Can i make 21 lakhs with a capital of 1 lakh by trading in options

[shemz]

MM007, option expiry, in an ideal world, should not affect the underlying. But for options, the best is to naked short vol and time decay on OTM contracts (puts are better) a couple of days before expiry.

There is a book by Augen which discusses how to trade vol on the day of expiry. But I have not been able to validate his findings in the Indian market due to unavailability of data. So I think the best is to short OTM options a day before expiry and then take a long weekend off.

And do remember to write in your autobiography, that you were not a greedy trader, and regarded spending quality time with your family more important than your business. :thumb:

 

[mastermind007]

MM007, option expiry, in an ideal world, should not affect the underlying. But for options, the best is to naked short vol and time decay on OTM contracts (puts are better) a couple of days before expiry.

There is a book by Augen which discusses how to trade vol on the day of expiry. But I have not been able to validate his findings in the Indian market due to unavailability of data. So I think the best is to short OTM options a day before expiry and then take a long weekend off.

And do remember to write in your autobiography, that you were not a greedy trader, and regarded spending quality time with your family more important than your business. :thumb:

he he he. been there!!! done that !!!

I've shorted CHAMBALFERT put ON E-1 once although I did not think of autobiography. I recall telling myself that it was cool 400Rs in a minute. (8000 lot size @ 5 paisa)

My nerves until 3:30 on expiry were hot cinders.

Me, Greedy? NAAAH Although options expired exactly as I wanted, I got little above 100 which were shorted by a friend @ CCD few hours later I squared off the day at zero!! I lost rest to all the brokerage and other such unpalatable words.