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This free trading course will benefit you a lot. Fill the above form correctly so that free course reaches you. I used to do it long back, when I used to think I am very smart. A beginners luck may have done it. I did made a decent profit in the first two trades, but then next four were big losses and I have almost stopped selling naked options.

Yes I still sell naked Nifty options — but on principles and strict stop loss and only when markets give me an opportunity. This is mostly done when the expiry is very near and there is a decent chance for that option to expire worthless.

Frankly even then I do not wait till expiry. I close the position early and am happy taking a small profit or loss as the case may be. Waiting to eat the last few nickels and dime of a soon to be worthless option may give a great kick when that actually happens — but I am better off taking the risk. If something goes wrong even in that last few hours — an option that was profitable a few hours ago may become very costly to buy back. Well most of the option traders start by buying options. Well when they learn that buying options is not making money for them they start selling.

Unlimited loss is only on paper. Do you think an option seller is a fool to take unlimited loss? Then why would they sell options in the first place? There are ways to limit losses when a position goes against a seller.

Unlimited losses only unnecessarily glorifies the cons of selling options. Furthermore I would say that option buyers face more losses than option sellers. Frankly selling or buying does not matter as long as you are hedging your position. Ok enough of talking, lets take an example of naked selling. If you think Nifty will close above this month you can sell the put options for the current month or even the next month to collect more premium.

If nifty actually closes above you keep the premium else you pay for the losses. Can you predict the markets? So why do people sell naked options? They sell when they are absolutely sure that the option they sell will expire worthless. Moreover its true that you cannot predict where the markets will go, but you can to some extent predict where the markets will NOT go!!! Sell your naked options there. Technically naked put option selling in NOT unlimited loss.

Because the stock can fall upto zero. It cannot fall further. You can easily calculate your maximum loss when selling naked puts. However selling uncovered or naked call options involves real unlimited loss. Because the stock can rise to an unlimited level which you can never figure out. Therefore in the US most retail traders sell put options more than the call option.

That does not mean you should start selling uncovered or naked puts because you can still face huge loses. Naked option selling is very risky. These are some ideas I have developed while actually trading naked options or by doing some research.

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If you want to sell it naked please keep the following in mind and do virtual trading for at least 3 months before putting your money on the line. If in doubt take more time. That is sell the next-month options not the near month as if anything goes wrong — Nifty opens gap up or gap down heavily, you will have enough time to give Nifty come back to a comfortable level to buy back your options at a profit.

Or if there is very less time and you are getting good premium this happens when the volatility is very high , you can sell the options to make a quick buck in very less time. You must have a strategy whenever you are trading options. Whether you are buying or selling. You must have calculated your profit and loss. That is if a position is going against you, what exactly you need to do. There are two things you can do then, either buy insurance or just exit the position.

The choice is yours, but you have to limit your losses. If you are able to limit losses you will survive in your trading business. The problem is when an underlying opens gap up or down with a huge percentage. If your prediction was right you can buy back your options at a profit, however you can lose a lot when it is against your view.

Therefore hedging is important. Buying insurance when needed may be very costly, but at least it will limit your losses from that point. However if the movement continues in the same direction for sometime, the losses will be severely restricted.

Unfortunately a whipsaw or market reversal will become costly as the insurance options you bought may start to lose money. It could be that out of frustration you close both your original trade and the insurance trade for a loss. Worst situation to be in. Spend it on buying cheaper calls or puts. At least you will be wearing your underwear. Also you must be having strict stop loss in your system. If your target was to make points you should exit when you are making a loss of 50 or less points.

Losses can escalate very fast, so you should be ready to quit if the market goes against you badly. During the life of the options you sold, you should watch them like an owl. Never let go your OTM option in-the-money.

Puts and Calls - How to Make Money When Stocks are Going Up or Down (Part 1 of 2)

Emotion is your biggest enemy. I have done it several times and almost always have lost. If you are emotional, you will keep delaying taking a stop-loss and markets will not work in your favor. You will only suffer more losses. Hoping that the markets will reverse in your favor is not a good strategy. Think about this — your profits are limited and losses unlimited. Let me take an example of myself. As you can easily guess I got good premium for the puts as the markets were down.

