friends...
IMO..its better to avoid just shorting options without any hedge.
I read somewhere in TJ itself...if you are writing options you earn like hen and when you lose....you will lose like an elephant going to toilet..
I have experienced it myself. So I want to warn people who want to short options.
Don't go for just shorting options in Calls or Puts...instead you can build a strategy using options..
Options shorting looks like a lucrative income generation strategy..but it will never work...believe me i have survived doing this for more than a year but when i lost it erased all my profits...im lucky that i saved my capital :thumb:
Edit :- Writing options looks like very easy method to earn money....but its not. Its the riskiest thing to do in stock market. Always see risk and reward when you trade.
IMO..its better to avoid just shorting options without any hedge.
I read somewhere in TJ itself...if you are writing options you earn like hen and when you lose....you will lose like an elephant going to toilet..
I have experienced it myself. So I want to warn people who want to short options.
Don't go for just shorting options in Calls or Puts...instead you can build a strategy using options..
Options shorting looks like a lucrative income generation strategy..but it will never work...believe me i have survived doing this for more than a year but when i lost it erased all my profits...im lucky that i saved my capital :thumb:
Edit :- Writing options looks like very easy method to earn money....but its not. Its the riskiest thing to do in stock market. Always see risk and reward when you trade.
and further more, he has "plan b" in case things go bad. i.e of rolling forward.