naked option trading?

[traderniftybull]

Let me put it in a simple way: playing with naked options (buying or selling) can be seriously injurious to ones financial health wiping out the complete capital (or amount invested) in options without notice.

Still I'm not saying don't trade, but trade with responsibility, capital that you can afford to lose, having strict stoploss etc. because money does not come easy in options.

Okay, Agreed in toto, what you write in para 1, but dont you think that trading whatever in stock market is injurious to ones financial health. Let me know if there is sure shot method of making money in stock market.

Do you think that future trading or equity trading always makes money. Not at all. You may loose more money in future trading or equity trading or option writing than option buying, at least you know the amount that will loose at max.

Unless you do not know market movement in advance or in real time, you can not make make from stock market. (exceptions may be there, I do not deny)

I wrote these lines in a previous post, but no one took pains to do a post
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Okay do one thing.
Compare option trading (buying and writing) and future trading, and do mention their pros and cons point wise. Only then I will be able to contradict, most of the myths related with option trading.
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[Raj232]

Okay, Agreed in toto, what you write in para 1, but dont you think that trading whatever in stock market is injurious to ones financial health. Let me know if there is sure shot method of making money in stock market. ...

I agree too..

 

[Invictus]

I have been trying to make up my mind over this weekend for starting trading intraday in option only from tomorrow. But just then I came across this thread and here few posts are scary..lol.. Anyway I will start it tomorrow with a very very cautious approach. if it goes okay then will continue for 5 session before taking any decision.

 

[traderniftybull]

I have been trying to make up my mind over this weekend for starting trading intraday in option only from tomorrow. But just then I came across this thread and here few posts are scary..lol.. Anyway I will start it tomorrow with a very very cautious approach. if it goes okay then will continue for 5 session before taking any decision.

BTW, which post/what you found scary, in this thread

 

[Kumar .]

I have been trying to make up my mind over this weekend for starting trading intraday in option only from tomorrow. But just then I came across this thread and here few posts are scary..lol.. Anyway I will start it tomorrow with a very very cautious approach. if it goes okay then will continue for 5 session before taking any decision.

yes,pls tell me what scary thing you found in my thread?

 

[Invictus]

Well may be scary is not the right words, but it surely scared me to some extent.. and that was the bold challenge of Subhadeep that without knowing the geeks one cant survive in naked option trading be it buying or selling.. As I am not that experienced and have no knowledge of these option geeks but I considered to trade option in the foot print of future chart in 1m timeframe as the trade expenses will be lesser.. (This discussion is there in my thread). So that was slightly scaring before I start tomorrow.

 

[Kumar .]

I even dont understand options Greeks at all,but I am doing good with just one lot Nifty options.
Most of them are quick scalps or scratch at breakeven.

Lets see how far can be gone without knowing Greeks.

 

[traderniftybull]

Well may be scary is not the right words, but it surely scared me to some extent.. and that was the bold challenge of Subhadeep that without knowing the geeks one cant survive in naked option trading be it buying or selling.. As I am not that experienced and have no knowledge of these option geeks but I considered to trade option in the foot print of future chart in 1m timeframe as the trade expenses will be lesser.. (This discussion is there in my thread). So that was slightly scaring before I start tomorrow.

- Trade only ITM options only or at max next ATM.
- Do not carry over to next weekend, unless you are sure of a big move in your trade direction.
- Sometime there is a big upmove in option price, book profit, because as upmove was fast similarly, in no time price may come down even faster.
- Price movement is sometimes faster than futures, so take care
- Till you dont get experience, avoid BN wekly options.

Suggestions only and not an invitation to trade options.

 

[Subhadip]

Great to see the enthusiasm..

Just to observe following this two weeks: every day EOD

Nifty future price EOD every day..

NIFTY Oct 10200 CE price
NIFTY Oct 10100 CE
Nifty Nov 10200ce
Nifty Nov 10200 pe
As well as Nifty Oct 10200 pe
Nifty Oct 10300 pe
Nifty Oct 10000 pe.

Follow this for two weeks till Oct expiry..

Where ever market goes..

Make an Excel sheet..date wise update the price at EOD..

By this only I can make u understand option Greeks...

If u want to learn...this will be forward learning only...

 

[Invictus]

Roger That master.. I am up for it..

Here it is..Will continue with the work for next 2 weeks.

https://drive.google.com/file/d/0BzFt9r0Zs9JqbXBhY3NDWHVRYXc/view?usp=sharing