Well I was not wrong. However the next day Nifty went down another 2. My stop-loss got violated. What do you learn from this? In my trading course you will know how to hedge your positions and trade peacefully.

Most of the times you win, but when you lose you will see that the great hedge will save you. Had I bought some OTM puts of lower strikes with half of the money I received as premium, I would have had the courage to let it go few points down and eventually made a profit or at least made less loss.

Had I left because of the hedge, though small — I would have made a profit. This tells you — no matter what you must not sell naked options. I know a lot of you sell naked options on Nifty and Stocks. What you do when the stock starts moving against the option sold? Do you take a stop-loss?

When to write Nifty options, Margin required to short sell Nifty Option

Do you panic and leave everything to the almighty? Praying to Gods for help when the markets are going against your sold option is entirely different topic which cannot be discussed here.

What if God comes from heavens and asks why you did not take stop loss when the position was manageable? You know what your answer will be — GREED!!!

How can he help everyone? What exactly do you do when your naked shorted options goes in the money? If someone is facing this situation right now please ask in the comments section.

I will try to help. Please stop selling naked options. Learn conservative trading today. I offer these two courses online: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement.

Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However every trade depends on the trader and his level of risk taking capability, knowledge and experience. Moreover stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results.

Please note that I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other form of social media. I strictly adhere to laws of my country. I only offer education on finance, investments on stock markets in the best possible way as much as I can through this website.

Still, you must consult an authorized advisor or do thorough research before investing in any stock or derivative before trading any strategy given in this website. I am not responsible for any investment decision you take after reading any article given in this website. Knowledge is the only way to get success in stock markets. I try my best to give stock market investing and trading knowledge through the articles posted in this website.

Thanks for visiting my website. I started trading stock markets since However my first 3 years were losses. Then I dedicated almost 1 year on studying, researching, paper trading options and learned a lot in that time. Since I am trading Nifty options profitably. Call me if you need any help trading options on Yes Dilip Sir u r right.

Do not sell naked option without hedging. But If somebody wants that 1 can Short like this Karen the Supertrader Strategy. When market is up Sell pts Call option OR When market is down then sell pts Put option Option. Do not forget that Karen the Supertrader has a team to think-tank the strategies and implement.

All are highly educated in TA as well as in markets and have lots of software to take a decision. So just by doing the above strategy there is no guarantee that the trader cannot face losses. She in particular can manage the losses very well — which means she knows exactly what to do when the markets are going against her naked options sold.

I had read somewhere that she covers the profitable options and sell near the money options to hedge.

For example — if markets falling — cover the profitable calls and sell near the money calls that are of high premium. And if markets going up, cover the profitable puts and sell near the money puts.

But what if markets whipsaw changes direction suddenly? Now you will have to deal with losses in both calls and puts. How she does it only she knows and obviously there are a few secrets the best traders never reveal. So just be conservative follow the course. For people who are interested here is the basic risk management of Karan the Supertrader when her sold options goes wrong:.

Theta trader, tries to pull as much time value out as possible. Theta starts decaying around 45 days. When volatility is high, she keeps on selling and buying back the options to capture the value. Sells the options that expire around 56 days, or 8 weeks away.

Usually like to let the options expire when the month comes by. Tries to sell the Call options above strong market resistance levels. The positions are legged-in, i. Sells more Puts than Calls. Any costs associated with fixing the problem e.

For example, if the market moves up, she may sell more Call options that are further out i. When the market drops and volatility spikes i. When the Flash Crash of May happened, she closed her profitable positions and sold options further away October, November months to get more time to assess the situation.

Hello Friend, Excellent and well written article. Gives insight to fathom the Option World. I am a newbie and making losses while picking the threads of this wonderful game. Hope to become profitable after learning a few tricks of the trade. Until you are not confident I suggest trade small.

Three things are involved your knowledge, strategy and your own personality. I too spent money on a few such providers and have stopped trading after some losses though not something that i could not absorb. I will also do some more research before deciding to return back.

