General Trading Chat

[Smart_trade]

wisp,that link about losses...my question is how much MM wise Capital for option....

Many trade options risking 5-7% of the capital per trade....you decide what % you are comfortable with.But that is for swing trades ,if day trading in options I still won't increase the risk % more than 1.5 to 2% per trade.

Smart_trade

 

[Fundootrader]

wisp,that link about losses...my question is how much MM wise Capital for option....

Option Writing - Same MM/Capital as for Future

Option Buying - Capital is what you brought the option for - Typically if option loses more than 5%, you are on wrong side - intraday only.

 

[eku]

St Da,I've decided to do ATM option Scalps..IF NF moves 12-15pnts,this moves 5-8 points.With Zerodha like broker,it worth trading.
Hope I'm on the right track..

 

[arsh22g]

St Da,I've decided to do ATM option Scalps..IF NF moves 12-15pnts,this moves 5-8 points.With Zerodha like broker,it worth trading.
Hope I'm on the right track..

Hey...will that be your full game or a side game?
Just asking because I have done something similar when I didn't have access to live broker charts (during job hours, travelling etc) and need to make a decision based on other parameters (Google finance chart, momentum, trend etc). It worked for me as a side game, but opportunity loss is huge if you are planning it as your full game, as options can act weird based on market momentum (like losing rapidly and gaining slowly) while futures will always have a delta close to 1 in either direction.

Of course, ST can guide you better based on his vast experience, but this is just my opinion.

 

[XRAY27]

 

[eku]

Hey...will that be your full game or a side game?

In a sideways market I wont touch it..So I guess its a side game..sometimes F and Sometimes O..and that what we call F&O :lol:

 

[candle]

Does your trading strategy work?

 

[Fundootrader]

Many trade options risking 5-7% of the capital per trade....you decide what % you are comfortable with.But that is for swing trades ,if day trading in options I still won't increase the risk % more than 1.5 to 2% per trade.

Smart_trade

What about gap up/down - when we are in swing - we won't get the chance to cap @ 5-7% -- it will be 50-70% value of option price.

 

[pratapvb]

What about gap up/down - when we are in swing - we won't get the chance to cap @ 5-7% -- it will be 50-70% value of option price.

if trading trend (swing) then if using option one should use deep ITM option high delta of around 0.8-0.9.

using OTM options just subjects you to time decay when it goes sideways even if it continues in your direction

 

[pratapvb]

7480-89 high resistance zone.... unlikely to clear it immediately