Determining direction of Markets?

[prasham]

Hy TT

Trading options intraday is fairly possible, at least in the states. It all depends on the strategies and analyze software you are using. As you know, I like to trade the advanced stuff and for this you need the software.

But even then, if you like to trade normal strategies, you also need the skills and also the right strategies.

If you are skilled enough, you can trade any thing and any time frames with options. You can believe me in that !

Take care

DanPickUp

Again "Reading in between the lines" seems to have helped me

Ok from now on I shall concentrate first on learning the strategies and then I would concentrate on the software side.

Thanks :clap:

 

[prasham]

Which strategies are simple & low cost i.e. suitable for beginners like me?

Currently I am reading various strategies from http://www.theoptionsguide.com/. I think it has exhaustive material on it. But due to its huge database of numerous strategies it appears a bit confusing.

Can someone please guide me with simple & low cost strategies for beginners in

a) Bullish Trend
b) Bearish Trend
c) Neutral / Sideways Trend.

 

[DanPickUp]

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[prasham]

Hy prasham

Could you once give a little bit more information about your self.
Sure

What did you trade until now ?
Currently my trades are limited to Cash Markets. I don't trade in Futures coz I feel they are too risky plus I don't have lot of cash with me. I feel Options require lesser money and are more safer.

In past I have done few trades in Options but as you know I do not have much of a strategy. All my trades except my last one were naked calls/puts.

Did you ever trade with real money and what kind of derivative did you use. Option or future or do you come from the share trading part or non of them ?
Answered above.

What market do plan to trade?
As of now I plan to trade nifty calls/puts only

What different kind of software do you have or is it just the one you downloaded ?
I don't have any software apart from Optionsoracle. Moreover I haven't used it much. As I said in one of the above posts firstly I shall learn some basic strategies and then apply them with help of the software in paper trades as well as real trades

Did you ever trade on real live platforms and what kind of broker you plan or already use?
Currently I am using services of a Motilal Oswal. He is charging 2.5% in buying Calls/Puts. I am not aware of what he charges if I write calls/puts

If we know a little bit more from you, it is may a little bit more easy to give you a direct answer for certain questions you have.

DanPickUp

My answers are in BOLD

 

[DanPickUp]

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[prasham]

a) Bullish trend - put or call credit spread
b) Bearish trend - call or put credit spread
c) Neutral/Sideway - stay away as a beginner and master first the credit spreads.

I have heard about Bull Put Credit Spread & Bear Call Credit Spread but what are Bull Call Credit Spread & Bear Put Credit Spreads?

According to my understanding in Bull Put Credit you sell an ITM Put and buy an OTM Put. So should one sell a Deep ITM Call (more valued one) & buy an "Not so Deep" ITM Call (less valued one)? Please correct me if wrong.

BTW I finished reading and trying basics of Option Oracle. Last few pages are left which shall be completed by tomorrow.

During my regular google session today I came across the below article. Please guide me if its really helpful for a trader of my level... http://www.investopedia.com/articles/optioninvestor/05/051005.asp

 

[DanPickUp]

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[AW10]

I have heard about Bull Put Credit Spread & Bear Call Credit Spread but what are Bull Call Credit Spread & Bear Put Credit Spreads?

According to my understanding in Bull Put Credit you sell an ITM Put and buy an OTM Put. So should one sell a Deep ITM Call (more valued one) & buy an "Not so Deep" ITM Call (less valued one)? Please correct me if wrong.

BTW I finished reading and trying basics of Option Oracle. Last few pages are left which shall be completed by tomorrow.

During my regular google session today I came across the below article. Please guide me if its really helpful for a trader of my level... http://www.investopedia.com/articles/optioninvestor/05/051005.asp

May I step in and clarify on credit/debit spreads in my style... plz chk out this link to my thread on spreads (sorry prasham, I am stealing the question from here and putting answer in my thread... but I think that is more appropriate place to answer this question. and once answer is there, it will benefit many future readers who are trying learn spreads).

http://www.traderji.com/options/305...ng-strategy-option-spreads-35.html#post418640

Happy Trading

 

[prasham]

Hy prasham

Bull put credit spread : If the market is bullish, you implement put credit spreads.

Bear call credit spread : If the market is bearish, you implement call credit spreads

"According to my understanding in Bull Put Credit you sell an ITM Put and buy an OTM Put. "

If you like, yes.

"So should one sell a Deep ITM Call (more valued one) & buy an "Not so Deep" ITM Call "

If you like, yes.

Thanks for the clarification. So now I've got only 2 strategies to concentrate on. Thanks man you've greatly simplified it for me.

One more question that I have is why are you suggestion Credits spreads? I mean why not debit spreads?

 

[DanPickUp]

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