So anybody is actually in profits just trading Options

[dhariawad]

Hi all, sorry for being late replying I was busy for a while making money :thumb:
Thank you all for paying attention to my words, proceeding with my post let's first talk credit spread:
since time decay is your enemy so if you decide to take it on your side you need to write options; but writing options contains immense risk so buying a protective call/put against your short position creates a credit spread for you. For both markets trending/nontrending you always have a credit spread as Bullish Put Spread, Bearish Call Spread, Long Condor etc. Having a credit spread rewards you even if market moves to your anticipation, hangs around there and protects your position if it's against your opinion.
So far OTM call/put are concerned the problem is within delta if you are on long position; but I consider spot and 2 nearing position as ATM so if you are trading them it's not a problem. Trading ITM will also not rewards you well since delta will never become 100% so ATM pays you the best.
Spreads are only advised if you keep overnight position since not a lots of broker allow multi leg order so spread are not good for intra day trade.

Hope I am contributing to as per expectation

regards

virendra rao

 

[munde_77]

Some option traders trade only in OTM options coz though the probality and sucess rate is very low , the risk reward ration is very good. Just imagine, if you buy OTM options and when market moves 500 points or more, u get huge return 10/15 times.

Even if you are sucessful 3/4 times in a year it is worth taking risk compared with the risk reward ration.

 

[munde_77]

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

I do just opposite to what you say and still making money by selling options.
In selling options , you should learn money management, position size and option repair strategy so that u can be susessful most of the time. Everyone has his own strategy. The important thing is money management. I dont keep stop loss but repair position by adjusting strike price and position size

 

[timepass]

Dear friends

After losing around Rs.15000 in the last 2 months, I believe i have caught the winning point.

So, what is the winning point ??

 

[dhariawad]

I do just opposite to what you say and still making money by selling options.
In selling options , you should learn money management, position size and option repair strategy so that u can be susessful most of the time. Everyone has his own strategy. The important thing is money management. I dont keep stop loss but repair position by adjusting strike price and position size

He he he quite possible; since there can always be trade when one is selling and one is buying and both making money. But hope you are not doing opposite of a few things viz tracking VIX, Keeping simple trade setup etc :thumb:

 

[munde_77]

I don`t look at VIX. It is for the buyers and not sellers. coz buyers have to buy and exit now and then and should not keep position as time decay will eat them whereas sellers have to keep their position for 20/30 days for eating time decay. Even if the volatility increase /decreases though the premium increases /decrease the profit potetial is same . Premium changes temporariy but the theory remains same

 

[sunny_ndl]

hell seniors, is it required charting software like ami broker, metasoft etc for earning in intraday index options. please clear my doubt , as i was in big confusion. BTW iam trading since 6 months but not earned penny lost almost 1 lakh.

 

[sunny_ndl]

Hello Dhariawad sir, how you are trading. Is charting software must for intraday nifty options trading. Please reply me.other wise give ur mobile no. iam thank ful if u reply.

 

[dhariawad]

Hello Dhariawad sir, how you are trading. Is charting software must for intraday nifty options trading. Please reply me.other wise give ur mobile no. iam thank ful if u reply.

Hi sunny!
I think if you are trading Intra day charting software is a must so that you are always on the right side and I am using a charting software for nifty option trading. One I am using is amibroker with a data feed from market-data-provider. Though it's not the best of the services and lags a bit still as I trade upon 1hr/15mnts time frame so okay for me.
regards

 

[sunny_ndl]

Hello dhariawad sir
,thanks for clearing my doubt. BTW please suggest best data feed to trade options with Tick and 1minute time frame