Could not find a thread dedicated exclusively to non-directional strategies.
The objective of this thread is to discuss only non-directional option strategies for stocks and indexes. In my view, stock and index options need to be treated differently. While index options will be significantly affected by macro and global outlook, stock options will be more prone to trends, earnings etc .
Following trends is essential,but the point of the thread is not to figure where market will move but how to manage your position when the market moves. You can thinking of trading options as an insurance business and insurance companies do make money.
It must be noted that while non-directional strategies generally do not generate spectacular returns, they can deliver consistent profitability. These strategies might not work in strongly trending markets, but can give decent returns in choppy or weakly trending markets.
Welcome basic and advanced concepts. Further, it would be helpful if strategies are posted with risk reward ratio and probability of success. A statistical orientation towards the strategies would be great as this will result in confident decision making. Please refrain from making comments as: suppose Nifty will go max till 6500. Risk management is critical.
Will post more detail along with strategies.
I will also try to back test index option strategies. Please feel free to let me know if you would like any of your strategies to be back tested.
The objective of this thread is to discuss only non-directional option strategies for stocks and indexes. In my view, stock and index options need to be treated differently. While index options will be significantly affected by macro and global outlook, stock options will be more prone to trends, earnings etc .
Following trends is essential,but the point of the thread is not to figure where market will move but how to manage your position when the market moves. You can thinking of trading options as an insurance business and insurance companies do make money.
It must be noted that while non-directional strategies generally do not generate spectacular returns, they can deliver consistent profitability. These strategies might not work in strongly trending markets, but can give decent returns in choppy or weakly trending markets.
Welcome basic and advanced concepts. Further, it would be helpful if strategies are posted with risk reward ratio and probability of success. A statistical orientation towards the strategies would be great as this will result in confident decision making. Please refrain from making comments as: suppose Nifty will go max till 6500. Risk management is critical.
Will post more detail along with strategies.
I will also try to back test index option strategies. Please feel free to let me know if you would like any of your strategies to be back tested.
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