I am a new trader in options(Call and Put). I usually purchase them (straddle) at low levels and sell as the prices move. What could be the appropriate strategy to trade in options? Experienced people please share your gyaan
Dear StockBond,
Options are not like stocks that you can buy and sell on rise any time, it has got time decay factor with it. So, be careful
I have reco. some options trading strategy in the 1st post of this thread. You can either follow this or any other strategy you come across.
Before you start trading using any trading strategy of your choice you should paper trade that for atleast 3 months and see whether it gives you profits 3 months in a row or not. Its important to note that any strategy might not suit your style or mood so take your time in choosing and testing them. Once tested just stick to it, how boring that startegy may be. Trading is not done for fun so do not keep changing your strategy.
Plan your trade daily and trade next day as per the plan. Even with paper trading daily planning will help.
Note down all your emotions during trades, daily in a dairy and read it after trading hours, analyse the same on daily/weekly/monthly basis to improve your trades.
I did these hence sharing the same here. Hope this will be of some help to you and other new bees.
Regards