I think everyone has at least once sailed in the same boat of paying to tips providers and also losing trading their tips. I too lost 40, as fee and 50, trading their tips. And I took tips from 5 providers. Fee ranging from to The worst part is that when you call them they either do not pick the phone to explain losses or promise you that next time when you pay the money will be recovered.

Their next time never comes. On top of that sometime they even scold saying you never traded on time or something of that sort. Sometimes its plain excuse of SMS system not working. I get calls a day and and since the last one and a half years I never got a call from someone making money from tips providers. No one want to read or research — that,s where the problem is. Everyone is looking for short cut to success which does not exist.

Plz tell this strategy works or not. Your break even total points received which is So you are safe from on the upper side to on the lower side. This strategy looks great when initiated, but when Nifty starts to move you will start facing issues. Because all this is good only if Nifty is between and , during volatile times you may face huge losses — and you will get out to stop losses.

Then you will see that Nifty was somewhere in the same band on the expiry day. And of course you will feel bad. These kind of strategies are very aggressive as one big loss can take away lot of money from you. You write well Dilip ji. That shows your clarity of thought and good command on the topics discussed. Hope to be a part of your trading strategies pretty soon: When you are pushed against the wall — you try to push that person to save your life, then clarity of thought follows.

Traders make a killing by selling Nifty options

I have been reading your posts regularly and should agree that I have got enough benefit to pay the course fee and I will be doing that very shortly. Is trading options not similar to trading in equity? I understand your time constraint and hence you may chose to reply at your convenience or even ignore this. Yes they have restrictions and they can only trade as per the terms set for the fund.

For example a hedged fund cannot enter into plain equities. And moreover I think equity funds rarely trade derivatives. Reason is pretty simple — in derivatives trading money is not made — it only gets exchanged… from one hand to another… Stock markets and real companies will collapse if only derivatives are traded in stock markets.

I think you must first learn trading then trade else its all speculations so most people lose money trading. This should be under your risk management. So fix an amount which you are comfortable in losing.

Once that is reached exit the trade. That is the reason I hedge all my trades which is well defined in my course. And I want everyone to become slave of knowledge, but alas I know that day will never come but I am just trying that through my blog.

Time Decay Theta ………. Important For Earn Money , all strategies are in books and other web materials but real trade is total different so be practical and trade with four eyes…. Nilesh this is pure short strangle which works sometimes and does not work sometimes. One bad huge move may take out months of profits. Its is better to hedge it properly and trade. Please do not trade this you may suffer huge loss one day. The Long Call Option Bullish Strategy.

Nifty Options vs Futures. Testimonial by a Technical Analyst an Expert Trader - Results may vary for users. Click here to read details of the course. Testimonial by Housewife Trader - Results may vary for users. I am Dilip Shaw. I am a trader like you. I have been trading since , but lost a lot of money till I then stopped trading and studied options like college exams. Started trading again from and never looked back since.

I did a lot of research, read books and did countless paper-trading before being profitable. You can read about me here. My conservative trading course since is helping many retail traders just like you who have a job or business make consistent profits like this: Click here for more testimonials. You can do this course from your home. Some traders make amazing profits like Rs. This course helps you learn to trade conservative option strategies for monthly income.

Once you finish the course you can start trading immediately. You can start trading from any day. No need to wait for expiry. You will make profits consistently.

This course is good if you have a regular job or business. You DO NOT NEED to monitor your trades every second. Before reading please understand that for all 5 strategies, strike selection will be taught. Strike selection while trading Options is the most essential part to succeed. Directional strategy makes money fast. It does not matter which side the stock moves. In fact you make more when you are wrong in the Future trade. Some amazing profits possible here. The stock option trade makes 30, in one trade and if SL is hit there is a way to recover losses plus make 30k in that trade.

In the course you will learn how to select the strike prices. You learn when to trade, which strikes to sell which to buy, how much profit target you should be looking for, the best place to take stop loss and what to do after taking stop loss — means how to get that money back. I am very confident that you will make money trading my strategies.

