Always options are premium product......premium concept itself ....habit of deminishing....
Buying naked options needs knowledge and experience....and you should know how to fight with deminishing value of premium....otherwise ..sure, you will loose your capital....if you trade with naked options....
Most of the traders....always focus on buying naked option....thinking low risk...high reward.....(they should understand.......that it is total risk with capital erosion)...
Wise traders always prefer selling options......to encash the premium .....
Selling options needs, adequate capital (margin money) and technical levels......if you have both....you can make good money with consistency in the long run....it's not a big deal....
Money with Logic......we can make easy money .........(money makes money with logic / knowledge)..
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Last week......Case study.....Selling options....
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First Step....we should decide the band of the week......
Last week....Bank Nifty Forecast ...Top / Bottom....
Bottom Band Range as per forecast is 27520
So....we got the numbers for selling options....
Call option 28900 (top band strike price selling)
Put option 27500 (bottom band strike price selling)
What happened last week ?
Based on above analysis....charts are self explanatory...
Total profit per lot is Rs.45....in two days......with reduced risk and logic......
Same way ...we can do it for Nifty also....
Since, we have logic.........for selling options....we can kill the premium and eat......
Knowledge with Money.......we can make money...
Nothing is great if you use your eighth sense...
