Is there any no loss strategy in options?

Is there any no loss strategy in options?

No loss option strategy : “in this strategy, You have to write extreme in the money call and put options at the same time and hold them till expiry. This strategy always pays 10-20% average return on capital”

Which option strategy is safest?

Covered calls are the safest options strategy. These allow you to sell a call and buy the underlying stock to reduce risks.

Is there any risk free option strategy?

How to create a collar strategy with zero risk? A collar is basically the combination of a futures/cash market position plus buying a lower put plus selling a higher call option. The strategy is designed in such a way that the premium received on the call option will compensate for the cost of the put option.

Why option selling is best?

Benefits of Options Selling Options buyers gains and makes money. When the Spot price is at or near the strike price at expiry, the option expires At The Money. The Option seller earns the premium received as his income as the contract expires worthless for the buyer.

When should I roll my option?

Roll the long option up/down in the same month to the at-the-money strike. Then, roll the short option up/down to the same strike, going one expiration out in time. If the net cost of both trades is a credit, it might be a worthwhile adjustment. If it’s a net debit, it might be best just to close.

How do I buy options at zero price?

You cannot but an option that has a price of zero. You can offer the lowest unit of your currency for it (say one cent if using dollars). Why you would want to buy such an option is beyond me but that’s your call (pun intended).

When should I sell my option?

Buyers of an option position should be aware of time decay effects and should close the positions as a stop-loss measure if entering the last month of expiry with no clarity on a big change in valuations. Time decay can erode a lot of money, even if the underlying price moves substantially.

What is the no loss option strategy for stock options?

no loss option strategy 1 The entry period is at the start of expiry month or 1-2 days before it. 2 The exit will be at expiry hours or 1-2 days before it. 3 Need minimum 2 lakhs capital for stock options while for index option around 1 lakhs is sufficient to get 10-20%.

How much capital is required to trade Nifty no loss options?

So total capital required to trade nifty no loss options strategy was around 45,000 rupees. On 18 Aug 2015, nifty 8200 call options premium is trading at 300 rupee and nifty 8800 put option premium is trading at 280. Total 580 rupees so the total gain of 165 rupee premium on 18 the Aug 2015.

What is the minimum stop loss for traders?

Traders must keep stop loss as per risk profile or if the loss exceeds 5% of the total capital invested. To lock profits if you are having multiple lots of capital then can follow accumulate strategy.

What is the best strategy to lock profits in options?

To lock profits if you are having multiple lots of capital then can follow accumulate strategy. No loss option strategy : “in this strategy, You have to write extreme in the money call and put options at the same time and hold them till expiry. This strategy always pays 10-20% average return on capital”