So it started like this. A friend at dinner showed his pnl saying he made more returns in options ce /pe and he doesn’t need much in trading account. He made a return of 20% intraday wrt his account size.
So, he was eagerly explaining how it was much better than trading in equities. It required less money and returns are quick.
He makes a buy in ce incase in sense upward movement and sell in pe incase of downward movement. That’s it.
It’s all Greek to me. Well, it’s interesting too. So apart from Zerodha varsity, how can I learn options, and fast forward quickly.
Currently I trade only in equities. But boy, that dinner lighten my eyes.
Greed is not a good place to start trading, trading is a lot more difficult than it might appear to be. Be prepared to invest some time and effort. Start with small capital that you are ready to lose.
Also, stock options are not liquid i think although i don’t have any experience trading them.
Some books that i had marked for reading were - 1) Options as a strategic investment. 2) Option Volatility and Pricing. But i dont trade options so never did read them.
this is how my trading screen looks like. I have traded only 2 instruments till now. Then Commodities and now equities.
I don’t want to read trading books. Guys, I know how trading is. I just don’t know options. And I don’t want to read zerodha varsity. I want a shortcut into options.
I can and will manage risk. That’s what I am good at. I just want to explore options. I feel just left out when people talk about calls, puts, premium. Just show me a simple strategy of what you guys do. I can pick up from there. Just spare the basics! show me THE business. (not sounding arrogant)
eg, my strategy in equity, I pick few stocks, which remains fixed most times. I keep a tight SL, and I go heavy on qty side as I mostly risk a bar. Then I go 1.5R atmost. I take 2 trades at most, and I am done within the 1st 1 hour.
See, someone can take a hint what I do, which maybe helpful. just share your strategy. Don’t worry, your profits will not go away, if you share. We are not the same.
Only NF and BNF options are liquid i think, so you may have to focus there. Just for example - google 920 straddle, its very famous and simple trend following system. But its facing some challenges right now i think as index is more noisy around open price.
No idea, i have not done any research on it as i don’t trade it. But it seems valid in concept. Sundar is fine i guess, his views are generally sane from few videos that i saw. You can look at squareoff too - blog/youtube. The guy who disclosed this system also has his own options backtesting website - i don’t remember who it was.
You should start in options only when you have spent years day trading and can read charts. Reading charts is also required in options. My suggestion would be to first read about various option strategies and do paper trading based on that. Always hedge your positions otherwise you might get big losses.
Note: These are my personal views and not to be treated as investment advice.
yeah, i don’t want to learn options as its limited to NF and BNF and already have plenty of ideas to implement. So have not looked at 920, but it looks decent. It needs directional movement off open so you are targeting trend days.
Again note, that it is probably going through difficult phase rate now with up down movement in Nifty. yesterday would have been good.
Also, much better to trade multiple systems, so once you have started trading one add more. It makes big difference to overall risk - dd etc. There are some other option based systems disclosed by bot makers that you can look at.
But best to backtest and fine tune system yourself too and give it your own flavor. If nothing else, it will give you some conviction which is badly needed when system is out of sync with market.
First you need to understand that the returns in trading options is high and is also quite risky. You also need to have risk appetite in options (especially in buying)
In summary, there are two types of strategy in options. Buying and Selling (writer).
First learn the basic of options from youtube.
Learn from buying side first and after that you can apply it on selling side.
Check out the playlist of power of stock/ opitonables/ theta gainer to learn the basic.
Majority of the youtuber are seller ( PR/ Power of stock etc) and some are buyer (Ghanshyam tech).
