Guide to Option Writing

[jaywings007]

Strategy :3

STRANGLE SELLING: SELL THE HOLIDAYS

Short stangle is best way of pluck the flowers from unattended garden.

Dont miss the apportunity to sell the "market off" days. generally weekend are not so favorite of mine but off days more than 3 are mine.

Just sell ITM calls ( ITM to Deep ITM only) and puts at last day before holiday after 3.20 pm with reasonable time values of same month so that time is dominant factor for reduction on time value after 3-4 days.

You will find this strategy works nice even market have big up/down move on day after holidays. only 15-20 min (last day 5-10 min, First day 5-10 min) of trade can give lots from doing nothing.

try to sell as much as lots as you can and enjoy the blossom.


All the best trade.

YOU CAN ALWAYS QUIT, SO WHY TO QUIT NOW?

 

[rrmhatre72]

Strategy :3

STRAGLE SELLING: SELL THE HOLIDAYS

Short stangle is best way of pluck the flowers from unattended garden.

Dont miss the apportunity to sell the "market off" days. generally weekend are not so favorite of mine but off days more than 3 are mine.

Just sell ITM calls ( ITM to Deep ITM only) and puts at last day before holiday after 3.20 pm with reasonable time values of same month so that time is dominant factor for reduction on time value after 3-4 days.

You will find this strategy works nice even market have big up/down move on day after holidays. only 15-20 min (last day 5-10 min, First day 5-10 min) of trade can give lots from doing nothing.

try to sell as much as lots as you can and enjoy the blossom.


All the best trade.

YOU CAN ALWAYS QUIT, SO WHY TO QUIT NOW?

Hi,

Pls advice with example assuming tomorrow is holiday.
Today nifty closed at 4970. Which options will you have selected for writting?

 

[AW10]

Strategy :3

STRAGLE SELLING: SELL THE HOLIDAYS

Short stangle is best way of pluck the flowers from unattended garden.

Dont miss the apportunity to sell the "market off" days. generally weekend are not so favorite of mine but off days more than 3 are mine.

Just sell ITM calls ( ITM to Deep ITM only) and puts at last day before holiday after 3.20 pm with reasonable time values of same month so that time is dominant factor for reduction on time value after 3-4 days.

You will find this strategy works nice even market have big up/down move on day after holidays. only 15-20 min (last day 5-10 min, First day 5-10 min) of trade can give lots from doing nothing.

try to sell as much as lots as you can and enjoy the blossom.


All the best trade.

YOU CAN ALWAYS QUIT, SO WHY TO QUIT NOW?

jaywings007, have you tested/ used this strategy. Would appreciate real life feedback on it.
In my experience, option premium adjust to next workding days level near the end of current day. All option buyers are not fool.. They also know that the time decay is going to hit them so they quote lower bid price..

In some cases, when volatility is high, then option might be in demand to protect against uncertainty spread over 3/4 days of holiday period.. otherwise, I don't see much reason behind this strategy to work.

Happy Trading

 

[jaywings007]

Strategy :3

STRANGLE SELLING: SELL THE HOLIDAYS


Dear frds & AW10

See one of my trade..... Sold on 26 FEB 10 and buoght on 02 MAR 10

All the best trade.

YOU CAN ALWAYS QUIT, SO WHY TO QUIT NOW?

 

[fabrics]

Strategy :3

STRAGLE SELLING: SELL THE HOLIDAYS


Dear frds & AW10

See one of my trade..... Sold on 26 FEB 10 and buoght on 02 MAR 10

All the best trade.

YOU CAN ALWAYS QUIT, SO WHY TO QUIT NOW?

wht is ur reco for today

 

[2010zero]

guys any one has idea about T3B trading

 

[suhas.bhayekar]

Hello jaiwings007
thank you for give us useful information about option writing.i always use option writing and make money.

 

[linkon7]

Strategy :3

STRAGLE SELLING: SELL THE HOLIDAYS


Dear frds & AW10

See one of my trade..... Sold on 26 FEB 10 and buoght on 02 MAR 10

All the best trade.

I sell straddle roughly 45 days before expiry and i have been doing this consistently for over 2 yrs now.

But what Aw10 has pointed out is that selling a strangle simply because we have 3-4 days weekend is risky. Premium is always adjusted based on the probability of that strike price being hit. If the volatility is low, you'll get lesser premium as probability of that strike price being ITM is factored in. likewise high volatility will dictate more premium.

I'll give u one example... on Monday, we had a nice up day. but 4800 put was commanding the same premium as 5200 call... while NF closed at 5056.

Bottom line Market factors everything and makes sure u have to work hard for every rupee you want to extract from it... No free easy money...!