Options For all Seasons

[mohammad.murad]

@Somatung : I am looking to buy OTM calls and puts. Don't exactly remember the name of the startegy. Currently i am building my strategy.
Will post my complete startegy till tomm or day after tomm.
At present, i want to know if i have picked up the correct scripts.

Thanks.

 

[Somatung]

@Somatung : I am looking to buy OTM calls and puts. Don't exactly remember the name of the startegy. Currently i am building my strategy.
Will post my complete startegy till tomm or day after tomm.
At present, i want to know if i have picked up the correct scripts.

Thanks.

If you know the name of any of the option strategies you want to trade, you then are able to check what the plus and negatives are for the choosed option strategy and the script then will be just something which has to prove those rules and expectations.

Or I also can say: If you think you know how your script will act, which is pure anticipation of the future, you then choose the option strategy according to your personal expectations on the script.

This just as basic, general rules with which you can work with in your coming game or trades. So let's see what you will post tomm.

Have a nice evening / Dan

 

[mohammad.murad]

Hi Somatung,

I am looking for mere volatility as i am looking to invest on budget day.

Hence, I choose to buy both OTM Calls and Puts i.e. The Long Strangle.

I am looking to keep a stoploss of 8-10% on each leg of each script with a target of 20-25%.

I am looking to invest 10-12% of my capital on the big budget day.

Still not sure about the above action plan.

But this is the rough strategy for now.

Any views on this would be highly appreciated.

Kind Regards,
Mohammad Murad.

 

[Somatung]

@Mohammad Murad

Every thing you post above in your post is so far logical and can be done surely in theory. But this is, at least to me, not the final point. (As I only can post my view and experience, others may jump in to show there views and express there experience on your question).

As you want to play a one day event, when do you want to enter it?

In most cases the market has already priced in such possible events in the value of the options before the event happens.

If there still some huge spikes will happen, which even can be like oscillating happenings uncontrollable for retailers, how do you want to handle this? With stop loss?

Did you ever trade live in the past such events with such mentioned spike up and down moves in seconds and minutes?

And why do think even big hedge funds stay out of such events?

Your choice, your money, your risk appetite and your luck.

I do not trade one day events under such possible premise, as I prefer other ways of making money and entries. But that is me and others surely can give you a hand for your questions.

Take care and all my mental support that you will have any regular success with your one day shot trading idea / Dan