I am not a professional writer. I am writing this blog not to show anything or brag about what am I doing. I am writing this blog to help few people so that they understand options writing and learn from my mistake.
First of all, even after knowing derivatives for 7 years, I always had fear to trade in them as I myself told people that they are very risky. But my mentor, Mr. Jitendra Jain helped me to understand options writing & how can I earn from it.
How did i start?
Updated my knowledge of options, linking them in my brain as to what will happen when the market goes up and what will happen when the market will go down. i kept saying it again and again to remember so that i don't forget if I made loss.
Next, I did paper trading in which i followed nifty and bank nifty. I wrote the trade, I would have taken in live market and their price. One advise to all, if you are doing paper trading multiply nifty by 75 and bank nifty by 20 so as to understand emotional loss.
Option Writing with Short Strangle, selling out of money call and put to eat premium.
I keep doing this and due to time decay, the option premium goes down from both side.
Usually i sell an option which i can get in range of 35 to 50 and than buy it when it reaches 25 to 27. As soon as i buy back, i sell one more option of higher for put and lower for call which now comes at 35 to 50.
I have been trading on this strategy for last 2 weeks and trust me the results are amazing. As of now the returns in my portfolio is 3.5% (in 15days, 7% in month, 84% annualized returns)
Note: this strategy is very simple and can give you good returns, but your returns would be affected if there is sudden increase or decrease of high points in any direction.
My target is to double my money in a years time. I am just an amateur trader as of now and looking forward either learn or win.
Thank You very much for reading. I appreciate your time.
Learn, Practice, Lose, Practice, WIN.
First of all, even after knowing derivatives for 7 years, I always had fear to trade in them as I myself told people that they are very risky. But my mentor, Mr. Jitendra Jain helped me to understand options writing & how can I earn from it.
How did i start?
Updated my knowledge of options, linking them in my brain as to what will happen when the market goes up and what will happen when the market will go down. i kept saying it again and again to remember so that i don't forget if I made loss.
Next, I did paper trading in which i followed nifty and bank nifty. I wrote the trade, I would have taken in live market and their price. One advise to all, if you are doing paper trading multiply nifty by 75 and bank nifty by 20 so as to understand emotional loss.
Option Writing with Short Strangle, selling out of money call and put to eat premium.
I keep doing this and due to time decay, the option premium goes down from both side.
Usually i sell an option which i can get in range of 35 to 50 and than buy it when it reaches 25 to 27. As soon as i buy back, i sell one more option of higher for put and lower for call which now comes at 35 to 50.
I have been trading on this strategy for last 2 weeks and trust me the results are amazing. As of now the returns in my portfolio is 3.5% (in 15days, 7% in month, 84% annualized returns)
Note: this strategy is very simple and can give you good returns, but your returns would be affected if there is sudden increase or decrease of high points in any direction.
My target is to double my money in a years time. I am just an amateur trader as of now and looking forward either learn or win.
Thank You very much for reading. I appreciate your time.
Learn, Practice, Lose, Practice, WIN.
