Trailing stop loss options buying

General
1

Hi All,

I am trying to work on an ITM option buying system for banknifty/nifty.

The entry will happen, when the underlying option price increases by a given % in a day(hence we make an entry only after some kind of trend exists). I have been trying different SL-trailing methods and wanted to ask the trading community, if there is a particular way in which SL-trailing makes more sense for option buyers in India based on past experience.

I have traditionally been a option seller and am thinking on getting into option buying.

Please note that strategy is only INTRADAY option buying.

Saket…
twitter - sakets_says

2

Any response? I am looking details about how an option buyer trails stop loss… Like if the market moves in his direction after every 20 points trail the SL by 10 points etc?

3

Saket s 20 points is very easy …and it will hit very soon …have a stop loss of minimum 40-50 points and trail that …and at initial stage use only your 30 % of your capital and then when you understand and make adjustments according to your risk and profit appetite …