Hai All, in my 10 years of trading experience , i am also doing cash secured put some time , but its not a safe strategy at all , may be a year we will make gain , any overnight problems it really wipe out the account , selling a naked put whatever you can call , selling puts is really danger then selling call , when the market is coming down dramatically IV will increase , the premium in put side will increase like anything , in the stock its really danger , there is black swan event we cannot predict in the market , black swan always put lower or upper circuit in those time whatever we make in a year its will take out in one day , until you never involved in those event as a trader we will think we are intelligent , in my trading career i seen lot of my friends wipe out the account through writing cash secured put also
I transferred 50k in zerodha, and traded in option buying, in two days I lost 15k,
learnt a lesson, and now transferred all remaining money back to bank account, at latest not lost all,
All youtubers are fake, they will show you that they are making money with fake screenshots or edited videos, but their PNL says everything, they never share their PNL
Lesson Learnt
- Never trade in options
- Never trade in Futures
- Never trade in stocks
- Never trade in selling options
- Never be trader, they have no life
- All experienced traders are now trainers, ask your self why?
- Stockmarket will open every day, but if you lost your money, they you cannot regain, your life will be under pressure for recovering money which is endless
- You can call me a loser, but this loser will save lots of people in stockmarket
Very True !
Like Nithin said only 1% of the traders make more money than FD.
Stop trading and start learning!
But technical analysis and knowledge alone is not sufficient like you found out. You need to have a plan and have very good risk management! Remember, the knowledge required to trade is not difficult, the hardest part is managing your trades and having the psychology to trade!
Learn from your mistakes! You’ve already pointed out your mistakes so stop that and you should be alright!
This is all that I have been doing for past 15 months.
Been doing it with fundamentally good scrips only.
In Bharti I started last year May when it was trading at 550. I started selling 500 puts every month. Infact it touched 400 in the next few month. I continued with selling 500 puts and didnt panic. I knew it would come back one day. Took 3 months to cross 500 again. And I slowly started increasing my strike every month. Now past 3 months I have been selling 550 puts.
Basically Airtel is where it was a year back. But just with premium from selling puts I have made over 3L here. And margin required is roughly 2.5L. So when the underlying has actually given negative returns I have got more than 100 percent.
This is just one of the stocks that I have used. This may not work all the time. But for me, so far so good.
Though this is not directed at me since I use the same strategy I would like to share my experience here.
Last year since stocks were at lows I was comfortable selling puts. Now I am not so much on stocks. So I prefer index.
Been selling 34k bank nifty from past 3 months. Bank nifty has gone nowhere and every month I get premium of around 800. Thats around 20k for margin requirement of 1L… remember margin required is coming from pledge of my portfolio and money market funds. So practical my investment is only 20k which is the haircut on pledge.
I shall consider your suggestion because I am not as experienced as you are. In equity for 5 years but started FNO only in April 2020 lockdown.
I will tell you my reason for doing this. I am more of fundamental guy. I understand technicals but it doesn’t make enough sense to me. May be thats because fundamentals make more sense to me. I am sure I have been lucky cos of the rally in the last 18 months. Now that I do it only in index I do not see much of a problem. Lets say I keep selling 15k puts in nifty. If it comes ITM I simply buy one lot in nifty bees and keep selling 15k calls until is crosses 15k again.
Some day may be after 10years also, nifty will come back to 15k right.
Please tell me I am missing out on something. Always flexible to accept opinions.
It is safer doing it on index compared to stocks. You should have the courage to keep holding ETF even if Nifty touches 10000 or 11000 again.
Yes. Thats what even I realised. Now I prefer index. And yes. I will hold etf even if nifty goes to 5k.
