I trade in Nifty CE/PE with target +10 from cost and -10 SL from cost ! - Here Profit and Loss(if goes negative) will be same. i.e., Rs.500 for one lot.
Suppose If I trade in 4 lots (buy CE/PE) seeking 2000 profit (+10 from cost * 4lots), here also I've to risk Rs.2000 if it goes in opposite direction. But I don't want to risk Rs.2000 here.
I heard about Option strategies like straddle,strangle,covered call etc.
Now my query is : Is there any Option Strategy to minimize the risk amount to Rs.500-1000(max)(if it moves negative), but with profit Rs.2000(min.) with the 4lots of Nifty CE/PE.
Ravi, don’t know if there is any strategy like what you are looking for. Straddles, strangles, covered calls are all strategies where risk is lesser than naked positions, but so is the reward. I have interacted with many traders, and the standout difference between winners and losers is risk management and not really the trading strategy.
When you trade with scared money, you tend to have tighter stops and hence the odds of winning also reduces significantly. What I’d suggest is, trade a quantity where you are not feeling scared or worried about your stop. If you can do that, everything else will most likely fall in place.
Also if you want to trade, forget about all your past losses and look at this afresh. If you look at it with the mindset that you want to recover your losses, you will be more aggresive/take more leverage, which will do more bad than good.