vishnux
September 18, 2019, 5:19pm
1
Suppose I have 10 lakh capital , If want to earn 2000 per day with max risk of 2000 per day. Which will be the best strategy ?
For example selling 1220 CE and buying 1200 PE. This protects me from big gaps overnight.
So what do you feel safest strategy for small income ?
3 Likes
ShubhS9
September 18, 2019, 5:26pm
2
Straddle (Buying/Selling Call and Put options of same strike) is safe bet IMO, all you need is one big move in either direction.
1 Like
vishnux
September 18, 2019, 5:29pm
3
I want to make money in time decay , not volatility… because 8 out of 10 times , there is no big move , maybe i can try these with next day result stocks.
1 Like
This word SAFE is not in the market ,
if you are buyer most of the time you will loose money ,
if you are a seller most of the time you make money ,
better Sell and buy
5 Likes
see my post in trading QNA - guys post daily profit .
you will become some good idea
vishnux
September 18, 2019, 5:30pm
6
I am seller , but how come its not safe , if i cover my CE sell with CE buy ? I am defining my max loss with the premium difference right ?
1 Like
i did in understand , if cover CE sell with PE buy
CE sell with CE buy this will work
1 Like
vishnux
September 18, 2019, 5:33pm
8
yea yea extremely sorry , my bad, example : 1200 CE sell and 1220 CE buy…
1 Like
ShubhS9
September 18, 2019, 5:36pm
9
Yeah straddle will be good choice when there’s some news expected in stock. Also you’re right with weekly expiry chances of price decay are more than wild move.
1 Like
if you r selling CE 1200 and buy 1400 this will make decent profit , if you r selling and buying very close the profit potential will be less of blocked margin , its all about adjustment
see here people r posting there profit and sharing some strategy
see i given example like one strike above you can cover, its will make decent profit , because most of the time market will not move
abc stock -1200 sell
1300
1400 buy
vishnux
September 18, 2019, 5:52pm
14
Ok lets have this scenario , I am daily getting 1 or two points … and one day if price gaps up and reach 1300 and expires in it , I will have loss of 100 points , since I sold 1200 and 1400 will expire worthless …
ShubhS9
September 18, 2019, 5:55pm
15
Bro, it’ll better if you first do paper trading rather than diving directly in market. This way you will also be able to test different strategies.
Also, regarding Options trading. I found this article helpful to come up with strtegy. Do give it a read https://www.newtraderu.com/2019/08/18/3-best-direction-neutral-options-trading-strategies/
vishnux
September 18, 2019, 5:57pm
16
I am into market for few years , just want to get more knowledge…what others are feeling.
velu
September 18, 2019, 7:04pm
18
Play with far otm iron condor
1 Like
sell nifty weekly CE/PE which are in range of 5 to 6 rs based on pivot points, exit it pivot get crossed
every day, ensure not to sell CE if its shortcovering rally and not to sell PE if market in below support
1 Like