Low Risk Options Trading Strategy - Option Spreads

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Hy sameer999

Now we cleared that.

Lets go to the next topic. Could you help to clear the idea I posted before.

It seems that you also like to trade option which is really not the easy part of trading.

I have some more ideas, but I will wait for AW10, you and the other traders.

Regards and good trading
hi danpick , enjoy your stay here, its nice n wonderful place.

its ok , i wish u gudluck for trading.
 
Hy AW10

............So, if I have a pbcspr and the market goes down, I could sell a put. After that, I would look at the analyze picture and if I am not over the zero line, I would sell a call credit spread to get to the point.

I attached a picture how it would look when it works.

If this is bullsh you tell me and that's it.

If not, my question still hangs in the air !

Regards and good trading
friend, i wnt to ask u why wld u sell a put when the market is goin down?
u shld buy a put when market is declining.
 
Hy sameer999

By the way: Thanks for the friend.

My idea : We are in an uptrend. As you know, the market not always goes up and up. There are moves which go quickly down ( Pull backs ) and after that it goes up again.

So what can I do to catch this backward moves. If I have a pbcks I could sell a put, which I already have and at the same time I could sell a cspr for the up move to make some money

I mean: Option trading is like Soduko. You have to search the possibility which is given to you, in a certain time, in certain circumstances and if you do your home work, you should surwife. What I learned so far : The best trades are the ones you loose only a little bit to see how much you could have lost.

But this is my idea and what you do, you do by your self.

My friend

Regards and good trading


U from manila, philippines. i didnt noticed that before. also your name tells u r not indian.

when u r writing here, u shld use short forms of words of which u r sure that others will understand it else its gud to write full words.


Lines marked in red by me, ... pbcks , i guess u meant pullback?
took much time tryin to figure it out!

i thought it was som stock's name which u hav.

also , u mean to say u already own a put?
that means u hav buyd a put and whn the market slips down , u want to sell it , rather u want to square off your position n com out of that trade making profit.

I could'nt understand that before, no worries.
And (surwife!) , maybe typing error, of word survive.

wife is different , hahahhah , :rofl:

just enjoying.




take care.
 
hi, AW10 what happens if i buy 4800 call, 4600 put, and sell 4500put ,4900call at 4700 stot level.can i gain profit?If yes, how and when?
 
hi, AW10 what happens if i buy 4800 call, 4600 put, and sell 4500put ,4900call at 4700 stot level.can i gain profit?If yes, how and when?
Hello bhuppi, can i knw where r u from?

well , why wld u buy 4800 call n 4600 put alongwith selling 4500 put n 4900 call?

whn nifty rises from 4700, your 4800 call position will com in profit but 4600 put will be at loss.

u also sold 4900 call, tht position will start comin in loss but profit will be in 4500 put ,

u need to learn first about option trading n my advice , stay away from F&O untill u gain enough knowledge , only stick with cash. dnt even try to jump into this , frst u shld hav atleast 3 months practice by paper trade.

Future trading can turn out to be fatal n even the most experience players suffer heavy losses many times.
its high risk, or u may learn only by losing huge amount of money laters like many people have.

Not meant to discourage u but only for your gud, everyone agrees with me.
 
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hi, AW10 what happens if i buy 4800 call, 4600 put, and sell 4500put ,4900call at 4700 stot level.can i gain profit?If yes, how and when?
You are effectively going long 2 spreads...back to back...your max profit is 100 points less the cost of these spreads...if the cost is over 100,this will a loosing strategy....

Max risk if mkt is between 4600-4800 on expiry day and max loss if all the spreads expire worthless...so the cost of both spreads is the max risk...

Best wishes,

Smart_trade
 
You are effectively going long 2 spreads...back to back...your max profit is 100 points less the cost of these spreads...if the cost is over 100,this will a loosing strategy....

Max risk if mkt is between 4600-4800 on expiry day and max loss if all the spreads expire worthless...so the cost of both spreads is the max risk...

Best wishes,

Smart_trade
Hi ST , he buyd 4800 call n 4600 put when nifty at 4700.

if nifty moves up or down, in either case , his one leg will be a sure losser n other a sure winner , they will cancel out , n same with selling of 4500 put n 4900 call ,
he will only end up paying brokerages , n so will always be at loss.
 
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