Hope many of you folks might come across series of market falls. Did you ever thought about how to earn there any way I can gain money in this fall day or loss day. If you haven’t thought yet, nothing is late than never, there are ways where in you can gain on falling days. If you are good at predicting next day market, then there is smarter way to earn money in Dalal Street.
Options trading are of 2 types
1. Call Options.
2. Put Options.
Like Equity market price, Call Options premium rates are directly proportional to market rise or any particular stock rise. If you can predict market rise then go for Call Options where in your ROI increases when market increases.
Put Options are means to earn money when market falls. PUT options premium rates increases when market index falls, similarly if market index rises PUT options premium decreases. ROI is inversely proportional to Market Rise or stock price rise.
Yesterday I did my first Put Options trading. I predicted that market will fall yesterday due to momentary global down trend. I bought some PUT options during the day opening and sold the same within the same day. I got 30% ROI in just 2 hours....that too when market witnessing huge fall. Isn't exciting! Options Way to go baby!
Buy CALL Options if you are good at predicting future’s market rise or Buy PUT Options if you are good at predicting future market fall.
Combination of placing and holding CALL & PUT options is termed as HEDGING. Always having combination of the both the options is smarter way to trader.
Happy Investing!
1. Call Options.
2. Put Options.
Like Equity market price, Call Options premium rates are directly proportional to market rise or any particular stock rise. If you can predict market rise then go for Call Options where in your ROI increases when market increases.
Put Options are means to earn money when market falls. PUT options premium rates increases when market index falls, similarly if market index rises PUT options premium decreases. ROI is inversely proportional to Market Rise or stock price rise.
Yesterday I did my first Put Options trading. I predicted that market will fall yesterday due to momentary global down trend. I bought some PUT options during the day opening and sold the same within the same day. I got 30% ROI in just 2 hours....that too when market witnessing huge fall. Isn't exciting! Options Way to go baby!
Buy CALL Options if you are good at predicting future’s market rise or Buy PUT Options if you are good at predicting future market fall.
Combination of placing and holding CALL & PUT options is termed as HEDGING. Always having combination of the both the options is smarter way to trader.
Happy Investing!
5 comments:
It is amazing that you made 30% on a day when the market fell by 300 points.
mmm .. So you are into Options trading now. I guess the key in your post is "If you are able to predict". The probability is always 1/2 isn't it ? Be careful. Personally I wouldn't put all my hard earned money in such an investment. May be just a small part of it for kicks is ok.
Hedging is not normally recommended for making money. But it is to derisk your company. (for eg, infy and tcs hedge on dollar to derisk themselves from dollar value fluctuation.). I have never heard of hedging as a way to make money. (bcos you always lose in one of your calls)
You guessed it right siva, key is "Ability to predict the next day market or even a market after a month".
Options are extremely risk trading. Its like gambling. But definitely you can make a decent money for less investment on monthly basis.
The reason is rise and fall are common in stock markets.
About Hedging, you are again right, it is not for making money, but it will derisk your risk profile. In Highly volatile market hedging is very important to derisk your investment.
Market rewards investors and punishes traders.
I read this somewhere but the meaning did not get into my ming fully. Two months of fooling around with market taught a good lesson.
I hope you also feel the same way.
You are right seeni, Market rewards investors & punishes traders. 2 months options trading has fooled me. Instead of playing with Options, I would prefer going to casino :)-
But every action has a learning in it. Yes I learnt some thing on entry and exit strategy :)-
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