So anybody is actually in profits just trading Options

Option trading status


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1. please read this book well before entering the option market
sheldon natenberg- option volatility & pricing - advanced trading strategies and techniques

2. Keep realistic profit expectations some where 24% to 36% per annum

3. Maintain profit to loss ratio, ie if you are looking for rs 100 profit then why buy a naked call at rs 200 hedge it

4. Always paper trade your strategy
 
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suri112000

Well-Known Member
Learn simply two strategies ie Credit spreads, Iron Condor. (Iron Condor is a combination of two credit spreads). So, focus on credit spreads.

1. Selection of strike prices. For example today Nifty is around 7630. Select 300 to 400 points away OTM puts. that is strike of 7300 or 7400. Write that put and hedge it with 7100 or 7200 put by buying. (Here the outlook is market seems overextended to lows and a relief rally expected). Here we are giving nifty another 300-400 points room to the downside.

2. What is analysis. As long as Nifty hovers above sold put option strike, you are safe and profitable. When the market cracks the sold put option strike, your position goes into a loss. Here comes the magic of option management to reduce your risk.

3. Managing options should be in synch with the market outlook. There are different ways to manage risk of options. There are lot of videos in youtube about it.
 
And option sellers are always smart traders
yeah those smart option seller are wiped out once there is 100 to 200 gap up move.
so selling is not always smart. Neither is buying.

96% ppls that play option bet will loose it all at one point. option is device to steal your money legally. Art of stealing money :xD OPtion are not for Common ppls they will end up loosing whatever they have.

only 2% of ppls that think why did i always loose money month after month finally understands Game and rest 2% are Fii.

when u win in option make a habit of moving half money in bank that way atleast u have half winning. whatever u have in bank is your true networth that's if u play Opton :xD
 
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