I am Thinking to start option selling for regular income any one else here who want to join and learn…
its free no charges am am also learning so going to start with straddle selling
i have deployed a trade in jan month and booked a profit in it of about 9.7k it arround 10% income. Capital Needed for deploying a straddle is arround 80-90 k with margine hedges but you need 2.5-3 lakhs of capital in worst case scenario To do some adjustments in case of loss or to increaase the profit.
Here you can see the trades main goal will be to achieve 4-5% return on the invested capital. As this trade is for educational purpose so will do it only with 1 lot with monthly risk of 4-5k .
Your loss or profit is totally yours, Option selling is very risky it can also give you unlimitted loss in adverse situation so don’t try if you dont have basic knowledge of it.
You can also try it on virtual trading platform my main focus will be on learning and wealth creation.
just reply if you also want to start or learn
I Will start a group as we will get 5-8 members
@Kiran_Gumraj do you have basic knowledge of options
Thanks for your reply… yes… i can say 2/5
So i am waiting for the budget as ivs are very high due to budget market can be volatile
we will deploy new trade after budget
Bank Nifty down by 2500+ points so expecting an upmove in the budget or after but its a trade only for study
if Bnf goes above 41000 we will get profit else there is only a loss of 1500 that also we will manage later on and convert it to profitable trade.
On the upside we will be in profit till bnf doesnt crosses 42900. for up side i am not having any risk so i am not taking care of the loss on the up side
Max profit we can get here is 23000 on the capital of 60000 we can exit any time once we get a profit of 5-6k which will be arround 8-10% of the invested ammount .
once bnf will cross the 42500 i will take action to minimise the loosses on the upside
*** Note i am taking this trade its just for the learning
*** You will be responsible for any Loss or Profit if you will take this trade
Now from 1500 of loss on downside previously to 1200 pluss on down side no risk downside
now this trade has been completly riskfree downside
I am also looking at shorting options but in stocks…
I am looking to trade in shorting options looking at the theta decay angle.For example the stock CMP is 2000 and i feel it will not go above 2300 so i would like to short this call while going long a 2500 call for protection.But I have seen that one gap up or wrong trade takes away all the gains plus more.Is there any way else to hedge or prevent this loss?How do experienced traders deal in this type of trade as even many times the stop loss will also not get triggered at any favorable rate.