Hi to every body and to you SaravananKS
I will expand my comment about your above post, so others also can sort out some of there thoughts and maybe questions or diffusions they have about option and option strategy trading.
You have to short strangles on different strikes. That is what you have and how you call that. Acquiring more and more knowledge about option strategies can make sense under certain circumstances. But option trading is not all about option strategies. Option strategies are just a part of it like oil is part of cooking. Get the book " The bible of option strategies" from Guy Cohen. So you have a book at hand you always can use and that will do for quit a while when want to get a bit deeper into option strategies. No need for any other books to get an overview and understanding about that topic. All what is written there is done in a way every one can understand. All the strategies presented there are pure vanilla strategies and not expanded or mixed up with other legs and tools.
Now you ask for some sort of "Option trading system". Simple told: Use a future trading system and instead of futures you trade options with the signals which occur in that future trading system. If the underlying has enough volume on the option strikes and the filled you get are on a high level, you can do that with atm or even itm options. You may are surprised by that answer and if so. what is in your mind about what an option trading system is? To me that is a mechanical system and for that you need TA which is done through/with indicators and math. If you want you even can bring in some common sense to any go or not go in such mechanical systems.
Now let me spot a bit to the next point: What is option trading the way you do it now? It is not based on any TA, isn't it? Can you make profit with it, can't you? You know that answer by your self. So by what you do now, you use other facts and tools instead by what you would do when using a mechanical trading system. By what you do now you use math, you use the option Greeks, you use common sense, you use FA, you have to know the market calendar and so on.
So why this guy is posting so much instead of just giving some simple answers? Here we go:
By what I just posted it should be clear to anybody that we can trade options in different ways. Now the question comes up: Which way do we want to trade those options? Do we want the mechanical way or do we want the non mechanical way. Sort that out and you will know how much more you will need on information to trade options. If you trade them mechanical with atm and itm options, you will not need to learn about option strategies. If you want to do it the other way round, you will need some more time to understand the strategy you want to trade and implement and then concentrate more on such kind of knowledge. Here the above mentioned book will show you between what you can choose. It would go behind the scope to explain all that now here in this place, as I already made an expanded post here.
I am happy to see that SaravananKS has already start using my presented link. Request others which have open questions to use them intensively as the knowledge presented there is of high quality. Take care / DanPickUp
By the way: Here the sun came up, snow outside, so will be a great day.
I will expand my comment about your above post, so others also can sort out some of there thoughts and maybe questions or diffusions they have about option and option strategy trading.
You have to short strangles on different strikes. That is what you have and how you call that. Acquiring more and more knowledge about option strategies can make sense under certain circumstances. But option trading is not all about option strategies. Option strategies are just a part of it like oil is part of cooking. Get the book " The bible of option strategies" from Guy Cohen. So you have a book at hand you always can use and that will do for quit a while when want to get a bit deeper into option strategies. No need for any other books to get an overview and understanding about that topic. All what is written there is done in a way every one can understand. All the strategies presented there are pure vanilla strategies and not expanded or mixed up with other legs and tools.
Now you ask for some sort of "Option trading system". Simple told: Use a future trading system and instead of futures you trade options with the signals which occur in that future trading system. If the underlying has enough volume on the option strikes and the filled you get are on a high level, you can do that with atm or even itm options. You may are surprised by that answer and if so. what is in your mind about what an option trading system is? To me that is a mechanical system and for that you need TA which is done through/with indicators and math. If you want you even can bring in some common sense to any go or not go in such mechanical systems.
Now let me spot a bit to the next point: What is option trading the way you do it now? It is not based on any TA, isn't it? Can you make profit with it, can't you? You know that answer by your self. So by what you do now, you use other facts and tools instead by what you would do when using a mechanical trading system. By what you do now you use math, you use the option Greeks, you use common sense, you use FA, you have to know the market calendar and so on.
So why this guy is posting so much instead of just giving some simple answers? Here we go:
By what I just posted it should be clear to anybody that we can trade options in different ways. Now the question comes up: Which way do we want to trade those options? Do we want the mechanical way or do we want the non mechanical way. Sort that out and you will know how much more you will need on information to trade options. If you trade them mechanical with atm and itm options, you will not need to learn about option strategies. If you want to do it the other way round, you will need some more time to understand the strategy you want to trade and implement and then concentrate more on such kind of knowledge. Here the above mentioned book will show you between what you can choose. It would go behind the scope to explain all that now here in this place, as I already made an expanded post here.
I am happy to see that SaravananKS has already start using my presented link. Request others which have open questions to use them intensively as the knowledge presented there is of high quality. Take care / DanPickUp
By the way: Here the sun came up, snow outside, so will be a great day.