Non-directional Option Strategies for Stocks and Indexes

[Somatung]

somatung you have misinterpreted my 100% statement please read it again.... my 100% statement is not told to as 100 out 100 trades are profitable... please read it carefully again....

http://www.traderji.com/trading-diary/88670-nifty-options-trading-raj-459.html#post961415

judging some is not a good idea... anyway if one can judge that some one is paper trading for 2years them its pure:rofl:

I am still waiting to for your strike prices which you used to generate those payout diagrams... please share the values, and time that you have constructed these trades...

now don't think like a kid that i am pulling your leg!!! a BIG NO !!!!!
I am NOT pulling your leg but just wanted know.... if you really did it:cheers:

see I am not judging you!!! asking you before i take call....

Some points you may missed in the post I made:

- First: I not can see your specific name any where in my post, so what is your problem you have?

- Second: The post was pointed to Options_Trader and not to you.

- Third: Non of us has signed a contract here in TJ which demands to show all what we know and do in our trading here in the forum. If YOU want to do so, that will be your personal choice.

- Fourth: I do not need you and so I do not have to share any thing with you as long as I not want.

- Fifth: If you do not know how to bring your option legs in such positions, do I have to care about it? In case you know, so why do you need me or any of my answers?

(By the way: If you start to cluster this thread again with unnecessary post's, I will report you again and again. It is the thread from Options_Trader and he is doing a good job. So no right from your side to cluster this thread with post's not related to it.)

Take care and good trading and what about opening YOUR own thread my friend?

 

[toughard]

Some points you may missed in the post I made:

- First: I not can see your specific name any where in my post, so what is your problem you have?

- Second: The post was pointed to Options_Trader and not to you.

- Third: Non of us has signed a contract here in TJ which demands to show all what we know and do in our trading here in the forum. If YOU want to do so, that will be your personal choice.

- Fourth: I do not need you and so I do not have to share any thing with you as long as I not want.

- Fifth: If you do not know how to bring your option legs in such positions, do I have to care about it? In case you know, so why do you need me or any of my answers?

(By the way: If you start to cluster this thread again with unnecessary post's, I will report you again and again. It is the thread from Options_Trader and he is doing a good job. So no right from your side to cluster this thread with post's not related to it.)

Take care and good trading and what about opening YOUR own thread my friend?

way back, a PURE PAPER TRADER in an other form who use to enjoy the FALSE PRIDE sounded same like you:thumb:... I got my answer... you can keep all your words for your self safely... you may need for others again:rofl:


Options_Trader I request you to excuse me for this! as he started all this here and I am ending them.

Ps- dose it not make sense to ask some one about his entry time and exit if he climes that he is a pro and made super profits by showing some PAY OFF (show off) charts which dose not have values, strike price and other important details... and not even a script name

 

[Options_Trader]

After going through multiple threads and some trading, I feel options writing is not a very scalable business for retail traders as margin requirements are quite high (brokers do not properly account for hedging in margin requirements). Hence, at the start of the series, no point purely writing options (as time decay is low at the start of the series, especially in low vol markets). Exceptions will be sideways market where one can book profits in one leg and leave another leg exposed. The other leg can be hedged or booked if it is threatened.

So that leaves us with what should be done at the start of the series for non-directional traders. Option buying, volatility trades, and scalping (you should have sound understanding of option greeks and market maker methods for scalping). Other than that, the risk reward is not favorable for writing options at the start of the series.

Request experienced option traders to share their views.

 

[Options_Trader]

on your other question other thread i have posted this
http://www.traderji.com/options/93522-nifty-options-intraday-trading-strategy-4.html#post962539

when you say "You must have a good direction sense if you are trading options long. I am new to trading and have difficulty getting a direction sense. Would appreciate if you can help with that."

I think we both in a same boat

:thumb::thumb:

I have started studying posts by Smart_Trade and Saint for developing directional knowledge. I will start by trading vertical spreads to minimize my risk while allowing a bigger stop loss (I don't want to whipsawed).

Any advice is appreciated.

