Paper Trade of Options

[munde_77]

Hi I will try to post my paper trades of options strategies. My Initial Capital will be Rs 10 Lakh strategies.

 

[NiftyFantasy]

Hi I will try to post my paper trades of options strategies. My Initial Capital will be Rs 10 Lakh strategies.

your initial capital is also looking like paper trade....and it will easily make you crorepati in few days/months.....

My advice is ki please reduce your initial capital to maximum 1 lakh.....

Actual problem starts when you trade real with lesser capital....

 

[munde_77]

your initial capital is also looking like paper trade....and it will easily make you crorepati in few days/months.....

My advice is ki please reduce your initial capital to maximum 1 lakh.....

Actual problem starts when you trade real with lesser capital....

Hi Nifty Fantasy. Thanks for your suggestion I can understand what you want to convey. But my strategies are different. I will delploy only 50% of the capital and keep reserve 50% aside.
My stratagies will be mainly in selling options. I will try to repair my strategies if it turns into loss by adjusting various position size and strike price. The type of strategy , I will be using cannot be done with 1 lakh or 2 lakh . Suppose I am short in 500 qty 5500 pe and 500 qt5500 ce and if market moves 300/400 points on either side I will have to adjust positon in many techinques such as buying or selling NF, ITM call /put , sometimes have to use ratio spread, sometimes I will be adding call or put 50 qty 10 % every day and not in one go. Suppose market rises 200 points. If I buy NF or ITM ce and next day market corrects 200 points , I will be in loss in NF/ITM. So what I will try is try to add only 10% ce daily for 5/6 days. My strategy will be slightly long to neutral, i.e position will be 60% long and 40% Short bias. This is a little bit different strategy from other popular option strategies. I will have to adjust various position size and strike pricec according to various market market conditions.

 

[VJAY]

Dear Munde,
Nice to see your first thread in TJ(IMO)...Realy it will help many who have good fund and need profit consistently....without any greed and fear....in all type markets...
Thanks for starting this thread.......

 

[columbus]

Hi Nifty Fantasy. Thanks for your suggestion I can understand what you want to convey. But my strategies are different. I will delploy only 50% of the capital and keep reserve 50% aside.
My stratagies will be mainly in selling options. I will try to repair my strategies if it turns into loss by adjusting various position size and strike price. The type of strategy , I will be using cannot be done with 1 lakh or 2 lakh . Suppose I am short in 500 qty 5500 pe and 500 qt5500 ce and if market moves 300/400 points on either side I will have to adjust positon in many techinques such as buying or selling NF, ITM call /put , sometimes have to use ratio spread, sometimes I will be adding call or put 50 qty 10 % every day and not in one go. Suppose market rises 200 points. If I buy NF or ITM ce and next day market corrects 200 points , I will be in loss in NF/ITM. So what I will try is try to add only 10% ce daily for 5/6 days. My strategy will be slightly long to neutral, i.e position will be 60% long and 40% Short bias. This is a little bit different strategy from other popular option strategies. I will have to adjust various position size and strike pricec according to various market market conditions.

Hi Munde,

Recently I have taken-up OPTIONS in small-way.I think Option selling first
does not come into picture.Selling CE options is same as Buying PE options.
Say ,if Nifty is trading at around 5555 then monitor both 5600CE and 5500PE
options,of course these are generally more volatile options. The main draw-
back of Options selling first (Option writing) is the amount of margin locked
whereas Options buying first ,locks only the premium.

Seniors in this field and others,please throw some light.

 

[munde_77]

Columbus , That`s why I have kept my initial capital as Rs 10 lakh This strategy is mainly for those who have less time to spare and have huge capital. This strategy is also just like 315 strategy. You have to take decision only around 3.25 pm. This strategy is not for retailers. This is for those who need to generate around 30 to 40 % per annum on consistent basis. Some months we may gain between 4 to 6% and some months we may or may not gain anything. In some months we may incurr only very small /neglible loss if the position is properly managed. Here the risk and money imanagement is not stop loss but it is by adjusting position size and strike price.

Statistics show that more than 75% option expire worthless. Options are sold by professional traders with proper risk management. Options are bought by novice traders without proper risk and money management. So Option sellers have better edge if properly managed. Option selling is very risky and will be disastrous if not properly managed.

You are a sucessful professional trader. So you know the most important aspect of trading is risk management

 

[munde_77]

Columbus, Selling CE and Buying PE is not same. It is same only when you buy/sell bull spread/bear spread. In naked Selling CE the there is Limited profit and unlimited loss but whereas in Buying PE there is Limited loss but unlimited profit ,I hope this clears your doubt. Anyone more doubts about options are welcome. I am not an expert , I am also just learning. So as far as possible I will try to answer. Most of the times I may be able to give correct answers but some times I may also make mistake as I am not an expert like AW and Dan. Options Seniors/Experts correct my mistakes if I post wrong answers

 

[vilas naik]

pl tell me, as we consider candlesticks graph of stock prices, can we consider option premium prices(open,high,low,close) for buying and selling options.

 

[columbus]

Columbus, Selling CE and Buying PE is not same. It is same only when you buy/sell bull spread/bear spread. In naked Selling CE the there is Limited profit and unlimited loss but whereas in Buying PE there is Limited loss but unlimited profit ,I hope this clears your doubt. Anyone more doubts about options are welcome. I am not an expert , I am also just learning. So as far as possible I will try to answer. Most of the times I may be able to give correct answers but some times I may also make mistake as I am not an expert like AW and Dan. Options Seniors/Experts correct my mistakes if I post wrong answers

Hi Munde,

Thanks for clearing my doubt.I need to study OPTIONS few more days.We
have an array of Option Experts like AW,Dan,SwingKing,Linkon,SmartTrade
..............etc.Of course SG for any topic.(Experts ,excuse me ,for missing
your name).In order to ask a question to any of these experts ,we need
to know the mechanism fully.

 

[munde_77]

pl tell me, as we consider candlesticks graph of stock prices, can we consider option premium prices(open,high,low,close) for buying and selling options.

Trading in Stocks is different from Options. There is no time decay in stocks . There is time decay in option exlcuding ITM options. If you want to trade in ITM options you can look for candlesticks graph also. As there will be less liquidity and volume will less in options especially stocks option it will be very difficult to trade in stock option unsing candlesticks chart. You can have a try at ITM Nifty options by using candlestick charts