NIFTY Options Trading by RAJ

[healthraj]

A Gentle Reminder for those who are putting their views on this thread.

I started this thread so that somebody can make say Rs 10000 from 1 Lakh in a month or monthly a max of 10%. Of course somebody can make more than 10% in month. But the main intention is not to make any loss because I don't want anybody to loose their capital. So I request the Experts to be sensitive towards this and help Fellow Traders to suggest ideas to make that 10%. If somebody believes that 10% is just a small amount then they can keep away from this thread.

Remember for people like me apart from books that I buy and Read, Traderji is the only source to learn something new because we have so many people with so many different views like our Mother India. So I want to take the best out of Everybody. I joined Traderji in 2009 but I am actively participating only from 2012. So I was silently reading and learning from others. And I want to share the same knowledge to others like me who are starting fresh. So for the freshers stay positive and stay focused and whatver you do, make sure you do not loose your capital by more than 30%.

 

[meenulalit]

Thanks Raj for explaining the logic. I guess I have a long way to go in learning options. To be able to think like market makers takes a lot of experience.

 

[Relish]

Remember for people like me apart from books that I buy and Read, Traderji is the only source to learn something new because we have so many people with so many different views like our Mother India. So I want to take the best out of Everybody. I joined Traderji in 2009 but I am actively participating only from 2012. So I was silently reading and learning from others. And I want to share the same knowledge to others like me who are starting fresh. So for the freshers stay positive and stay focused and whatver you do, make sure you do not loose your capital by more than 30%.

Sir, Can you suggest how many point in nifty future or nifty spot require to change one point in call or put ?
:thumb: :clap: :clapping: :clapping:

 

[Niftytradingindia]

I think market makers make lot of money and are actually fooling traders and investors specially in nse options segment openly.

Look at the july 13 expiry, nifty closed at 5907. Do you know 5907 is the exact level at which put and call buyers make maximum loss and market makers maker (option sellers) maximum profits. This has happened in several months.

Ideally the option open interest is over 1.5lakh crore. This means a total premium of 1.5lakh crore is collected in a month by option sellers. While the daily volumes in nifty cash segment is 10000 crore.

What if option sellers want to invest 20000crore outof 1.5lakh crore received into cash segment. They can fully control at what level they would like to close nifty at. This is what happenedin july series.

 

[gmt900]

A Gentle Reminder for those who are putting their views on this thread.

I started this thread so that somebody can make say Rs 10000 from 1 Lakh in a month or monthly a max of 10%. Of course somebody can make more than 10% in month. But the main intention is not to make any loss because I don't want anybody to loose their capital. So I request the Experts to be sensitive towards this and help Fellow Traders to suggest ideas to make that 10%. If somebody believes that 10% is just a small amount then they can keep away from this thread.

Remember for people like me apart from books that I buy and Read, Traderji is the only source to learn something new because we have so many people with so many different views like our Mother India. So I want to take the best out of Everybody. I joined Traderji in 2009 but I am actively participating only from 2012. So I was silently reading and learning from others. And I want to share the same knowledge to others like me who are starting fresh. So for the freshers stay positive and stay focused and whatver you do, make sure you do not loose your capital by more than 30%.

As I said in an earlier post, I fully agree with your thinking.
However, I would like to make one point. The method we are following entails more transactions thus increasing cost of trading. Therefore, if someone has to pay high brokerage , either his profits will be lower or he will have increase number of trades to make the kind of money you are suggesting.
reagrds

 

[healthraj]

Sir, Can you suggest how many point in nifty future or nifty spot require to change one point in call or put ?
:thumb: :clap: :clapping: :clapping:

That would depend on which strike you are talking about. Different strikes move at a different pace depending on whwther they are ATM, ITM or OTM.

ITM positions move faster compated to ATM positions. OTM positions move the slowest. Hope you know what is ITM, ATM or OTM.

The Option Greek which denotes this exatly is called Delta.

 

[healthraj]

As I said in an earlier post, I fully agree with your thinking.
However, I would like to make one point. The method we are following entails more transactions thus increasing cost of trading. Therefore, if someone has to pay high brokerage , either his profits will be lower or he will have increase number of trades to make the kind of money you are suggesting.
reagrds

Hope you have Trading account with someone like Zerodha

 

[gmt900]

Hope you have Trading account with someone like Zerodha

Unfortunately not. But I intend to do it after the upfront brokerage I have paid is used up. I have just started looking at such low cost brokerages. In fact, I was not aware of the existence of Zerodha till I joined Traderji

 

[Relish]

That would depend on which strike you are talking about. Different strikes move at a different pace depending on whwther they are ATM, ITM or OTM.

ITM positions move faster compated to ATM positions. OTM positions move the slowest. Hope you know what is ITM, ATM or OTM.

The Option Greek which denotes this exatly is called Delta.

Thank's for reply. need to explore in delta side. I know term mentioned by you. But Somewhere I read we 10 points to move 1 point in option but forget which one they are talking ?

 

[healthraj]

Unfortunately not. But I intend to do it after the upfront brokerage I have paid is used up. I have just started looking at such low cost brokerages. In fact, I was not aware of the existence of Zerodha till I joined Traderji

Yes I can understand the pain. I initially had the account with ICICIDirect. After I opened the account with Zerodha only I understood how much I have been loosing with ICICIDirect. So all the best for quickly opening the account in Zerodha. Let me know if you need some help with Zerodha