So anybody is actually in profits just trading Options

[Ulaanxuu]

Many guys lose at options, because they trade them like stocks. The thinking must be different. I started by trading credit spreads with $2000. Now I do iron condors, naked puts, DITM etc. Yes, I make money!:clap:

 

[pfinrs]

Many guys lose at options, because they trade them like stocks. The thinking must be different. I started by trading credit spreads with $2000. Now I do iron condors, naked puts, DITM etc. Yes, I make money!:clap:

I trade exclusively in options and I agree that it is not easy to make money in them. I do not do any of the things you have listed, but use my own model to guide me. So far, my accuracy rate has been pretty good and I hope it stays that way. It will be great if you can elaborate on your strategies for me to learn.

Regards,

pfinrs

 

[TraderRavi]

I started my option trading with 17K from Dec 2010 and by the last session my account value is 99700. While I only trade NIFTY options, Intra Day, Winning Trade 36, losing trade 29, Biggest profit 23000, Biggest loss 5800 and last but important my broker is RKG with Rs 9 lot brokerage. Hope I contributed in thread

:thumb::thumb:

 

[Einstein]

Re: new strategy of option trading

Rescently i work on option trading and i found that may of us trader try to trade in option by only buying a call or a put
but this is the main problem because we trap in option trading by gaining big losses
i will tell you one strategy exactly opposite to trade by us
stort a call or put of any stock at wich strike rate stock can not reach
at the starting of new series the primium of the type of call or puts are really high this is the most benificial factor
lets example
if you short hindalco put 110 at 13.05 1 lot or
put 120 at 22.90 1 lot or
put 130 at 33.05 1 lot or
put 140 at 42.50 1 lot or
put 160 at 67.85 1 lot or
put 170 at 73.80 1 lot
it really trading at high premium when we short it some people buy it and hold that as a days goes its valuation goes down usually primium goes down and you can place your order near expiry at 1 to 2 rs because those who buy it at such a high premium no one is redy to sell it below their purchase price ultimately they hold it for wish to increase its price but at the expiry he must squreup his position so he sell at which price available at expiry
this is just begining
can you think about that why these strike price premium is such a high
this is the trap in which many of us trap buy buying it always sell it and and trap other
thanks:clapping:

Are you suggesting shot selling?? This could be dangerous, as one is exposed to unlimited loss..

 

[DanPickUp]

Re: new strategy of option trading

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[ananths]

Dear Tradertushar,
You are suggesting people to short sell...people may not know how dangerous it is...if you dont understand the risk try it for some time . You may succeed few trades...but when you lose it will erase all your profit and capital. I have experienced it and suggest people not to short sell unless you have a good plan in place. Every trade is a good trade if you have a plan to exit.
I think beginner in option trading should start with Debit or Credit spread or covered call/put...there are so many articles on internet and in this forum. Spend some time on this and then start
Cheers, Ananth

 

[trdstudent]

Re: new strategy of option trading

Dear Tradertushar, ur sggtion is actually verry risky for an avrg option trader .But this can be done in future by shorting the next months series few days before the crrnt expry and close on the day of the crrnt expry and i blv many nifty future traders do this regularly.

 

[adg123]

no i am not making much ... earlier i lost in lakhs then nw i am learning and making profits in hundreds :-(

very good very good..... laage roho....

 

[aditya14]

Re: new strategy of option trading

Rescently i work on option trading and i found that may of us trader try to trade in option by only buying a call or a put
but this is the main problem because we trap in option trading by gaining big losses
i will tell you one strategy exactly opposite to trade by us
stort a call or put of any stock at wich strike rate stock can not reach
at the starting of new series the primium of the type of call or puts are really high this is the most benificial factor
lets example
if you short hindalco put 110 at 13.05 1 lot or
put 120 at 22.90 1 lot or
put 130 at 33.05 1 lot or
put 140 at 42.50 1 lot or
put 160 at 67.85 1 lot or
put 170 at 73.80 1 lot
it really trading at high premium when we short it some people buy it and hold that as a days goes its valuation goes down usually primium goes down and you can place your order near expiry at 1 to 2 rs because those who buy it at such a high premium no one is redy to sell it below their purchase price ultimately they hold it for wish to increase its price but at the expiry he must squreup his position so he sell at which price available at expiry
this is just begining
can you think about that why these strike price premium is such a high
this is the trap in which many of us trap buy buying it always sell it and and trap other
thanks:clapping:

Ask urself why the premium is high.This month really should have tought a lesson for naked option sellers.
Single day moves of 20% in stocks will put u into deep deep losses when u sell some call or put 20% off the current price.

 

[singlap]

In options trading ,

buying options means UNLIMITED PROFIT & LIMITED LOSS POTENTIAL

selling options means LIMITED PROFIT & UNLIMITED LOSS POTENTIAL

Does this mean we should always buy options ?
NO.
Potential doesn't mean it will actually happen.

Ironically, you can make consistent returns by selling options. But we need to learn how to hedge our risk of unlimited losses while selling options. Initial posting by traderjitushar had lot of merit but with an issue that the posting does not talk about any of the hedging possibilities.

Proper hedging knowledge comes by practice, by learning.

singlap
www.theoptionschool.in