What is the safest strategy for options selling? And is 10 lakh enough for option selling?

Considering if a person has been in market for more than two years and is now planning to become a full time trader.

  1. Is 10 lakh enough capital for option selling?
  2. If so, then how much can one make consistently monthly?
  3. What is the safest strategy for option selling?

Any other advice?

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  1. Yes
  2. Depends 60-70 K , possibly
  3. Back test the strategies and see which works

Just out of curiosity how much do you need to meet your monthly expenses ? Do you have enough savings for contingencies?

The former has to come from trading if you become a full time trader. The latter if it needs to be grown or replenished also needs to come from trading.

  1. Yes more than enough.

  2. I’m currently running straddle strategy on nifty and bank nifty options and making around 3-5%, but consistent profits are not guaranteed and you can have losing months too.

  3. Hedge and Delta neutral strategies like straddle, credit spread etc. low risk low reward.


hi i have also started straddle selling lets make a group to learn more about management

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Sure, i can help

Straddle…Best startagy… Always hedge your positions
Here are some idea for upcoming week

  1. Wipro: Sell 410 CE option and buy 420
  2. HDFC Life: Sell 600 CE and by buy 610

I have taken up some position in Wipro for Feb. I have summed Wipro will not go beyond 410. On similar lines COFOGE should also not go beyond 4200.

But ensure that you have the right brokerage plan. You may end up paying lot of brokerage.

  1. Yes
  2. Around 40-60k
  3. Suggest you stick to Nifty or bank nifty , Individual stocks anything can happen .

Also all your existing equity use as collateral
Also liquid cash whatver you have buy gold bonds which is a liquid fund you will get 100% cash collateral

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i am thinking to start option selling is anyone here wants to join is most welcome


@vivek_singh @believeab I already started 10 years back - i started with 10 lakhs - before they have good margin -nowadays they reduced still option selling is good - now my NetWorth is 1.3 cr - the profit from option selling i invest in to GSEc Mutual fund and some dividend stock also - now my yearly dividend income around 10 lakhs - option selling income is 30 lakhs - every year 2 lakhs will increase - this methos you choose you will stay long in the market - never try to make more than 3 % in option selling - it’s my experience - i am full time option seller

Next 10 year is my golden years in option selling i believe -(SUBJECT TO MARKET RISK)


Do you have other income/profession or trading is your full time profession?

@Gnome no job - only trading income - i iam living trading income for last 6 years - now my dividended income is enough for me even i am not trading - my target to achieve 20 lakhs as dividended per year in next 5 years -

80 percent of my money in GSEC and and other 20 percent in dividended yield stock and mutual fund for longterm investment

now every month i am getting credited 1 lakhs as dividended - yearley average 10 lakhs as dividended as guaranteed - because its gsec 80% i invested -

my monthly income conservetive basic - 2.5 lakhs from trading + 1 laks from dividended
total = 3.5 lakhs per month income - again reinvested in asset allocation baisc

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@Gnome now zerodha stopped 60 days challenge - last two month conservative profit i posted here -

Upto you but it might be better to invest in growth versions of debt mutual funds instead of gilt directly, esp if you can hold for 3 years. You will get indexation + 20% tax instead of slab rates.
In return, MF will take some expenses. Gilt index IDFC is around 0.15%. And there is some MTM variation too but at maturity you should get the rate at which you invested in for fixed maturity funds. So giving up monthly income leads to much better post tax returns after holding period.

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I am not saying you are not making money. But you can’t have dividend income of 10 lakhs when you have a net worth of 1.3cr. Even if you have entire 1.3cr in equity, you won’t get dividend of 10lakhs. You are talking about dividend yield of more than 8 percent.

If you are generating 3 percent per month it works out to 36 percent even without compounding.
So your 30 lakhs when reinvested should give at least 10 lakhs.

Again. I am not saying you are not making money. But the figures you have given don’t work out mathematically.

Edit: what you are trying to say might be, the debt funds that you pledge give you return of 8 percent. This is possible.

vedanta i buy average price is 198 7 yera sback 17% dividnded yield

irfc 23- 7% dividended yield
rec and pfc 92 & 98 - 12% dividended yield
nmdc 105 -12 % dividended yield
-50 lakhs worth stock is fetching average 9% to 10 % yield
736 2036 bond i buy 92 price now its trading 103 @ aroung 20 lakhs
most of the bonds i buy discounted price gsec is fetching average 8 %
i have irb invit its fetching 14% dividended yield average price 51
powergrid invit fetching 8.9% divideneded yield average price 128

all the dividended will be re invested in coming month in tech mahindra and hcl technology
calculate it you will get answer

some stock suddenly give high dividended and some one will maintain same - but no one will reduced , because every company have sound caash flow -
average last year i got around 10.2 lakhs as dividended - these amount i reinvested in stock and gsec

for these dividednd to get i worked hard for last 10 years with goal

when you try in your accout its possible - 2020 i buy all dividended stock as discount - now those are bearing fruits now, in the form of dividend too capital apprecation brother …

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Am not saying you are not making money. The numbers you gave somehow don’t match up according to me. Your buy price is irrelevant if you are considering dividend yield.
If you are talking about appreciation in value of stocks and mutual funds then yes, it will easily go up by that value. So networth will increase by 10 lakhs in addition to whatever trading income you make.
Anyways. May be it is and I am wrong. Good returns. :+1:

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My Next goal is to fetch 20 lakhs as dividended - next 20 years i need to have atleast 50 cr asset

You just need 18 percent cagr post tax. Very much possible.


@TradeB2B in options selling , most of the times what strategy do you deploy . Which is the least risky and any other suggestion.