ROI for F&O traders

This isn’t a question. Just wanted to know how many out there are reaching the expectations from the market as an options trader. And what is your ROI expectation as an option seller and also if your option buyer?

I personally do option selling I am happy with 10% ROI every month and rarely option buying I keep a target of 10% ROI per trade( mostly my stop loss get hit :stuck_out_tongue: )

So is it fair to get this kind of return from markets and what is your expectations? if so did u reach your expectations.

Let’s talk about what is fair returns can we expect as an options trader.

You are saying like 10% ROI per month is so easy. May I ask, what type of strategy you use for option selling?

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No big strategy i sell stock options with high IVs. and exit whenever i see 1-2% ROI per day counting from the day i enter like I eixt if I see MTM of +3000 on 3Lakhs investment. no defined stoploss i exit whenever i feel markets going against me. i sell both CE and PE OTM

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I am only an option seller. Usually only weekly index options. My target is 0.5percent per week.
I started trading in FNO segment only in April 2020. I have an XIRR of 45percent to date.
I feel this is on the higher side mainly because the IVs were very high in 2020. I am happy with anything above 24 percent per annum.


Was that a reply to my above reply? Little confused because you have replied to KD61 but he was asking you for your strategy.

No i was replying to his comment on ROI 10% per month seems easy for him so wanted to know his strategy

Am I missing on something? He hasn’t mentioned anywhere its easy for him.
Anyways. :+1:

Do you also sell them overnight?

Please note that selling OTM PE and CE without any hedge is easy money in 99% or more cases, but just one instance can kill you. It can happen in 1 in 10 year also. A stock can move 10-100% easily once every 10 year due to some good news, and you may not get to exit even with stop loss.

I am sure, you are aware of the risk, just mentioning.

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Did you sell IRCTC options last month?

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yeah. I carry overnight and yes I lost all month earnings in one trade on DELTA CORP.

I sell options 10% away from the spot. I will fall at risk only when the stock opens gap up or down 5%

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Sry my bad, I read the comment the wrong way. deleted

No, I don’t enter into stock which is more likely to move violently on news. and its IVP is above 90 from mid-OCT as far I remember

  1. Its quite tough, but achievable( for long term large cap >50 L)
  2. Its achievable both by FNO selling and buying.
  3. All months/years are not equal, patience is the key.
  4. ROI is very relative term and don’t try to set the targets it doesn’t work that way as some months are more equal then others.( like George Orwel said :stuck_out_tongue: ). You should tough set target of what you are loosing as that is in your hand)
  5. In trading ,skills is primary; money and ROI is secondary
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You trade to not lose. Everything else is optics.

Whether you make a consistent return or not does not matter so long as you are not losing. Drawing an analogy, let’s just say that the Indian cricket team not losing is what matters in the end and not whether they won by 1 wicket/1 run or by 10 wickets or x runs.


100% spot on with this Analogy. This is very counter intuitive but its the ugly truth. Risk management and Risk rewards Ratios are the key in the world of randomness. Avoiding loss and being in the game for long is >>>> any ROI. I have heard people saying X% ROI over 1-3 months but 1 single day can eat up there whole earning of there month if proper Risk management is not followed. ROI will automatically follow.


I mostly sell stock options with a Conservative expectation of 2 % per month (on capital), some months with aggressive expectation i get around 4% per month.

10% wrt to Margin or the Capital ? 10% on capital is an awesome achivement , and if you stay consistant with it, you will double your capital within 3 Qtrs !! All the best.

10% on Margin is pretty fair, and it depends on the overall market situations. Some weeks you will have to just sit and watch, some weeks market presents superb opportunities.

Selling options with High IV also means more risk. That is why you are getting more premium. Here it is easy to lose money if proper risk management is not placed.

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