is it possible:constant returns of 3-5% in one month

[saundarya]

all seniors,

is it possible:constant returns of 3-5% using options(stock/index) per month

please give your vote

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most of the time i don't get time to trade intraday, but i can watch prices
but i like to keep positions for 2-3 days,

name any options strategy which we can depend and get constant returns of 3-5 percentage of our investment.

 

[DanPickUp]

Trading is not about the money: It is about the trade by itself.

If we take a trade and manage a trade well, then the money will follow. But money is always second and questions asked the way like asked in this thread show how less people are aware about what trading really is. So, my post also seconds Oil Traders post.

 

[aryan.]

Stop worrying about how much returns you can expect. People who ask such questions usually quit trading in couple of months.

 

[Jeareh]

The return is most import part of MM from any kind of investment. You will not open a fixed deposit when the return is attractive. You will not start a business when the return is handsome. But you should have the knowledge about the busines you are going to carry. Same as here. Risk is every where, in any kind of trade & opportunities.

 

[bharathk]

The return is a function of few things like

a) Risk (the SL levels should be such that one should not risk more than 2% of capital in a single trade.). This increases the capital required or conversely reduces the size of trade - Money Management is critical.

b) Profit target and their Distribution - Suppose your SL is 15 points in nifty - you should average about 18-20 points in profit

c) Brokerage - each rupee per lot (nifty futures) causes about 1% reduction in your yield.

PM me and I can share an excel sheet on this..

 

[vssoma]

dear all,

just see the question and what are your answers.

if it is possible to earn that much say yes...... or not,
if yes give her the strategy/method

and my answer is YES

just follow the method at the beginning of month, and wait up to your target min. 3-4 % then find comfortable price to exit. you'll get that much or even more

there are lot of strategies, if we follow with it's rules, we'll achieve, one of them is i am presenting.
just i am giving an example...but u need to initiate this at the beginning of the month

 

[DanPickUp]

Some income strategies:

Covered call
Bull put spread
Bear call spread
Covert short straddle
Covert short strangle
Calendar call
Diagonal put

Good trading

DanPickUp

 

[saundarya]

Iron Condor is a very good strategy for monthly incomes. It is basically a combination of 2 Credit Spreads - an OTM (out of the money strikes) BULL PUT spread and an OTM BEAR CALL spread. You could initiate this about 30-45 days prior to expiration date with short strike Deltas around 10.

Cheers and best of luck.

OptionWin

sir can you please explain with a example of nifty, now it is ending of this month so i can start with next month
thank you

 

[DanPickUp]

Dear Optionwin

May I ask you where you trade (which market) and as I was reading your post's, do you mind to explain us about the options traded in the next month series in nifty?

Do we have to consider any thing like volume or gamma or bid ask or is there any specific thing we have to look at or any specific problem we will face?

As I am a bit stupid I always calculated 25'000 Rp on margins for short legs and you now tell us in the thread of AW10, that this is not the case and the broker would take in account our hedged positions in India.

I am a bit confused about that. Hmm.

Good trading

DanPickUp

Edit: Optionwin has in the mean time explained what was told to him from his Indian broker about margins:

http://www.traderji.com/options/305...g-strategy-option-spreads-183.html#post695780

 

[DanPickUp]

I trade in both the US and Indian markets. NIFTY options are the most liquid so will not have issues getting in and out of them Because of the liquidity, the spreads are also very narrow so Buying at Ask and turning around and Selling at Bid will not result in a huge loss.

As you ask, I do consider volumes, bid/ask spreads before selecting any underlying and NIFTY is on the top of that list.

Margins on spreads: When I get into a spread trade, I know what my Max Loss on that trade will be. The brokers I deal with honor that. I have no idea why certain brokers would charge more for a defined risk trade. I am sure they have their reasons but I would prefer brokers who understand the risks of a position better.

Cheers and best of luck.

OptionWin

All you professional Indian option traders can vote about that post.