Lets double the money in 40 trades

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Subhadip

Well-Known Member
Hope you are not angry with me about that sentencing.

:lol::lol::D
not atall..

carry on my dear friend..

made us all option literate..

we all will love you also..

;)
 

DanPickUp

Well-Known Member
Dear Dan,

we using options with futures to hedge our positions if we are carry forward for the next day right?
Do you hedge even in intraday trading? Like if stock/ index is correcting itself for a pullback, even then do you use?
Beginner in options too many questions.
I do not trade stock and options on stocks. There are other people who do that.

I trade option on futures and futures.

If you prefer to trade hedged, you should check synthetic futures ( Long Call and Long Put ) and synthetic call and puts ( Long futures and long put and vice versa ).

That are just entry strategies and then you start to convert in to other strategies.
 

DanPickUp

Well-Known Member
in sidewise market option selling is very profitable. due to time decay

:clap::thumb:
My friend

Ok, but you have to define what kind of option strategy you want to use.

Just telling: In side wise market option selling is very profitable due to time decay,

that is not enough.

If you post some thing like that, you have to be more precisely.

If you post like that, you have to give an idea about the volatility in the market. ( Just one point )

Or maybe what range should be sold

or what naked option should be sold and this naked option should be hedge on that and this level and then.............

and so on..............
 

Subhadip

Well-Known Member
My friend

Ok, but you have to define what kind of option strategy you want to use.

Just telling: In side wise market option selling is very profitable due to time decay,

that is not enough.

If you post some thing like that, you have to be more precisely.

If you post like that, you have to give an idea about the volatility in the market. ( Just one point )

Or maybe what range should be sold

or what naked option should be sold and this naked option should be hedge on that and this level and then.............

and so on..............
this is where we need your guidance

:thumb:
 
Trading options is not like trading a future. A future can go up, stay on the same level or can move down.

If we are long a future and market moves up, we should make profit.

If market moves down and we are short, we make money.

If market stays, we not make money and we not lose money.

All above is explained in a nut shell with no specific what ever.


Now to the options:

If we long option and market moves up, we can loose money.

If market moved down and we are short options, we can loose money.

If market stays and we are the owners of an option, we can loose money.

Get it :):D

Tc

DanPickUp
Ok, so what you're basically trying to tell us is that options are a good option for losing money! :lol:

Ok, just kidding :) Good sense of humor though :thumb: :cheers:
 

DanPickUp

Well-Known Member
Ok, hope I gave some ideas about options.

Before I leave, here an idea you have to test in your market.

Buy call options otm in a very strong up trending market. If it is otm, it is cheap.

Set a limit sell order for the future calculated on stdv what ever you see in your charting software.

If you hit the odds, then you are in profit and you are filled.

Now market falls down. As you are in profit with your option, you can start to trade the future with less risk.

Go short the future and you are hedged.

Now you can trade the future intra day.

This strategy can be fine tuned to any market you trade.

Tc

DanPickUp
 
Hello Sir,

How will the market trade next week. Will the Reliance results hit the market down? Also, is there a possibility we may reach below 5000 again this week?

Please suggest your views, so I can hedge my positions accordingly.

Thanks
 

Subhadip

Well-Known Member
Ok, hope I gave some ideas about options.

Before I leave, here an idea you have to test in your market.

Buy call options otm in a very strong up trending market. If it is otm, it is cheap.

Set a limit sell order for the future calculated on stdv what ever you see in your charting software.

If you hit the odds, then you are in profit and you are filled.

Now market falls down. As you are in profit with your option, you can start to trade the future with less risk.

Go short the future and you are hedged.

Now you can trade the future intra day.

This strategy can be fine tuned to any market you trade.

Tc

DanPickUp
needs some elaborate discussion.

hope i can understand after that demonstration.

thank you very much DAN

:thumb:
 

Subhadip

Well-Known Member
Hello Sir,

How will the market trade next week. Will the Reliance results hit the market down? Also, is there a possibility we may reach below 5000 again this week?

Please suggest your views, so I can hedge my positions accordingly.

Thanks
please learn some chart reading.
it will help you in both future and options

:clap::clapping:
 
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