options trading

DanPickUp

Well-Known Member
#2
I would like to learn more about options
Hi

and welcome in the forum. Options are an universe by its own and to learn about them takes time and patience. You can learn in this forum about many things when it comes to options and option trading.

As we do not know what you want to learn about options and option trading in specific and as you seem to be Indian, why not start here:

http://www.tradersedgeindia.com/beginners_guide_options.htm (Just make copy past to an other tab in your browser and you will be there, as at the moment hyperlinks are disabled in this forum for reasons we do not know at the moment)

If you went through that link, which was posted from a member here in the forum and I just saved it as a link, come back and let us know what you need next.

Take care / DanPickUp
 
#3
I would like to learn more about options
Hi,

Once you get a hold of the basics, the following pdf can give you a good overview of some basic strategies:

http://www.cmegroup.com/education/25_proven_strategies/CME-113_21brochure_SIDE_SR.pdf

Just remember 3 things to begin with:
1) The more complicated a strategy, the more expensive it is likely to be

2) Due to "gamma decay" (option premium losing value over time, everything else remaining constant), the markets are biased towards call/put writers (sellers). However,

3) Option writing (selling) blocks margin, so your RoE comes down - critical for beginner traders with small capital, and writing (selling) "naked" options is very risky because of margin write-offs. You make small profits most of the time, but when you make a loss, you usually get wiped off.

For more "practical gyan" and trading strategies for Indian options markets, PM me :)
 
Last edited:

baludalal

Active Member
#4
Hi

and welcome in the forum. Options are an universe by its own and to learn about them takes time and patience. You can learn in this forum about many things when it comes to options and option trading.

As we do not know what you want to learn about options and option trading in specific and as you seem to be Indian, why not start here:

http://www.tradersedgeindia.com/beginners_guide_options.htm (Just make copy past to an other tab in your browser and you will be there, as at the moment hyperlinks are disabled in this forum for reasons we do not know at the moment)

If you went through that link, which was posted from a member here in the forum and I just saved it as a link, come back and let us know what you need next.

Take care / DanPickUp
thanks.These are very useful for a beginner
 

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