Want to learn Options Trading

#1
Hello all,

I have been trading in options since Nov last year. The first 7 months were absolutely profitable, but since June I have been suffering only losses. Being a part of this forum and of course after the losses suffered, I have realised that I should put in much much more of study than I have done till now, which has been, I admit, near to nil. I have now decided to start studying and wish to find like minded souls who can be my co-students where we can go on the road of learning by helping each other.

Of course I also want to request seniors who can guide us with their valuable lessons and lead us on the road. Where should one start ? What topics ? There is so much information around it is really confusing, I really need to know how to go about it step by step.

Karuna
 
#2
kravindran said:
Hello all,

I have been trading in options since Nov last year. The first 7 months were absolutely profitable, but since June I have been suffering only losses. Being a part of this forum and of course after the losses suffered, I have realised that I should put in much much more of study than I have done till now, which has been, I admit, near to nil. I have now decided to start studying and wish to find like minded souls who can be my co-students where we can go on the road of learning by helping each other.

Of course I also want to request seniors who can guide us with their valuable lessons and lead us on the road. Where should one start ? What topics ? There is so much information around it is really confusing, I really need to know how to go about it step by step.

Karuna
Hi karuna,
I too share the same feelings. You have atleast traded in options from past 7 months but till date I have traded only in futures stocks/index and cash. I really donot know how to go about options. If we find anything useful let us share and learn together.
Bye, :)
usha
 
#3
usha said:
Hi karuna,
I too share the same feelings. You have atleast traded in options from past 7 months but till date I have traded only in futures stocks/index and cash. I really donot know how to go about options. If we find anything useful let us share and learn together.
Bye, :)
usha
Hi Usha,
Ok, so lets get started, I began with
http://www.cboe.com/LearnCenter/Tutorials.aspx

where u can get the option basics.

Karuna
 
#6
hi,
i am with the option trading for a long time.

My first understanding in option came from hdfcsec.com faq section.

If u people r newbie it may help you a lot,as it is described in the simplest
manner.
BTW if u need help u can ask me anytime.

best regards,
Rajib.
 
#7
rajib333 said:
hi,
i am with the option trading for a long time.

My first understanding in option came from hdfcsec.com faq section.

If u people r newbie it may help you a lot,as it is described in the simplest
manner.
BTW if u need help u can ask me anytime.

best regards,
Rajib.
Hi Rajib,


Thanks for your response. Can u give some tips as to how I can recoup the huge losses made thanks to the recent carnage :(
All my options are now worth less than a rupee :(

Last month I was contemplating selling nifty options on the last day. Do u think I can do that this month ? Quite desperate to recover !

Thanks,
Karuna
 
#8
hi everyone,
Nice to have the choicest of best hearts like serniors around who are eager to help juniors with their knowledge, and other members who are ready to share their hardearned secrets with unknown people like me ;) Thanks for all in giving good sugestions for options trading. Please continue your good deed.
Bye
usha
 
#9
Hi Everyone,

I have ben doing options trading for last 1 year. I follow my instincts and news items and market sentiments. I will not write any options at any cost.

Here is what I do.

a) I will decide what money I am prepared to loose, if my asumption went wrong. (Say 12000)
b) Now I will look and identify 2-3 scripts which I can trade with this amount i.e. 10000.
c) Suppose, I think next month SBI will fall from current 890+ to about 820 or below, I will buy a put of 850. If the market behaves as expected I will gain from it. However, I will exit the option when the price of the option is (+ or -) 50% of my buying price. And I may reenter it if my assumption still hold good, but on lower strike price.

Like this I will play maximum of 3 options at one time. (It helps to monitor more closely and decide on change over tactics)

I will try and buy option in the first week of the month and close it by 2nd week end. I will try not to carry it for end of the period unless the market is still in the direction of my assumption and I have gained from other options.

Regards,
Vijay
 
#10
Hi kravindan,

i also faced the same in this month coz i had too many call option but i covered my position with a few put, so i am in no loss position right now.

my advice is,always cover ur position either in ratio or in a distant opposite position. for this month, it is too risky to advice u something or i may offend u greatly.

i think writing a call is less risky than put. trade carefully, as very choppy and volatile situation may come through.

i personally believe it is best job to always have a covered position.

Thanking you,
Rajib.
 

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