Investing 1 Lac in Options trading. Hope to make 25 Lacs.

[cinderblock]

Good luck dude. If you believe, you can achieve. Dont let people tell you it cannot be done. Go for it!

We need more people like you in the market

 

[stock72]

Good luck dude. If you believe, you can achieve. Dont let people tell you it cannot be done. Go for it!

We need more people like you in the market

:clap::clap::clap::clap::rofl::rofl:

 

[vas2009]

I plan to write Nifty Options pairs, like 2 lots of PE and 2 lots of CE.

And do 10-15 trades daily. I need just 5 points gain per trade and I am happy.

I hope this works ?

For selling option margin money itself will be around 30K for ATM strike.For 1 lac you will be able to sell only 3 lots.
Further when you sell you are expecting the strike to expire worthless,hence you have to identify the strikes call or puts which will expire worthless.A hungomongous job.
Day trading by selling options is not a good idea as decay because of time will be very small,as it is the start of the month.Further options have the characteristic to jump if index goes your way but go down in small amounts.Hence traders buy options and don't sell options for day trading.
But please try and don't be disappointed if you loose a substantial amount in the next 1 year,as it takes a lot of time losses to perfect the system.

 

[copypasteaee]

For selling option margin money itself will be around 30K for ATM strike.For 1 lac you will be able to sell only 3 lots.
Further when you sell you are expecting the strike to expire worthless,hence you have to identify the strikes call or puts which will expire worthless.A hungomongous job.
Day trading by selling options is not a good idea as decay because of time will be very small,as it is the start of the month.Further options have the characteristic to jump if index goes your way but go down in small amounts.Hence traders buy options and don't sell options for day trading.
But please try and don't be disappointed if you loose a substantial amount in the next 1 year,as it takes a lot of time losses to perfect the system.

Do not discourage him bro, just let him have a feel of it. Targets may sound unrealistic but otherwise if you see money can be made in writing options. So i request every one to have patience and let him do what he wants to do.

 

[katezman]

Any one can recite winning lottery ticket number once the winning ticket has been announced!

True. But unless one buy's the lottery he will never have a chance to win!

 

[katezman]

Hindsight is always 20/20.

Ek Koshish toh banti hai yaar..

 

[vas2009]

Do not discourage him bro, just let him have a feel of it. Targets may sound unrealistic but otherwise if you see money can be made in writing options. So i request every one to have patience and let him do what he wants to do.

Bro.I am not discouraging him to write options.I have also made some money while writing options,but you make money only if you can correctly predict that those options will expire worthless.Anyway their premiums are also small.Leveraged trading by selling options is not on.One can leverage only by buying optionsHence daytrading by selling options does not work.Just my humble POV.Maybe wrong.Somatung is great in options.Maybe he can shed some light on this.
If he had mentioned that he would like to make around 10% a month by selling options I would have agreed as that is very much possible.But the gentleman wants to make 2500%.

 

[vas2009]

I think selling options for leveraged trading is akin to buying/ selling futures.For example if one were to sell 8300PE on Friday(when the market moved up) the person would have made almost 90% of the money he would have otherwise made by buying NF.It would have been better if he had purchased 7900 or 8000 CE as with the same margin amount he would have been able to purchase more lots and hence more profits.A leveraged trade.Just my POV

 

[trader_ks]

I think option writers are of different mindset and are really expert in their field.
One thing to be remembered in selling option is that a wrong decision and not timely action can wipe out entire account in a day. Some traders might have experienced it in wild swings which happened in past 3-4 trading sessions.

So reality is that option writing is for regular income with strict money management rules and may not work as lottery ticket.

I hope I am not demotivating anybody and please take my words in right spirit.

BTW best of luck for what ever you decide

 

[trade2good]

I think option writers are of different mindset and are really expert in their field.
One thing to be remembered in selling option is that a wrong decision and not timely action can wipe out entire account in a day. Some traders might have experienced it in wild swings which happened in past 3-4 trading sessions.

So reality is that option writing is for regular income with strict money management rules and may not work as lottery ticket.

I hope I am not demotivating anybody and please take my words in right spirit.

BTW best of luck for what ever you decide

All taken in right spirit I have no intention to lose more. I just want to write Options and earn what my target is. Its a personal target and I hope I can achieve it. I wont lose sleep over it as I will only SELL pairs and achieve my 5 points per trade. No pair no trade is my way.

I claim to be no expert, but I know how to SELL/Write Nifty Pairs. I think that should work