Options trading to beat the returns of traditional investment methods

anildnr

Well-Known Member
#1
Hi Friends,
I am from hyd and do trade in options. Even though I started trading in 2010 the overall I can say I m in loss and mostly because of lack of knowledge in initial days..just jumped into trading by seeing other friends, used to buy options with whatever the money I have and without the reason for buying it.
Now I feel I am somewhat comfortable in trading by getting knowledge on options selling.I can say I am getting reasonable returns since last 4 5 months.

Ofcourse I get losses also but mostly it will be in case if I dont follow my rules and buying with huge volume.

Just I would like to start the thread to share my trades and to check whether we can beat the returns by regular investments which can give 8 to 15% max.
I don't know anything on technical analysis and mostly after seeing the intraday direction of the market..will try to sell Otm options.
Goal is watever the position u take..try to come out with minimum loss in worst case by managing the position.

Ideas are welcome with any good strategies on index with good risk reward ratio.
I will try to post from tomorrow..let's see how far it goes
 

newtrader101

Well-Known Member
#2
Hi Friends,
I am from hyd and do trade in options. Even though I started trading in 2010 the overall I can say I m in loss and mostly because of lack of knowledge in initial days..just jumped into trading by seeing other friends, used to buy options with whatever the money I have and without the reason for buying it.
Now I feel I am somewhat comfortable in trading by getting knowledge on options selling.I can say I am getting reasonable returns since last 4 5 months.

Ofcourse I get losses also but mostly it will be in case if I dont follow my rules and buying with huge volume.

Just I would like to start the thread to share my trades and to check whether we can beat the returns by regular investments which can give 8 to 15% max.
I don't know anything on technical analysis and mostly after seeing the intraday direction of the market..will try to sell Otm options.
Goal is watever the position u take..try to come out with minimum loss in worst case by managing the position.

Ideas are welcome with any good strategies on index with good risk reward ratio.
I will try to post from tomorrow..let's see how far it goes
Hi, nice initiative. Is there any shortcut to scan for OTM options.
 

DanPSup

Hedge Strategy Trader in Options and Futures
#3
What you mean by returns from 8 to 15% max? Per trade, per month, per year as a whole?

Ideas are enough posted in the forum, so you just could pick one. But best you have your own, realistic proved ideas and ways to short in real markets. Whish you good luck and hopefully you do not get wet feeds in the real trading world with your plan.

And just as a reminder, as only shorting options and not knowing how to do it best when rain is falling as a storm:

 
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anildnr

Well-Known Member
#4
Hi, nice initiative. Is there any shortcut to scan for OTM options.
No scan ..just on personal judgement based on market movement.
Suppose if BANK nifty is at 27000 and if its is going down I will try to sell 27500ce ..like that. There is no specific rule.
U can share if any logic for selecting otm.strike.

Thanks in advance
 

anildnr

Well-Known Member
#5
What you mean by returns from 8 to 15% max? Per trade, per month, per year as a whole?

Ideas are enough posted in the forum, so you just could pick one. But best you have your own, realistic proved ideas and ways to short in real markets. Whish you good luck and hopefully you do not get wet feeds in the real trading world with your plan.
Sorry if it is confusing...8 to 15% per annum in regular investments like FDs to Mutual funds.
 

anildnr

Well-Known Member
#6
What you mean by returns from 8 to 15% max? Per trade, per month, per year as a whole?

Ideas are enough posted in the forum, so you just could pick one. But best you have your own, realistic proved ideas and ways to short in real markets. Whish you good luck and hopefully you do not get wet feeds in the real trading world with your plan.

And just as a reminder, as only shorting options and not knowing how to do it best when rain is falling as a storm:

Thank you for the reply. Most of the times I do intraday only. If by any chance I go positional then positions will be with defined risk like calendar spreads or vertical spreads..
Even Intraday also will take far otm.to make it adjustable of any thing worst happens
 

DanPSup

Hedge Strategy Trader in Options and Futures
#7
Thank you for the reply. Most of the times I do intraday only. If by any chance I go positional then positions will be with defined risk like calendar spreads or vertical spreads..
Even Intraday also will take far otm.to make it adjustable of any thing worst happens
Sounds ok. Vertical spreads are a good strategy and esay to implement according to the occuring market situations. The point in your situation is the margin you need to show in your trading account, as your first leg is short when you want to be at first an option seller as you told in previous posts.

May I ask how you plan to do your Calendar Spreads, as the posibilitys are wider compare to what in the books is written?
 

anildnr

Well-Known Member
#8
Sounds ok. Vertical spreads are a good strategy and esay to implement according to the occuring market situations. The point in your situation is the margin you need to show in your trading account, as your first leg is short when you want to be at first an option seller as you told in previous posts.

May I ask how you plan to do your Calendar Spreads, as the posibilitys are wider compare to what in the books is written?
Not exactly only the calender spreads I mean..sorry dont know strategy names..
But Let me tell in this way.. if market falls for 3 to 4 days from 27500 to 27000 and if I feel short covering may come on expiry day then I could go for 26800pe sell.and 26700pe buy to get 4 to 5 points ..
 

DanPSup

Hedge Strategy Trader in Options and Futures
#9
Not exactly only the calender spreads I mean..sorry dont know strategy names..
But Let me tell in this way.. if market falls for 3 to 4 days from 27500 to 27000 and if I feel short covering may come on expiry day then I could go for 26800pe sell.and 26700pe buy to get 4 to 5 points ..
Speculating on expiry possibilitys is dangerous. But your choice. And even the question will rise: Do you have the guts to implement this "Vertical put credit spread" at the right moment in markets who may jump around at those days?

And the other point is: If you already short the 26'800 put, as you want to be a short option seller, then how much loss will you already have on those put at the moment you may think the market will now do short covering. At least to me this is all a bit to flattery and at least I do not want to take such trades and speculating ideas, as there are other, less risky ways to make good money in the market. Any way as told: Your choice.
 
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anildnr

Well-Known Member
#10
Speculating on expiry possibilitys is dangerous. But your choice. And even the question will rise: Do you have the guts to implement this "Vertical put credit spread" at the right moment in markets who may jump around at those days?
As I told till now I have not taken any positional shorts just as an example I said . And if there I feel any possibility of 4 to 5 rupees gain with very far otm then I may try not experienced. But I tried buying deep itm options buying I mean strangle like buying 26700ce and 27100pe buying on Wednesday evening if bn at 27000 and if I feel short covering may come. Because if we go buying deep itm the time value will be less so risk. But we need to make sure to squaring off on thursday morning because if movement is not there in initial hourswe may lose
 

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