For quite some I have been reading through entire forum to see if any one is in pure Option Selling based trading. I did not find any as mostly writing option is considered risky.
However I have been trying to trade in pure writing. I have lost few thousands in intraday delivery based trade, then earned few thousands in future trading but again lost in future trading.
My difficulty that I do not get much time during trading hours and therefore I was looking some method for trade suitable to me.
I have felt that option selling would be good enough for me. Overall dividend yield on my investment is around 1-1.5% , therefore it would be good if I get paid dividend every month. Therefore on profit objective, I have set modest target of 12% annual profit on my total capital invested in long term stocks, which are sitting ideal.
As the stocks provide more than sufficient margin I am able to sell quite distant OTM strikes.
Presently I am having following positions open, all of 31-Dec.
TATASTEEL CALL 640 @ Rs.5.70
TATASTEEL PUT 470 @ Rs.3.00
SUZLON PUT 60 @ Rs. 00.75
SUZLON PUT 65 @ Rs. 00.90
NIFTY CALL 5400 @ Rs.22-50
NIFTY PUT 4700 @ Rs.22-00
I have collected premium around Rs.13,500+ for this month, I am now trying to preserve it.
I am sharing this so I will have to admit if I make mistakes and able work upon it from discussions and suggestions from seniors.
However I have been trying to trade in pure writing. I have lost few thousands in intraday delivery based trade, then earned few thousands in future trading but again lost in future trading.
My difficulty that I do not get much time during trading hours and therefore I was looking some method for trade suitable to me.
I have felt that option selling would be good enough for me. Overall dividend yield on my investment is around 1-1.5% , therefore it would be good if I get paid dividend every month. Therefore on profit objective, I have set modest target of 12% annual profit on my total capital invested in long term stocks, which are sitting ideal.
As the stocks provide more than sufficient margin I am able to sell quite distant OTM strikes.
Presently I am having following positions open, all of 31-Dec.
TATASTEEL CALL 640 @ Rs.5.70
TATASTEEL PUT 470 @ Rs.3.00
SUZLON PUT 60 @ Rs. 00.75
SUZLON PUT 65 @ Rs. 00.90
NIFTY CALL 5400 @ Rs.22-50
NIFTY PUT 4700 @ Rs.22-00
I have collected premium around Rs.13,500+ for this month, I am now trying to preserve it.
I am sharing this so I will have to admit if I make mistakes and able work upon it from discussions and suggestions from seniors.
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