Option trading strategies that i hope will work.

[TheDreamer]

Very few option trader understand this logic and this is heart of option trading
Keep it up bro...

Darshan,

Couldn't get your point... If you are saying that the main purpose of options trading is to hedge risk... I think you are making statements like puritans... Then futures also had the same purpose for trading... Isn't it?!!!

We have come a long way from those days when FNO was used to hedge positions... Today, main purpose of FNO is to speculate and it will remain the same for the days to come...

 

[darshanshukla]

You are absolutely right Dreamer,
I'm not denying that futures are not but OPTIONS are traditional tool and not used by a novice trader or investor for hedging it is mainly used by FIIs and DIIs including HNIs so that is not touched by common investor and mostly
Option writing.. this is THE TOOL used by all intelligent and HNI investors and traders though we know we can not use writing as if you have 2-3lk margin you can write only 3-4 stock option contracts only so.....
I hope you got my point friend,
Happy trading ahead,
Darshan

Darshan,

Couldn't get your point... If you are saying that the main purpose of options trading is to hedge risk... I think you are making statements like puritans... Then futures also had the same purpose for trading... Isn't it?!!!

We have come a long way from those days when FNO was used to hedge positions... Today, main purpose of FNO is to speculate and it will remain the same for the days to come...

 

[detrich]

dear dreamer, the point we are trying to make is that it is difficult if ,not impossible, to recover money from a option contract that is out of favour with trend and losing money by taking another position(buy another contract) that will help recover the losses or better make money out of it. Because the reason fno came around is to hedge a position hence it will lose money with time in terms of premium. To be honest I find options trading for sake of trading does not make sense because the risk is very high of losing money

 

[anup0212]

hey detrich bro!, i have exited my both position though I made mistake and took early exit , so suffered loss of 5K but if I would have hold till now i would have made loss of 1.5K but that could have been better than that worst, anyway ...thanks for that advice...appreciate your help.

 

[detrich]

dear anup I am sorry for the loss that you have incurred I did not expect the bloodbath at closing hours. Hopefully your next trades will all be successful. Best of luck for future and you really do not have have be thankful. I am really grateful to all the people who are following this thread especially coolboy Rajat and darshanji. Who continue to inspire me.

 

[detrich]

5164 short sell Nifty

 

[detrich]

Hold onto Wipro the pattern is strong. Currently do not buy but keep an eye 400

 

[anup0212]

hey Detrich , SBI looks strong to me , what is your advise , if I can go and buy 2350 CE of SBI ? what is your thought ?

 

[detrich]

Dear Anup, currently market phase is bearishly trading which is not good to buy any option contracts duehigh voltality. Currently cash or futures look more attractive. SBI has formed a descending triangle in longterm with base @ 1500 hence I have my doubts about the strength of current upmove seen on the counter. I have been bullish on Tata Motors but not enough buy a call contract and target in shortterm is 306 by mid May best of luck bro

 

[anup0212]

Detrich bro , your analysis reallly good , today TATAMOTORS reaches 300 ....good pick bro...will keep track of your tips.