new@TJ

Pradeep Narayan

Pradeep Narayan

Well-Known Member
#21
#21
Sharan
Welcome to the best forum on Trading! Here you will find lots of free material that can help you progress from a novice to an expert trader. Dan has almost spoon-fed you the baby booster on Options :), that will see you through for a long time!

Take your time, read all the important threads - choose them based on your preference (Cash or F&O, Intra or Swing, Tech or Fundamental). After having read them, think over the contents and practice what you learnt for atleast 1 year, either on paper or real money. In case you are using real money try to limit your capital to 10K or lower - if you cannot succeed with 10K, you will definitely fail with 10M.

As you progress you will come up with questions and doubts - read the forum contents again and you will get clarity. This stuff is like cycling - practice makes perfect and practice takes time.

Most important - don't lose heart! You cannot win without losing some trades!
All the best!
 
bunti_k23

bunti_k23

Well-Known Member
#22
#22
:clap:Somatung sir thanks very much for those wonderful explanations wit a real e.g it helped me to gain sum insights in options as im also learning frm few days.thank you:clap::clap::clap:
 
Somatung

Somatung

Banned
#23
#23
bunti_k23 said:
:clap:Somatung sir thanks very much for those wonderful explanations wit a real e.g it helped me to gain sum insights in options as im also learning frm few days.thank you:clap::clap::clap:
Click to expand...
You are welcome :clap::)
 
sharan

sharan

Member
#24
#24
Hi Somatung,
I had not even expected that you would care to follow up on the advice you had generously given. I was of the opinion that the initial pleasantries over I was all alone in the lurch. I am glad I was wrong. I am really touched. Thanks a ton for the effort you took to give me my first precious lesson. Would cherish the memory (at least till this expiry). :). Request you to kindly refer me to a thread on options from where I can take off. Next few days I would devote to some study so that I can start taking real trades. Kindly refer some good threads on options, a book would also do me good. Thanks once again.
Bye for now
 
sharan

sharan

Member
#25
#25
Hi,
Thanks mate for the encouraging words. Look forward to learning a lot in the days to come
:)
Rgds



Pradeep Narayan said:
Sharan
Welcome to the best forum on Trading! Here you will find lots of free material that can help you progress from a novice to an expert trader. Dan has almost spoon-fed you the baby booster on Options :), that will see you through for a long time!

Take your time, read all the important threads - choose them based on your preference (Cash or F&O, Intra or Swing, Tech or Fundamental). After having read them, think over the contents and practice what you learnt for atleast 1 year, either on paper or real money. In case you are using real money try to limit your capital to 10K or lower - if you cannot succeed with 10K, you will definitely fail with 10M.

As you progress you will come up with questions and doubts - read the forum contents again and you will get clarity. This stuff is like cycling - practice makes perfect and practice takes time.

Most important - don't lose heart! You cannot win without losing some trades!
All the best!
Click to expand...
 
C

Catch22

Well-Known Member
#26
#26
Somatung said:
Dear Sharan

If you want to go into options and have never traded them before, you can do it at begin only on paper and if not on paper but with real money, do test trades only with one lot long far otm options which are at least 30 to 60 days away from expiry, so your loss will be minimized in case they fall to zero. Do not try short option strategies at the begin of your option trading, as they contain a high/er risk compare to what I just told about long options.
Your comment: Max losses are defined depend deeply on how you define your stop loss, on how you handle your stop loss and if a stop loss is set in the market if it is triggered when needed. Other wise you can also lose your shirt and pen in a short time with options in the worst case scenario. This specially with short option. To avoid such moments in any way you go, as told at the begin of this post, only for long far otm options, as there the risk is very low but profit potential can under certain circumstances be high. Here you even can do test with real money if you want. If you do test's with real money already at the begin you will learn to deal with the broker, you will get to know the real feeling when you have real money in the market, you will get to know your order possibilities with the broker and you will get a real feeling about trading and not just some kind of artificial feeling about doing a paper trade. I was thrown into the water from the begin I started option trading, even I did not understand in dept what options are. I was thrown into the water so quick because of the above mentioned reasons.

Now I will give you an example of a low risk trade you can start trading now. The option is at the under limit of the time frame from 30 to 60 days far away from expiry. You could buy the Sept 8400 call, which is far out of the money and cost only 6.70 Rs at the moment. If market moves 100 point up, your call will be at 13.00 Rs and if market falls down 100 point your call will be 3.70 Rs. This calculation is valid today and will look different in two weeks. Your maximal loss would be 6.70 Rs and your profit potential could be a 100% if lucky, as you have to consider the option greeks as your enemies. And they are called Vega and Theta. Here in this trade your stop loss is your investment of 6.70 Rs plus commission you pay to the broker. This trade you execute when ever you want as it is just a test drive to get the real feeling. You can do such test drives for quit a while and beside that you read or inform your self about how options can be traded. So you do two things at the same time and you surely will have more fun by doing so, as you already did your fist bay steps in the real market with real money. :):)

Still: The above is just to give you one little, absolute simple idea about how you could start with real money in option trading. I not can and will take any response for what you do nor does any body else here in the forum. So all is your choice and I only can tell you about my experience and nothing more and nothing less.

By the way: There is a lot of stuff in the forum about options, as I am not a spoon feeder. It will take time to read through that. There are whole threads who spot at options as one topic and there are threads which do more or less spot on one or two strategies.

