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Options Trading - A way for fixed income - Provided you follow the Rules.

Feb 05, 2021
  1. How did they do it? How is it possible? Can I do it? 
  2. Are options a dangerous game?
  3. Why can’t we make money in options?

Options trading is successfully provided we follow the rules:

  1.  We should know when to buy options (either call or put).
  2.  Buying options always is not the right way to trade. It has time value and hence premium erosion also is the biggest factor even if markets are moving in your direction. This will result in trade failure even though the stock has come near your price.
  3. As an options trader, you should know everything if you want to become successful.
  4.  An options trader should know the below concept and should be ready to take trade depending upon the situation.
    • BUY CALL / PUT OPTION
    • NAKED SELLING 
    • JODI SELLING

If you are ready to adapt the above 3 concepts then nobody can stop you from being an excellent trader. A lot of people/traders tell me that they fear selling options and they are more comfortable buying them. 

Please remember that we are in the business of trading and not gambling. Hence we need to adapt changes and style to ensure our actions are profitable no matter how the trade is taken (buying first selling later or selling first & buying later)

Think again, If you want to be a professional trader, then you need to adapt all the above-mentioned techniques based on situation and time. Time plays an important role in options. 

A person who cannot adapt to the above and cannot adjust itself will always end up on the losing side. THE TRUTH WHICH CANNOT BE CHANGED.

Optimist & Pessimist are 2 sides of a coin. Both are equally important.   

Successful traders have overcome all these obstacles and have won over the challenges - 

1. How did they do it? How is it possible? Can I do it? 

Answer: Adapt to the changes and practice all 3 techniques regularly. To survive we need to adapt to the changing environment.

2. Why can’t we make money in options?

Answer: Because you are not ready to change. Fear has overtaken your thoughts and self-confidence. Practice can help you achieve anything you want. Hard work helps.

3. Are options a dangerous game?

Answer: Not at all. It is the easiest set of trading techniques. We just need to learn the process. We need to learn the index behavior.

We at MARKET MANTRA 99 will provide you complete practice and assistance. It is up to you to take it and change yourself and master the art of getting it right.

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Rohan Shinde

Founder & Director - Market Mantra99

Decade experienced with one of the biggest US subprime mortgage companies, passionate about building innovative tools & platforms for traders & investors, I have been practicing Price Analysis & price power concepts for the above 10 Years. I had taught this strategy to traders & investors and had been writing research reports, designing trading systems & Financial Products.