Day Trading Stocks & Futures

[Shiv12345]

Only thing I thought was... when I can trade BankNifty option (1000 qty) from Rs 50 to 75 with ease that gives approx 25K.

The same amount to generate over Ad views would take approx 5 lac views for that 1 day.. So seeing that I was unable to generate even 100 views per day.. thought I'll stick to BankNifty for now

But an additional source of income is a great thing especially in case of bad times. .. so probably I'll try to see if it could be started again.

Haha ... Awesome post! Ferocious Banknifty vs Lazy Youtube.

 

[Raj232]

I agree. My idea is to generate enough to be able to let that money earn money! You never know with climate change and all of that happening around us, what's it gonna be like in a decade from now.

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Agreed, To let that money earn money is like.. having a fixed deposit that earns interest equal to a salary.
So @5.75% interest (lets say 5% after tax/TDS) and Rs 50K per month salary.. that needs 1.2 crore investment.

However, thats possible with Bitcoin and Banknifty ... Not so sure about youtube, etc
Although Bitcoin sounds more like lottery, banknifty has given great returns in July 17.

e.g. BankNifty Option 24000 CE bought on 04-Jul-2017 for Rs 54 kept gaining value and was valued at Rs 890 at close by 27th July (it even touched a high of 1022.95 on 27th July).
So basically Rs 54,000 became Rs 8.9 Lacs in 1 month .. however this does not happen every month..

Some special attention and consideration needs to be done to identify those possible bullish times.

 

[SarangSood]

Yes true. I completely AGREE! I think market orders ONLY work during quiet market (tufaan ke pehle kaa sannaata). One should never place BIG orders at market price when the option prices are dancing up & down ferociously. Never ever do it guys. Save your capital.

For my business model where i have to balance my ce&pe strangle, i have to continuously shift my position in a volatile market. It can be upto 2000 qty of a single leg in a minute (especially on expiry day). And all have to be made market price. So that's why even while writing if market goes one way it doesn't hurt.

Since bnf weekly's started having liquidity and i was able to execute such orders, i shifted from nifty to banknifty.

 

[Raj232]

For my business model where i have to balance my ce&pe strangle, i have to continuously shift my position in a volatile market. It can be upto 2000 qty of a single leg in a minute (especially on expiry day). And all have to be made market price. So that's why even while writing if market goes one way it doesn't hurt.

Since bnf weekly's started having liquidity and i was able to execute such orders, i shifted from nifty to banknifty.

To shift position in volatile market, the trade will incur some loss at least.. just to protect the position from further loss.. am I correct ?

 

[Shiv12345]

For my business model where i have to balance my ce&pe strangle, i have to continuously shift my position in a volatile market. It can be upto 2000 qty of a single leg in a minute (especially on expiry day). And all have to be made market price. So that's why even while writing if market goes one way it doesn't hurt.

Since bnf weekly's started having liquidity and i was able to execute such orders, i shifted from nifty to banknifty.

Sarang sir, do you also own any Youtube channel based on option writing? There's a channel named 'Option Writers Ka Jalwaa'. Are you the owner of that channel by any chance? Thanks.

 

[SarangSood]

To shift position in volatile market, the trade will incur some loss at least.. just to protect the position from further loss.. am I correct ?

There are times when the options are waiting for a move to lose there value. For eg a ce is priced at Rs 20 and put is also the same 20. So strangle is at Rs 40. If market moves 100 points up the ce will become 26 and the put will go down to 6. So the strangle is now at 32. Such scenarios are very profitable while shifting.

Such situations happen 30% (roughly) of the time while other 40% the strangle remains at 40. The other times it increases which is what I'm on the lookout.

Commission is the one expense I'm happy to give which turns out to be a lot.

 

[SarangSood]

Sarang sir, do you also own any Youtube channel based on option writing? There's a channel named 'Option Writers Ka Jalwaa'. Are you the owner of that channel by any chance? Thanks.

Lol... no I'm not the owner but i will definitely check out the channel. I don't have anything on youtube as well. This work consumes you so all my energies are concentrated in the market only. This my only source of livelihood since last 15 years, it's very important to relax after market hours and on the weekends because then only the creativity unleashes.

 

[Shiv12345]

Lol... no I'm not the owner but i will definitely check out the channel. I don't have anything on youtube as well. This work consumes you so all my energies are concentrated in the market only. This my only source of livelihood since last 15 years, it's very important to relax after market hours and on the weekends because then only the creativity unleashes.

Wow! For last 15 years .... that's quite inspirational ... That means you are a veteran in the industry... My experience is only two years old.

 

[Raj232]

Wow! For last 15 years .... that's quite inspirational ... That means you are a veteran in the industry... My experience is only two years old.

Yep, for that reason, I say that Selling Option combos (strangle) is a income generating strategy whereas buying options is like a jackpot strategy, jackpot does not come everyday, and its really bad when it is missed.

The only problem is that quite a lot of margin is required for selling options.

There are times when the options are waiting for a move to lose there value. For eg a ce is priced at Rs 20 and put is also the same 20. So strangle is at Rs 40. If market moves 100 points up the ce will become 26 and the put will go down to 6. So the strangle is now at 32. Such scenarios are very profitable while shifting.

Such situations happen 30% (roughly) of the time while other 40% the strangle remains at 40. The other times it increases which is what I'm on the lookout.

Commission is the one expense I'm happy to give which turns out to be a lot.

Got it, thanks Sarangji for the explanation. Need to gather sufficient capital for selling options.

 

[Shiv12345]

Yep, for that reason, I say that Selling Option combos (strangle) is a income generating strategy whereas buying options is like a jackpot strategy, jackpot does not come everyday, and its really bad when it is missed.

The only problem is that quite a lot of margin is required for selling options.



Got it, thanks Sarangji for the explanation. Need to gather sufficient capital for selling options.

I keep hearing from one of my colleague that ICICI Direct securities does offer a plan named 'Option Plus'. If one avails it, we don't need to gather enormous amount of capital for shorting options. I don't know the complete details though ....