Day trading in nifty options for 1% profit

#1
Hello folks

Think about this... Price movement of large cap stocks is about 2 - 3% in a day but same for Nifty options is 50 to 100% (in a day).

Given such large price range for liquid counters like Nifty ATM or slightly OTM options, it should be possible to make 1% profit daily.

How? Thought of one modus operendi... buy CALL when nifty is RISING by placing "Buying SL" at a certain level (buy PUT when falling)... Never buy CALL when nifty is falling.

From yesterday's example (30-Nov-2018).... In the afternoon Nifty spent good amt of time in range 10840 to 10860 but when it broke 10860 on the upside it went to 10875 in 2 min.

So, a buying SL was to be placed at 245.10 for 10800 ce. Once triggered it went to 251.5 in 2 min (it spent lot if time below 245)

For playing downside "buying SL" can be entered for PUT option.

Will different timeframes (1 min/ 5 min / 15 min) with moving averages and RSI/Stochiastics will be of any help to identify Nifty rising (or falling) opportunities?

Please help.

Thanks in advance
pos_trader
 
#2
In the original post let the profit target be 1.5% so that net profit is 1% or higher after providing for expenses (like buy at 120 and sell at 121.80).

Boarders will raise questions about expenses, thus above addition.
Thanks
pos_trader
 

TraderRavi

Gayi Bhains Pani Mein
#4
Hello

104 views and not a single reply? :confused::confused:

Oh come on fellows, you can do better than this ....:):)

pos_trader
Because we all knew these things dont work in reality.
OK nifty is going up and you bot calls. and then nifty nosedived => watt lag gayi.
No easy money mere bhai, otherwise everyone in india wud have been trading from home :wacky:
 

cloudTrader

Well-Known Member
#5
The method which you intend to employ is called breakout trading. You want to enter with the flow of the price and come out with profit. This is quite difficult and together with the options it becomes all the more challenging. Consistent success in this setup is a hard nut to crack unless one is a master at trading breakouts with high rate of accuracy . Many a times one will only see price hitting the desired level of entry and then price retracing lightning fast. Call side will experience this more. But if you feel to test it then surely do not go on words of others , you can give a try for certain number of such trades risking a set amount of risk capital for getting the best of experience.
 

mycall

Well-Known Member
#6
Hello @pos_trader...

I could not find any S/L target in your post... you can't get in a room which has no door... how will you escape?...

you talked about percentage of profit at a great detail... even clarified that you will target for 1.5% which will service the cost of trade...

but what about risk capital... how much you are ready to loose to earn 1%...

please try to define that also...

then I think your plan will start looking like a plan which you can then work upon to build a system suitable to your thinking...

Thank you.
 

traderniftybull

Well-Known Member
#7
Hello

104 views and not a single reply? :confused::confused:

Oh come on fellows, you can do better than this ....:):)

pos_trader
bhai, that certainly means something, not of much interest.

scalping 1-2 points in options wont give you much profit
and a single bad trade will wipe out all of your profit

BTW, have you think of such trades in taxation (IT) point of view.
you will be only accumulating/adding turnover without much profit.
for example for 1 point profit in Nifty option trade, say buy 98.5, sell 100, you will be adding a TO of 7501.5 and gross profit 1.5 point
 

VJAY

Well-Known Member
#9
Hello folks

Think about this... Price movement of large cap stocks is about 2 - 3% in a day but same for Nifty options is 50 to 100% (in a day).

Given such large price range for liquid counters like Nifty ATM or slightly OTM options, it should be possible to make 1% profit daily.

How? Thought of one modus operendi... buy CALL when nifty is RISING by placing "Buying SL" at a certain level (buy PUT when falling)... Never buy CALL when nifty is falling.

From yesterday's example (30-Nov-2018).... In the afternoon Nifty spent good amt of time in range 10840 to 10860 but when it broke 10860 on the upside it went to 10875 in 2 min.

So, a buying SL was to be placed at 245.10 for 10800 ce. Once triggered it went to 251.5 in 2 min (it spent lot if time below 245)

For playing downside "buying SL" can be entered for PUT option.

Will different timeframes (1 min/ 5 min / 15 min) with moving averages and RSI/Stochiastics will be of any help to identify Nifty rising (or falling) opportunities?

Please help.

Thanks in advance
pos_trader
If you are new to options then please away with it ...if you know about volatility affects option buying then you can try it...But you must plan your stop first before entry....also IMO breakout strategy not works good in options if you using stop for your trade :D
You can try pullback trades and failure trades in options...but you must know all negatives of options ....

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