any simple option strategy?

mmohanar

Active Member
#1
Dear seniors

Any simple option strategy which gives consistent profit?.I tried many methods nothing working. I lost almost Rs. 366000 in 6months.

Any best simple method / strategy? .

Regards

Mmohanar
 
Last edited:
#2
@Mmohanar

Well, that is hard and for most the reality when starting with trading, if now option strategies or what ever. So first you should mentally come over your loss and this could take a bit of time in case it deeply hurt you. But take this time out until you feel you are ready to go for the next step.

About your question which one of the option strategy then is best and even most simple I can clearly tell you: There is no single one best strategy, as what is best for you can be of no interest to others and vice versa. I am clear that certain members here post that there is the super doper only one best option strategy for option trading. It is a lie and no need to give any attention to such posts. But there are various ways and ideas we can use for option strategy trading for various market scenarios. We can consider two ways to choose them.

Way one is to say: I want different strategies for different market scenarios: Here we have to understand under what conditions to use which one of those strategies, we have to understand the risk we take with each one of those strategies and we have to understand how to control the risk we take with them after we implemented them in the market.

Way two is to say: I want to concentrate only on one option strategy. But also here the possibilities are of a wide range.

Next steps: Do you want to work with an option strategy you want to implement at once or do you want to work with leg in option strategies?

And a final step: Do you want to work with pure option strategies or do you want to work with hybrid strategies which include different derivatives which one of them is an option?

You see, no just one super doper only one best strategy instead many choices and ways we can go for. :)

Now let me ask you: As you told you tried many methods, are you able to name them and to tell what went wrong with each of those methods when you tried them. By analyzing this you may already start to realize what you did wrong with the methods and strategies you tried.

For example: If you trade a long straddle in a very low volatile and little moving market, you choosed the wrong script for this strategy, as the strategy works better in high volatile markets which start to move in one direction. So not the strategy is the problem instead the one who did not understand how to use it under the right conditions.

You may also let us know which one of the methods or strategies you tried you loved most, as this probably is the best strategy for you.

Now lets see what you post next and have a nice day / Dan :)
 

mvkarthik

Well-Known Member
#4
simple option strategy is don't trade options,
try to invest in good stock,that will create Wealth,
about trading ,dont trade in option,try to trade Futures that will give some good profits, like niftyFUT,GOLDM,Crudeoil,INRUSD ,.:thumb:

thank you
 

hauler

Active Member
#5
Dear seniors

Any simple option strategy which gives consistent profit?.I tried many methods nothing working. I lost almost Rs. 366000 in 6months.

Any best simple method / strategy? .

Regards

Mmohanar
mmohanr,
A very basic advice.
option trading is pinnacle of the instruments you should be using.
Have you gone through the route of cash trading > index futures > stock futures > index options > stock options.

first try to make consistent money in cash trading intraday/swing. then move on to next.
Believe me that's going to be the best path. Don't be in a hurry to recover your money, take the slow but less risky route and then progress.
 

Riskyman

Well-Known Member
#7
Have you gone through the route of cash trading > index futures > stock futures > index options > stock options.
There seems to be a general misconception here that you have go the cash trading > index futures > stock futures > index options > stock options route. If you know how options work at a basic level you can start with options from day one. Buying options is a great way to start as your risk is only limited to the premium you put down. Moreover, if you can make money in cash i.e if you are catching trends perfectly, what can stop you from making money in options?? If you are not doing the right things you will end up loosing money irrespective of whether you trad in cash/futures or index options.
 
#8
There seems to be a general misconception here that you have go the cash trading > index futures > stock futures > index options > stock options route. If you know how options work at a basic level you can start with options from day one. Buying options is a great way to start as your risk is only limited to the premium you put down. Moreover, if you can make money in cash i.e if you are catching trends perfectly, what can stop you from making money in options?? If you are not doing the right things you will end up loosing money irrespective of whether you trad in cash/futures or index options.
Very well said, similar to my views
"if you are catching trends perfectly, what can stop you from making money in options?? If you are not doing the right things you will end up loosing money irrespective of whether you trad in cash/futures or index options."
 

hauler

Active Member
#9
There seems to be a general misconception here that you have go the cash trading > index futures > stock futures > index options > stock options route. If you know how options work at a basic level you can start with options from day one. Buying options is a great way to start as your risk is only limited to the premium you put down. Moreover, if you can make money in cash i.e if you are catching trends perfectly, what can stop you from making money in options?? If you are not doing the right things you will end up loosing money irrespective of whether you trad in cash/futures or index options.
Nopes!!
Unless you know your greeks well, you will lose.
 

mastermind007

Well-Known Member
#10
Nopes!!
Unless you know your greeks well, you will lose.
If Greece opts out of Euro Zone, will Option Greeks matter anymore?
 

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