Nifty Options Vertical Spread Trading

[ananths]

Spread #4

Long 6400CE @ 70
Short 6500CE @ 34

Total cost 36 points..bit high

My target is to get 50 points per lot this month ..so taking bit aggressive position! Let us see how it goes.

Traped ! :annoyed:

Current position,

Long 6400CE @ 70 (40) = -30
Short 6500CE @ 34 (18) = +16 (Closed)
Short 6450CE @ 27 (28) = -1

Net P/L is -15 points as of now.

Could not exit on time because i was at lunch! :annoyed:

Edit:- Am I finding excuse for wrong decision? Previous post I mentioned let the dust settle to go for long trade but I was in a hurry! I should pay for this indescipline! A lesson for me.

 

[TraderRavi]

My target is to get 50 points per lot this month ..so taking bit aggressive position! Let us see how it goes.

you can take help from that guy trader15 , he looks expert in 50 point per month trick

 

[ananths]

you can take help from that guy trader15 , he looks expert in 50 point per month trick

On paper or real ? :rofl:

Just kidding :lol:

 

[trader15]

On paper or real ? :rofl:

Just kidding :lol:

No expert Bhai. Ravi Bhai le rahe hai...

Mien nursery mien hoon abhi.. But yes my target is only 50 points.. Looking for holy grail..

 

[ananths]

Anyone doing ratio spread trading in options? Can anyone publish how it works and any track record?

If no one is doing will start paper trade soon!

 

[Gandhar.]

ananth bhai
generally how much capital is required to trade the you are trading to achieve 5-10% monthly gains...??
seriously thinking to adopt some low risk low return method using low capital (around 20k-25k)
10% monthly gains would be awesome till i start full time trading or achieve capital needed for that...
------------------------------------------------------------------------------------
how do you get the right combination set of options
have gone through all the combinations through help of options oracle but still lacking confidence of going through actual trade...

----TY

 

[ananths]

ananth bhai
generally how much capital is required to trade the you are trading to achieve 5-10% monthly gains...??
seriously thinking to adopt some low risk low return method using low capital (around 20k-25k)
10% monthly gains would be awesome till i start full time trading or achieve capital needed for that...
------------------------------------------------------------------------------------
how do you get the right combination set of options
have gone through all the combinations through help of options oracle but still lacking confidence of going through actual trade...

----TY

@Gandhar bhai,

If you want to trade spread, initially dont target the profit 5% or 10%. Just enter one of the low risk spread say 20 to 25 points risk and hold on to it with a view on support/resistance level on NIFTY. If that is breached, you know that you are in trouble. So you can either exit or do some adjustment to cover the loss. So its a known risk game.

I would suggest try once and I'm sure you will succeed.

For a Debit spread you would need less than 20K for one pair. So if you have 100K, just trade only 2 pairs..dont trade entire 100K (that will give you 4-5 pairs)

20 points per pair is 5% for invested money. If you trade 3-5 times you will get it for sure...
Key is descipline and patience to hold on when others are enjoying profit in futures and naked options :lol:
when market moves 100 points in your favor you will get 10 - 15 points and vice versa.

 

[TraderRavi]

Key is descipline and patience to hold on when others are enjoying profit in futures and naked options :lol:
when market moves 100 points in your favor you will get 10 - 15 points and vice versa.

but others lose also in that ratio, win big , lose big = net zero :lol:

 

[Gandhar.]

@Gandhar bhai,

If you want to trade spread, initially dont target the profit 5% or 10%. Just enter one of the low risk spread say 20 to 25 points risk and hold on to it with a view on support/resistance level on NIFTY. If that is breached, you know that you are in trouble. So you can either exit or do some adjustment to cover the loss. So its a known risk game.

I would suggest try once and I'm sure you will succeed.

For a Debit spread you would need less than 20K for one pair. So if you have 100K, just trade only 2 pairs..dont trade entire 100K (that will give you 4-5 pairs)

20 points per pair is 5% for invested money. If you trade 3-5 times you will get it for sure...
Key is descipline and patience to hold on when others are enjoying profit in futures and naked options :lol:
when market moves 100 points in your favor you will get 10 - 15 points and vice versa.

but others lose also in that ratio, win big , lose big = net zero :lol:

yeaah thats what wanting to avoid
have a fixed min losing points if trade goes haywire
even very few people achieve 5-10 % monthly over their trading carrier :thumb:

 

[ananths]

yeaah thats what wanting to avoid
have a fixed min losing points if trade goes haywire
even very few people achieve 5-10 % monthly over their trading carrier :thumb:

Key is holding on to your position but you know that max loss is 20-25 points with your view on underlying to exit with min damage. You won't learn swimming unless you try.