Investing 1 Lac in Options trading. Hope to make 25 Lacs.

[timepass]

Considering 5 points gain per trade in just Writing options, cant one make 10-15 trades in a day ?

That should compound enough over the Oct month right to 25 Lacs ?

October maybe very good for option writing, but there will be increased volatility, I think.

What is your cost for selling+buying 1 lot of NF/BNF options ? Plan your trades accordingly. Maybe NF options will be more suitable because of greater liquidity. BNF options have huge spread and need a lot of patience.

Hope you define your levels for the scrips that you will trade and follow the plan.

 

[trade2good]

October maybe very good for option writing, but there will be increased volatility, I think.

What is your cost for selling+buying 1 lot of NF/BNF options ? Plan your trades accordingly. Maybe NF options will be more suitable because of greater liquidity. BNF options have huge spread and need a lot of patience.

Hope you define your levels for the scrips that you will trade and follow the plan.

I plan to write Nifty Options pairs, like 2 lots of PE and 2 lots of CE.

And do 10-15 trades daily. I need just 5 points gain per trade and I am happy.

I hope this works ?

 

[Galts Gulch]

I have been trading in Options for quite some time and have lost money quite a few times. I now want to do better Money Management and earn more.

I will invest 1 Lac towards Options trading starting coming Monday. What percentage of net profits can I aim for daily when I Only write Options? My target is 25 lacs in the month of October.

Appreciate feedback. Thanks

I'm not trying to discourage ... But this is the typical Newbie Greed that has killed ,many an accounts ... And it also shows that you still have not learnt your lessons even after losing, as you said ...

If you want to make profit, if you want to recover the loss ...
"STOP THINKING ABOUT PROFIT / LOSS"

Think ... Define ... Plan a Process / Strategy ... Worry about the entry and exit rules ... Money management and emotional discipline ... and Process / strategy and Plan will take care of your profit ...

"It is not the profit and / loss, which is important ... It is the Process of earning and / losing that will influence your durability in this Non forgiving Trading industry"

 

[Somatung]

@Trade2good

You now want to trade short straddles or short strangles. (Not clear defined in what you posted). What makes you thinking that you do better with short option strategies compare to long option strategies?

And how comes that you want to do 10 to 15 trades a day with this strategy?

Doing a five point profit in long or short option strategies does not make any different in the long run. Your words put in the direction of a constant win of those five points in each trade. To me you sound like one who is trading on his calculator and not in the real market. Option trading is not future trading. Not sure how much clear you are about that fact.

We had members here in the past which did trade futures on that idea and you seem to try it now with options. But the execution on options in the real, live market does not work like it does with the future.

You may explain a bit more about your short straddle or short strangle and how you want to do that/execute those ten to 15 trades per day in the real, live market day by day. How clear is your trading plan when it comes only to that point?

Do you have a clear list of topics you worked through to know exactly when to act and when to wait? This list would be of interest to spot on which point you may really should over think.

 

[trade2good]

@Trade2good

You now want to trade short straddles or short strangles. (Not clear defined in what you posted). What makes you thinking that you do better with short option strategies compare to long option strategies?

And how comes that you want to do 10 to 15 trades a day with this strategy?

Doing a five point profit in long or short option strategies does not make any different in the long run. Your words put in the direction of a constant win of those five points in each trade. To me you sound like one who is trading on his calculator and not in the real market. Option trading is not future trading. Not sure how much clear you are about that fact.

We had members here in the past which did trade futures on that idea and you seem to try it now with options. But the execution on options in the real, live market does not work like it does with the future.

You may explain a bit more about your short straddle or short strangle and how you want to do that/execute those ten to 15 trades per day in the real, live market day by day. How clear is your trading plan when it comes only to that point?

Do you have a clear list of topics you worked through to know exactly when to act and when to wait? This list would be of interest to spot on which point you may really should over think.

to be specific,

I plan to WRITE 7700PE-8200CE pair of Oct. Get 5 points or more gain of it.

Then shift to some other trade, maybe WRITE 8200CE Oct and 7800PE Nov.

In this way, I'll make do with 10-15 trades per day and get 5 points minimum gain on each trade.

Thats how I plan it.

 

[Somatung]

to be specific,

I plan to WRITE 7700PE-8200CE pair of Oct. Get 5 points or more gain of it.

Then shift to some other trade, maybe WRITE 8200CE Oct and 7800PE Nov.

In this way, I'll make do with 10-15 trades per day and get 5 points minimum gain on each trade.

Thats how I plan it.

The above is not a list of topics which have to be considered by what you plan. It is just an idea about an option strategy you think you want to trade. That is not a very precisely workout which you need for your adventure. Just to give you three simple topics you have to be clear about (and the list is a bit longer then those three topics):

Do you want to always risk your full capital per trade?

If market moves fast, how do you plan to act?

How do you plan to execute your trades? What kind of order do you have in mind?

 

[trade2good]

The above is not a list of topics which have to be considered by what you plan. It is just an idea about an option strategy you think you want to trade. That is not a very precisely workout which you need for your adventure. Just to give you three simple topics you have to be clear about (and the list is a bit longer then those three topics):

Do you want to always risk your full capital per trade?

If market moves fast, how do you plan to act?

How do you plan to execute your trades? What kind of order do you have in mind?

I would write 1-2 lots of PE and CE so total capital is 1 lac full per trade.

I will have STRICT SL of 2% on every trade.

I will execute trades with limit orders and pre-defined 5 points gain target per trade. After 5 points gain, I will trail the SL to go beyond 5 points.

 

[timepass]

TJ member Healthraj followed such a strategy and described in one of his threads (I don't remember which thread exactly). He used to sell a pair having a combined value of 120 Rs. where one option was 90rs. and some factors like OI, Change in OI etc..etc..

Check out his threads over the weekend or ask him for guidance. He is also the best person in TJ to tell you what kind of returns and risks are there in such a strategy.

All the best. Keep us posted about your trades. It will help everyone.

 

[Somatung]

I would write 1-2 lots of PE and CE so total capital is 1 lac full per trade.

I will have STRICT SL of 2% on every trade.

I will execute trades with limit orders and pre-defined 5 points gain target per trade. After 5 points gain, I will trail the SL to go beyond 5 points.

Well, let us stop here for the moment, as the stage is yours to make your trades the way you think you want to do it. Do test your idea for one week and coming Friday we can do an other chat on it if you wish. Then let's analyze what did happen during the week.

Take care / Dan

 

[timepass]

Well, let us stop here for the moment, as the stage is yours to make your trades the way you think you want to do it. Do test your idea for one week and coming Friday we can do an other chat on it if you wish. Then let's analyze what did happen during the week.

Take care / Dan

Good idea :thumb:

Who is your broker ? What are your costs ? Which software ?