I have started an experiment in analyzing Nifty and trading Nifty's OTM(out of money options).
Being extremely liquid, nifty OTMs offer a decent risk reward ratio. Having said this, I am aware that 90% of all options expire worthless. In doing so it would be great to interact and share thoughts with people trading in nifty options. With OTM options, the risk is much much higher (and so probably, would be the rewards)
I have a specific strategy, and based on my workings and calculations, I am going to trade and keep listing these trades. Based on my workings so far, I would be dabbling in 200 to 1000 point OTMs.
The start is pretty simple. I have 1,00,000 as my experimental kitty. With no more than 15,000 drawdown per month would help me survive for next 6+ months at 0 profit every month.
Exit: Rs. 0 at end of 6 months
Target: Rs. 2,00,000 at end of 12 months.
What I am looking for is an interactive discussion, suggestions and experiences to help me optimize my learnings. I would like to discuss the strategy only if it turns out to be adequately successful.
To being with, I believe that 4212 was the bottom (and will hold at least for 2 months).
My trade starts with Nifty 5000 Sep calls. The first resistance I think may be around 4530 and next around 4780
Welcome to the discussion.
Trades Web Excel Sheet
Being extremely liquid, nifty OTMs offer a decent risk reward ratio. Having said this, I am aware that 90% of all options expire worthless. In doing so it would be great to interact and share thoughts with people trading in nifty options. With OTM options, the risk is much much higher (and so probably, would be the rewards)
I have a specific strategy, and based on my workings and calculations, I am going to trade and keep listing these trades. Based on my workings so far, I would be dabbling in 200 to 1000 point OTMs.
The start is pretty simple. I have 1,00,000 as my experimental kitty. With no more than 15,000 drawdown per month would help me survive for next 6+ months at 0 profit every month.
Exit: Rs. 0 at end of 6 months
Target: Rs. 2,00,000 at end of 12 months.
What I am looking for is an interactive discussion, suggestions and experiences to help me optimize my learnings. I would like to discuss the strategy only if it turns out to be adequately successful.
To being with, I believe that 4212 was the bottom (and will hold at least for 2 months).
My trade starts with Nifty 5000 Sep calls. The first resistance I think may be around 4530 and next around 4780
Welcome to the discussion.
Trades Web Excel Sheet