Here I go...after seeing some requests on options related stuff...I start this thread with a dramatic name.
What this thread is not...
1.IT WILL NOT GIVE ANY TIPS EVER ON BUYING AND SELLING OPTIONS.
2.IT WILL NOT REPEAT THEORY AVAILABLE IN BOOKS ALL AROUND YOU...IF U CANT READ THAT...DONT BOTHER TRADING OPTIONS..send your money to me, I'll give u lot of blessings or send to some charity with 80G benefits
3.IT WILL ELIMINATE ALL THE MATHEMATICS REQUIRED TO TRADE OPTIONS and hence by following this thread you will never be able to become an OPTIONS EXPERT.
DISCLAIMER - This is for educational purposes ONLY. This is not to get you attracted to options trading so that your broker can buy an alpha romeo next.
Why I am doing this? NOT ALTRUISM...to keep my brain from rusting.. and collecting my thoughts together...u can always add reputation points.
So here I start
Some practical ones that noone will tell you
1. Start with more than one broker, so when one is down...u are not down with him..you can always square off or adjust your position
2. Unless you are scalping, DO take a look at weekly and monthly charts
3. Somethings that you may not look when doing TA are extremely essential for options trading - Volatility both IV and Historic. Open Interest. Put-Call ratio
4. Trade only in very liquid stuff...else when the market turns you will be stuck..traders disappear at the drop of a hat
5. Make sure your broker is well capitalized...else brokerwide limit will be reached..you will be sucking your thumbs while the world will make merry
6. Make sure that marketwide limit is not reached...then everyone will suck their thumbs while traders in the cash market will make merry. You will NOT be able to adjust your position
More depending on response
What this thread is not...
1.IT WILL NOT GIVE ANY TIPS EVER ON BUYING AND SELLING OPTIONS.
2.IT WILL NOT REPEAT THEORY AVAILABLE IN BOOKS ALL AROUND YOU...IF U CANT READ THAT...DONT BOTHER TRADING OPTIONS..send your money to me, I'll give u lot of blessings or send to some charity with 80G benefits
3.IT WILL ELIMINATE ALL THE MATHEMATICS REQUIRED TO TRADE OPTIONS and hence by following this thread you will never be able to become an OPTIONS EXPERT.
DISCLAIMER - This is for educational purposes ONLY. This is not to get you attracted to options trading so that your broker can buy an alpha romeo next.
Why I am doing this? NOT ALTRUISM...to keep my brain from rusting.. and collecting my thoughts together...u can always add reputation points.
So here I start
Some practical ones that noone will tell you
1. Start with more than one broker, so when one is down...u are not down with him..you can always square off or adjust your position
2. Unless you are scalping, DO take a look at weekly and monthly charts
3. Somethings that you may not look when doing TA are extremely essential for options trading - Volatility both IV and Historic. Open Interest. Put-Call ratio
4. Trade only in very liquid stuff...else when the market turns you will be stuck..traders disappear at the drop of a hat
5. Make sure your broker is well capitalized...else brokerwide limit will be reached..you will be sucking your thumbs while the world will make merry
6. Make sure that marketwide limit is not reached...then everyone will suck their thumbs while traders in the cash market will make merry. You will NOT be able to adjust your position
More depending on response