Low Risk Options Trading Strategy - Option Spreads

[rajsumi121]

Hy munde_77

You speak about John Summa. I read his books and I even visited one of his seminars in Singapore a few years ago when I stayed in Bangkok. We still e-mailing each others from time to time. Not because I am the big men, no, just when there are questions on my side and he then explains his view on the subject. If you ever went to one of his seminars ( USD 1'500 only for the seminar, and we do not talk about the flight there and about the hotel you have to pay for that and for the other things you do then ), then he will do that, otherwise not.

He not like to be used as a cheap charly, like many in traderji think the other ones are and try to use them as cheap charlys, even never brought in anything in the forum, just trying to miss use others but never bringing in a tiny bit.

And so he has his standard. He does not care about that and if some one does not like it, he gives a summer time about it like me.

The guy is a 100% pro and he trades diagonal spread. He takes far out of the money options on the S&P 500 to do this trades. You have to know, that this is not possible in India. You do not have such a wide range of options in your country then it exist in the S&P 500.

He also uses other strategies, but mainly selling strategies. As AW10 mentioned and as seen in your post, selling option can be more profitable if you understand how to do it in the right way! Very important. You also can lose your money with just selling options. So be careful !

If you can afford, read one of his books. Also take the workbooks, where you have to answer questions about what was written in his books.

Take care

DanPickUp

Stop taking abt forners wt they do or dont here in traderji ... this forum for indian market and who can trade in india market ..we dont care wt happen in s&p 500 and in your country ... we hve to trade nifty and talk abt nifty only . u ppl think that indians are fool ...and poor ........ stop talking abt your country and your ppl here ...if you are so rich and big trader wt are doinf here in trader ji ???????????? ...go to your country and trade thier only dont try to be our master .

 

[trader.trends]

Stop taking abt forners wt they do or dont here in traderji ... this forum for indian market and who can trade in india market ..we dont care wt happen in s&p 500 and in your country ... we hve to trade nifty and talk abt nifty only . u ppl think that indians are fool ...and poor ........ stop talking abt your country and your ppl here ...if you are so rich and big trader wt are doinf here in trader ji ???????????? ...go to your country and trade thier only dont try to be our master .

Raj

If you dig a little deeper you will understand that you are not trading Indian markets. You are trading only price. You are not trading Reliance, Nifty futures, Infy Options or bank Nifty. You are trading only price. And prices behave the same way all over the world.

If you can look at a chart without the legends on the X and Y axis, can you tell the security and the time frame from it?

Dan has enough experience trading that price irrespective of the mkt. It is important for us as traders to learn from one another's experience. We do not have the time to commit all the mistakes ourselves.

Sometimes we have to be patient and give leeway to people who are not good at language whether they are from India or abroad.

 

[rajsumi121]

Raj

If you dig a little deeper you will understand that you are not trading Indian markets. You are trading only price. You are not trading Reliance, Nifty futures, Infy Options or bank Nifty. You are trading only price. And prices behave the same way all over the world.

If you can look at a chart without the legends on the X and Y axis, can you tell the security and the time frame from it?

Dan has enough experience trading that price irrespective of the mkt. It is important for us as traders to learn from one another's experience. We do not have the time to commit all the mistakes ourselves.

Sometimes we have to be patient and give leeway to people who are not good at language whether they are from India or abroad.

Sorry dear tt for my words for danpickup ....and i am fully agree with you in all manner ..but he always try to make things suprior for himself and use rude and cheap words for each and everybody ...this is my only problem that each and everybody is learner here ...... and if we are giving some idea or knowledge to others .. we hve to talk politly and decently ... i am realy sorry once again if my words hurts someone but its metter of selfrespect .

 

[sumitdasjoshi]

Risks are lower in Future or Option? tell me and why?

:rofl::rofl:

in my view risk is lower in option compare to future because you can mange option by making it a spread or strangel and it give you more flexiblity

 

[sumitdasjoshi]

hello aw 10 i want your view on the market and my stratgy
right now i am holding this 5100 ce and 5100 pe i have sold both of this at a com bine rate of 177 rs sice the market is in the 5080 to 5150 rage for the hole week so right now the the prise is 134 i am in profit of 43 rs and it looks like market will be going up or say it will reach 5250 so i am thinking i will buy back my 5100ce and going to sell 5200 ce will it be good or i should stick with the plan plz explan which will be better


i have onde more quesstion i will we find the option stirke which will loose his value like 10 to 20 rs a day if we are selling calls and puts so it will give us a better return
in daily time frame is there any wat to know which strick prize loose money fast .

 

[Smart_trade]

This thread is reaching its boiling point and all members need to be careful about not using insulting /rough language while discussing various points....using rough language does not prove how great we are.....our trading accounts do that.....

One can always have disagreement/different views....but if presented in a polite language and without personal attacks it always helps both the parties without any bad feelings....so instead of saying " this strategy is total nonsense " one can always say " I am afraid that this strategy may need some changes so that it is successful in actual trading....."

No trader however big,intelligent and smart is bigger than the market so let us all channelise our energies in a more constrctive way in launching a frontal
attack on the market and squeeze maximum out of it every day.....that will help all of us ...I see some members here who are restless in their minds....let there be peace and calm in their minds.

In absence of AW10 let us all work towards something constructive.....

Everyone cheer up and enjoy.......

Smart_trade

 

[aditya14]

in my view risk is lower in option compare to future because you can mange option by making it a spread or strangel and it give you more flexiblity

I don`t think so.
While writing options there`s an unlimited risk whereas futures theres no such thing.

Sure strangles can be done but volatility, time decay et all make it a risky tool.Futures is more transparent i feel.And who prevents u from creating a strangle in futures.Its done in commodities a lot.

But i have burned my hands in options and advise people to stay away unless u have sufficient capital for writing options even though it gives less returns.

 

[sumitdasjoshi]

I agry whith you the one should have suficiant knowledge to inter in to option you are wright i cantan risk you you buuy future whithout stop loss it can also runed your trading acount in that way if you are trading in option if we not us estoploss than evrything can br dissaster so in my advoise option is more flrxible than future and it is also less risky if you have trading plan .

 

[rajsumi121]

this thread is reaching its boiling point and all members need to be careful about not using insulting /rough language while discussing various points....using rough language does not prove how great we are.....our trading accounts do that.....

One can always have disagreement/different views....but if presented in a polite language and without personal attacks it always helps both the parties without any bad feelings....so instead of saying " this strategy is total nonsense " one can always say " i am afraid that this strategy may need some changes so that it is successful in actual trading....."

no trader however big,intelligent and smart is bigger than the market so let us all channelise our energies in a more constrctive way in launching a frontal
attack on the market and squeeze maximum out of it every day.....that will help all of us ...i see some members here who are restless in their minds....let there be peace and calm in their minds.

In absence of aw10 let us all work towards something constructive.....

Everyone cheer up and enjoy.......

Smart_trade

thanks my dear st .... Thanks alot .

 

[aditya14]

I agry whith you the one should have suficiant knowledge to inter in to option you are wright i cantan risk you you buuy future whithout stop loss it can also runed your trading acount in that way if you are trading in option if we not us estoploss than evrything can br dissaster so in my advoise option is more flrxible than future and it is also less risky if you have trading plan .

Can you share your trading plan?