Yes , I prefer strategy where I do not have to do much once I enter the trade. This is not because I am risk averse or because I don't like to take challenges ( or else I won't be dabbling in trading options anyway). It is simply that it is too early for me to try strategies which require frequent adjustment. I would definitely try some advanced stuff once I get the hang of trading these strategies.
I have looked at the four strategies and as you say there is no question of pros and cons. In all the strategies, even if you don't do anything after entering the trade, you will not make loss. The profit will depend upon how the market moves.
One has to have a trading plan and the KNOWLEDGE. I suppose the strike prices of various legs is one of the important aspects in implementing all the strategies.
I tried to test a couple of these strategies in OptionsOracle but could not succeed in keeping maximum loss to zero.
Why do you feel margins is a big problem for our markets? For nifty if there are two short legs, the margin of 50,000 per lot is not high. For stocks it will be much higher.
I am eager to learn more.
Thank you very much.
Regards
gmt900
I have looked at the four strategies and as you say there is no question of pros and cons. In all the strategies, even if you don't do anything after entering the trade, you will not make loss. The profit will depend upon how the market moves.
One has to have a trading plan and the KNOWLEDGE. I suppose the strike prices of various legs is one of the important aspects in implementing all the strategies.
I tried to test a couple of these strategies in OptionsOracle but could not succeed in keeping maximum loss to zero.
Why do you feel margins is a big problem for our markets? For nifty if there are two short legs, the margin of 50,000 per lot is not high. For stocks it will be much higher.
I am eager to learn more.
Thank you very much.
Regards
gmt900
All the four above shown ways are done true leg in by analyzing price action and according actions to it. As I do not teach any shynt in open forum, I did remove the information about the legs in those two pictures. None of those strategies have been implemented at once. So that seems to be not your world.
About margins: If this is ok for you, then fine. Some not even have that amount in there accounts and want to make what ever with it.
If you want to reduce your risk, you really may go with credit spreads. As I see you following Healthraj thread, you can use his information to play around with the two legs or you start to follow Ananths thread http://www.traderji.com/options/88865-nifty-options-vertical-spread-trading.html#post838993 If you have bigger money in your account, you can trade more lots with credit spreads. Always check the big trend picture like one week and place your call credit spreads or put credit spreads according to that information. Include math like standard deviation for your placements and check the positions daily.
Your choice, your money, your time, your live.
Take care / DanPickUp