Sideways phase? No problem. Sell options!!
So if you think that the trend is up, Sell (preferably ITM) Put option. That way you benefit when the market moves up, and also from option time decay even when the market is sideways.
You will save a bit on brokerage.
Disadvantage:
You still need to pay margin for selling options.
If the market moves your way, and the option gets closer to being ATM/OTM, delta will reduce. This will be alright for normal movements. But if there is a big favourable move, yiu will not be able to take full adavantage.
So if you think that the trend is up, Sell (preferably ITM) Put option. That way you benefit when the market moves up, and also from option time decay even when the market is sideways.
You will save a bit on brokerage.
Disadvantage:
You still need to pay margin for selling options.
If the market moves your way, and the option gets closer to being ATM/OTM, delta will reduce. This will be alright for normal movements. But if there is a big favourable move, yiu will not be able to take full adavantage.
This is the problem na? ...if i have that much money then no need to go for options na ....we can make it from trading future....Low capital making to find something small :rofl:
If margin