Option selling

[doonyadav]

1 lot only. Multiplied by 100 to calculate profit %
i.e profit*100/capital

 

[doonyadav]

exitted from 7900pe as well at 60. I also felt the risk involved is high.
In search of a good hedged strategy...............
Experts please suggest!

 

[travi]

hehe, now your rubber is touching the road

I told you, its not easy to sit tight for over a month and wait for expiry.
If you still want to write, it has to be very early on, at least 50 days for Nifty to get a shot.
You made Inr. 22/lot over a week, with a naked position overnight, might as well scalp NFO.

 

[tradedatrend]

My position is around INR 20 in profit. i.e 20*75*100/100000 = 1.5%
I think it is a decent profit in one week considering my position was protected between 7700-8400.
Because i am a beginner so i don't understand much about the risk that a few fellow friends talked about.

I think black swan event takes place once in a few years. And if i make 1% every week, i will be able to accumulate 20% profit in almost 4 months. That's enough to face the black swan day (20% circuit).

And if we think of black swan event 24*7 then it is going to be very tough to trade.
I may be wrong, so experts, please guide me!

Dont take market for granted

Market is pretty infamous for disappointing people

Moreover your calculation is incorrect.

The day nifty goes 20% up or down, all naked option sellers shall be COMPLETELY WIPED OFF.

 

[Vijay1]

i am in the same boat as doonyadav, searching for a strategy with low risk and decent profit

 

[travi]

i am in the same boat as doonyadav, searching for a strategy with low risk and decent profit

Option writing isn't low risk, infact, F&O segment isn't in low risk.
Try buying good stocks for longterm.

 

[doonyadav]

Everyone trades in the market to win...
If one wins then someone else has to loose...
In this business if someone looses, he/she can not survive and thrown out...

Then he/she wants to learn the tricks of the trade...
Rarely any of the winner will tell his secrets...
Then who is sharing his knowledge or who is teaching the trading techniques?
Who is providing the tips and why? Does the tips provider want us to win or there is something else?

I think, we have to find some technique at our own and back test the same on historical data and paper trade as well.

One thing i have learnt - Trading is less to do with trading set up but more related to trading psychology.
Whenever i trade on paper my technique works perfectly, but when it comes to real trades, emotions - fear, greed etc overpower me and i book early in profitable trades and continue in bad trades.

Recently i have started to take position in one lot, since then i am trading in some profits.

Here on this platform of TJ we can study and learn by experience of fellow traders.
Thanks

 

[doonyadav]

Shorted 8200 ce at 115
No stoploss, will buy NF if trade above 8230

 

[doonyadav]

sold 8000 pe at 77.
Now open position
1. shorted 8200ce at 115
2. shorted 8000pe at 77

 

[doonyadav]

squared 8200 ce at 124, shorted at 115
Now open position 8000 pe short only shorted at 77, tsl at 60