Simple and Safe Option Strategy !

Hi Traders

This is shekhar I am new trader trading since 3-4 months. Unfortunately I started my trading with options  and lost near 70k in those 3-4 month. but while trading I came to know one simple strategy I want to share you that and guys please tell me if this really safe to trade with this strategy because I don’t have long trading experience & I don’t want to loose more money. Right now i am doing this since 2 weeks and it works for me.This Strategy is best for who trade with discount brokers like Zerodha or RKSV etc …So Strategy is simple buying any option call or put worth premium 100+ in quantity like 1000 or 2000 and selling it with minimum profit e.g. buying 1000 quantity of premium 100 and selling for 102 total profit will be 1800 per trade if you trade with Discount brokers.
What are your suggestion guys please share some your experiences

Thanks
$hekhar

So, you want to scalp the options. It's ok. As one options-expert member here said "Scalp can provide a decent meal". But your tolerance is low. I mean, what if the trade goes horribly wrong ? The volatility is high in the results season, and the time decay is high in the closing days of a series. A 100 Rs. option can easily go down irrecoverably.

This is not called trading my friend, it's called GAMBLING. No wonder you have lost 70k and you are destined to lose more. If this is what you like, better try in Casino. Yes, I'm telling you bitter truth.

Dont ever try it. As you are willing to take profit of 2 point but i am sure you haven't made any target of loss. So even if you are successful 10 times one wrong move in direction will erode much more than that.

Safe stratagy is to use some option stratagies like straddle, strangle etc so that even wrong move will not result in much loss. Only factor of worry is volatility, which affect this stratagy for most of traders

Stay away from market, before you loss you balance money...

The person who told this strategy, it is no way a strategy...this is what everybody is doing in the market and loosing.

You are not going to be exceptional,moreover,trading in option without any knowledge, will erode your capital..

my impulse response was to stop you from doing this. But, then again, you won't listen - especially when you've tasted money and probably day dreaming of millions.

do one thing - start with just 100 qty. this should cost you 100 x 100 = 10,000. Much better than risking lakhs that your original plan says.

if this 10,000 makes consistent money, then increase the lots as your profit increases (compounded). If you strategy is good, this 10k should multiply. Else, you've learned your lesson.

the profits may not look appealing as compared to 1000 or 2000 qty; but the risk too is minimised.

do not use MIS, use NRML so that your entire exposure is limited to 10k only.

good luck and keep posting about your trades.

very well said...:thumb:

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dont worry , if u r doing scalping /bringing money -stick to it.
only do it at imp pivot ,with directional bias -NOT AT RANDOM.
more imp is what suits u, practice it another 6month to check ur proficiency.
Then u may do it with little stress.

your system - i call MAGGIE TRADE for 2 min(guerrilla tactics) . Only u have to sit in terminal - practice to apply with >70% hit rate. Use momentum/order flow in favour.

Once u master this way, may switch to hgher timeframe= swing momentum break at weekly high. OR SWING MOMENTUM BREAK DOWN AT INTERMEDIATE LOW.
hope it helps
note: in higher timeframe hit rate goes down to 50%

options are falling knife ....i can call it as one of greatest Sins of humanity.
i am addicted to it but i know my game when to play.

i have lost few lakhs in option since last 3 years. In 2015 i learnt when to play it .still haven;t made even 10% of what i lost in last 3 yrs lool.

u are intelligent u have spotted out good method .but i am against writing the option..

my suggestion to you :--
1. paper trade option for few months .
2.All i can say is best way to start learning is not to carry loss home in option business.
always put 30% SL loss is good take a hit close it rather loosing entire capital.

Good luck

if u have free time read this
Option is grandfather of gambling.

All gamblers die broke; it's a cold hard truth, but not for the reasons most people think. All gamblers die broke because the pain of losing is felt so much more intensely than the joy of winning