An Idiot's Option Trading strategy : Please bear with me

[Novice30]

Very nice.

Long time back I tried selling insted of buying, dont remember what the results were.. I guess its called short strangle.

I used to sell CE/PE of same strike price instead of buying. This way I ate premium.

Bit I soon realized its not very easy. You need to keep an eye on IV which impacts option pricing.

 

[jyotixxx]

Very nice.

Long time back I tried selling insted of buying, dont remember what the results were.. I guess its called short strangle.

I used to sell CE/PE of same strike price instead of buying. This way I ate premium.

Bit I soon realized its not very easy. You need to keep an eye on IV which impacts option pricing.

Agreed...IV is very important. But this time I am trying without it. Only thing I am bothered is maximum investment should be as low as possible, which indirectly takes care of IV.
Lets try a few weeks before I get knocked out.

 

[Somatung]

Agreed...IV is very important. But this time I am trying without it. Only thing I am bothered is maximum investment should be as low as possible, which indirectly takes care of IV.
Lets try a few weeks before I get knocked out.

@Jyotixxx

The following thread should be a good add to your thread according to your rules you posted about the Strategy: Select a stock that is at resistance or support and breakout is imminent.

The following thread is about exact that subject:

http://www.traderji.com/technical-a...ch-high-probability-breakouts.html#post951375

Take care and enjoy your time

 

[jyotixxx]

@Jyotixxx

The following thread should be a good add to your thread according to your rules you posted about the Strategy: Select a stock that is at resistance or support and breakout is imminent.

The following thread is about exact that subject:

http://www.traderji.com/technical-a...ch-high-probability-breakouts.html#post951375

Take care and enjoy your time

Thanks for this excellent thread!!! Definitely it will be helping.

 

[lbalaa]

Hi - If the IV is very high ( say 35 - 40 ) before the quarterly results as in the case of INFY / TCS whether the strategy would work ?

 

[MINITRADER99]

Seeing your startegy you do not look like Idiot.:thumb:

 

[jyotixxx]

Hi - If the IV is very high ( say 35 - 40 ) before the quarterly results as in the case of INFY / TCS whether the strategy would work ?

As I said in the my first post I would find an stock which would be at Resistance and support level or just breaking them. I will ignore iv at that point if I am convinced.

e.g. For Infy my entry point would have been on 13/03/14 and TCS on 19/03/14 at closing and irrespective of IV.

Also I do not look for news though TCS/INFY move around news madly. I am looking for a generalized strategy.

 

[jyotixxx]

Seeing your startegy you do not look like Idiot.:thumb:

I have to go fa..a..a.r to prove that...

 

[Somatung]

As I said in the my first post I would find an stock which would be at Resistance and support level or just breaking them. I will ignore iv at that point if I am convinced.

e.g. For Infy my entry point would have been on 13/03/14 and TCS on 19/03/14 at closing and irrespective of IV.

Also I do not look for news though TCS/INFY move around news madly. I am looking for a generalized strategy.

@Jyotixxx

One simple question: What kind of reason would have hold you back to enter Infosys last Friday afternoon, as today is holiday and you can not enter the market? When ever your time permits and you feel to post.

Take care

 

[jyotixxx]

@Jyotixxx

One simple question: What kind of reason would have hold you back to enter Infosys last Friday afternoon, as today is holiday and you can not enter the market? When ever your time permits and you feel to post.

Take care

I will not enter Infosys
I am a full time central govt employee. I am looking for a system where I can scan live market in Amibroker after 3 pm and place an order for this strategy. No tracking of news/results.
That's why I am calling myself idiot