Risk free option trading strategies
- Thread starter princy01
- Start date
Hi Princy01
There are no such 100% risk free option strategies. You can talk about low risk or lower risk option strategies, which do exist, but what ever we play live in the market is attached to a certain kind of risk.
Take care and all the best / Dan
There are no such 100% risk free option strategies. You can talk about low risk or lower risk option strategies, which do exist, but what ever we play live in the market is attached to a certain kind of risk.
Take care and all the best / Dan
are there no strategies which include multiple legs buying and selling , in which we buy/ sell , call and put both plus some future buy sell and it becomes 100% risk free , maybe low profits but guaranteed one .
i dont know exact strategies and hence the thread but , i have heard some , butterfly , condor , straddle or whatever , i dont know lol.
Hi
Many option strategies do exist with multiple legs. At the moment any future leg is involved beside the option/s leg/s, we talk about: Synthetic option strategies.
Still: 100% risk free and even with guaranteed low profits is a task hardly non of even what you mentioned on option strategies will fulfill that straight away. A better chances you will have when studying "Back spreads" in all the ways they can be traded. Here you sell option on one side and you buy options on the other side. Various ways can be done with this option strategies.
The whole thing is finally a math thing and best traded and tested with adequate option strategy analyzing software or a very advanced excel sheet who is able to do the work on it.
Now to explain all of this is not what I have time to do so. Nevertheless, there are books who will give you a deeper look into the subject. My first book my mentor put in my hands was this one: http://www.tradingoptionsvisually.com/books.html#tov
An other one was this: The Option Trader Handbook: Strategies and Trade Adjustments by George Jabbour (Author), Philip H. Budwick (Author)
and a final one which I also had to read was this one from "Charles M Cottle: Options Trading: The hidden reality".
The mentioned books are heavy stuff to read, very deep going into the subjects, may take months to understand all in dept and if you are interested in it like I was, I am sure you will take your time to start reading in them. Keep a list of the topics or know all the topics posted in those books and when ever you have questions, you may read this chapter or that chapter and after time it will be in your head and you can start to use it to your advantage the way you want to use that very specific knowledge which is not told in any forum nor in any thread in absolute dept.
Take care and have a nice weekend / Dan
Many option strategies do exist with multiple legs. At the moment any future leg is involved beside the option/s leg/s, we talk about: Synthetic option strategies.
Still: 100% risk free and even with guaranteed low profits is a task hardly non of even what you mentioned on option strategies will fulfill that straight away. A better chances you will have when studying "Back spreads" in all the ways they can be traded. Here you sell option on one side and you buy options on the other side. Various ways can be done with this option strategies.
The whole thing is finally a math thing and best traded and tested with adequate option strategy analyzing software or a very advanced excel sheet who is able to do the work on it.
Now to explain all of this is not what I have time to do so. Nevertheless, there are books who will give you a deeper look into the subject. My first book my mentor put in my hands was this one: http://www.tradingoptionsvisually.com/books.html#tov
An other one was this: The Option Trader Handbook: Strategies and Trade Adjustments by George Jabbour (Author), Philip H. Budwick (Author)
and a final one which I also had to read was this one from "Charles M Cottle: Options Trading: The hidden reality".
The mentioned books are heavy stuff to read, very deep going into the subjects, may take months to understand all in dept and if you are interested in it like I was, I am sure you will take your time to start reading in them. Keep a list of the topics or know all the topics posted in those books and when ever you have questions, you may read this chapter or that chapter and after time it will be in your head and you can start to use it to your advantage the way you want to use that very specific knowledge which is not told in any forum nor in any thread in absolute dept.
Take care and have a nice weekend / Dan
Hi
As I not have the time to write an other thread on options as I already did one in the past under my old avatar http://www.traderji.com/options/66266-option-trading-danpickup.html#post639903, here a lesson from Paul which he has recorded some time ago.
So this post is a little add to the above post. It is a Webinar which goes a bit into what the books I mentioned, specially the third one, are talking about in very dept.
You will see some stuff how option trading is done in the background from market makers and those who have deeper knowledge in the topic and even the possibility to do such ways of option strategy trading.
