How protect money in option market?

[sfr8]

Wht is the best way to protect money 1st in option buying than think earn money? Any such good suggestion?

 

[aravinthrajm]

Pal,

Making money in options is an art. Dont buy naked options... i.e. Dont just buy call or put. Do options with some strategies for the market mood. You can find some useful thread on how to do trades in options.

The main advantage of options is you know upfront whats the money you are going to lose if the market works against your view. If you are going to do strategies you can minimise that loss portion too.

Hope other options specialists can help him find the right thread.

 

[AW10]

1) Knowledge
2) based on pt 1 above, drawing a plan and taking action

Just 2 cent from my experiecne. Option trading is not straightforward. There are 5 to 6 factors that affect the price. It is an decaying asset. that has limited life.

In my view, if you don't know the basics of options then best way to protect money is not to trade in option.

Just my views (feel free to ignore if you want).

happy trading.

 

[abigbull]

i agree to u as i lost a lot of money in naked positions ..but can u help me in a plan as well as better than directing to some other thread ..can u give a definite pointer to safe guard ur interests in options ..

thanks in advance

 

[sfr8]

Wht is the best way to protect money 1st in option buying than think earn money? Any such good suggestion?

Any strategies any plan u implement but most impoartant thing is that lower exceptions of profit is the key things of sucess in options trading?? Its My view don't go on my view? its my personal view

 

[sfr8]

Any strategies any plan u implement but most impoartant thing is that lower exceptions of profit is the key things of sucess in options trading?? Its My view don't go on my view? its my personal view