Please guide me for Option Neutral Delta Stratergies

#1
Please help me somebody told me to take a neutral delta and all other stratergy training from one person for 8 hours online paying 10000 and also he suggest me to get option stratergy software from smart finance @10500 and he is doing option trading from alst 3 month on a investment of 1 lakh only and getting retrurn 3000-5000 per month so please suggest me should i also start this system it is ok with me 3-4% return on safe investment
Pl help me and suggest me

Regards


Arora
 
#2
I can not comment on the utility of some software.
To understand the delta neutral strategy, understand delta first.
Delta is the % of 1 by which a call will increase its value and put will decrease its value if the stock is moved up by Rs 1. mostly at the money (ATM) call has +0.50 delta and put has -0.50. so if there is increase of Rs 1 in stock price, the call will increase its value by Rs 0.50 and put will decrease by Rs 0.50 there by there is no loss no profit . Hence its a delta neutral.long staddle comes in this category.
Please remember trading options is not so simplistic as when call strike becomes in the money ( ITM),put option will become out of money (OTM).and then original delta neutral position will not remain neutral.
For the benefit of the members, I may add that this is the most popular method ( staddle) but unfortunately the worst, as you are sure to loose money.
This is to be taken very rarely under very specific situations.
 
#3
Can anyone of you share the stratergy best for options trading in indian markets? I wish to trade only in non-directional option stratergy for banknifty and nifty.If you have please share the link or material
 

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