So anybody is actually in profits just trading Options

[sunny_cool]

@dhariwad its really nice to know your sucess. I am new in trading & want to know how to start trading in Options(already lost some of my money ). Hope you will show me the path to start with basics.

Regards,
Sunny

 

[TraderRavi]

good to see so many nifty option players in profit..........

 

[pundit]

You are always welcome. BTW hunt for holy grail and analysis paralysis is one of the biggest reason of losing. You can always book loss in options even if you know which direction market moves (as time decay plays a key roll here) Option writing is the edge that can use time decay in your favor but only advisable once you understand the risk and can calculate the Greeks well
For instance today I was playing with around with 5600CE and 5900PE and both of them produced money due to time decay where market was wild as no clear direction was there, and VIX data is there to support you, and yes! having seen oscillator over bought I kept an over night position as Bearish Bull Call Spread short 5600CE and long 5800CE 2 lot each at 3.25 pm, by the end of the session position is already 500+ so I will make money if market is slightly up, sideways or way down Of course there is a proactive call for uncertain rally


BTW virendra rao is my name dhariawad is my village

regards

Hi Virendra ,

So which other indicators are you using or using only oscillator? do you play in naked options? It will be nice if you guide members step by step.

Thanks..

 

[chataara]

Dear friends

After losing around Rs.15000 in the last 2 months, I believe i have caught the winning point. Three days back, my margin was just Rs.5600. On 15-4-11 got profit of Rs. 600. On 18-4-2011 again profit of Rs. 1400. Today (19-4-11) profit Rs. 3450.

So, After deducting brokerage my margin has grewn to 10,600. i.e., With little margin of Rs. 5600, I have managed to earn around 5000.

To be frank with U, I am not an expert in options. Just reading charts I trade.

Hope, in the coming days also I can do better.

Thanks

Dear friends

On 20-4-11 I bought Sbi 1850 ce 4 lots average rate Rs. 20. In the first half it went down upto Rs. 11. So when it came again around 18.5 I sold all the lots. Also, loss in chamblfert. So total loss was Rs.1600 including commission.
In fact, Sbi went above Rs. 32 in the second half.

On 21-4-11 I got profit of Rs. 1700. Somehow adjusted the previous day's loss.

 

[pundit]

Hi Virendra ,
Waiting for your post ......

 

[comm4300]

Despite contrary belief, i find option swing trading the best way to earn side income.

Reasons:
I know the max loss that i shall bear. Unlike futures where i have to be worried about M2M.
i never trade naked options.
for me, its either some sort of straddle or strangle. {good many threads here}

Time decay is the biggest enemy for any option buyer. So, the entry has to be good enough. And here, technical analysis helps.

Once you are in a option position, you practically have to assume that you've lost the premium paid. But, believe you me, when the strategy goes in your favor - the returns are much much better.

summarize:
a) technical analysis
b) straddle/stangle
c) discipline

 

[TraderRavi]

Sure I'd love to; since this forum has helped me a lot when I was beginning. So I am happy to help anybody. As a beginning I'd like to mention the following:

#Never trade OTM calls and puts, except Long Iron and Butterfly
#Follow a a strict initial and trailing stop loss
#Always keep Delta, Theta and Vega in mind
#Keep a close eye on VIX
#Strictly follow the 2% rule of Elder
#Most of the times not having overnight positions
#Always and always trade with NIFTY options
#80% of my trade are of credit setups and increasing rapidly
#Only using 2-3 indicators and simple setups
#Never try to adjust stop loss in case being wrong

I hope it gives a brief glimpse @pandit BTW I like the brokerage you mentioned. Is it a good broker to go along, what about other charges as if any?

Regards

what is credit setup..?

 

[DanPickUp]

And what does this mean :

#Never trade OTM calls and puts, except Long Iron and Butterfly"

You may explain us in detail, why we not should trade OTM calls and puts. I am always eager to learn some thing new about option trading.

Thank you

DanPickUp

 

[linkon7]

And what does this mean :

#Never trade OTM calls and puts, except Long Iron and Butterfly"

You may explain us in detail, why we not should trade OTM calls and puts. I am always eager to learn some thing new about option trading.

Thank you

DanPickUp

I am a bit curious too... since i am normally a buyer of otm calls / puts. It give me a good RR and sometimes they end up being very good market-pays-me-to-take-risk trades.....!

 

[DanPickUp]

## market-pays-me-to-take-risk trades ## Yep !