So anybody is actually in profits just trading Options

[smpsd]

Care to share what strategy u used with 62k in these stocks? i didn`t know u can go for stock options with such less amount.

just look 60m candle chart of each of them.Remember trend is your friend and only in trend you can make money.I am trying to do positional trading(still learning).My indicators are adx,macd,slow stoch,EMA.here is example of less money last week

reliance 1080 put i bought 4 lots at 23.8 and exited at 39.8 = 1200*16=19200
cairn two lots of 300 put at 8 still holding 2500*5=12500(trading around 13 will exit around trade 18-20)

My general idea is to select those options stocks which are in trend(short term per week basis) or any trend is establishing.then I need to know which in the money/at the money strike is actively traded( I try not to buy OTM).My general sense is each most traded stock like reliance,tatasteel,hindalco,dlf,hdil,sail,ster,tatamotors(and many more) gives 1-2 oppurtunities per week to trade.Yes, Some times it is difficult to find good trade then stay away or scan more F&O stocks.Also its your choice whether you are comfortable with big lots

 

[prinzdude]

^^^^ thanks bro..

 

[arun_17]

i personally think options are the most helpful and at the same time most dangerous instruments ... its how you use them that matters ...
i personally would advice (ok .. i am not a big experienced guy or something, but i can tell you what worked and didn't for me ) anyone who is interested in options to concentrate only on the nifty ... and it is best to find high reward opportunities and take them ... that means you will be trading maximum 3 times a month ... and carry options to the next day only if you have made profits to cushion them, because when you carry it to the next day, so many factors come into effect (time decay, volatility changes, etc) ...

for me options are the most beautiful things on earth ! best way to trade !

before i forget, a TRADING PLAN ... that might be the single most important factor in ur success ...

start by getting daily intraday charts and store them in ur computer or google docs ... watch the volatile days and see how trends behave

greetings from Erode !

 

[arun_17]

and yeah ... let me not discourage you or something ... but options on individual stocks are too illiquid to trade properly ... but if you have a good method go ahead. ..its what works that matters !

but why stocks when you the NIFTY ?!?!

 

[smpsd]

you are wrong brother many a times in index stocks there is lot of movement but in nifty it is only 15-20 points.So you can't say index options are best its your own choice i think trend is only your friend whether it is nifty(index),stock,gold,commd options it doesn't matter.Keep learning

 

[arun_17]

ur right about the movement smpsd ... and yeah its more proper if i said index options suit me ... its more correct ...
but all I am trying to say is that equity options are a little too risky because of the lack of liquidity the bid and ask are soo far apart and the odds are against you because of that ...
imho taking very selective trades in the nifty can give you very good rewards i am talking abt 2-3 trades a month ... that way we can have a good risk-reward and we can also take more risk because we can get out anytime without much of a liquidity issue ...

arun

 

[jvblogger]

ur right about the movement smpsd ... and yeah its more proper if i said index options suit me ... its more correct ...
but all I am trying to say is that equity options are a little too risky because of the lack of liquidity the bid and ask are soo far apart and the odds are against you because of that ...
imho taking very selective trades in the nifty can give you very good rewards i am talking abt 2-3 trades a month ... that way we can have a good risk-reward and we can also take more risk because we can get out anytime without much of a liquidity issue ...

I do naked option selling/writing and I find NIFTY option most suitable being more liquid and less volatile than the stock option.

 

[abigbull]

i personally think options are the most helpful and at the same time most dangerous instruments ... its how you use them that matters ...
i personally would advice (ok .. i am not a big experienced guy or something, but i can tell you what worked and didn't for me ) anyone who is interested in options to concentrate only on the nifty ... and it is best to find high reward opportunities and take them ... that means you will be trading maximum 3 times a month ... and carry options to the next day only if you have made profits to cushion them, because when you carry it to the next day, so many factors come into effect (time decay, volatility changes, etc) ...

for me options are the most beautiful things on earth ! best way to trade !

before i forget, a TRADING PLAN ... that might be the single most important factor in ur success ...

start by getting daily intraday charts and store them in ur computer or google docs ... watch the volatile days and see how trends behave

greetings from Erode !

Can u share ur trading plan sir . i have always made losses in the options

 

[linkon7]

I think of it this way...

How many of us can create music simply by buying a instrument and a guide book on how to play that instrument. It takes long long hours of practice before you can even call your self a amateur musician.

Same rule applies while trading the market. If you can day trade successfully and generate consistent profit then you can make music with options. If you are yet to develop a sense of price action, options will empty your trading account.

 

[VaibhavPRO]

Yes lincon sir is right. Developing sense of price action of options is the key.

Also more than the profit 1 should look at minimizing losses. Most of the people will loose money in options by trying to earn quickly.

I also lost money in my first few trade but then by sheer discipline i hav been able to recover all money. I hav always believed in booking profits whenever i can, though i hav lost out on many oppurtunities of making more money but considering all the trades it has been working for me.