Dinesh, you have already found the correct thread on Options by DanPickUp. Even if takes you a year, study this thread as if you are going to appear for IIT-JEE exam. It will benefit you in the long run.
Low Risk Options Trading Strategy - Option Spreads
- Thread starter AW10
- Start date
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Hello AW10, and seniors,
I finished this thread reading which i began 10 days back. Very patient replies from AW10 is highly appreciable. Iam trading naked options so far. i lost nearly 2 lakhs since 2 years. My honest request to the seniors is, The strategies in this thread are mostly suitable for expiry. but I can not wait for 30 days with out trading. So give me some guidance , can i apply Covered call strategy in 15min or 30min TF. If so what cautions i need to take. Recently i purchased amibroker and learning TA also. give me some clue to trade options in swing time frame.
I finished this thread reading which i began 10 days back. Very patient replies from AW10 is highly appreciable. Iam trading naked options so far. i lost nearly 2 lakhs since 2 years. My honest request to the seniors is, The strategies in this thread are mostly suitable for expiry. but I can not wait for 30 days with out trading. So give me some guidance , can i apply Covered call strategy in 15min or 30min TF. If so what cautions i need to take. Recently i purchased amibroker and learning TA also. give me some clue to trade options in swing time frame.
dear experienced option traders,
please suggest me I am having these points in my mind.
as per my thinking when the index price is going up then the index call price also goes up and vice versa.
then can't we depend upon the price for making profit in the option.
what is the major single point we have to look into in addition to this so that we can make profits.
why am thinking like this naked option trading and assuming profits come in options along with price movement because many giving naked option calls and give the resulting profits like 40% 100% gains achieved.
so please give your valuable advice can we achieve this kind profits how to get it.
please suggest me I am having these points in my mind.
as per my thinking when the index price is going up then the index call price also goes up and vice versa.
then can't we depend upon the price for making profit in the option.
what is the major single point we have to look into in addition to this so that we can make profits.
why am thinking like this naked option trading and assuming profits come in options along with price movement because many giving naked option calls and give the resulting profits like 40% 100% gains achieved.
so please give your valuable advice can we achieve this kind profits how to get it.
Yesterday i traded as follows, Buy NiFTY5200CE at 136 and Sold 5400CE at 46.
I enterd when Nifty spot is +25 points. Afternoon the Nifty corrected and my 5200CE at 106 and 5400CE at 33, when Nifty is at -15 points. So my conclusion is for nifty 40points loss ITM call fall by 30points and OTM fall by 13 points. The morale is I could have hedged with 5300CE instead of 5400CE. But profitability will be drastically reduced
I hope Comm400 is helpful in this query. What entry criteria and selection of spreads yield better results in intraday or swing trading of options
I enterd when Nifty spot is +25 points. Afternoon the Nifty corrected and my 5200CE at 106 and 5400CE at 33, when Nifty is at -15 points. So my conclusion is for nifty 40points loss ITM call fall by 30points and OTM fall by 13 points. The morale is I could have hedged with 5300CE instead of 5400CE. But profitability will be drastically reduced
I hope Comm400 is helpful in this query. What entry criteria and selection of spreads yield better results in intraday or swing trading of options
Dear Sunny_ndl
Have no idea about any kind of trading and option knowledge you have. Some kind of basic seems to be there. So let me just tell you that:
Trading directional option trades intra day, even spreads as what you did is a directional spread, needs a lot of experience with TA or a very good understanding of market profile reading or order flow. You may even have a mechanical trading system which gives you entries and exits. But here you will face the order filled problem if you are not directly a market maker.
If you do not have that knowledge, then one alternative can be to understand bigger times frames. With bigger time frames I mean: One day and more. You select your entry criteria on such time frames and enter only on the outer S&R or band levels.
This will improve your chance to stay out enough long from any market direction change against your positions until you have some profit you can use for a flip change of your current position in case market goes against you. ( Flip change means to reverse your whole position. You change from a call spread to a put spread and vice versa )
Good luck
DanPickUp
Have no idea about any kind of trading and option knowledge you have. Some kind of basic seems to be there. So let me just tell you that:
Trading directional option trades intra day, even spreads as what you did is a directional spread, needs a lot of experience with TA or a very good understanding of market profile reading or order flow. You may even have a mechanical trading system which gives you entries and exits. But here you will face the order filled problem if you are not directly a market maker.
If you do not have that knowledge, then one alternative can be to understand bigger times frames. With bigger time frames I mean: One day and more. You select your entry criteria on such time frames and enter only on the outer S&R or band levels.
This will improve your chance to stay out enough long from any market direction change against your positions until you have some profit you can use for a flip change of your current position in case market goes against you. ( Flip change means to reverse your whole position. You change from a call spread to a put spread and vice versa )
Good luck
DanPickUp
dear,
yesterday i read a article somewhere in net which the name fo the strategy is " Multiple covered put with call hedge"
actually i haven't deep knowledge abt it. as per the strategy
of course my view was negative abt NF ( traded time = 2:16 PM)
i sold one NF @5250 ( spot was around @ 5227)
sold 5 lots 5200PE @ 85
buy 5 lots 5400CE @ 42
buy 1 lot 5000CE @ 275
but the nifty went against my view and at the end of the day i closed the trade.
NF @ 5270, 5200PE@ 75, 5400CE @ 46 and 5000CE @ 290
my profit and losses are
1) profit in NF is= -20*50= -1000
2) profit in 5200PE is = 10*50*5 = 2500
3) profit in 5400CE is = 4*50*5 = 1000
4) profit in 5000CE is = 15*50 = 750
total profit = -1000+2500+1000+750 = +3250
i wonder, it went against my view and my profit is this much, if it goes in my view what could be my profit.... so where is loss...is it called zero risk strategy...
dan, awaits for your reply...
yesterday i read a article somewhere in net which the name fo the strategy is " Multiple covered put with call hedge"
actually i haven't deep knowledge abt it. as per the strategy
of course my view was negative abt NF ( traded time = 2:16 PM)
i sold one NF @5250 ( spot was around @ 5227)
sold 5 lots 5200PE @ 85
buy 5 lots 5400CE @ 42
buy 1 lot 5000CE @ 275
but the nifty went against my view and at the end of the day i closed the trade.
NF @ 5270, 5200PE@ 75, 5400CE @ 46 and 5000CE @ 290
my profit and losses are
1) profit in NF is= -20*50= -1000
2) profit in 5200PE is = 10*50*5 = 2500
3) profit in 5400CE is = 4*50*5 = 1000
4) profit in 5000CE is = 15*50 = 750
total profit = -1000+2500+1000+750 = +3250
i wonder, it went against my view and my profit is this much, if it goes in my view what could be my profit.... so where is loss...is it called zero risk strategy...
dan, awaits for your reply...
- Status
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