Another Options Trading Diary with the lowest capital of 4500/- only.

[NiftyFantasy]

Hi nac

Ok...See the problem and thought, that this could be the problem...So what to do to increase his account ? .....Buying options is not the solution, as we need some thing which brings money and not some strategy which may bring money.

How are spreads margin ed ?

DanPickUp

DanPickUp,
I have chosen this time to resume my trading bcz these days the volatility is very high and this is not the right time to write the options. Even we can buy both puts/calls at the same time.
In fact ABHI TO SAMAY AYA HAI OPTIONS BUY KARNE KA...

regards
Abhi

 

[DanPickUp]

DanPickUp,
I have chosen this time to resume my trading bcz these days the volatility is very high and this is not the right time to write the options. Even we can buy both puts/calls at the same time.
In fact ABHI TO SAMAY AYA HAI OPTIONS BUY KARNE KA...

regards
Abhi

Hi

Our post have been crossed. You may read again my post, as it is edited.

By the way : Writing options is best done when volatility is high. In fact, it should be only done in such situations.

DanPickUp

 

[NiftyFantasy]

Hi

Our post have been crossed. You may read again my post, as it is edited.

By the way : Writing options is best done when volatility is high. In fact, it should be only done in such situations.

DanPickUp

No.... I do not agree with you on this matter....
option writing is highly recommedable only in sideways market to grab the time factor...otherwise it is very risky... what about the 6300-6200-6100 put writers...???
6300 put had seen below 80 levels...

regards
Abhi

 

[NiftyFantasy]

Hi nac

Ok...See the problem and thought, that this could be the problem...So what to do to increase his account ? .....Buying options is not the solution, as we need some thing which brings money and not some strategy which may bring money. I am clear, that buying naked options can make huge money. As Abhi says, TA is not his friend, buying naked calls or put is not the way to trade for some body witch is not familiar with TA. I also guess, that the option greeks are also not his best friends. If so, he could go for diagonal spreads and greek depending strategies. Abhi, are you familiar with the options greek ?

How are spreads margin ed ?

DanPickUp

I do not know the greeks exactly by definition but yes have some idea about...but as I said I takes a little look on the charts for the sudden volume and price increae/decrease without having major changes in the index (1-2 Hrs)...to determine what is going to happen next 1-2 hours.... thats all...

rgds

 

[DanPickUp]

No.... I do not agree with you on this matter....
option writing is highly recommedable only in sideways market to grab the time factor...otherwise it is very risky... what about the 6300-6200-6100 put writers...???
6300 put had seen below 80 levels...

regards
Abhi

What about 6300 call writing, 6200 call writing, 6100 call writing ?, as market tends to move down

And again margin ! But you see the point ?

 

[NiftyFantasy]

What about 6300 call writing, 6200 call writing, 6100 call writing ?, as market tends to move down

And again margin ! But you see the point ?

Our kind of traders will not write 6000 calls when nifty is at 6300 we would write maximum 6200 call at that time...then what if we written 6300 call & put @80 total = 160/- and the result is -340/-

Anyways it was very nice to discuss with you...wish you all the best in your trading life...HAVE A SUCCESSFUL TRADING CAREER...

rgds
Abhi

 

[nac]

NAC,
You did not understand me, actually I can add 2-3 lakh in my capital easily but as I said I will not add, you can say it just like a paper trading but paper trading does not create such greed/fear thats why I am using my balance capital to trade in real....
I just want to try that is it possible or not....
Posting my trade here will keep me in discipline...


regards
Abhi

I guess, I did understood.... You might have enough to top up your account, but you don't intend to add as you have lost a lot over a period of time.

No offense Abhi...

You do what's good for you. We(TJ members) are just here to share our views.... Taking 'em or leaving is your choice... After all choice and money is yours (as PT says)

 

[nac]

Dan,

I don't have much knowledge in options... As you have vast experience/knowledge in option trading, please elaborate how we can write options when IV is high.

You are showing me different perception in option writing.... "WRITING OPTIONS" when volatility is high...

I don't think Abhi will mind we discussing here...

I thought that initiating short straddle/strangle is good when IV is low and market direction is neutral.

Can you please elaborate with some data?

 

[DanPickUp]

Our kind of traders will not write 6000 calls when nifty is at 6300 we would write maximum 6200 call at that time...then what if we written 6300 call & put @80 total = 160/- and the result is -340/-

Anyways it was very nice to discuss with you...wish you all the best in your trading life...HAVE A SUCCESSFUL TRADING CAREER...

rgds
Abhi

HI Abhi

To write means to sell and if I sell otm call 6100 in a down trending swing market when market is at 5750, where would be the problem ? Yes, I best pick a resistance point in that down trend to sell the call. ( Ok. cleared this )

Whit the money you made, you buy an out of the month call and not a put ( Sorry for the mistake before ), Now I am hedged and I can make money with the in the month call, as the out of the month call losses less value in case the market dropped further.

If such stuff is trad able in your home market, I do not know. If so, then HAVE A SUCCESSFUL TRADING CAREER abhi.

Nac : If volatility is high, prices are high. So, if you sell at this point, then you sell higher premium. You do not trade selling strategies when premium is low. At the moment, markets start to go volatile, your sold straddle or strangle will go underwater.

DanPickUp

 

[NiftyFantasy]

Dan,

I don't have much knowledge in options... As you have vast experience/knowledge in option trading, please elaborate how we can write options when IV is high.

You are showing me different perception in option writing.... "WRITING OPTIONS" when volatility is high...

I don't think Abhi will mind we discussing here...

I thought that initiating short straddle/strangle is good when IV is low and market direction is neutral.

Can you please elaborate with some data?

I am totally agree with you NAC...I think DAN is talking about intraday wrting in a volatile market....right DAN???

regards
Abhi