Threads who spot on them as one topic:

http://www.traderji.com/options/92743-options-my-way-looking.html#post941872

http://www.traderji.com/options/305...ading-strategy-option-spreads.html#post333541

http://www.traderji.com/options/66266-option-trading-danpickup.html#post639903

Threads who spot specific on some option strategies:

http://www.traderji.com/derivatives/95164-options-all-seasons.html#post994329

http://www.traderji.com/trading-diary/88670-nifty-options-trading-raj.html#post834078

http://www.traderji.com/options/94802-nifty-calender-spread-calls-puts.html#post985892

http://www.traderji.com/options/74905-advanced-nifty-option-strategies.html#post733503

There is more stuff from many good members here, so could just post some of the many threads you can find here. But as longer as you are in the forum as more you will know where to find all those threads.

Take care / Dan :)
Click to expand...
Very useful . Very kind of you to guide thus . Thanks a lot:)
 
Somatung

Somatung

Banned
#27
#27
@Sharan

Thanks for your kind words. I know it is important that you see that what I mentioned also does work. There is nothing more demotivating then being told a way of doing some thing, but never seen it working. If this is the case, the disbelief starts to grow in us in case we try it by our selfs and we do not get a quick result. You still do not have any guarantee that you will achieve success quick on what is told, but your mind knows now: I have seen that it works with my own eyes and so I know it will work. And that's the point where success is based on as from there the starting motivations get's its food. You have to be clear about the fact that all successful trader did believe in what they do when they started trading. They believed: It will work because they have seen it with there own eyes.

Now you ask me for a thread you can take of. As a starter I would suggest the thread from Pratabvb http://www.traderji.com/options/92743-options-my-way-looking.html#post941872 It is not a big thread, it is not complicated to read and you get for the moment basic information quick and with light words.

After you finished reading the above mentioned thread, you can read this thread http://www.traderji.com/options/66266-option-trading-danpickup.html#post639903. The thread is also not very big, but shows deeper information compare to the thread from Pratabvb.

After reading those two threads you can read this one from Ananths http://www.traderji.com/options/88865-nifty-options-vertical-spread-trading.html#post838993 It is about debit- and credit spreads. There is an other thread on that subject from AW10 http://www.traderji.com/options/305...ading-strategy-option-spreads.html#post333541 That thread is excellent and that thread has 1818 post's. So it is huge. As the thread from Ananaths is on the same topic, but not as huge as the one from our friend AW10, I wanted to mention also his thread.

The above threads will be more then enough for you at this time if you are an absolute beginner in options. No books needed so far. It does not make any sense when you overload your self with to much theory, even the above threads are more or less only basic stuff. After reading them you will have a basic, theoretical knowledge about the option Greeks, about the different kind of options you can look at and about the following option strategies: Credit- and Debit Spreads and Straddles and Strangles. This beside what you already know from this thread. And all that has first to settle down in your mind and to be practiced in the real market before you move on to other levels of option trading. And there are a few levels to work through. :)

Now I wish you good reading and have a nice day :)
 
Somatung

Somatung

Banned
#29
#29
@Sharan

You may read this post from Lemondew which is doing spreads at the moment. I had a few private chats in the past with him about that kind of trading. We discussed a complete other way of option trading compare to the way I mentioned here. But that is no problem as there are so many ways to trade options. As I told: There a quit a few levels you can work up over time.

Final point: The risk in those way of spread option trading he is doing is not lower or higher compare to what was shown here in this thread, as long as he is following the clear defined rules in his way of trading.

You risk a few Rs with otm options and he risk some Rs with the spread he chooses in his spreads and then the way he is managing such spreads. It is an other level you may think about it in the future. I have pointed you to two threads which are about option credit/debit spread trading which are the basic of this kind of trading which can of course be very well improved. But that is an other subject.

http://www.traderji.com/introductions/95411-intro.html#post1001097

Take care and have a nice weekend :)
 
Last edited:
sharan

sharan

Member
#30
#30
Hi Somatung,
Have started with pratap's thread. The perfect thread to start for novices like me. Intentionally going slow so that I grasp more and most importantly I do not get a feeling that I am understanding everything. Thanks for the mentoring. Am grateful for it. 2 points:


1. SBI 2300 put closed at 5 rs
SBI 2350 put closed at 9 rs as of Friday. From this can I safely assume that if SBI slides on Monday by rs 50 then the 2300 put will give a value of 9 rs? (Considering that there is no time decay for the weekend). I am aware that sgx has closed 40 points up and Monday the mkts are poised to open in green. So the put value would decrease in case SBI goes up.Pl respond to my query from the theoretical perspective. Actually I am planning to buy 2300 put at 3.80 rs. Target rs. 10. No sl. Max loss is 650rs including brokerage.

2. I have been browsing the forum of late and gather that you are an authority on options. Why don't you start a thread where you could help people like me with our queries (not our trades). See if someone like me starts a thread possibilities that I will be ridiculed (for my current knowledge level) is very high. I wish to learn and be confident myself.
Hope you oblige with the second request. Would enable many to make a living out of trading options.
In anticipation.





Somatung said:
@Sharan

You may read this post from Lemondew which is doing spreads at the moment. I had a few private chats in the past with him about that kind of trading. We discussed a complete other way of option trading compare to the way I mentioned here. But that is no problem as there are so many ways to trade options. As I told: There a quit a few levels you can work up over time.

Final point: The risk in those way of spread option trading he is doing is not lower or higher compare to what was shown here in this thread, as long as he is following the clear defined rules in his way of trading.

You risk a few Rs with otm options and he risk some Rs with the spread he chooses in his spreads and then the way he is managing such spreads. It is an other level you may think about it in the future. I have pointed you to two threads which are about option credit/debit spread trading which are the basic of this kind of trading which can of course be very well improved. But that is an other subject.

http://www.traderji.com/introductions/95411-intro.html#post1001097

Take care and have a nice weekend :)
Click to expand...
 
You must log in or register to reply here.