 

[Somatung]

I have started studying posts by Smart_Trade and Saint for developing directional knowledge. I will start by trading vertical spreads to minimize my risk while allowing a bigger stop loss (I don't want to whipsawed).

Any advice is appreciated.

Did you also go into the thread of AW10, or do you really only miss the directional knowledge part in your trading? Just a question, as you seem to have a good knowledge about options by it self. I would not be worried to see you trading options live.

If you think you have a gap in TA, then be careful now by what you start. Careful about the time you can lose searching for the perfect TA indicator. Are there any specific indicators you may look for? or are you just at the begin of your journey about TA? Take care

 

[toughard]

I have started studying posts by Smart_Trade and Saint for developing directional knowledge. I will start by trading vertical spreads to minimize my risk while allowing a bigger stop loss (I don't want to whipsawed).

Any advice is appreciated.

Its good that you are doing what you feel right and in your comfort:thumb:

see what Munde_77 as done here

http://www.traderji.com/members-discussion-forums/93576-trades-options-3.html#post962778

his payoff diagram on expiry more or less look like this for 1 lot trades based on his values given...

http://postimg.org/image/3kob5uy1d/

trying something like this with little fine tuning here and there can be useful based on my personal feeling.

 

[Options_Trader]

Did you also go into the thread of AW10, or do you really only miss the directional knowledge part in your trading? Just a question, as you seem to have a good knowledge about options by it self. I would not be worried to see you trading options live.

If you think you have a gap in TA, then be careful now by what you start. Careful about the time you can lose searching for the perfect TA indicator. Are there any specific indicators you may look for? or are you just at the begin of your journey about TA? Take care

I did visit the thread by AW10, will go through it after basic TA. I have traded options for some time and have generated small profits. My strategy was non-directional with dynamic hedging. But directional knowledge is required to correctly time entries and exits else it becomes a very laborious situation, hedging all the time. I have exited positions in panic a number of times.

I am not looking for a perfect indicator as I feel it is the use of indicators which will give you an edge rather than blindly following the indicator. Can you suggest any indicator or methods which might have worked for you?

Do you know how to enable the PM? It does not show in my Edit Options page.

Thanks again for all your guidance.

 

[Options_Trader]

Its good that you are doing what you feel right and in your comfort:thumb:

see what Munde_77 as done here

http://www.traderji.com/members-discussion-forums/93576-trades-options-3.html#post962778

his payoff diagram on expiry more or less look like this for 1 lot trades based on his values given...

http://postimg.org/image/3kob5uy1d/

trying something like this with little fine tuning here and there can be useful based on my personal feeling.

If you go into the details of the payoff, you will notice that most of the payoff will come in the later half of the series. Even if the market remains in this range, max payoff is 5000 (not likely though, 2500 considering average payoff). The margin required for this spread is around 80000 (I am holding a single butterfly and the margin requirement is 41000). So, while the profit range is large, the ROC is not great. In my view, it is a safe, but not a great spread to hold at the start of the series.

 

[Somatung]

I did visit the thread by AW10, will go through it after basic TA. I have traded options for some time and have generated small profits. My strategy was non-directional with dynamic hedging. But directional knowledge is required to correctly time entries and exits else it becomes a very laborious situation, hedging all the time. I have exited positions in panic a number of times.

I am not looking for a perfect indicator as I feel it is the use of indicators which will give you an edge rather than blindly following the indicator. Can you suggest any indicator or methods which might have worked for you?

Do you know how to enable the PM? It does not show in my Edit Options page.

Thanks again for all your guidance.

- Go to your User CP
- Edit options
- Enable private messaging

If this not works, you still have to wait until you are allow to PM to other members here.

-------------------

Price action and charting hounder's of chart without any indicator. Before doing it only with indicators and I feel more comfortable with out them. But that is personal choice.

 

[Options_Trader]

- Go to your User CP
- Edit options
- Enable private messaging

If this not works, you still have to wait until you are allow to PM to other members here.

-------------------

Price action and charting hounder's of chart without any indicator. Before doing it only with indicators and I feel more comfortable with out them. But that is personal choice.

Thanks a lot.