Nifty Options-Intraday Trading Strategy.

tradingstudent

Well-Known Member
#1
Hello,

First and foremost, thanks to all the members of traderji. The threads are a great resource and I am able to understand options trading slowly.

I went through the threads read some of the recommended books by Dan, Saint & AW10 & others. I am interested in day trading..

The amount of ground that needs to be covered in options is mind boggling & slowly i am putting in the effort, though i have one request.

Can somebody please lay out a intraday strategy in options that can guarantee 2~3 points per day

I want to gain confidence & even to think of some of the systems is scary for a novice like me. I feel starting out small is best and this is more of a morale booster for me.

Thanks a lot in advance..
 

cloudTrader

Well-Known Member
#2
Hello,

First and foremost, thanks to all the members of traderji. The threads are a great resource and I am able to understand options trading slowly.

I went through the threads read some of the recommended books by Dan, Saint & AW10 & others. I am interested in day trading..

The amount of ground that needs to be covered in options is mind boggling & slowly i am putting in the effort, though i have one request.

Can somebody please lay out a intraday strategy in options that can guarantee 2~3 points per day

I want to gain confidence & even to think of some of the systems is scary for a novice like me. I feel starting out small is best and this is more of a morale booster for me.

Thanks a lot in advance..
Good to read your post about how systematically you are trying to gain knowledge from the tremendous information presented here at traderji .

The statement where you have used Guarantee 2~3 points in Options Trading per day is the very crux of being a professional trader.

I am not saying that you cannot make 2~3 points per day but to reach that level there is a whole lot of journey required.

I myself have faced situations in the past when I used to target 2-3 points in options but ended up giving 10-20 points repeatedly in intraday trading.

Things have changed for me & I rarely trade Options Intraday now & keep them for swing trading, however I am not saying that I am not in favour of Intraday Trading in Options.

Its too late in the night so this much for now from me. If this thread generates interest then I am sure many members will surely participate soon here .

All The Best .
 

ankurpcl

Active Member
#3
Guys play intra day options is advance subject of mathematics. You need to be master of binomial distribution patterns for multiple strikes.
 
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ankurpcl

Active Member
#4
If more interested in this area as professionals are vert limited owing to high complexity, study Bop model, black scoles model and monte carlo option pricing.
 
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tradingstudent

Well-Known Member
#5
@ Leonid

Thanks for the inputs. Could you kindly what was the motivation for you to shift from trading options intraday to swing trading? Does swing trading inherently offer any advantage?

@Ankurpcl

I appreciate for chimming in with your inputs. One question i have is, does a person has to be well versed with knowing the Black Scholes & Binomial Distribution models to even stand a chance of success at trading options at intraday?
 
#6
If more interested in this area as professionals are vert limited owing to high complexity, study Bop model, black scoles model and monte carlo option pricing.
It is not complex. Traders just make it complex.

You need to know about GREEKS and should know how to manage Greeks in real time. Should have real time experience in managing Delta and Vega etc

You should have good analyzing software for option trading

There is a lot of difference in option trading in practical than theory.


Option trading is not trading like technicals in future trading just like enter look target, put stop loss. It is about managing Greeks which cannot be explained completely in theory. It is a different game. It need Practice and experience Greeks are effected a lot by Delta, Gamma, Vega, and Theta etc.
 

lemondew

Well-Known Member
#7
Hi munde,

Thanks for your tip which you suggested in your thread regarding selling 2 ATM puts and 1 ATM call ....... Can you kindly suggest me some good analyzing software. I tried options oracle version 16.

Thanks :)

Just an update. Got it started. Tweaked configa little bit. What options analysing software you guys are using.

It is not complex. Traders just make it complex.

You need to know about GREEKS and should know how to manage Greeks in real time. Should have real time experience in managing Delta and Vega etc

You should have good analyzing software for option trading

There is a lot of difference in option trading in practical than theory.


Option trading is not trading like technicals in future trading just like enter look target, put stop loss. It is about managing Greeks which cannot be explained completely in theory. It is a different game. It need Practice and experience Greeks are effected a lot by Delta, Gamma, Vega, and Theta etc.
 
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cloudTrader

Well-Known Member
#8
@ Leonid

Thanks for the inputs. Could you kindly what was the motivation for you to shift from trading options intraday to swing trading? Does swing trading inherently offer any advantage?
I traded mostly in equities on an Intraday basis for an year after I thought of moving into trading in addition to long term investments.

After some clarity about derivatives I started out with F&O trading and in that case too initially going with Options just because of huge leverage. But that did not help me to gain much . Trading Options intraday was more of a stress .

So I started trading in Futures , specially Nifty & BNF for intraday purpose . Now kept Options as a weapon for the anticipated bigger moves taking the advantage of leverage.

Regards.
 

tradingstudent

Well-Known Member
#9
I traded mostly in equities on an Intraday basis for an year after I thought of moving into trading in addition to long term investments.

After some clarity about derivatives I started out with F&O trading and in that case too initially going with Options just because of huge leverage. But that did not help me to gain much . Trading Options intraday was more of a stress .

So I started trading in Futures , specially Nifty & BNF for intraday purpose . Now kept Options as a weapon for the anticipated bigger moves taking the advantage of leverage.

Regards.
Thanks Leonid for taking the time to share your experiences. If i may, what
were the specific challenges you faced when trading options intraday?

It would be great to know the first hand experience of a trader.
 
#10
It is not complex. Traders just make it complex.

You need to know about GREEKS and should know how to manage Greeks in real time. Should have real time experience in managing Delta and Vega etc

You should have good analyzing software for option trading

There is a lot of difference in option trading in practical than theory.


Option trading is not trading like technicals in future trading just like enter look target, put stop loss. It is about managing Greeks which cannot be explained completely in theory. It is a different game. It need Practice and experience Greeks are effected a lot by Delta, Gamma, Vega, and Theta etc.
Thanks Munde77 for letting me know that a thorough knowledge of greeks is a must. Could you kindly clear these doubts:

1. You suggested a good analyzing software is necessary. Does the analyzing software come with trading terminal we get with the broker?

2. If the analyzing software is an external, kindly advise of good software that serve this purpose.

Thanks
 

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