@Jason_Castelino happy to hear you ,
first of all if you need to stay in market we need to divirsified our money in all the segment , how can i tell i dont know , i will explain little bit , every month i am making around 4 lakhs profit , for proof i am put the screenshot here , and then i am not a mentor , in mentor you cannot learn anything …
every month the 4 lakhs i will re invest in the market like 1 lakhs in debt , 50k in SGB , 50k in international mutual fund 1 lakhs in REIT , and rest in domestic equity and mutual fund , the same i will pledge again i will trade , one more thing i am a full time trader… i am just doing these thing month on month and stick in my rules , in all market i will make money , like that first you want to build up you and the portfolio , if you ask me which one is good selling or buying option or futures or intraday , its all depended upon your skills in the market , in all the segment we have a chance to make profit , first need strategy and test your psychology level
Looks like I do almost the same thing as you. But few things are different. May be I have never bought options because I feel ultimately only sellers make money. I might be wrong.
Till March 2020 I was only a long term investor. Buy and forget. Because I do not get enough time for market. I am a practicing Chartered accountant. I have my own academy for CA students too. So with all this I get absolutely no time. Then came March 2020 lockdown. Theoretically I always knew how options work because we have to study it at CA final level. So I started applying it on paper on daily basis.
My equity universe was always restricted to large caps. If market cap is less than 20K I don’t get tempted to enter the stock no matter how attractive it is. So what I started doing is I started fundamentally analysing stocks. So in March 2020 I found sbi very undervalued. It was trading at around 180. I was always ready to buy one lot in cash market. So what I did was I bought one lot in future sold one lot of 200 call and whatever balance amount was there I put in liquid funds. I was ready to take delivery any time. Because as a long term investor Daily fluctuations do not matter. Thats how I started and it has worked so far. Even now I do not enter any option trade if I am not ready to take delivery of that stock.
And now stocks look expensive and I have shifted to index. And now I am ready to take ETF one lot delivery. In last 18 months I have made enough profits to buy nifty 4 lots in delivery. Even if nifty becomes 0 I won’t be losing out of my capital.
@stocktaders you are correct but i think you should only quit day trading not stock market. Focus on investing and swing trading 
@Stonecold Thank you.
But please don’t try to replicate the same. I am not sure if it will work for others. It did for me because I was, is and always will be a long term investor. Daily movements won’t trouble me.
All the best
Now that you know where you have lagged, you can start again and this time with proper knowledge and strategy. You will surely earn good money.
Rollover futures to next month. No doubt you are booking loss this month. Ultimately when liver comes back to your buy price, you would be in green.
If I feel its week in short term I would play a little safer.
Option 1. Sell 2300put (least risky)
Option 2. Sell 2400 put.
Option 3. Buy one lot futures at 2425 and sell two lots
Of 2550 call.
I would prefer third option in the current case cos there are 9 trading days left for this expiry and I don’t see it crossing 2550.
Now that you have spoke about HUL, I can tell what exactly I have done over here in the past 1 year.
I entered HUL futures in May 2020 at 2223 and simultaneously sold 2300 call. HUL went down straight away to 1900 because of a block deal which was supposed at happen between 1950 and 1900.
So next month I sold 2200 call and kept rolling over to next month. When spot of HUL came closer I shifted my call to 2300. Currently also I have position in HUL.
Before previous month I was having futures at 2350 and short call of 2500. Two days before expiry it crossed 2500. So what I did was sold 2500 put of June series for 56 points. Right now its trading at 90 and is in loss. So if in another 7 days it doesn’t cross 2500, I will sell 2500 put of next month.
I hope I was able to summarise in the way you could understand. I tried to take a screenshot of my HUL trades of last 15 months. Wasn’t able to capture in one shot.
Few questions which you may have.
So how much did I make by doing this for almost 15 months? 1.9lakhs.
Margin required? Roughly 1.2lakhs.
Whats the max loss I had in positions? Around 90k when it went to 1900.
Did I panic at any stage? No.
This has worked for me. I do not know how right I am because I have heard many say it doesn’t work all the time. Please know what you are getting into before you take a similar trade.
@Mr_M dont trade when you are disturbed
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