A simple yet effective strategy in options

imfine

Well-Known Member
#1
Dear friends,

I am not an analyst or claiming to have got the best of the strategy but yes I admit that I am working on this strategy for last few months & satisfied with the return and now scaling it up.

It is simple and easy to implement. so here it is.


1. Choose a discounted broker ( offering low brokerage on options )
2. Only Index option (Nifty / bank nifty )
3. Strike price premium above Rs. 50
4. you can decide the lots to trade as per your appetite.( better to start with 10 lots first but you can start with any number and later can scale it up)
5... that's it.

you are ready with you arsenal now the strategy.

If you closely watch the index movement it never moves straight in one direction so as the options premium. so narrow down the strike index whose day low premium is near to the range of 50 (as we are looking for this premium) now put a limit order to buy x lots at 2 Re lower to current premium. for example if the day low of lets say nifty 7800 PE is 52 and currently it is trading as 53 then put the limit order to buy x lots at 50 and wait.

keep watch and once the order is filled immediately place sell order limit of 51. I got 100% fill rate till date.:thumb:

Rules :
1.do it on any day but wait for day low.( your patience will be key here )
2.trade less 1 or 2 in a day with this strategy.
3. for me it worked on 1 Re booking of profit so stick to it.


Now if you are trading let say 10 lots of nifty and booking 1 re on that so simple earning of Rs.750/-

Friends I am using this strategy as it sounds simple and easy ( it is indeed ) but it tests your patience and how strong you stick to your rules.

So don't think much atleast try.

All the best.:thumb:


I worked only on index options either nifty or bank nifty. Secondly it work on every day even on expiry day.
 

LoneWolf

Well-Known Member
#3
One question my friend,

what is the rate of failure for this strategy ? what if after breaking the low, it never comes back, and keep falling ? what is the SL or contigency plan of exiting if in loss ??
 
#5
there should be a Stop Loss around your risk appetite.which you can have without risking your capital too much. suppose if there is no bounce back n u dont have a SL than it can wipe off your capital.
 

bunti_k23

Well-Known Member
#6
to be honest i cannot see a complete trading plan here....:confused:
 

suri112000

Well-Known Member
#7
It is bottom fishing. There are plenty of chances for the strategy to fail. Rows of profit will vanish with a single adverse move and loss of capital is the icing on it. It is not based on risk limiting factor. Risk is not capped where as profit is capped. I doubt if anybody trades a strategy which has unlimited risk and limited profit potential unless he is proficient in quickly hedging or managing risk. Even if it is 99% accurate system with unlimited risk, there is a looming and grave danger of wiping out.

The success of this system entirely depends on how is he going to manage that 1% loss making and devastating trades.
 

newuser_RK

Well-Known Member
#10
Poor chap, he is a newbie. Please stop this kind of trading right away and build up the know how about trading using knowledge from this forum. There is lots more to trading than a 1 rupee scalp

Sent from my AO5510 using Tapatalk
 

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