best nifty option trading strategy

See it will vary from person to person. There is no need to wait for a week, you can exit milli bitcoin faucet website same day, next day or in two days. In my Advanced Options Trading course, you can see me break down the protective collar strategy in easy-to-understand language. The trader is protected below 95 until March 15th, with the trade-off of potentially having the obligation to sell his/her shares at 105. Q 4 can both be done on stocks?

Best Nifty Option Trading Strategies

Technically they are insurance as they cannot protect the losses they can only limit. And technically its not even a condor. If you are banknifty weekly options trader you can do my Bank Nifty Weekly Options Futures Strategy Course. Keep Stop Loss in your system: I said stop loss in your system not in your mind. Losses are limited to the costs (or premium spent) for both options. This strategy is appealing because an investor is protected to the downside should a negative event occur. Depending on the condition of Nifty and of course your view, sometimes it is better to buy options, sometimes it is better to sell options. Do not be greedy. You should do virtual trading for a while before putting your hard earned money on the line. It can be between 3-5 a month. Remember its all about points and nothing else. With a little effort, traders can learn how to take advantage of the flexibility and power options offer. If you feel markets are not going to move much in either direction for the next few days Iron condors are the best strategy during these times.

If you call and trade, you can ask the operator to keep a stop loss in the system as soon as you place the order to trade and it is complete. See this 7 straight profits in Bank Nifty Conservative Strategy done in Nifty 7 trades with no loss in Nifty Result may vary for users. Paper trade both in Nifty, Bank Nifty and Stocks. (For more on these types of strategies, see. Traders often jump into trading options with little understanding of options strategies.

So your max profit will be capped till the stock reaches 5800. One Aggressive for future traders (with hedge and one Conservative for options only (with hedge) intraday or positional trading. You can also share real trades with. Maximum loss occurs when the stock settles at the lower strike or below, or if the stock settles at or above the higher strike call. Q 9 who is eligible for the bank nifty course? The long out-of-the-money call protects against unlimited downside. This is how a bear put spread is constructed. In a nutshell, Trading in stock market without a Strategy is like trying to build a house without a Blueprint.

best nifty option trading strategy

What Is The Best Strategy For Nifty Option Trading

And if the market starts to go down, the 5800 call sold will start to generate profits; however your losses will be more in the 5600 call bought. in the P L graph above, you can see that the protective collar is a mix of a covered call and a long put. Yes the losses can be more too. This strategy is often used by investors after a long position in a stock has experienced substantial gains. Note: Since the last 1 year or so (May 2013 volatility is on the higher side.

Typically, the put and call sides have the same spread width. In this video, I sell a call against my long stock position. After about one month you can start trading. For such newcomers my Conservative Nifty Option Course is good. Both call options will have the same expiration and underlying asset. This strategy allows the investor to have the opportunity for theoretically unlimited gains, while the maximum loss is limited only to the cost of both options contracts combined. Each contract is worth 100 shares. The call credit spread acts as a hedge for the put credit spreads. If you are thinking how will you make profit because one call will be in profit and another in a loss? Still, you must consult an authorized advisor or do thorough research before investing in any stock or derivative before trading any strategy given in this website. If you trade Futures too here is a piece of advice: If you buy a Future do buy an ATM put and if you short Future do buy ATM call. But this strategy will limit your income and the risk-reward ratio is also not good. ) In the P L graph above, notice how there are two breakeven points.

Vertical Bull and Bear Credit Spreads.). You can buy ITM calls. Sell below 11,147 Tgts: 11,132 / 11,117 SL: 11,167. Also note that no volatility can supersede Delta and Gamma if you view was right. To know volatility you can visit:. Margin required as per the lot size of 20 in Bank Nifty? Both the strategies are properly hedged to ensure losses are less and limited, but profits can soar. How a Protective Collar Works. There are many strategies available that limit risk and maximize return. Maximum loss is usually significantly higher than the maximum gain, which intuitively makes sense given that there is a higher probability of the structure finishing with a small gain.

