Nifty Index Option Positional Vs Intraday

#1
Hi,
I have just joined this thread and was quite impressed with the quality of posts of certain members..

I am posting a query and would like to hear the view of senior members

In case of Nifty Options assuming the goal is regular monthly income and hence low risk medium returns which is a better strategy

Objective- Realistic 65-70% success ratio. Monthly ROI on 1 lac contant amount Rs. 40,000- Rs. 70,000
Risk Apetite- Low to Medium.
Intraday Nifty Options- 10-12 trades a month
POsitional Nifty Options- 3-4 trades a month

Strataegy- Option Trading Capital 1 lac constant proportion irrespective of Option Price in all trades.
Safety Cover- 35 % of 1 lac to take care of daily MTM losses or weekly positional losses dependin on which strategy is followed

Each Trade- For Intraday - 8-20% return and SL- 7-12%
FOR Positional - 25-75% return and SL - 20-30%
 

trader15

Well-Known Member
#2
First of all in options trading there is no low risk. Its always medium to high risk.

Secondly: Stop Loss in option trading is tricky as SL of 7-12% can get hit with small swing multiple times in day in say intraday nifty and erode decent amount of capital.

For positional trading: Write options : call/put near resistance/support levels. This can return around 25% monthly return with medium risk. For each lot, you would need 30000.

For intraday: Allocate around 40K and spread in two buckets: index and stock. Play in stocks which have lot size of 500+. For index options, stay ATM options.