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

[Anillal]

Started writing/shorting the 5700 Put at the current price of 126.20 :thumb:now

And will profit-book INTRADAY at 117...

Today I booked-profit in the 5700 Put writing at 117 :thumb:

Now no open positions....watching and waiting!

I am afraid you are still thinking like an option buyer sir. You are an option writer now. Option writers are not the 24/7 market sloggers but the kings of the market so think like one. Intraday is fine for the moment but I hope soon you would figure out ways to identify options whose premium being stripped off to the undergarments and then move on to other fat client. That means you would be thinking of profit not as a slice of cake but whole of the cake including the baking tray and the oven

I guess I should take a break from traderji for a long while as there is hardlly anything suitable for my kind of trading here. Nonetheless I met some wonderful people here like yourself sir and I enjoyed exchanging thoughts with all of you. I thank you for you time. Good bye.

 

[SexyTrader]

I am afraid you are still thinking like an option buyer sir. You are an option writer now. Option writers are not the 24/7 market sloggers but the kings of the market so think like one. Intraday is fine for the moment but I hope soon you would figure out ways to identify options whose premium being stripped off to the undergarments and then move on to other fat client. That means you would be thinking of profit not as a slice of cake but whole of the cake including the baking tray and the oven

I guess I should take a break from traderji for a long while as there is hardlly anything suitable for my kind of trading here. Nonetheless I met some wonderful people here like yourself sir and I enjoyed exchanging thoughts with all of you. I thank you for you time. Good bye.

I agree :thumb: But since I'm selling options coz it looks nice....I'm just getting used to the benefits

Later on, I would take the cake including the baking tray and oven too

 

[a1b1trader]

I agree :thumb: But since I'm selling options coz it looks nice....I'm just getting used to the benefits

Later on, I would take the cake including the baking tray and oven too

Nice my friend
लेकिन ध्यान रखना की कहीं मुंह न जल जाये और कुछ भी न खा सको
गर्म गर्म न खाना , ठंडा करके खाना

 

[SexyTrader]

Shorting the Nifty(Fut) from 5746....for INTRADAY :thumb:

I plan to pick up as many points now in these 2 hours

 

[SexyTrader]

Have booked-profit in Nifty(Fut) at 5729 today

NO open positions for the weekend :thumb:

But this coming week I will catch maybe 100 or 300 or 500 or 1000 points off the Nifty(Fut) on both sides!

 

[a1b1trader]

I agree :thumb: But since I'm selling options coz it looks nice....I'm just getting used to the benefits

Hi ST
Can you please tell me the benefit(s) of selling options, I am just curious to know.

In my opinion, (I may be wrong, but please do tell me where I am wrong) trading naked options, whether writing first or buying first is one and the same thing (except risk and may be a slight difference in loss or profit), because in the former you get the premium, while writing (OK) but when you want to cover your trade, you have to buy option that means you have to pay premium to cover your trade. And the difference of the 2 premiums is your loss or profit.

Similarly, in the later case you pay premium while buying but when you want to square off your trade, you have to sell it that means you are getting premium on squaring off your trade and so the difference in the 2 premiums is your profit or loss.

So why not buy calls instead of writing puts or buy puts instead of writing calls.

Yes, there is a benefit in writing options in one case only, if the option you wrote, expires OTM, and in this case you can eat premium.

But then taking into consideration the risk and the amount involved (to pay for margin or to block for margin money for one month or so), IMO, it is always better to buy options, if you want to trade them.

 

[SexyTrader]

Hi ST
Can you please tell me the benefit(s) of selling options, I am just curious to know.

In my opinion, (I may be wrong, but please do tell me where I am wrong) trading naked options, whether writing first or buying first is one and the same thing (except risk and may be a slight difference in loss or profit), because in the former you get the premium, while writing (OK) but when you want to cover your trade, you have to buy option that means you have to pay premium to cover your trade. And the difference of the 2 premiums is your loss or profit.

Similarly, in the later case you pay premium while buying but when you want to square off your trade, you have to sell it that means you are getting premium on squaring off your trade and so the difference in the 2 premiums is your profit or loss.

So why not buy calls instead of writing puts or buy puts instead of writing calls.

Yes, there is a benefit in writing options in one case only, if the option you wrote, expires OTM, and in this case you can eat premium.

But then taking into consideration the risk and the amount involved (to pay for margin or to block for margin money for one month or so), IMO, it is always better to buy options, if you want to trade them.

I'm not an expert on selling options, I just got started on it coz buying options was getting tricky in the current market scenario coz its rallying higher for no apparent reason

I sell options INTRADAY....coz it feels safer :thumb:

But the benefit in my opinion of selling options is coz the premium comes to me I like to eat good premiums

 

[SexyTrader]

The 5600 Put is quite cheap now :thumb: I'm buying it coz I feel the markets would head downwards.

 

[timepass]

The 5600 Put is quite cheap now :thumb: I'm buying it coz I feel the markets would head downwards.

Its around 29-30 now. What will be your target & SL ??

 

[SexyTrader]

Its around 29-30 now. What will be your target & SL ??

Buying 5600 Put at 28/- for a target of 90/- and..... my SL is 18 :thumb: