Options strategy to make profit

#1

Hi All,

Can anyone share their options strategy which works most of the time.
I am new to options trading. My strategy is based on news/results and place options trade.
But it is not working.

Thanks,
Anurag

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#2

Hi,

There is no such strategy which works most or more probability.
Strategies are based on Market Mood, How volatile, your view whether bullish/bearish,sideways etc.
For Event based trading, Option Shorting looks good as you can collect High Premium.

I am not expert in options

#3

If your direction is correct every strategy works perfect.

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#4

Just another event based strategy –

Take a 2 Standard Deviation “bear call spread” by 3:15 pm before the dividend date. Square off next morning (dividend day) by 9:20 on market open. Most of the time, stock will open gap down and you can earn a profit.

Disclaimer - Not all stocks will perform the same. Backtest the strategy for different stocks. Also consider liquidity and bid/ask difference.

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#5

Thanks @Muniz.Reza

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#6

Thanks @Harshajyoti_Das. Will definitely give a try to this… :slightly_smiling_face:

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#7

I am revealing my strategy - option strategy-which makes profit most of the times.
a) Butterfly - when market is calm
b) Iron Condor - when market is volatile
c) Credit spread - when market is unidirectional
If a strategy makes Re 1/-, then also it will be treated as profitable. Therefore, quantum of profit is ignored.

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#8

@Harshajyoti_Das
Dear

pls Correct me if am wrong

What if take Long Straddle ATM at 3.15pm, one day before the event day and the next morning whether gapdown or gapup ,(except sideways), my net numbers will be green.

#9

Option trading to work in your favour you need three dimension. Direction, Time and Volatility to work for you.

Stock - Price only
Futures - Price and Time
Options - Price, Time and Volatility

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#10

@Muniz.Reza In case of IV contraction, you will lose money.

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#11

Usually volatility decreases after the said event…right?

How can we track IV , or any specific indicator which shows IV more or less… to take an entry at the right time at low volatile.

#12

Hi Anurag, I am exposing my secret of successful option trading.
I usually use many simple ideas.
For options, I use open interest with price increasing. It can be get easily on nseindia.com (spurt).
As soon as any stock’s OI is above 20%, I convert it to nearest OTM option. As per my past experience, the success rate is near about 90%.
Do paper trading at least for 1 week to learn & get confidence.
Recover your loss & become a successful trader ! ENJOY !!
WITH BEST WISHES !

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#13

Thanks @Maharaj. Which order you trade. Buy or sell PE or CE.

#14

If OI increasing & price also increasing, I buy CE.
—’----’----’-----’— & price declining, I buy PE.
THIS IS STRICTLY FOR INTRADAY.

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#15

Thanks.

#16

Your strategy and proposal are good and fine, people use pieces like you and then compile their own strategy from all that, that’s how it works honestly, there is no free lunch at all with that no matter how you put it. Other probably have same opinion