Thread by @tradingincome1

⚡ Options TRADING is highly risky

👍 Not anymore if you know below 6 risk-defined OPTION STRATEGIES:
🧵
#tradingpsychology #StockMarketindia #OptionsTrading

1) Bullish Call spread

View: Bullish
eg, Nifty CMP 18015

Buy 18000 call, sell 18100 call same quantity
Risk-reward is 1:1 to 1:2 but theta decay is against you

2) Bullish Put Spread

View: Bullish
eg, Nifty CMP 18015

Sell 18000 put, buy 17800 put same quantity
Risk-reward is 1:1 or less but theta decay is with you

Similarly you can do for bearish view
Bearish put spread and bearish call spread

3) Iron fly

View: Sideways
eg, Nifty CMP 18015

Sell 18000 CE, Sell 18000 PE
Buy 18200 CE, Buy 17800 PE

Sell strike is at the money (ATM)

4) Iron Condor

View: Sideways
eg, Nifty CMP 18015

Sell 17800 PE, Sell 18200 CE
Buy 17600 PE, Buy 18400 CE

Sell strike is out of the the money (OTM), range for profit is higher than that in iron fly

5) Butterfly

View: Slighly bullish
eg, Nifty CMP 18015

Buy18000 CE 1 lot, Sell 18100 CE 2 lots, Buy 18200 CE 1 lot
Max profit if Nifty expires around sold strike 18100
Buy and sell qty equal

Similarly for bearish view

Adjustments:

You can do various adjustments with these strategies according to market movement but i would not suggest it because

i) it is hectic, stress increases
ii) brokerage increases

6) Diagonal Calender Spread

View: Slighly bullish and volatile
eg, Nifty CMP 18015

Buy 18200 CE next expiry, Sell 18100 CE 1 lot current expiry
Max profit around sold strike ie. 18100
Exit both at same time

TLDR:

6 Option strategies with defined risk:

1) Bullish call spread
2) Bullish put spread
3) Iron fly
4) Iron condor
5) Butterfly
6) Diagonal Calender

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1) Make 18% yearly return on your capital (money), DM me the word "18"

2) Learn 6 steps to profitable Trading eBook
bit.ly/6stepstrading

Have a great day🌄

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