hahaha

regards
Click to expand...
To enter in october series, you need not wait till 1st october, you can enter even now in september itself (you must be knowing that), my idea was to just wait till this political scenario is clear, or as you are doing good in futures and if you are ready to take risk (of the premium amount), then start even now with october series, choose call if want to go long or put if you want to go short, of suitable strike as per your observation and enter.

Once you started with options trading, I think and am sure, you will forget futures. The advantages of option trading besides limited risk amount, total of brokerage and other taxes (particularly STT) is very low in comparison of futures, the initial amount required for option trading is very low as compared to futures. For a strike rate of 5xxx with a premium of Rs 40, you just need 40x50 = 2000 for 1 lot nifty. And no झंझट of paying MTM and additional margin. The only drawback is time decay and one has to squareoff holding by expiry. Just one caution do not short sell options, as in this case, it is more or less like future trading in all aspects like, unlimited risk, झंझट of additional margin and MTM etc.

For learning options there is very good learning material at ICICDirect website. The link is http://content.icicidirect.com/news...tion/ClassroomOfProfit.asp?filename=Equities#
I may add that I started by basic study of options from this learning module only. Further I could not locate the link for that screenshot. Please post the complete link.

BTW how much brokerage plus taxes you are paying to ICICIDirect for futures and options and how is their service. Aren't they charging too much as brokerage. Do they charge for online trading platform also.
 
ashutosh.krsrivastava

ashutosh.krsrivastava

Active Member
#452
#452
Or To be exact..
Profit will be when nifty moves below 5552 or above 5721.. Am I correct?

As for that 1st October thing.. It is just that I want to study all that can be possibly studied in two weeks before doing options...:D

Icicidirect do charge more brokerage, but I find it easy to trade with them.. Also money management is good with Icicidirect.

As for the link to strategy.. I think it is for icicidirect users only... I may be wrong on this account...

Strategy is for only nifty, risk appetite selection is low or moderate, and one has to specify the expected trend like up, down, rangebound or volatile, and it shows 3strategies...

They do charge for desktop based trading terminal.. But web based is free of cost.. But it is very dull, with no rt data updating.. It has to be refreshed every time...

Regards...
 
a1b1trader

a1b1trader

Well-Known Member
#453
#453
Yes, If you are right then I am almost right. Thats good a1b1 you are learning in a right way. Doing self study is a very difficult talk, when there is no body to correct your mistakes. Isn't it.

I also think ICICIDirect is providing strategy to their users only.

Thanks
 
ashutosh.krsrivastava

ashutosh.krsrivastava

Active Member
#454
#454
a1b1trader said:
Yes, If you are right then I am almost right. Thats good a1b1 you are learning in a right way. Doing self study is a very difficult talk, when there is no body to correct your mistakes. Isn't it.

I also think ICICIDirect is providing strategy to their users only.

Thanks
Click to expand...
Hey a1b1,
What r your views about tomorrow's nifty movement?? Any guesses??? :)
How about gap-down... Actually I m long MINIFTY @5619, after booking profit @5651/- :(
Regards..
Srivastava..
 
a1b1trader

a1b1trader

Well-Known Member
#455
#455
It will depend on opening. I think.

If there is no gap down opening, then nifty will move in 5625-5560 range. An in case of gap down, one can check by reducing the range by that of gap down points.

Its my opinion only. I may be wrong, lets see.
 
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