Nifty option buying strategy best nifty option

Thanks for visiting my website). However every trade depends on the trader and his level of risk taking capability, knowledge and experience. I strictly adhere to laws of my country. They are actually trading short strangle or short straddle. But how do you decide what exactly to do Buy or Sell? Within one month you can start trading on your own. The further away the stock moves through the short strikes (lower for the put, higher for the call the greater the loss up to the maximum loss. In a similar way, this unique trading method yields profit-only profit-before month-end every month. Basically it is based on Option Scalping Strategy with Protection.

It is referred to as a covered call because in the event that a stock rockets higher in price, your short call is covered by the long stock position. This strategy has both limited upside and limited downside. An even more interesting strategy is the iron condor. Learning to hedge properly itself is worth the course fee. (For more on this strategy, read Setting Profit Traps with Butterfly Spreads. Unfortunately this is greed and nothing else. Important: Whatever you trade you should strictly limit your losses. A long straddle options strategy is when an investor simultaneously purchases a call and put option on the same underlying asset, with the same strike price and expiration date. Some practice is required here. Some people sell condors without hedging it (means without buying the calls and puts as protection or insurance. But if the stop loss is hit, you cannot do anything about. All of the strategies up to this point have required a combination of two different positions or contracts. The reason an investor would use this strategy is simply to protect their downside risk when holding a stock.

If you have still not subscribed for my free 5 days course you can do by filling the form above. The trade-off when employing a bear put spread is that your upside is limited, but your premium spent is reduced. Greed, fear and hope are the three emotions that are your worst enemies while trading. Once you pay you will get both best nifty option trading strategy strategies written. Even if you are right 50 of your time, with this strategy you should make money, because the sold calls will limit your losses. Conservative can be done intraday in bank nifty and positional in Nifty/Banknifty/Stocks. If you buy out of the money calls, the underlying has to move significantly for you to gain some points.

Best Nifty Option Trading Strategy!

The further away the stock moves from the ATM strikes, the greater the negative change in. Here is Profit Loss Graph of the conservative strategy of my Bank Nifty Course if done on Nifty: Note: Aggressive Banknifty Strategy can be traded. If you have best nifty option trading strategy any question you can contact. Prologue, in stock market, do not aspire for windfall profits. 5000/- only which you can pay online by credit card or net banking. Q 6 intraday or Positional? Profit.37,650/- iingle trade In Aggressive Strategy.

And we have more time to book profits but in stocks profits can come before 7 days. The other one is purely for Bank Nifty. Again, the investor doesnt care which direction the stock moves, only that it is a greater move than the total premium the investor paid for the structure. In other words please do not sell naked options. (For more on this strategy, read. The trade-off when putting on a bull call spread is that your upside is limited, while your premium spent is reduced. This is not a tip or advisory service, it is a well researched and planned Bank Nifty Weekly strategy.

Bank Nifty Weekly Options Strategy 3 Nifty

An investor will often use this strategy when he or she believes the price of the underlying asset will move significantly out of a range, but is unsure of which direction the move will take. Amazing Nifty Strategy, t rading in stock market is like a double-edged sword. Watch me as I break down the mechanics of a strangle in plain, easy-to-understand language. This strategy functions just like an insurance policy, and establishes a price floor should the stock's price fall sharply. One must also have the required knowledge and maturity to understand and accept what stock market offers. However this strategy can be very profitable over a long period of time. Both strategies can be traded in stocks too. This is an excerpt from my Advanced Options Trading course. We have developed an Innovative, Foolproof nifty positional option strategy. Paper trade both the strategies for one month and stick to the one that works best for you. Better Than a Job!

You can also think of the construction as two spreads. Direction does not matter. So what do you do? These strategies can be traded in stocks too. Avoids overheads such as the use of costly software, subscription to best nifty option trading strategy advisory services. This only means that if you dont put a stop loss in the system, you will never take the stop loss and you may lose too much money before you even realize. For every 100 shares of stock you buy, you simultaneously sell 1 call option against. With calls, one strategy is simply to buy a naked call option. If outright puts are expensive, one way to offset the high premium is by selling lower strike puts against them. You can pay the course fee.5000/- by credit card, debit card or net banking. In a long butterfly spread using call options, an investor will combine both a bull spread strategy and a bear spread strategy, and use three different strike prices. In stocks its better to trade intraday. So your profits will be more.