NIFTY Options Trading by RAJ
- Thread starter healthraj
- Start date
- Tags nifty options chain raj oat
Sir Jagankris
Thanks to clear that as the poster of that specific post did not give any answer to my question which was pointed in the direction of being confused about the numbers in his post. I was thinking about to multiply it with 50, but was not sure if I understood the given numbers the right way.
Now looking at it and comparing the numbers with it under that clear new view has an other value. So thanks to you to take your time to post your comment. Have seen in the past that you are called as a friend of Sir DanPickUp. How is he?
Thanks to clear that as the poster of that specific post did not give any answer to my question which was pointed in the direction of being confused about the numbers in his post. I was thinking about to multiply it with 50, but was not sure if I understood the given numbers the right way.
Now looking at it and comparing the numbers with it under that clear new view has an other value. So thanks to you to take your time to post your comment. Have seen in the past that you are called as a friend of Sir DanPickUp. How is he?
Sir Escape
I guess Sir Premkumartalreja has to clear the whole confusion, as you now also came up with my concerns about the numbers posted.
The answer from Sir JG is fine to me, but if this is not the case and Sir Premkumartalreja talks about 500 options and not about 500 lots of options , then my old questions are up today. Will check the thread tomorrow to see if the answer is posted.
I guess Sir Premkumartalreja has to clear the whole confusion, as you now also came up with my concerns about the numbers posted.
The answer from Sir JG is fine to me, but if this is not the case and Sir Premkumartalreja talks about 500 options and not about 500 lots of options , then my old questions are up today. Will check the thread tomorrow to see if the answer is posted.
Selling Options is Selling Futures and so you will require the same margin as Futures but if you combine your sell with a Call and Put I think you still require the same amount and your positions are also safe.
One more thing, if you are talking about NIFTY yes you need ~25000 if it is positional trade. If it is a Intraday position you will need only ~10000 margin. In other words you can always take those extra positions during the start of the day and close those extra positions around 3:15 to maximize your profit.
With respect to the profit we definitely cannot compare BUYing and SELLing Options. But if you compare the Risk involved in naked options Selling Options Pair is more safe and worthwhile.
Let us say your capital is 1,00,000 and you want to SEll a Pair of Call and Put
Then as a positional trader you can take ~200 quantities
Let us say you hold the positions for a week and make 25 points you will make around 5000 in a week.
In four weeks you can make around 4*5000 = 20000 = 20% of the capital
Now if you also utilize you intraday margin you can additionally take 300 positions and so ideally your quantity for Intraday would be ~500.
So your max profit per month would 500 * 25 = 12500 * 4 weeks = 50000 = 50% of the Capital.
So the most important thing is to utilize your Intraday margin effectively.
In a low volatile UP market, It is safe and a Good Strategy to make some safe money. When the market is making some WILD DOWN moves, it is better to avoid SELL and go for naked Puts or Debit Spreads
One more thing, if you are talking about NIFTY yes you need ~25000 if it is positional trade. If it is a Intraday position you will need only ~10000 margin. In other words you can always take those extra positions during the start of the day and close those extra positions around 3:15 to maximize your profit.
With respect to the profit we definitely cannot compare BUYing and SELLing Options. But if you compare the Risk involved in naked options Selling Options Pair is more safe and worthwhile.
Let us say your capital is 1,00,000 and you want to SEll a Pair of Call and Put
Then as a positional trader you can take ~200 quantities
Let us say you hold the positions for a week and make 25 points you will make around 5000 in a week.
In four weeks you can make around 4*5000 = 20000 = 20% of the capital
Now if you also utilize you intraday margin you can additionally take 300 positions and so ideally your quantity for Intraday would be ~500.
So your max profit per month would 500 * 25 = 12500 * 4 weeks = 50000 = 50% of the Capital.
So the most important thing is to utilize your Intraday margin effectively.
In a low volatile UP market, It is safe and a Good Strategy to make some safe money. When the market is making some WILD DOWN moves, it is better to avoid SELL and go for naked Puts or Debit Spreads
BUY TIME NOW.
All the Major banking Stocks are trading below the SUPPORT and you can buy now including BANKNIFTY as per the Rangebound or SELL HIGH - BUY LOW Rule. But Yes you need to take some risk because somebody can argue that today we had a Breakdown. So decide for yourself.
I am sure it would be the Test of your nerves. But I think Trading is also about the confidence and the Positive Aggression
I am buying ICICIBANK @ 1098 and NIFTY @ 6195.
But it is definitely not the time to SELL. If you want to SELL wait for a Pullback and Sell when the NIFTY is above 6230.
All the Major banking Stocks are trading below the SUPPORT and you can buy now including BANKNIFTY as per the Rangebound or SELL HIGH - BUY LOW Rule. But Yes you need to take some risk because somebody can argue that today we had a Breakdown. So decide for yourself.
I am sure it would be the Test of your nerves. But I think Trading is also about the confidence and the Positive Aggression
I am buying ICICIBANK @ 1098 and NIFTY @ 6195.
But it is definitely not the time to SELL. If you want to SELL wait for a Pullback and Sell when the NIFTY is above 6230.
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