A Beginner's way to trade options.

[praveen taneja]

no DA, you got me wrong here ..

what i mean is when 60 min flow signal long we will sell ATM PUT

& when flow signal short we will sell ATM CALL..

its only single position..

regards

vineet

A small querry bro
why u all insist on selling ATM options instead of buying as per I know ur trade last max 2-3days and after that u will change SAR so instead of going for unlimited risk why not buy options with controlled risk
As I know most of the broker dont allow writing options and to Illiquid options Indiabulls etc never ever allow and moreover people with less cash in hand cannot share ur strategy

 

[jamit_05]

A small querry bro
why u all insist on selling ATM options instead of buying as per I know ur trade last max 2-3days and after that u will change SAR so instead of going for unlimited risk why not buy options with controlled risk
As I know most of the broker dont allow writing options and to Illiquid options Indiabulls etc never ever allow and moreover people with less cash in hand cannot share ur strategy

Praveen,

This is different thing altogether. We do not want to tame the flow with this method. It is already being done.

Here, at this thread, we want to learn diverse ways to capitalize on the price action in a non-trending environment.

One such way is to lay down straddles or strangles and as per the price action that follows they might be converted to condors or squared off completely. Interesing isn't it.

I request you to nudge the progress of this thread in this direction.

 

[praveen taneja]

Praveen,

This is different thing altogether. We do not want to tame the flow with this method. It is already being done.

Here, at this thread, we want to learn diverse ways to capitalize on the price action in a non-trending environment.

One such way is to lay down straddles or strangles and as per the price action that follows they might be converted to condors or squared off completely. Interesing isn't it.

I request you to nudge the progress of this thread in this direction.

I understand what u people are trying and doing but is it a good way to trade options as a biginners thats what i was trying to know sorry for disturbing u people in between again n again thnx for bearing me

 

[FlowTrader]

Hello

:thumb:

A great thread. Nice to know that we will be following few live trades.

I have traded options previously so know a bit about them. But this systematic approach will also help me review whatever I learned.

Time decay is the enemy of the Option buyer so his/her directional call has to be v v good, think the Flow Methods will help us on the direction.

Volatility is the enemy of the Option writer, strategy & adaptability with deep understanding / knowledge of adjusting the ratios comes in handy.

Seems ST da would combine both these aspects, it would be wonderfull to watch / learn how he does that.

Looking forward to some great learning :clapping:

 

[jamit_05]

I understand what u people are trying and doing but is it a good way to trade options as a biginners thats what i was trying to know sorry for disturbing u people in between again n again thnx for bearing me

Praveen bhai...

Please continue with your participation as it will contribute to the growth of this thread and our learning.

By no means are you disturbing us. However, if my comment came across as patronizing then pls overlook it. Do not let it come in the way of your participation.

 

[jamit_05]

Hello

:thumb:

A great thread. Nice to know that we will be following few live trades.

I have traded options previously so know a bit about them. But this systematic approach will also help me review whatever I learned.

Time decay is the enemy of the Option buyer so his/her directional call has to be v v good, think the Flow Methods will help us on the direction.

Volatility is the enemy of the Option writer, strategy & adaptability with deep understanding / knowledge of adjusting the ratios comes in handy.

Seems ST da would combine both these aspects, it would be wonderfull to watch / learn how he does that.

Looking forward to some great learning :clapping:

You are welcome FlowTrader...

 

[FlowTrader]

Hi
There are many sites that cover options theory. Refer to the following site http://www.theoptionsguide.com/

Can checkout following strats

Bullish Strategies

1. Call Buying
3. Bull Call Spread
5. The Collar
7. Call Backspread
9. Bull Calendar Spread
11. Covered Calls
13. Naked Puts
15. Covered Straddle

Bearish Strategies

1. Put Buying
3. Bear Put Spread
5. Put Backspread
7. Covered Puts
9. Naked Calls

Neutral Strategies

1. Ratio Spread
3. The Straddle
5. The Strangle
7. The Butterfly
9. The Condor
11. The Iron Butterfly
13. The Iron Condor
15. Calendar Straddle

Once again thanks for the opportunity and looking forward for some live trade examples from ST Da

 

[FlowTrader]

Hi again

Members following these strats should keep watch on the ATM and just OTM options.

Just to get us started quoting approximate rates.

Current Rates for the Option Chain

Nifty Spot : 3430
Nifty Future: 3432

Call Options (May series)

SP 3400 - 190
SP 3500 - 140
SP 3600 - 97
SP 3700 - 65

Put Options (May series)

3400 - 150
3300 - 110
3200 - 80

Hope STDa finds time from his busy trading schedule to update us here

 

[praveen taneja]

Hi
There are many sites that cover options theory. Refer to the following site http://www.theoptionsguide.com/

Can checkout following strats

Bullish Strategies

1. Call Buying
3. Bull Call Spread
5. The Collar
7. Call Backspread
9. Bull Calendar Spread
11. Covered Calls
13. Naked Puts
15. Covered Straddle

Bearish Strategies

1. Put Buying
3. Bear Put Spread
5. Put Backspread
7. Covered Puts
9. Naked Calls

Neutral Strategies

1. Ratio Spread
3. The Straddle
5. The Strangle
7. The Butterfly
9. The Condor
11. The Iron Butterfly
13. The Iron Condor
15. Calendar Straddle

Once again thanks for the opportunity and looking forward for some live trade examples from ST Da

Another good site to know about options is >
http://888options.com/

 

[Smart_trade]

I have done following options trades today :

1) Bought 3400 Nifty May call between 202 and 207 and sold the same between 214-217

2) Bought 3500 put @ 176 and simultaneously sold 3400 put at 131.50

Will explain the reasons EOD.

ST