Very Simple Method to Earn Money from Options without knowning anything about options

[ananths]

Re: Very Simple Method to Earn Money from Options without knowning anything about opt

There is nothing to manage in the above strategy. You either lose or gain on expiry date. If you try to come out in between, it will not work. The overall theta value is 0.2420 (this is positive). So, once you initiate and try to come out of it in next 5-7 days, you are bound to lose except in few cases. The problem is taking position (initiation) because of less number of option traders and large number of options (call/put, number of strike rates, number of expiry dates).

Its evident from your statement that options are not as sweet as sugar :rofl:

Nice effort to explain the strategy :thumb:

Please track your trades in this thread..let us see how it goes...

 

[kiran_thiru]

Re: Very Simple Method to Earn Money from Options without knowning anything about opt

nice explanation.
as you said we buy 2 lots nifty, and sell 2 lots.
as margin we given to broker is--Rs.60,000 approx.
we are ready to loose 750. ok.
but how much we can earn is small as we invest.
give some of light about this.

 

[DanPickUp]

Re: Very Simple Method to Earn Money from Options without knowning anything about opt

Its evident from your statement that options are not as sweet as sugar :rofl:

Nice effort to explain the strategy :thumb:

Please track your trades in this thread..let us see how it goes...

I very much support that post :thumb: :clapping:

 

[yankeetrader]

Re: Very Simple Method to Earn Money from Options without knowning anything about opt

nice explanation.
as you said we buy 2 lots nifty, and sell 2 lots.
as margin we given to broker is--Rs.60,000 approx.
we are ready to loose 750. ok.
but how much we can earn is small as we invest.
give some of light about this.

So this strategy is not for Below Poverty Line people. We still will have to rely on free sugar in form of naked options..:annoyed:

 

[gmt900]

Re: Very Simple Method to Earn Money from Options without knowning anything about opt

Just one observation.
Although we are buying and selling options, the profit will depend on the premium collected by us for the options sold. So we should be entering strategy when the volatility is high. When you took the trade, volatilty was quite low.

 

[umeshmandal]

Re: Very Simple Method to Earn Money from Options without knowning anything about opt

How to choose the different "Strike price" for which to take position in Option?
How to 'time' the market, i.e. when to enter these Options?
If I dont know anything about Options, what use are the various Greek values put up by you?
Can you restrict your Posts (for this thread) as if only a person NOT knowing any thing about Options is to create this strategy?
To an "option illiterate" buying 1 lot of Nifty 6200CE is as good as buying 1 lot of say Reliance ! All he needs is an increase in the market price of his holding/option !

 

[pannalal]

Re: Very Simple Method to Earn Money from Options without knowning anything about opt

Just one observation.
Although we are buying and selling options, the profit will depend on the premium collected by us for the options sold. So we should be entering strategy when the volatility is high. When you took the trade, volatilty was quite low.

Please go through the post again. Profit does not depend on the premium collected.

Summary:
The maximum loss is Rs. 742.50 + Broker's Commission + Transaction Tax. (Approx Rs. 1,000 per lot)

The maximum profit is Rs. 1,757.50 - Broker's Commission - Transaction Tax. (Approx Rs. 1,500 per lot).

The loss or profit will result on 28th Nov 2013

 

[pannalal]

Re: Very Simple Method to Earn Money from Options without knowning anything about opt

How to choose the different "Strike price" for which to take position in Option?
How to 'time' the market, i.e. when to enter these Options?
If I dont know anything about Options, what use are the various Greek values put up by you?
Can you restrict your Posts (for this thread) as if only a person NOT knowing any thing about Options is to create this strategy?
To an "option illiterate" buying 1 lot of Nifty 6200CE is as good as buying 1 lot of say Reliance ! All he needs is an increase in the market price of his holding/option !

I have given all details in the post. Please read it carefully. The thumb rules are:

(1) Take Nifty Spot, round it to nearest 50.
(2) Subtract 200 from it, this is the strike rate for first buy
(3) Subtract 100 from it, this is the strike rate for first sell
(4) Add 100 to it, this is the strike rate for second sell
(5) Add 200 to it, this the strike rate for second buy

All the strike rate are for next month expiry. The trading should be at the end of the month. For example, for options expiring on 28th Nov 2013, the trading should be done either in the last week of October, but preferable in the first week of November 2013 (say on first or second November 2013). But, everything depends on premium. So, without checking premium, you should not take the position.

In the above post, instead of subtracting 200 and adding 200, I have subtracted 150 and added 150.

I explain the rules in detail at later stage. For the time being, people who are not well versed can take position for the strike price and date given (provided the premium paid for options are within the range given by me).

 

[pannalal]

Re: Very Simple Method to Earn Money from Options without knowning anything about opt

So this strategy is not for Below Poverty Line people. We still will have to rely on free sugar in form of naked options..:annoyed:

Just see the summary:

Summary:
The maximum loss is Rs. 742.50 + Broker's Commission + Transaction Tax. (Approx Rs. 1,000 per lot)

The maximum profit is Rs. 1,757.50 - Broker's Commission - Transaction Tax. (Approx Rs. 1,500 per lot).

The loss or profit will result on 28th Nov 2013

 

[kiran_thiru]

Re: Very Simple Method to Earn Money from Options without knowning anything about opt

So this strategy is not for Below Poverty Line people. We still will have to rely on free sugar in form of naked options..:annoyed:

for below poverty line people take sugar (options) from ration store (only buy).