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

[SexyTrader]

Happy Diwali to all :thumb:

Today in the special Trading session for Diwali.....I shorted 5800 Call MAXIMUM lots at 24 This looks good to me! I plan to keep this position open till expiry

 

[TheDreamer]

It is all very well sir but I am afraid the doomsday picture associated with selling options is basically peddled by the professional sellers. And forgive me for saying so you are just recycling it. We hear time and again how one unlimited risk or black swan kind of happening can bury a option seller and other nonsense. I think only the ones who never sold options talk such talks. Consider this cooly. Do we have corresponding figures telling us how many option buyers lose compared to option sellers? I guess ratio must be 100 to 1 if not 1000 to 1. It is a propaganda to keep the sellers an exclusive club because with proper nominal SLs option selling is the least dangerous way to make money out of the market. Besides the example that you gave must be from stoneage of trading. In the age of NOW and RKSV traders do not wait to get out if position is not going in their favour. Besides suppose if I sell 5600CE then given all the charts available all around would I wait to liquidiate it if I see position going against me? My SL would be exactly like option buying but with an added advantage of premium decay on my side.

I know my reply is late as was busy with the festive season.

But 'Black Swan' events do happen. Markets go up in stairs but come down jumping through the windows. Forget US markets of 1987... I can feel for the people who wrote puts during the 2008 crash or those who wrote Satyam January puts before 7th January, 2009... Last but not the least, 18th May, 2009 was a classic example to show how markets hit the bearish option writers hard... :rofl::rofl::rofl:

 

[simple trader1]

hello, happy diwali all traderji member, hi sexy trader ur next mean14 nov. Nifty option plan for today:rofl:

 

[SexyTrader]

hello, happy diwali all traderji member, hi sexy trader ur next mean14 nov. Nifty option plan for today:rofl:

No plan for 15th Nov as long as Nifty-spot stays below 5800 till expiry....

I hold MAXIMUM lots in selling 5800 CE...and I have a 5600 Put bought too :thumb:

Just these two positions is enough for such confusing times

I profit-book 5600 Put at 90/-(or higher!) and I keep selling 5800 Call till expiry....simple! :thumb:

 

[SexyTrader]

Holding MAXIMUM lots in selling 5800 CE till this expiry....started selling it at 24 :thumb:

And will profit-book the 5600 Put on Monday between 73.50/- to 75/-.....coz I had bought it at 23.50/-

 

[prabhsingh]

Excellent going ST.Any plans for trading any individual stocks for Dec?

 

[SexyTrader]

Excellent going ST.Any plans for trading any individual stocks for Dec?

Too confusing to decide right now

Now after I profit-booked these open trades in shorting 5800 CE and the bought 5600 Put, I will take a break and just rest December coz enjoying the new year is important too

But I like L&T....:thumb: and the IT company Geometric too....I think they are quite cheap right now! But I am not yet buying them as yet! Coz it may head lower and get a lot more cheaper in Dec or so.

 

[prabhsingh]

Geometric to me is worth buying only above 117 as that would be the point when previous high would get broken and yes for LT completely agree.We can definately see more fall in coming next days.

 

[SexyTrader]

Today....booked-profit in 5600 Put at 63.50/- now :thumb: Had bought it at 23.50/-

And I continue to sell 5800 CE till expiry with MAXIMUM....shorted since 24/-

 

[SexyTrader]

Now just one open position left...Shorting 5800 CE from 24/- till current expiry :thumb:

No more open positions as of now

But I wish to formulate a strategy of doubling and tripling using just options....in the coming months. Hence I will rest in December and check those nifty/stock options that have a potential of doubling/tripling within a day or two or max three days with minimum theta decay(if I buying!) :thumb: I like this doubling/tripling concept of OPTIONS