Trading for Living -- Successfully Completed one year as Full Time Trader

[sanju005ind]

after 3 it's became volate- finally closed position in loss of 10point.

Great.Dont bother about the loss.It is a very low price for a valuable lesson learned today.Try to understand the strategy and explore variations.

 

[TraderGYO]

@amrutham how often do you use options spread strategies?

 

[travi]

after 3 it's became volate- finally closed position in loss of 10point.

see this posted few years ago

The timing to Option writing is most important.
Ideally, they are written well before expiry, generally, for the next series. Writing options near expiry is the suicidal story.
Many on TV say that so and so options are cheap, 10-40 rupees and can be written and pocket premium is hogwash.
The two scenarios are:
1. An option is written for Inr. 250 about 50 days before expiry.
Even on expiry day, if it jumps from 10 to 100, you are covered.

2. Same option written 5 days before expiry at Inr. 30 on expiry day jumps to same 100 and you know rest of the story.
Then even try to manage the acceleration by buying to cover, won't work.

To write options 2 or 3 series before expiry requires capital that only the < 1% have

 

[amrutham]

after 3 it's became volate- finally closed position in loss of 10point.

Thats very unfortunate.

If you want to try this strategy next week, enter at the beginning of the day with net debit of not more than 10-20 points and close the position if you are in profit of may be 20-25 points.

Try with only one lot (1+1+2) until you are comfortable with the strategy.

 

[amrutham]

@amrutham how often do you use options spread strategies?

On every weekly expiry, I use butterfly strategy. Today I missed it.

My BN trades are combination of naked calls and puts and some spreads.

 

[newmanin]

Thats very unfortunate.

If you want to try this strategy next week, enter at the beginning of the day with net debit of not more than 10-20 points and close the position if you are in profit of may be 20-25 points.

Try with only one lot (1+1+2) until you are comfortable with the strategy.

definately will be in touch for next trades as well. it's part and parcel of trading for profit and loss.

 

[newmanin]

@amrutham - any butterfly or spread today'?

 

[pannet1]

That's right. This has more probability of giving profit. This position has gained around 10 points since morning. This is the trade i wanted to take in the morning. But could not, since I was unable to buy 25200 CE in Zerodha in the morning.

@amrutham - any butterfly or spread today'?

@newmanin,

learn to fish

see what is the net premium (debit or credit) you get out of the strategy
what will be your maximum loss
where is your breakeven (upper and lower)
what is your maximum profit potential
initially, ensure that you are not net short in your strategy

 

[amrutham]

@amrutham - any butterfly or spread today'?

No trades taken today. Went to Wonderla with the family.

Will initiate new positions on Monday.

 

[kainiteh]

@amrutham - any butterfly or spread today'?

No trades taken today. Went to Wonderla with the family.

Will initiate new positions on Monday.

This is best post I read from fellow traders and from you..
After my last employer of Finland told that he was going for his kid football match and asked me to leave office on important deadline and he indirectly taught me to how to live... your post remembered this...
Thanks for mentioning.... most of us forgot what is important.. I really mean it...
Cheers... happy weekend


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