How to invest 40 lakhs in equity, FnO, commodities etc. Part 2

[SexyTrader]

From this Monday onwards, I'm bringing some fresh change in my strategy :thumb:

Now I plan to just trade ITM options.... And my profit-booking target shall be 10 points gain against a SL of 5 points. And I plan to do 10-12 fast trades in the day!

And no more of overnight positions at all. Overnight positions do not suit me at all!

10-12 fast trades picking up anything from 5-10 points gain rapid-fire is what will suit me!

 

[Anillal]

From this Monday onwards, I'm bringing some fresh change in my strategy :thumb:

Now I plan to just trade ITM options.... And my profit-booking target shall be 10 points gain against a SL of 5 points. And I plan to do 10-12 fast trades in the day!

And no more of overnight positions at all. Overnight positions do not suit me at all!

10-12 fast trades picking up anything from 5-10 points gain rapid-fire is what will suit me!

Very good strategy sir. Given non-excercising options here that is an effective way to play with them. But if I were you I would keep couple of things in mind while playing with ITM. a)their fluctuation will exceed 5 point SL 80% of the times compared to hitting 10 point target as spread widens erratically so best is to at least double the SL and target which may result in fewer trades but will have higher odds in favour. b) If you are planning to be strictly intraday then instead of buying try selling the opposite side that way you will take care of premium eating strategies of the biggies. c) beware when ITM starts becoming DITM. The spread widens and and risk of losing through slippage increases. There are many more tricks you will come to know as you trade them. Good luck.

 

[SexyTrader]

Very good strategy sir. Given non-excercising options here that is an effective way to play with them. But if I were you I would keep couple of things in mind while playing with ITM. a)their fluctuation will exceed 5 point SL 80% of the times compared to hitting 10 point target as spread widens erratically so best is to at least double the SL and target which may result in fewer trades but will have higher odds in favour. b) If you are planning to be strictly intraday then instead of buying try selling the opposite side that way you will take care of premium eating strategies of the biggies. c) beware when ITM starts becoming DITM. The spread widens and and risk of losing through slippage increases. There are many more tricks you will come to know as you trade them. Good luck.

Yes :thumb:

Maybe I should keep a profit-booking target of 10-15 points gain....against a SL of 15-20 points

Selling options seems quite complicated when compared to buying them I have to try that out though!

I wish to do 10-12 trades rapid-fire in the day, picking up anything between 5-10-15 points on each trade....lets see how this goes for the weeks ahead :thumb:

 

[SexyTrader]

For Monday tomorrow and the weeks ahead....I have devised a modified strategy for myself :thumb:

Will trade ONLY ITM options - looking for gain of 10-20 points per trade!

And my SL shall be 20-25 points :thumb:

I will try to do as many rapid-fire trades...lets see if that's necessary

So theoretically I'm looking at roughly 10-20 points gain per trade and total trades say is 10-12 or less!

So minimum points for me is 10X10 = 100 points INTRADAY gain :thumb: Lets see if I can make it possible in lesser or more number of trades!

 

[SexyTrader]

Today, for the first time perhaps...I'm realizing the JOYS of writing an option :thumb:

INTRADAY today started writing the 5800 PE of Nov series at 150/- and booked-profits at 135/-

Writing options is FUN, I realized that today

Now onwards I will write more options than buy them

I shall again write the 5800 PE of Nov series when it reaches 160 :thumb: lets see

 

[Anillal]

Today, for the first time perhaps...I'm realizing the JOYS of writing an option :thumb:

INTRADAY today started writing the 5800 PE of Nov series at 150/- and booked-profits at 135/-

Writing options is FUN, I realized that today

Now onwards I will write more options than buy them

I shall again write the 5800 PE of Nov series when it reaches 160 :thumb: lets see

Good to see someone coming out of the darkness of option buying. By the way sometimes the day or week range is such that if you write a strike price from both corners you will still be in good profit at the end by virtue of premium decay.

 

[SexyTrader]

Good to see someone coming out of the darkness of option buying. By the way sometimes the day or week range is such that if you write a strike price from both corners you will still be in good profit at the end by virtue of premium decay.

From the way the markets are behaving, I'm just going to SELL options INTRADAY all this month.....

I figured out this is the safest thing to do for me :thumb: I will NOT keep any positions open beyond INTRADAY

I dont think markets are going to get any better....more or less!

 

[SexyTrader]

Today....that is Tuesday

Started writing/selling 6000 CE since morning....at 9/- and will profit-book at 4/- :thumb:

It should happen soon coz its right now around 4.70/- or so!

 

[Anillal]

Today....that is Tuesday

Started writing/selling 6000 CE since morning....at 9/- and will profit-book at 4/- :thumb:

It should happen soon coz its right now around 4.70/- or so!

Real money sir is in writing ITM or DITM in trending market. 6000CE is dead anyway why waste money on it writing? Such OTM options are supposed to be bought as hedge if needed, not to be used as main trading vehicle. Remember you are blocking the same amount of money whether you write 5800 or 6000CE. I guess you would have had made more money by writing half a dozen 5700CE than a score or more of 6000CE, that too in almost less than half the time.

 

[SexyTrader]

Real money sir is in writing ITM or DITM in trending market. 6000CE is dead anyway why waste money on it writing? Such OTM options are supposed to be bought as hedge if needed, not to be used as main trading vehicle. Remember you are blocking the same amount of money whether you write 5800 or 6000CE. I guess you would have had made more money by writing half a dozen 5700CE than a score or more of 6000CE, that too in almost less than half the time.

I agree :thumb: This was more of an INTUITIVE trade

Anyway I profit-booked the 6000 CE writing at 4.50/- so a neat profit of 4.5 points today INTRADAY

Next time I will not touch these OTMs but could not resist it today.