Safest option strategy

F&O
4

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

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5

see my post in trading QNA - guys post daily profit .
you will become some good idea

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 ?

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7

i did in understand , if cover CE sell with PE buy

CE sell with CE buy this will work

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8

yea yea extremely sorry , my bad, example : 1200 CE sell and 1220 CE buy…

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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.

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10

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

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see here people r posting there profit and sharing some strategy

12

1400 ? or 1240 ?

13

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

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 …

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/

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I am into market for few years , just want to get more knowledge…what others are feeling.

18

Play with far otm iron condor

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19

sell nifty weekly CE/PE which are in range of 5 to 6 rs based on pivot points, exit it pivot get crossed

20

on friday ?

21

every day, ensure not to sell CE if its shortcovering rally and not to sell PE if market in below support

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22

you can use Collar strategy . it protects you from large losses but also limit your profits

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23

In my opinion bollinger bands can be used effectively. We can observe bands are contracting and expanding alternatively basing on the volatility. When volatility increase bands will expand and when volatility decrease bands will contract. Use straddle when bands begin to expand, use strangles or iron condor when bands begin to contract.

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24

you can use Double calender hedge

you can earn weekly with that

any calender based hedges is the safest.