TOP 5 MISTAKES OF OPTIONS TRADERS

1. Buying OTM(out-the-money) calls
2.Entering into Spread trades when 1st trade in loss
3.Ignoring premium depreciation at expiration
4.holding buy calls or puts till expiry
5.Trading in low volume options

NIFTY SHORT STRANGLE

                        SHORT STRANGLE

THIS IS VERY SIMPLE AND EASY  OPTIONS STRATEGY WITH 100% FIXED

MONTHLY INCOME GENERATED STRATEGY.

NOW NIFTY@6715

• SELL NIFTY6300PE

• SELL NIFTY7300CE

IF NIFTY CLOSE BETWEEN 6300 AND 7300 AT THE EXPIRY ,THEN THE BOTH

PREMIUMS WILL BE ZERO YOUR PROFIT IS 100%

WHEN I GO FOR SHORT STRANGLE?

IF YOU EXPECT MINIMUM OR LOW NIFTY INDEX MOVEMENT

SELL 500 POINTS BELOW PUT AND ABOVE CALL FROM CURRENT LEVELS

BEFORE 45 DAY EXPIRY 

TRY TO EXIT AFTER 15 DAYS TO GET MINIMUM 40% PROFIT BOTH SIDES.

AFTER 15 DAYS IF YOU FIND STRONG BULLISHNESS IN NIFTY EXIT 7300CE

AFTER 15 DAYS IF YOU FIND STRONG BEARISHNESS IN NIFTY EXIT 6300PE

IN 15 DAYS THERE ARE 4 WEEKEND HOLIDAYS WHICH KILLS OPTIONS

PREMIUMS

DO PAPER TRADE BEFORE ENTER.. 

WE CAN APPLY TO STOCK OPTIONS ALSO...LIKE

TATAPOWER,NMDC,BHEL,MMTC etc.....  

.

OPTIONS STRADDLE STRATEGY

OPTIONS STRADDLE STRATEGY

Buy both Call and Put with same strike price and same expiry

  Example: 

 Buy May6800CE@ 315

 Buy May6800PE@ 262

Advantages

• Limited Risk
• Unlimited Profit

Dis-Advantages

• Premium Decay when market neutral

CREDIT SPREAD

Credit Spread is limiting the risk of options trader

It is Combination of buy lower strike price derivative and sell higher strike price derivative with
same expiry date.

EX:     1.  CREDIT CALL SPREAD


               SELL 6200CE@ 132 X 50 =  Rs.6600

                 BUY 6300CE@    74 X 50 = - Rs.3700

                                     NET CREDIT OF Rs.2900


         2.CREDIT PUT SPREAD


               SELL 6400PE@  150 X 50 = Rs.7500

               BUY 6300 PE@    92 X 50 = Rs. 4600

                                      NET CREDIT OF Rs.2900



                                                         

INDIAN TRADERS LIFE CYCLE

Hi Friends as per my knowledge many Indian successful trader life cycle is

7:30 am---           Update Asian Markets (Shanghai,Nikkei,Hong Seng..)

8:30 am...            Update SGXnifty and Economic news and focus on today's results

8:45 am...            Watch the trading system for OI and prepare today's trading stocks or                                     derivatives

9:00 to 9:08 am.Observe the Pre Open Chart and Find High Volume stocks and Top                                            traded derivative

9:15 am              Do Trade with your prepared stocks or derivatives with Strict Stop loss

1:30 pm .....        Update European Markets (FTSE,CAC,DAX.....)

3:20 pm.....        Check for Closing and holding stocks of derivatives

3:30 pm...          Market Closed

7:50 pm....        Update US markets and news about your holding stocks or derivatives

## If you find more you can send to niftyoptionspicks@yahoo.com

Happy Earnings

Thanks and Regards
http://ow.ly/rvHSo

LONG PUT FOR BEAR MARKET/DOWNTREND

Long Put

       Buy  a Put when Market is Bearish,Risk is Limited

         and Reward is Unlimited. Increase in volatility helps

         position, time decay is only hurt the position

       Example:

        Now Nifty@6345

       Buy Nifty14FEB6100PE@30

       If Nifty is BEARISH due to RBI rate hike and negative global cues

       Nifty touched 6100 in Feb Series your profit would be 

  

       strike price plus premium paid

       Profit is 6345-6100 = 245 + 30 = 275 x 50 = 13750

       Risk is premium paid that is 30  x 50 = 1500

YOU CAN APPLY THIS OPTIONS STRATEGY ON STOCK OPTIONS ALSO

LONG CALL FOR BULL MARKET

Long call

Buy  a call when Market is Bullish,Risk is Limited

         and Reward is Unlimited. Increase in volatility helps

         position, time decay is only hurt the position

          Example:

        Now Nifty@6182

       Buy Nifty14Jan6400CE@12

       If Nifty is Bullish due to global data and 2014 elections If

       Nifty touched 6600 in Jan Series your profit would be 

  

       strike price plus premium paid

       Profit is 6600-6400 = 200 + 12 = 212 x 50 = 10600

       Risk is premium paid that is 12  x 50 = 600

YOU CAN APPLY THIS OPTIONS STRATEGY ON STOCK OPTIONS ALSO