Picking up nickels in front of steamroller!!
- Thread starter jvblogger
- Start date
- Tags naked option selling option selling option writing
Well, I don't know how to read charts..lol 
I watch NDTV profit and some intution and goes by that.
Next thing in line is to learn charts, put:call ratio,open interest etc.
Is it worth to leaern these things ?
As pepole says, market drives on their own and every tech charts breaks when it takes dives so can't say.
But if you have any link to learn that would be great.. But frankly I am dumbo when it comes to charts resistance level,support.
I am techie/engg so finance things sometimes goes over my head But will give a shot, let's C
Thanks Again.!
I watch NDTV profit and some intution and goes by that.
Next thing in line is to learn charts, put:call ratio,open interest etc.
Is it worth to leaern these things ?
As pepole says, market drives on their own and every tech charts breaks when it takes dives so can't say.
But if you have any link to learn that would be great.. But frankly I am dumbo when it comes to charts resistance level,support.
I am techie/engg so finance things sometimes goes over my head But will give a shot, let's C
Thanks Again.!
Well, I don't know how to read charts..lol
I watch NDTV profit and some intution and goes by that.
Next thing in line is to learn charts, put:call ratio,open interest etc.
Is it worth to leaern these things ?
As pepole says, market drives on their own and every tech charts breaks when it takes dives so can't say.
But if you have any link to learn that would be great.. But frankly I am dumbo when it comes to charts resistance level,support.
I am techie/engg so finance things sometimes goes over my head But will give a shot, let's C
Thanks Again.!
I watch NDTV profit and some intution and goes by that.
Next thing in line is to learn charts, put:call ratio,open interest etc.
Is it worth to leaern these things ?
As pepole says, market drives on their own and every tech charts breaks when it takes dives so can't say.
But if you have any link to learn that would be great.. But frankly I am dumbo when it comes to charts resistance level,support.
I am techie/engg so finance things sometimes goes over my head But will give a shot, let's C
Thanks Again.!
How do you decided the way you drive your vehicle?
With your intuition? or perhaps watching TV!!
To drive you need to understand the how to apply accelerator and brake, need to be able to read and understand road signs/indicator, need to know the traffic density which depends upon on any particular time of the day, whether forecast and still after knowing all things you need to be awaken and vigilant while driving even when you are driving on your daily routine road from your office to home!!
So any trading by watching tv is really bad idea.
Viewing stock chart is not that difficult.
Here I view the upper and lower band the market.
I have used 2 years weekly chart with Bollinger Bands. Which gives decent idea of upper and lower band of possible market movement in coming weeks.
You can view the chart here http://www.icharts.in/charts.html.
Try to put this way!!
How do you decided the way you drive your vehicle?
With your intuition? or perhaps watching TV!!
To drive you need to understand the how to apply accelerator and brake, need to be able to read and understand road signs/indicator, need to know the traffic density which depends upon on any particular time of the day, whether forecast and still after knowing all things you need to be awaken and vigilant while driving even when you are driving on your daily routine road from your office to home!!
So any trading by watching tv is really bad idea.
Viewing stock chart is not that difficult.
Here I view the upper and lower band the market.
I have used 2 years weekly chart with Bollinger Bands. Which gives decent idea of upper and lower band of possible market movement in coming weeks.
You can view the chart here http://www.icharts.in/charts.html.
How do you decided the way you drive your vehicle?
With your intuition? or perhaps watching TV!!
To drive you need to understand the how to apply accelerator and brake, need to be able to read and understand road signs/indicator, need to know the traffic density which depends upon on any particular time of the day, whether forecast and still after knowing all things you need to be awaken and vigilant while driving even when you are driving on your daily routine road from your office to home!!
So any trading by watching tv is really bad idea.
Viewing stock chart is not that difficult.
Here I view the upper and lower band the market.
I have used 2 years weekly chart with Bollinger Bands. Which gives decent idea of upper and lower band of possible market movement in coming weeks.
You can view the chart here http://www.icharts.in/charts.html.
I need to study basics first..This all seems greek and latin to me. EMA,bollinger etc.
I will try to learn basics of chart first before going into chart study.
BTW, you seems to be outside india..
Thanks
Hi,
I have also come to this strartegy. i also doing selling of call/put and works very well for me..but only difficuly with this strategy is u have to pay high margin to broker..
