OPTION TRADING RULES ( 7 )


IN ENGLISH
TRY TO TRADE OPTION WRITING SIDE...EVERY DAY,EVERY HOUR ALL OPTION  PREMIUM IS MELTING..SO TRY OPTION WRITING..WHO TRADE IN OPTION WRITING THEY ARE MAKE MONEY IN THE MARKET..

ONE OF MY FRIEND,HIS CAPITAL ONE LAKHS.. HE TRADE BOTH SIDE OPTION WRITING STRATEGY ..MONTHLY 15 TO 17 DAYS HE EARN MONEY..ONLY 3 OR 5 DAYS ONLY HE MAKE SMALL LOSS...

HIS STRATEGY

EXAMPLE
NIFTY FUTURE  TRADE 8750 RANGE .. 8700 CALL 80  RS AND 8800 PUT 80 RS..

 THAT TIME HE WRITE (SOLD)  OUT THE MONEY CALL AND PUT  OPTIONS..(NEAR STRIKE PRICE)

  SOLD 8700 CALL 1000 @ 80... 8800 PUT 1000 Q @ 80..

AFTER ONE HOUR  OR TWO HOUR..

IF
NIFTY GO TO 8780 (8750 TO 8780)RANGE
8700 CALL PRICE INCREASE 95(80-95) HE MAKE LOSS -15 RS(15*1000=-15000)
8800 PUT PRICE DECREASE 80(80-60) HE MAKE PROFIT +20 RS(20*1000=+20000)

SAME TIME NIFTY COME TO 8720 (8750-8720)RANGE

8700 CALL PRICE DECREASE 60 (80-60)  HE MAKE PROFIT +20 RS(20*1000=+20000)

8800 PUT PRICE INCREASE 95(80-95) HE MAKE LOSS -15 RS(15*1000=-15000)  

TOTAL PROFIT 20000-15000=5000-(TAX BROKERAGE 1200)=3800 NET PROFIT..

NOTE : EVERY BODY KNOW WHEN MARKET MOVE IF OPTION INCREASE SPEED 100% BUT OPTION DECREASE (MELTING)SPEED IS 150%...

MARKET ANY SIDE MOVE HE MAKE 85% SURE  PROFIT ...AND ALSO
MARKET NOT MOVING HE MAKE 100% SURE PROFIT (PREIMIUM MELTING)...
IF ANY ONE SIDE MOVE THAT TIME ONLY HE MAKE SMALL LOSS...(MONTHLY 3-5 DAYS ONLY...
FIRST TRY THIS @ PAPER TRADE ..THEN ONLY TRADE WITH UR ACCOUNT...
PLEASE TRY TO WITH YOUR OWN DECISION...