ST Sir, I respect and agree with your views, Thereis no risk free strategy. But There are some strategies in options where the risk is almost nil or negligible. For Example we sell options of May/june month completely hedged 100-200 points downside/upside. For example iron condor
The initial maximum loss will be 100-150 points and that too notional. One can bring the notional loss by adjusting position by getting more theta. Initially there will be notional loss and that too very small . But ultimately it can be brought into profit by adjusting position by managing greeks.
With options one can do wonders. If one want this type strategy to be almost risk free, then the return will also be low, say 2-3% pm, So low risk medium profit, High risk High profit.Option is the only thing where one can bring the losing position into profit or minimize loss. I just shared my opinion. The plus in selling options is one gets Theta, (Time Value) which nullify the notional loss.
The initial maximum loss will be 100-150 points and that too notional. One can bring the notional loss by adjusting position by getting more theta. Initially there will be notional loss and that too very small . But ultimately it can be brought into profit by adjusting position by managing greeks.
With options one can do wonders. If one want this type strategy to be almost risk free, then the return will also be low, say 2-3% pm, So low risk medium profit, High risk High profit.Option is the only thing where one can bring the losing position into profit or minimize loss. I just shared my opinion. The plus in selling options is one gets Theta, (Time Value) which nullify the notional loss.
Last edited: