Best Option Strategy
- Thread starter shisan
- Start date
Hi Shisan
Your question comes from the corner: Can you explain me the whole world of option trading. To do this takes months and years.
Start to read more and more books about option trading and test them out. There is no best for intra day, and if there is, you would have to understand it in dept. (Entry ideas, pure directional or already non directional, high risk or lower risk, use of strike levels, leg in, leg out, hedge, convert to an other strategy, stay in tune with the market, adjustment plays, exit rules and money management rules, special tweaks, just to mention what just jumps in my head).
"Guy Cohen" is surely a good read beside many other books. (The bible of option strategies).
If you not can and want to spent time and money in your education about the topic by your self, then try to find a mentor in your place, pay him for his work or don't try to trade option strategies, instead go for simple directional put and calls. As simple as this.
Your question comes from the corner: Can you explain me the whole world of option trading. To do this takes months and years.
Start to read more and more books about option trading and test them out. There is no best for intra day, and if there is, you would have to understand it in dept. (Entry ideas, pure directional or already non directional, high risk or lower risk, use of strike levels, leg in, leg out, hedge, convert to an other strategy, stay in tune with the market, adjustment plays, exit rules and money management rules, special tweaks, just to mention what just jumps in my head).
"Guy Cohen" is surely a good read beside many other books. (The bible of option strategies).
If you not can and want to spent time and money in your education about the topic by your self, then try to find a mentor in your place, pay him for his work or don't try to trade option strategies, instead go for simple directional put and calls. As simple as this.
Dear buddy
This is personal choice and your question is not attoll defined in details . If you are bullish, you also can take a "Put Credit Spread" instead the "Call Debit Spread". This beside many other option strategie choices.
If we come to so called "Naked Option Trading", then your choice again depends on your risk appetite and how you know how and in what way to manage your trade.
If you want to trade like some here, which only go for a few points or the once who always post targets and take it as the holy grail, then you will choose other strikes compare you may will do with other ideas and risk profiles. Here we then talk about otm, atm and itm options.
This is personal choice and your question is not attoll defined in details . If you are bullish, you also can take a "Put Credit Spread" instead the "Call Debit Spread". This beside many other option strategie choices.
If we come to so called "Naked Option Trading", then your choice again depends on your risk appetite and how you know how and in what way to manage your trade.
If you want to trade like some here, which only go for a few points or the once who always post targets and take it as the holy grail, then you will choose other strikes compare you may will do with other ideas and risk profiles. Here we then talk about otm, atm and itm options.
Did I do this statement with any clear words?
NO, as I just mentioned one other way of many possible other ways to trade an expected up move.
Now selling naked puts?
Do you have enough margins to do this in quantity, as profit is limited and loss in the worst case could harm any portfolio. Personal choice and if you have a big account, your decission.
NO, as I just mentioned one other way of many possible other ways to trade an expected up move.
Now selling naked puts?
Do you have enough margins to do this in quantity, as profit is limited and loss in the worst case could harm any portfolio. Personal choice and if you have a big account, your decission.
one hedging strategy that worked for me. but the profit is very less. when you have 20-30 days to expiry and when market is less volatile, buy slightly OTM PE and CE at the same price. exit both when you achieve your targets. buy on a Monday and hold on to it till Friday. don't hold it over the weekends. theta decay and other factors reduces the premium. this method is challenging during high volatile months premium increases and premium decreases considerably when volatility cools off.
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