Option trading with DanPickUp

[gmt900]

Now who is the winner?

Actually Nobody, as it was not a competition. The calculation is a bit tricky when not being careful with every detail at the moment we just fly over the strategy and do not give much to the numbers in detail. And exactly here was the hidden wolf.

If we go a bit deeper, then SKS has nicely explained how it is. So the final maximum risk is: 65.60 Pts.

As the strike levels have 100 point difference, we have to take this in to account and then as told from SKS, we take away the net credit from 34.40 points from this difference of the strike levels, which is 100 point and that will lead us to 65.60 Pts. (Difference in adjacent strike - net credit)

Thanks to SKS to spot on that specific detail.

Well done and very attentive / DanPickUp

Thanks SKS and Dan !
It's a bit tricky calculation. So, If you go for Iron Condor , the risk reward ratio is not really favorable.
It's much better to go for short strangle and adjust the trade depending on the market movement.
regards,
gmt900

 

[niftytaurus]

Hi Dan
I am a new member .I just want to trading in option only.this post is really helpful.
thanks

 

[DanPickUp]

Hi Dan
I am a new member .I just want to trading in option only.this post is really helpful.
thanks

Hi and welcome in the world of option trading.

If you really start in options and never ever did trade them before, be aware about the risk you face when not having any knowledge about them.

As there are different ways to use options, be clear in what way you want to use them. As I do not have any idea with what kind of trading platform you work with, I am not able to say to you what may could be tested there.

If you do for the moment paper trades, take your time to study in dept what is needed by you. Be clear about any margins you need for any strategy trading in your market and be clear about the psychological trap you can face when doing directional calls. As if done like that, every body only thinks that market will move in there direction, other wise nobody would take such directional trades.

Just some basics for the begin. Now take care and I wish you a good start into the option world

DanPickUp

 

[niftytaurus]

Hi
thanks for ur suggestions.really appreciate it
I know sme basics of options .right nw i am nt trading.I have predicted some move & try to buy some option.sometimes i get profit & sometimes i loss.so now i stopped it & concentrating on my studies & training.I am reading everything which I can get on options.thinksing for paper trading for sometimes.
senior member like you can guide me how can i start ? what do I need to do in starting.I left my job & started doing it full time.but will nt start proper trading till i get enough knowledge.I can give time to learn & then trade.as I will start from rs 1 lac & my object is 30% per month.
Senior members like you can suggest me how can i start my education first.I have been reading GUY cohen ,mcmillan book on options.for candle stick ,i m reading Nison books.
senior members can suggest me other books or courses which can be useful to me.
Thanks again

 

[DanPickUp]

Hi
thanks for ur suggestions.really appreciate it
I know sme basics of options .right nw i am nt trading.I have predicted some move & try to buy some option.sometimes i get profit & sometimes i loss.so now i stopped it & concentrating on my studies & training.I am reading everything which I can get on options.thinksing for paper trading for sometimes.
senior member like you can guide me how can i start ? what do I need to do in starting.I left my job & started doing it full time.but will nt start proper trading till i get enough knowledge.I can give time to learn & then trade.as I will start from rs 1 lac & my object is 30% per month.
Senior members like you can suggest me how can i start my education first.I have been reading GUY cohen ,mcmillan book on options.for candle stick ,i m reading Nison books.
senior members can suggest me other books or courses which can be useful to me.
Thanks again

30% per month is for absolute hard core traders which have been washed with every water which exist in the trading world. So forget about any such calculations if you not have sufficient knowledge in any kind or part of trading.

How to start for a living: Only when you are sure you have all the tools and knowledge to make a basic income at begin which will pay your bills at the end of the month. Other wise just forget about it and do your work as you did before. Just watch the video a few posts ago to get to know what it takes to give up your job and to trade with your own money.

Do not fall in to the trap of hope to survive with little knowledge in that business. It is as hard as every other business. Only the best and most clever do survive.

Good luck / DanPickUp

 

[gmt900]

Dear niftytaurus,
I am not a "senior" but am a senior citizen. Please go thr' this thread from the beginning if not done already. You may probably have to go thr' it more than once to grasp the concepts. The video recommended by Dan is also very inspirational. Option trading handbook suggested by Dan appears to be very useful, although I have just begun reading it.
I would suggest that you don't work with targets at the beginning, least of all figure like 30%. In fact you should concentrate on keeping your losses under check since losses are a part and parcel of trading.
Wish you all the very best,
gmt900

 

[niftytaurus]

30% per month is for absolute hard core traders which have been washed with every water which exist in the trading world. So forget about any such calculations if you not have sufficient knowledge in any kind or part of trading.

How to start for a living: Only when you are sure you have all the tools and knowledge to make a basic income at begin which will pay your bills at the end of the month. Other wise just forget about it and do your work as you did before. Just watch the video a few posts ago to get to know what it takes to give up your job and to trade with your own money.

Do not fall in to the trap of hope to survive with little knowledge in that business. It is as hard as every other business. Only the best and most clever do survive.

Good luck / DanPickUp

thanks for ur advice
I can understand that there is so much risk in option.but I am determined to do it after education,training, & paper trading.
so could you please suggest me that how can i start ? I am going thru previous posts of this thread.what other books should i read first to start?
what softwares do i need to analysis? any book to improve psychology?
thanks

 

[niftytaurus]

Dear niftytaurus,
I am not a "senior" but am a senior citizen. Please go thr' this thread from the beginning if not done already. You may probably have to go thr' it more than once to grasp the concepts. The video recommended by Dan is also very inspirational. Option trading handbook suggested by Dan appears to be very useful, although I have just begun reading it.
I would suggest that you don't work with targets at the beginning, least of all figure like 30%. In fact you should concentrate on keeping your losses under check since losses are a part and parcel of trading.
Wish you all the very best,
gmt900

thank u very much Gmt 900 ji
I m going thru this thread.I will nt start trading before complete my education & enough paper trading.
any more advices are welcomed
thanks

 

[jamit_05]

Hi Dan,

I had a very specific question.

I am usually holding lots of Futures Nf in the direction of the trend. After NF going 150 points in favour I like to start taking profits. To do that I would like to sell ATM Options against NFs instead of selling NFs for booking profit.

I would like to know/learn any option dynamics to best do the job.

Please advice.

 

[DanPickUp]

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