Planning to Trade in Options : Need help please

I am planning to trade in options and have read a lot about it over the net. Even though many of the strategies are clear to me, I have several queries and need help from experts.

1. Can I make money using risk limited strategies like straddle, strangle, bull spreads and bear spreads? I mean without the need to write/sell options and pay margins.

2. Where can I learn about market movements in general and specifically the NIFTY, as I plan to focus on just Nifty options.

3. Where can I learn about the various technicals online? Charting etc

4. Can I make money trading just the Nifty options?

5. How is a call option bought squared off before expiry?

Dear Abhiabhi

Well, it is a nice idea of you to trade options and you started with the right thing: Reading about them.

Some A&Q to your questions:

1. What is a bull spread or a bear spread called when I not sell any option against my long positions?

The answer of this will give you the answer to your margin question.

2. TA you can learn all over the forum. Search here: http://www.traderji.com/day-trading/ and here: http://www.traderji.com/technical-analysis/

3. Answers given in point 2 of this post. There is more you ever will need in your live.

4.Try it as your question shows that you are very unsure about your trading knowledge. Not a good point to start from and it even throws question in the air if you really understood what option strategies are and why they are the way they are?! You may read this thread for your own safety: http://www.traderji.com/beginners-guide/53916-you-afraid-pulling-trigger.html#post547917

5. Most simple answer for this most simple question: By placing a buy order by your broker before expiry with a market order in case you are short the option and vice versa in case you are long the option.

Be careful to trade any option as your questions show a very low knowledge of options.

This doe's not mean in any way that you not should ask any more questions about options. Just be careful to spend any real money on options on your knowledge level on this derivative.

Good trading

DanPickUp

Thanks a ton Dan for clearing my doubts. I went through your "Afraid to Pull the trigger" thread and also this one : http://www.traderji.com/options/66266-option-trading-danpickup.html

I should say it's a great eye opener for me even though I might have just understood around 70-80% mentioned in that options trading tread. But I plan to read again and again and will look into other links you have mentioned too about technical analysis and day trading in general.

It will surely take me months and years to learn all these technical things but I am prepared for that. At present, I am writing out dummy trades(i.e. imagining like I have invested and tracking what I get, profit or loss). Is there any online site or software where I can track my own dummy trades instead of writing it down specifically for options?

Also, I am just curious about this thing after reading all your know-how about options trading. What's you favourite options strategy in bullish, bearish and neutral markets if you have to name one each for all three?

Abhi.