Want to learn Options Trading

I am new here.
I want to learn about this market.
Please advice me how to study all.
I am confused from where to start.
I need someones help.

thanking you.

Dear Dilip
I am totally a newbie in options trading. I also give you the reason why i am now opting for it.
I have recently invested around 2 lacs in a stock and now it has come down around 30% and i don't have much money to invest more in this stock at this level but i am really very bullish about this stock in very short term. Now b'coz of shortage in fund, i am thinking of buying a call option in this stock, also i am speculating this stock can come down 10-15 rs more down and afterwards it may remain flat for few days and then again shootup to new highs. Pls. advise me what to do in this stock.


Dear Dilip
I am also interested to learn trading options. Pl let me know whether there are any software for the same. some knid of option analysis software.

Hi all,

Personally till now I have not done any option trading. But I am after this for the last 3-4 months --- i.e., getting through some study materials, discussing with experienced guys etc. But till I hesitate to actively enter into derivative segment.
To me or what I have learnt from seniors
1. Risk involvement is high ---- can give you very high return or loss.
2. If one enters into any put/call decision, first be very confident and at least ensure that there is at least 80% probability.
One example ----

During July end this year, one of my friend was repeatedly advising me to go for TISCO -- August call option ---- He had a very sound reasoning based on fundamentals ---- like TISCO was increasing price on 1st August etc etc.

I hesitated and didn't go for it, watched TISCO for for the whole month --- biting my nails and thinking ---- oh God, how much money I could have made!!!!

Here I feel that decisions should be mostly based on Fundamentals, news items etc.

3. If somebody puts money, he should put at the starting of month. Avoid investing in third or fourth week.

4. In case of starter like me, it is best to invest at Out-of-the-money options,
because there gain may be limited but at least amount of loss will be less.

5. Most importantly, statistics say that 70% of people lose money in derivatives every month.

My friends pls comment on this.

Till now I don't know, when for the first time I will invest in option.


Read all the replies ,..
Here no one had discussed about how to use ur options trading ,..
To deal with options only is quite uncomfortable for me ,..
The better to do is while ur trading in futures , make ur positions secure by trading in to the options ,..
Like wise if u feel nifty is quite bullish at the current levels ,.. buy nifty futures n make ur position safer by Selling nifty higher priced calls / buying nifty puts.
That might give u better benifit i guess ,.. otherwise only to trade with options doesnt make any sense in any case ,..
Just for example ,..
Nifty is bein traded at the level of 2492 today futures are at 2485.
Now if ur TA says that it should move further towards 2550, Then buy nifty futures n sell 2550 call Somehwer around 4-5 Rs. If nifty closes @ 2540 levels then both of the side benifit is urs ,..
Think aboout it how it happens ,..
But dont trade wt options only ,..
There r so many stratages to get adv, from options/futures ,.. As the experts regarding that ,..

Regards ,..
Hi Darsh,
Though our's is a democratic country---and this is a democrating forum---but----Come on man!!!---Its unfare to make comments---and--make the newbies---deviate away from learning options trading----
Man---u r quoting in a copy-book way----what its written in most of the books and on other online sites----If u r uncomfortable trading options ---its fine---But that doesn't mean---"Its the Be All and End All of the world"--Hope---u fine tune--ur basics a bit more---before making such great comments---like "---otherwise only to trade with options doesnt make any sense in any case ,.."
If u become more of a learner--than a orrator of a final verdict---It would be good for ur trading only-----
To all the learnerns of option trading (I m myelf a learner too--with may be a bit more experience than u--):
1)NAked options trading involves a lot of risks---but simulteneously a lot of rewards too---if ur analysis is correct--
2)Before proceeding blindly----U must be conversent---with the Black-Scholes model---(If possible the binomial and Trinomial Model--to mention a few)
3) U must learn to use the option calculator----
4) Its always better to know the different strategies--and learn mock playing with Straddles,Strangles,Butterflies--etc.---and also know the loopholes of these strategies---if not implement them in reality----
5)Brok. issue---in an imp point to be considered ---as option trading involves brok. equivalent to trading in futures---Try to get the best bargin from ur respective brok. houses--
6)As Darsh pointed out---it is always good to trade Nifty Future ---along with Call/Put options---but even there r lot of other strategies too---for trading futures---
7)Finally--intraday option trading--is a good potential of earning sweet money---if oneis confident with his/her own basics/views of the market---
Last but not the least----This forum itself contains----some gem of articles(in fact ---truely speaking--priceless)----and one should go through them---as minutely as possible---to learn successful trading in options.
Dear joy_mitali

I am a new boarder here.
I am trading in Option for the last month with very limited knowledge.
I have read the basics of Option.
I would like to seek your help in working on Option Calculator.
Please help me .


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