Options trading to beat the returns of traditional investment methods

anildnr

Well-Known Member
After going through few posts in twitter where people taken shorts and incurred huge loss..it alerted me how careful we should be in trading.

Even if we dont get profit or dont do trading those days that's fine. But our capital should not be exposed a lot to risk as we want be in market for longterm with slowly and steadily earning profits.

These kind of days which come rarely should not hit our longterm goals.

Happy trading..
 

anildnr

Well-Known Member
With yesterdays profit..overall this month Aug 21st to sept 20th, I earned 4% interest on my capital.
Anyway want to calculate profit/loss based on the 30 day challenge wise I.e till October 3rd as brokerage also adds to it if I stay in profit.

Let's see how it goes.
 

SarangSood

Well-Known Member
Yeah volatility might be there but premiums are too high for this expiry. And we can try selling deep otm options with hedging based on the market moment.
It would be wise to follow the market and write only when option prices are falling systematically. Generally the option prices even deep otms stop responding to small delta moves in such scenarios. For example market will fall but the puts will not increase and the calls will not fall. There will be many such moves during the day which will not allow the writers (even buyers) to make money because the cost of adjustment would be huge which is irrecoverable. Plus there is always a danger of another big move.
 

anildnr

Well-Known Member
It would be wise to follow the market and write only when option prices are falling systematically. Generally the option prices even deep otms stop responding to small delta moves in such scenarios. For example market will fall but the puts will not increase and the calls will not fall. There will be many such moves during the day which will not allow the writers (even buyers) to make money because the cost of adjustment would be huge which is irrecoverable. Plus there is always a danger of another big move.
Yes sarang agree with your opinion. Generally wat are the strategies you follow if holding positions for the next day
 

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