To help you succeed I offer few months support for FREE. TA Knowledge NOT required 2. NO Software Required 3. Regular Monitoring NOT Required 4. Continue with Your Job 5. Do Course From Your Home 6. One Time Fee FREE Support For Months. I know English and Hindi. Read the details of the course here.

Testimonial Page 1 , Course Testimonials , Testimonial Page 2 , Testimonial Page 3 , Click to read what people say just after taking my course. So many years of trading has thought me one thing - it is always better to make small profits month after month, rather than lose money month after month trying to make too much money. But small money accumulated month after month can become very big in only a few years. Information in this site is for educational purpose only and is not a recommendation to buy or sell any Stock, Option or Future.

I DO NOT give any tips in any form and DO NOT have any intention to give tips in future as well. I only give Stock Market Education in General and Derivative Trading Education in particular through this website.

Best Nifty Options Tips | Sure Shot Tips | Put | Call | Guaranteed | Profits

Please note that I DO NOT give tips or advisory services by SMS, email, or whatsapp or any other form of social media. My aim is only to offer education on finance and investments on stock markets the correct way through this website.

I am NOT a financial or investment advisor. I just want to help them by spreading knowledge through this website. I have worked hard, done my research properly and written the articles in this website out of my experiences as a trader and also using knowledge I got reading several books, websites, forums, eBooks, online journals etc. However please understand that stock market investments are subject to market risks.

Please do your own research before investing in any stock or option or trying any strategy written in this website. I am trying my best to educate option traders especially in India and I hope you find this site useful.

Any act of copying, reproducing or distributing any content in the site or newsletters,whether wholly or in part, for any purpose without permission is strictly prohibited and shall be deemed to be copyright infringement. Get limited profit and loss nifty options trading strategies free to make monthly income.

Selling Naked Options How to Avoid Losses by Dilip Shaw in Nifty Options. JavaScript is required for this content. You Can Read More On My Site What To Do If Sold Short Options Are Losing Money Difference Between Shorting A Call And Buying A Put Close Futures And Options Before Expiry Day to Save Securities Transaction Tax STT What To Trade When Nifty Is Stable Is It Good TO Buy Long Calls And Puts Option. Why Buying Options Will Not Make You Money.

M Anantha Raman October 31, , 2: Dilip Shaw October 31, , Abhishek Patil April 9, , 1: But If somebody wants that 1 can Short like this Karen the Supertrader Strategy When market is up Sell pts Call option OR When market is down then sell pts Put option Option. Dilip Shaw April 9, , 6: Abhishek, Do not forget that Karen the Supertrader has a team to think-tank the strategies and implement.

For people who are interested here is the basic risk management of Karan the Supertrader when her sold options goes wrong: Watch price and volume, and use bollinger bands. Abhishek Patil April 9, , 8: Thank you Dilip Sir for giving some important information about Karen the Supertrader. Vijay Kumar April 16, , Dilip Shaw April 16, , All three have to combine to make profits. Abhihsek July 12, , That was a great read! Dilip Shaw July 12, , 1: Abhihsek am glad that you found it a great read.

Hope it helps you in trading. Dilip Shaw October 1, , Thank you Anuradha for the kind words. AMIT CHOWDHURY October 9, , Dilip Shaw October 12, , 6: Please stop trading such strategies. Sandeep November 25, , 6: Dilip Shaw November 25, , 9: Like Ur previous posts this 1 also highly educative, informative and eye opening.

Plz correct the following lines: Dilip Shaw February 22, , 4: Dilip Shaw February 24, , 5: I will write a post in future on this.

Ravinder Singh July 29, , 6: Dilip Shaw July 29, , Dilip Shaw August 8, , 2: Dilip Shaw November 1, , 5: Nilesh February 27, , Dilip Shaw February 28, , The Long Call Option Bullish Strategy Previous post: Technical knowledge is NOT required. No need to monitor trades every second. Since trades are properly hedged there is no stress in trading my strategies. You can find many testimonials in these pages: Like Our Facebook Page And Get Instant Post Updates For Life.

Disclosures Information in this site is for educational purpose only and is not a recommendation to buy or sell any Stock, Option or Future.