Option trading strategies nifty
Keep loss ratio on ur invested capital. Make sure to book ur profit. Divide capital into Enter the trade of ur choice. Caution adviced with overtrading. Probability is the mantra on this method.
I treat trading as just the game of numbers. Time is money in Options. So, as a f irst step divide the timeline into short, medium, long term. Next, study the interested security index or stock or usdinr. Based on the projected analysis of a security, decide to go long side or short side and the timeline that the security might fall into as mentioned above.
Options and Futures are sure way to loose money as these instruments are like gambling where in you place your bet. Be aware of market conditions. Have a basic understanding of factors that effect the price of an option. If you are a buyer, time is always against you. Then there is also an impact of volatility. The volatility is never realised. So, buyer always pays this premium. Keep an eye on VIX.
If IV is high, then the risk of ending in a loss even though you predict the direction well is higher. Since time and volatility are against you. A simple strategy that would earn you decent returns would be to sell far out of money calls and puts and hold it to expiry. If you are working on large capital, a good capital preserving strategy would be to sell the options and use the option premium credits to buy directional bets.
This way, your capital will never erode although there is a capital erosion owing to inflation and if your bets do work out, you are better off. Important is to be able to choose the option strikes wisely.
Buy one Nifty Future and buy 2 ATM puts wait for couple of days if it moves either side of the market it gives the profit, close the trade and do it again.
Minimum loss maximum gain. With introduction of bank nifty weekly options, any options trader can write far of Out of the Money call or puts during the expiry days to take less risk and high probability trades As sellers of the options are always at the advantage because time value decay usually work in their favor.
Technical charts can be utilized to see the major resistance and support levels within last days of the expiry as the options writing above or below these anchor levels can be used to take small profits but those which have higher probability of success. In all probability there will be multiple times when one goes bankrupt in the trading account and it is continuous learning and perseverance and might take a few years before one could zero-in on the strategy and markets that one would be trading profitably.
Derivatives as a product itself is designed to factor in leverage and so handling risk: Being a personal trading account, one would not want to reveal the absolute value and that is the reason why returns are talked in terms of percentages. I have been trading from past 1.
I always end up losing money just because of these traps. The most common mistake i always do is i carry my position overnight, that has killed my account literally. I found a trading system back in May where i was making consistence profits with it, infact i doubled my trading capital in a week, but i lost the momentum because of a bad trade carrying overnight position.
I lost my confidence with that single trade. Since, I have been researching a lot over internet and reading books to have a trading system which works for intraday option trading but I have not found one.
I would be grateful if you can help me with Where i should be starting with and how to make your own trading system. Are you doing option trading only? Great article or interview. Everyone has their own strategy. Good to know he is able to sneak some time from his full time job and do trade on his mobile platform. Congratulations and wish you continued success. I have read it many times. I thank Zerodha team for this opportunity to learn about the strategies and thoughts of other traders.
It was nice reading your interview. I am Henry Solomon from Mumbai. I have planned to trade in option intraday. I have joined a advisory company for the same. As you have advised, I am investing a amount which i can afford to loose. Dear Rajesh, thks for the important valuable trading tips, one important thing to know where exactly we will get information about open interest, implied volatility and option prices.
I also trade in options. Recently I have developed my own tool in excel for certain option strategies. I check the pay-off and also ROI on the margin money blocked. If I am convinced about the profit margin and risk-free range of the underlying I take the trade position. Its working well for me. I am also able to track it along the dynamic market from my tool. I am not a software person. I want to take this tool to further refinement. I am looking for some experts to help me out.
Hi Charlu, I am a software engineer, I could able to help you if there is any requirement from my end. I am a software developer by profession. I can help you to refine your tool if needed without any charge. If interested revert me back. Hi Rajesh, i have read that you never hold position overnight. Hi Rajesh, Congratulations on your success.
It is infact the opposite. One request from the Zerodha team. Instead of focusing on others losses or strategies, we should focus on our own. At zerodha, is there a way to get our past trade book analyzed, maybe even for a small fee? At hindsight, it is always easy to have made the right investments. But fact of the matter is that it is not always possible to buy at lowest and sell at highest.
Some of us are just not made for the market, but we may realise it a bit too late in our lives. Have you checked out Quant? Tried contacting thru your website but got no response. The issue with stoploss is that there is no guaranteed execution price. Nithinji why you are not updating this section after I found Mr.
Rajesh post of and there was also post from you as a trader that too from I think now its time that you should post some fresh traders in this 60 day competition.
Yep, on my to do list, just too many things on my table. Will get someone from our team to do this from now. When in a drawdown, best thing to do is to reduce your trading size significantly before doing anything else. I am a student. And I have saved rupees for opening trading account. How should I start trading initially with such small amount. Start trading in equity intraday, suggest you to go through http: Technical analysis is a good way to get started trading.
Here is what I have learned in my 6 months of option trading…. Not sure why… Is there any advisory service who specialize in Nifty option trading…. Hello Rajesh Should compliment your efforts in building a system takes into consideration all aspects. Wanted to know if your triplent site is still active and are you into offering services? Awaiting your revert please Regards-A Bhapkar. Sir, my 60 day challenge brokerage refund not given. Daily saying that you will get refund by end of the day.
Token number When will i get refund money? From IIT to intraday options on Nifty 64 comments. Trending , Winners - 60 day challenge.
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