You will also see how it is to work with a software for option trading pros and how easy it will become to understand through a visual way what risk we have related to any trade at any time, regardless how many legs in the trade are involved. In the following link scroll down until you find: Option Trading "Tips and Tricks"
http://www.tradingoptionsvisually.com/webinars.html
There are many more Webinars you can watch on this link. Webinars for every level and for many questions some of the members here may and do have.
Have a nice day / Dan
As I not have the time to write an other thread on options as I already did one in the past under my old avatar http://www.traderji.com/options/66266-option-trading-danpickup.html#post639903, here a lesson from Paul which he has recorded some time ago.
So this post is a little add to the above post. It is a Webinar which goes a bit into what the books I mentioned, specially the third one, are talking about in very dept.
You will see some stuff how option trading is done in the background from market makers and those who have deeper knowledge in the topic and even the possibility to do such ways of option strategy trading.
You will also see how it is to work with a software for option trading pros and how easy it will become to understand through a visual way what risk we have related to any trade at any time, regardless how many legs in the trade are involved. In the following link scroll down until you find: Option Trading "Tips and Tricks"
http://www.tradingoptionsvisually.com/webinars.html
There are many more Webinars you can watch on this link. Webinars for every level and for many questions some of the members here may and do have.
Have a nice day / Dan
Hi
Many option strategies do exist with multiple legs. At the moment any future leg is involved beside the option/s leg/s, we talk about: Synthetic option strategies.
Still: 100% risk free and even with guaranteed low profits is a task hardly non of even what you mentioned on option strategies will fulfill that straight away. A better chances you will have when studying "Back spreads" in all the ways they can be traded. Here you sell option on one side and you buy options on the other side. Various ways can be done with this option strategies.
The whole thing is finally a math thing and best traded and tested with adequate option strategy analyzing software or a very advanced excel sheet who is able to do the work on it.
Now to explain all of this is not what I have time to do so. Nevertheless, there are books who will give you a deeper look into the subject. My first book my mentor put in my hands was this one: http://www.tradingoptionsvisually.com/books.html#tov
An other one was this: The Option Trader Handbook: Strategies and Trade Adjustments by George Jabbour (Author), Philip H. Budwick (Author)
and a final one which I also had to read was this one from "Charles M Cottle: Options Trading: The hidden reality".
The mentioned books are heavy stuff to read, very deep going into the subjects, may take months to understand all in dept and if you are interested in it like I was, I am sure you will take your time to start reading in them. Keep a list of the topics or know all the topics posted in those books and when ever you have questions, you may read this chapter or that chapter and after time it will be in your head and you can start to use it to your advantage the way you want to use that very specific knowledge which is not told in any forum nor in any thread in absolute dept.
Take care and have a nice weekend / Dan
Many option strategies do exist with multiple legs. At the moment any future leg is involved beside the option/s leg/s, we talk about: Synthetic option strategies.
Still: 100% risk free and even with guaranteed low profits is a task hardly non of even what you mentioned on option strategies will fulfill that straight away. A better chances you will have when studying "Back spreads" in all the ways they can be traded. Here you sell option on one side and you buy options on the other side. Various ways can be done with this option strategies.
The whole thing is finally a math thing and best traded and tested with adequate option strategy analyzing software or a very advanced excel sheet who is able to do the work on it.
Now to explain all of this is not what I have time to do so. Nevertheless, there are books who will give you a deeper look into the subject. My first book my mentor put in my hands was this one: http://www.tradingoptionsvisually.com/books.html#tov
An other one was this: The Option Trader Handbook: Strategies and Trade Adjustments by George Jabbour (Author), Philip H. Budwick (Author)
and a final one which I also had to read was this one from "Charles M Cottle: Options Trading: The hidden reality".
The mentioned books are heavy stuff to read, very deep going into the subjects, may take months to understand all in dept and if you are interested in it like I was, I am sure you will take your time to start reading in them. Keep a list of the topics or know all the topics posted in those books and when ever you have questions, you may read this chapter or that chapter and after time it will be in your head and you can start to use it to your advantage the way you want to use that very specific knowledge which is not told in any forum nor in any thread in absolute dept.
Take care and have a nice weekend / Dan
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