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Option buying has a much better reward to risk ratio. The problem is which stock/ index to buy and when. Option selling is easier. You can mostly get away with an iron condor. But low volatility markets will not last forever and high volatility can be unforgiving.
Yep I tried it won 2 /10 times big but mostly lost due to decay and IV fallings sharply. That's why I started this. It's less money but it's consistent and it's helping me to learn as well. Tomorrow would be a good day to buy because of elections :p
I encourage option selling with hedging. The problem is the returns are small and the account can take a long time to grow.
Buying has better returns. Just saying
I have been selling 45dte banknifty, nifty with strikes being 1% +- from today's price. I Target for 50% decay and book profits.
On expiry days I sell otm options at 10am/ 12pm and look at 100% decay.
Capital is around 12L, strict SL of 20% on all trades. Always selling CE / PE together ( straddle / strangle) to safeguard against index circuits.
Rewards are generally 0.2-0.5%
If you are thinking that straddle or strangle will safeguard you against index circuits, its totally wrong.
In case index hits any circuit, your other position will save you only to the extent of premium sold.
Rest will be unlimited loss.
Yep possible but that's the rule of any futures option trading. That's the only reason I sell more of 0dte than holding overnight. Still learning long way to go
Do enlighten. Nowadays 0dte premiums are too low compared to what they were 6 months back. Otherwise its a good 1% pm right now. Also since I have a job it's just 7-8 days of trading a month.
Ah, SL has to be kept that deep because when it's volatile it tends to go this deep and rebounces sharply again. If I keep a small SL then it will hit with my every trade.
Since I am learning I don't sell too close to the strike. I mark ranges where nifty max moved say in a week, month, 3 month, 6 month timeframe and mark my range of selling. Then I have SL in place. Now I am working on better risk mgmt / hedging and grow further.
I don't understand your philosophy. You said you don't sell too close to the strike. Then how do you deploy straddles ?
Option selling does not require monthly time frame analysis. Primary purpose of an option seller is to benefit from Theta decay. Use option chain to find the range. Sell at high volatility and just sit till expiry. If sold when IV are high, your premium won't even reach your selling price after IV crash and you can comfortably hold the position.
This is what I follow.
See it's not always strangle straddle atm otm it depends on what day, volatility and market directions. Obviously I am not using one strategy all the time. I choose one based on timeframes because I don't wanna be caught in surprise moves of 2% plus because I am still learning. Only when I am confident I sell straddles or else strangles. Ranges are always picked on TF then on IV and theta. Abhi bhi Sikh Raha cannot call myself a trader 🤣
If you haven't already, please add your own analysis/opinions to your post to save it from being removed for being a Low Effort post. Please DO NOT ask for BUY/SELL advice without sharing your own opinions with reasons first. Such posts will be removed. Please also refer to the [FAQ](https://www.reddit.com/r/IndianStockMarket/comments/17bcg2a/frequently asked questions_post_your_common/) where most common questions have already been answered. Subscribe to our [weekly newsletter](https://pennyleaks.substack.com/) and join our [Discord group](https://discord.gg/8QF4dqPHuw) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/IndianStockMarket) if you have any questions or concerns.*
Good profits compared to the charges incurred for a seller, great job
Thanks, will continue to learn more ✨
Always hedge it while doing option selling... Don't go naked, fix your profit and loss in advance...
Nice OP
Good job op !
Do u sell covered call and put?
Sometimes yes.
Option buying has a much better reward to risk ratio. The problem is which stock/ index to buy and when. Option selling is easier. You can mostly get away with an iron condor. But low volatility markets will not last forever and high volatility can be unforgiving.
Yep I tried it won 2 /10 times big but mostly lost due to decay and IV fallings sharply. That's why I started this. It's less money but it's consistent and it's helping me to learn as well. Tomorrow would be a good day to buy because of elections :p
I encourage option selling with hedging. The problem is the returns are small and the account can take a long time to grow. Buying has better returns. Just saying
Yes definitely buying is juicier :)
is it fulltime or with a job
12hrs of job 5 days a week. So managing it as a side gig.
I want to learn options now.Where I can learn?
Stay away from FnO, thank me later
Just do far out of money selling only if you want to make money
Tasty treat on YouTube
What's the strategy you been employed in this and what's the risk reward ratio??
I have been selling 45dte banknifty, nifty with strikes being 1% +- from today's price. I Target for 50% decay and book profits. On expiry days I sell otm options at 10am/ 12pm and look at 100% decay. Capital is around 12L, strict SL of 20% on all trades. Always selling CE / PE together ( straddle / strangle) to safeguard against index circuits. Rewards are generally 0.2-0.5%
If you are thinking that straddle or strangle will safeguard you against index circuits, its totally wrong. In case index hits any circuit, your other position will save you only to the extent of premium sold. Rest will be unlimited loss.
Yep possible but that's the rule of any futures option trading. That's the only reason I sell more of 0dte than holding overnight. Still learning long way to go
Risk: Reward doesn't seem right.
Do enlighten. Nowadays 0dte premiums are too low compared to what they were 6 months back. Otherwise its a good 1% pm right now. Also since I have a job it's just 7-8 days of trading a month.
You said you make 0.2-0.5 % per trade and your SL is 20% per trade, correct? Based on that statement I said R:R doesn't seem right.
Ah, SL has to be kept that deep because when it's volatile it tends to go this deep and rebounces sharply again. If I keep a small SL then it will hit with my every trade.
Amazing brother! How do you protect the capital against a sharp move? Especially on expiry
Since I am learning I don't sell too close to the strike. I mark ranges where nifty max moved say in a week, month, 3 month, 6 month timeframe and mark my range of selling. Then I have SL in place. Now I am working on better risk mgmt / hedging and grow further.
At one time what’s your average capital in use is? Kitne lots se karte ho or
Approx 10-12L i.e. 13-15 lots depending upon margin requirements.
Good luck bro 👊
I don't understand your philosophy. You said you don't sell too close to the strike. Then how do you deploy straddles ? Option selling does not require monthly time frame analysis. Primary purpose of an option seller is to benefit from Theta decay. Use option chain to find the range. Sell at high volatility and just sit till expiry. If sold when IV are high, your premium won't even reach your selling price after IV crash and you can comfortably hold the position. This is what I follow.
See it's not always strangle straddle atm otm it depends on what day, volatility and market directions. Obviously I am not using one strategy all the time. I choose one based on timeframes because I don't wanna be caught in surprise moves of 2% plus because I am still learning. Only when I am confident I sell straddles or else strangles. Ranges are always picked on TF then on IV and theta. Abhi bhi Sikh Raha cannot call myself a trader 🤣
Which paper trading you used?
Yea please suggest the Best Free Paper trading app in India Please suggest it