Well in India it seems only way to make money is by writing options. Earlier what i saw was that even when i used to be right on direction of market , my bought options didnt gave the required amount of money they should have given. So then i started writing options and the most amazing thing i noticed about writing options is that "IT is the only asset in this world that gives u money even when u r wrong" and the component which makes it possible is the none other than decay factor.
Just for example how many times have u seen NIFTY hanging around same price or say even increasing 1 or 2% and then also we witness 20-30% drop in options premiums.
Also many people out there say that it is risky, i just want to know from them what is not risky? Obviously if u want to earn more money u HAVE to leverage it more.
Like i will give u my practical trading account example: On 18th April i wrote 5300 CE options @around 86 , Now when Nifty is off not even 2% it is now trading@11 which is 1/8th of the value i wrote it.
If u guys want(or r interested) i cud think abt starting a new thread on WRITING options and it wont be another boring thread just abt theory, we will do live trading. And yes i need someone who will keep track of my results in that thread itself. Like what was %gain/loss on options i told to write. Any volunteers ?
Lets make it a fun guys..........