So anybody is actually in profits just trading Options

[ananths]

I trade in NIFTY options Debit or Credit spread...It gives good rewards too.
However these days market opens gap up or down. So holding overnight turns the profit to loss sometimes. Once it opens up or down then market doesn't give the direction for the day properly. So I had to cover my position with losses. Since im doing spread, risk is limited. Example is below,

Currently nifty is at 6000.. 12th July 2013.
1) Debit spread
Buy 1 lot 6000CE @ 80
Sell 1 lot 6100CE @ 35

Is there any other way we can do this spread better? like say sell 1 lot 6200CE and keep overnight? any other suggestions welcome :thumb:. Thanks, Ananth.

 

[TraderRavi]

Re: So anybody is actually in profits just trading Options

yes augubhai is in profit trading options , change ur names to haggubhai if u also want to succeed...........

 

[Einstein]

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

warren buffet once said, if you give me a gun with 1000 cylinders and just 1 bullet in it. and if you ask me to pull the trigger and the winning price is any price i want.... I will not play it.

 

[jamit_05]

Re: So anybody is actually in profits just trading Options

yes augubhai is in profit trading options , change ur names to haggubhai if u also want to succeed...........

Augubhai is one guy who deserves to succeed as a trader.

 

[TraderRavi]

Augubhai is one guy who deserves to succeed as a trader.

:thumb::thumb:

 

[user292]

help me please

hello everybody i am new to share market.anyone knows how to make money in down market like what is short selling with example, nifty put and call option etc.
please someone help me as i lost too much money this market i am using icicidirect as broker.

 

[suri112000]

munde_77 is a successful and consistent options player. But he is not active now a days. He is used to make 40% per annum on a consistent basis playing straddle and strangle strategies. His loosing months are barely or at the maximum is 1 month.

We have Danpickup who is another successful options player. Since he is active, he can tell us more.

 

[niftytaurus]

Re: help me please

hello everybody i am new to share market.anyone knows how to make money in down market like what is short selling with example, nifty put and call option etc.
please someone help me as i lost too much money this market i am using icicidirect as broker.

Hi
In down market you can make money in many ways..but I will tell you 2 methods which I know & do....1)you can short futures i.e. you can sell the future of stock or index..which you are expecting to fall...if market fall ,you can buy that future,its called short covering.
2 method is you can buy put of that particular stock or index,which you are expecting to fall...when market falls,put value increases often ...& when you reach your target you can square off that position..
but my concern for you is if you are new to share market, you are not advised to play in f& o segment..its very risky...u have already lost too much money..so please first educate yourself...share market is not gamble,its a pure business..as you cant do any business profitably without knowledge,it is same with share market...sometimes you can be profitable by luck or chance...but for taking profit consistently, you should educate yourself with some good books or articles on internet.so many threads in this traderji forum are very helpful in educating yourself...go through them...& prepare your method...do some monthes of paper trading & when you would be consistently profitable in paper trading ..then invest or trade with your real money...its a journey..enjoy it...
I hope it will help you
all the best

 

[pannalal]

Making money with options is not difficult. You need to know how to use different combinations. Computation of options valuations using Black-Scholes, Binomial and Monte Carlo. Computation and effective use of Greeks like Delta, Gamma, Theta and Vega. Estimation of IV using GARCH. Once, these tools are available, you play with market like playing chess. Keep changing your strategy based on market movements. Whenever, make the mistake, take loss (without any ego).

 

[bunti_k23]

Hws all doing in options i was so excited to read further this thread but it got inactive frm 2013 is there any 1 to continue this nice thread