Have u any idea about low marging broker to sell call/put..i m paying 25000/- marging per lot. please let me know your margin and best broker to write put/call??\
Thanx
Chirag
I have also come to this strartegy. i also doing selling of call/put and works very well for me..but only difficuly with this strategy is u have to pay high margin to broker..
Have u any idea about low marging broker to sell call/put..i m paying 25000/- marging per lot. please let me know your margin and best broker to write put/call??\
Thanx
Chirag
I am not sure that I got what you wanted to convey.
I am not fearless. However, I am not fearful also.
I do not recall if have described my first logic and object behind option selling.
My object behind option selling is to generate a consistent income using my long-term equity portfolio as collateral.
Generally equity shares remain ideal and only appreciation is in increase of market price and negligible dividend, if any.
And share prices do not always go up but goes down as well, and sometime goes down anywhere between 30-90% (depending upon your purchase price and the quality of share).
In such down period , such as during 2008-09, one naturally thinks that what if I had invested the capital in FDR or other safe investment, where returns might be 7-10 % but the capital would not have been washed away.
At that time I started toying with idea to get 12-15% return annually (!!) , and that too consistently as if the capital is invested in FDR/Govt. Bonds.
So after playing with different strategies, option selling suited my trading profile and personality.
Here are few advantages/reasons why I find this strategy suitable for me.
1) Use my equity portfolio as collateral
2) Expected return 24% annually (have changed after seeing the strategy working)
3) 0 loss tolerance, so once the profit a of an expiry is pocketed , I do not use that profit as the cushion for next month. Therefore premium collected in given month is total loss I would bear.
4) More importantly I do not have to access stock market during working hours.
5) Not confident on my technical analysis skill
6) Selling far OTM give sufficient time to square off the loosing option (so far, it has happened so)
So, basically I am not trading while option selling, I consider as investment, and I am not dependent upon the profits generated through it. I can stay away from the market if I am not comfortable.....
and these are few reasons why I am not afraid to pick up nickels in front of the steam roller.
However, I have all respect for the market, and despite all my diligence I may come under the steam roller some day. And if so, the mistake would be mine not of the steamroller (the market).
Many do not find option selling exciting as compared with buying and hitting jackpot and initial months you will find it dull and boring. But once the trade cycle is in motion and premium is consistently earned, you may enjoy it.
So, consider whether the strategy is suitable to your personality, needs, emotions.
Good night
JV
I am not fearless. However, I am not fearful also.
I do not recall if have described my first logic and object behind option selling.
My object behind option selling is to generate a consistent income using my long-term equity portfolio as collateral.
Generally equity shares remain ideal and only appreciation is in increase of market price and negligible dividend, if any.
And share prices do not always go up but goes down as well, and sometime goes down anywhere between 30-90% (depending upon your purchase price and the quality of share).
In such down period , such as during 2008-09, one naturally thinks that what if I had invested the capital in FDR or other safe investment, where returns might be 7-10 % but the capital would not have been washed away.
At that time I started toying with idea to get 12-15% return annually (!!) , and that too consistently as if the capital is invested in FDR/Govt. Bonds.
So after playing with different strategies, option selling suited my trading profile and personality.
Here are few advantages/reasons why I find this strategy suitable for me.
1) Use my equity portfolio as collateral
2) Expected return 24% annually (have changed after seeing the strategy working
)3) 0 loss tolerance, so once the profit a of an expiry is pocketed , I do not use that profit as the cushion for next month. Therefore premium collected in given month is total loss I would bear.
4) More importantly I do not have to access stock market during working hours.
5) Not confident on my technical analysis skill
6) Selling far OTM give sufficient time to square off the loosing option (so far, it has happened so)
So, basically I am not trading while option selling, I consider as investment, and I am not dependent upon the profits generated through it. I can stay away from the market if I am not comfortable.....
and these are few reasons why I am not afraid to pick up nickels in front of the steam roller.
However, I have all respect for the market, and despite all my diligence I may come under the steam roller some day. And if so, the mistake would be mine not of the steamroller (the market).
Many do not find option selling exciting as compared with buying and hitting jackpot and initial months you will find it dull and boring. But once the trade cycle is in motion and premium is consistently earned, you may enjoy it.
So, consider whether the strategy is suitable to your personality, needs, emotions.
Good night
JV
Last edited:
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