How I made 35% profit by trading Index Options

How I made 35% profit by trading Index Options – Let’s discuss this,

I have used few Jargons in this blog, for better understanding kindly go through this.

All my trades are made on Nifty 50 Index Options because I’m not allowed to do any Intra-day trades and stock Options since I work for Finance Company. ( Prior this I used to do only Intra-day trades on stocks)

Trade summary (Mar 2nd – Mar 6th)

Report
P/L Report for 1st week of March

So, you can see the screenshot from Zerodha Console which says few key things like;

  1. Realized P/L is Rs. 3890 and
  2. Net Realized P/L stood at Rs. 3460

And It was quite evident that I Incurred a Charges of Rs. 430.

One thing we all traders should know is the cost we incur to execute a trade irrespective of our profit or loss we gonna make from our trade.

Good part of these charges are we can claim as deductions for taxation purpose.

Which Strike Price & Why?

As far as Strike Price is concerned, if I have lot of time then I select 150-200 points away from Spot Price (Current Nifty 50 Index Value) both above and below to Spot Price. My profit margin ranges somewhere in between 50%-120% with a maximum bearable loss of 40%. ( I trade on weekly options)

If I’m equipped with some other work and still want to trade then I look at 50-100 points away from Spot Price. Here, my profit margin ranges somewhere between 7%-20% with a maximum bearable loss of 10%. ( I trade on weekly options)

So If my Invested value comes down by that % then I’ll book my loss and close my trade.

You might be thinking why different Profit %?

The answer is simple, the closer the strike price to the spot price the less chance of losing and less Profit Margin as well & vice-a-versa.

The one who understands this Makes Money and one who doesn’t pays it.

Because making profit in Markets is all about taking money from the other person. Every Buy order has parallel Sell order and every Profit has parallel Loss for every trade one does.

Strategy I use & How to apply it?

To be frank and precise, I don’t know anything about Charts ( apart from Basic chart) and I primarily rely on Current Conditions and Volatility in the Market. You can say that I trade on News and I feel that this is one of the most riskiest and dumbest ways to trade Markets.

And that’s how i made 35% profit by trading Index options.

Why the hell I trade on News?

The answer is quite simple – That’s what I know and It works for me!

So, the point I’m trying to make here is ‘ You do what ever you want to do and better try and test all the available strategies out their and then finalize which works best for you and stick to your strengths.’

Final Words

I don’t know exactly how much I made on daily basis for the 1st week of March 2020 ie; Mar 2nd – Mar 6th. From March 9th, I’ll post all my trades on daily basis.

So, we can even discuss more on trades and let me know your strategies as well in the comments.

I have used few Jargons in this blog, for better understanding kindly go through this.

Until then, this is Rushi. Happy Trading!

16 thoughts on “How I made 35% profit by trading Index Options”

  1. My wife and i were so satisfied that Emmanuel managed to conclude his homework from the ideas he grabbed from your very own web site. It’s not at all simplistic to just continually be giving freely key points that many a number of people have been trying to sell. We really realize we have the blog owner to be grateful to for that. Most of the illustrations you made, the easy web site menu, the relationships your site make it possible to engender – it’s everything superb, and it’s really aiding our son in addition to the family imagine that the article is awesome, and that’s seriously vital. Thank you for everything!

    Reply
  2. I and my pals ended up checking out the good helpful tips from your website then unexpectedly got a terrible suspicion I had not thanked the blog owner for those tips. All the ladies became as a result thrilled to read them and now have certainly been loving these things. Thanks for simply being really helpful and for deciding upon this sort of excellent tips millions of individuals are really eager to know about. Our honest regret for not saying thanks to earlier.

    Reply
  3. I’m commenting to make you understand of the terrific discovery my girl gained browsing your webblog. She picked up some pieces, which included what it is like to possess an amazing helping nature to have other folks just grasp a variety of complicated subject matter. You really did more than visitors’ desires. Thanks for giving the effective, healthy, explanatory not to mention unique thoughts on this topic to Julie.

    Reply
  4. I wanted to jot down a comment in order to express gratitude to you for those fabulous tricks you are giving out on this site. My incredibly long internet investigation has at the end of the day been compensated with reputable details to write about with my family. I would assume that many of us readers actually are rather lucky to exist in a superb community with so many perfect individuals with interesting ideas. I feel extremely grateful to have discovered the web pages and look forward to many more thrilling minutes reading here. Thanks a lot once more for a lot of things.

    Reply
  5. I and my buddies have been reviewing the nice secrets from your web page and immediately came up with an awful feeling I never thanked the blog owner for those techniques. These women ended up as a result glad to read through all of them and already have without a doubt been taking advantage of them. Thank you for really being indeed accommodating as well as for finding certain excellent subject areas millions of individuals are really eager to be aware of. My honest regret for not saying thanks to sooner.

    Reply
  6. I wish to express some thanks to this writer for rescuing me from this scenario. Because of looking out through the the web and seeing advice which were not helpful, I thought my life was well over. Existing without the presence of answers to the difficulties you’ve fixed by way of your good blog post is a critical case, as well as ones that could have badly damaged my entire career if I had not discovered your blog. Your primary mastery and kindness in dealing with all the things was priceless. I’m not sure what I would have done if I had not come upon such a stuff like this. I’m able to at this moment relish my future. Thanks very much for your impressive and results-oriented guide. I will not think twice to endorse your web sites to any individual who would need counselling on this problem.

    Reply
  7. I together with my buddies came analyzing the good things found on your web blog then quickly came up with a horrible suspicion I had not expressed respect to you for those techniques. All the boys came as a result thrilled to learn all of them and have in effect actually been enjoying those things. Thank you for indeed being well accommodating and also for utilizing this kind of helpful subject areas most people are really needing to be informed on. Our own sincere apologies for not expressing appreciation to earlier.

    Reply
  8. I precisely desired to say thanks again. I am not sure what I might have undertaken without the type of methods documented by you concerning such subject. It was actually a very depressing situation in my view, however , observing the specialized tactic you managed the issue took me to jump over joy. I will be happier for this service and in addition hope that you recognize what an amazing job you were doing training some other people through a web site. Most likely you have never met any of us.

    Reply
  9. Thanks a lot for giving everyone an extremely marvellous possiblity to discover important secrets from this blog. It can be so lovely and as well , packed with a lot of fun for me and my office fellow workers to search your website at least three times in one week to read through the latest secrets you will have. And lastly, we are at all times motivated considering the fabulous solutions served by you. Certain 4 facts in this post are easily the finest I’ve ever had.

    Reply
  10. I would like to express my appreciation for your generosity in support of individuals who really want help with this particular study. Your real commitment to passing the solution up and down appeared to be quite interesting and has continually enabled men and women just like me to achieve their pursuits. Your own invaluable suggestions can mean a whole lot a person like me and still more to my office colleagues. With thanks; from each one of us.

    Reply
  11. I have to show my passion for your kind-heartedness in support of those who need guidance on this important issue. Your personal dedication to getting the message along turned out to be amazingly powerful and has really made guys like me to reach their pursuits. This informative recommendations signifies a whole lot to me and even further to my colleagues. Warm regards; from everyone of us.

    Reply
  12. I precisely had to thank you very much again. I do not know the things I would have gone through in the absence of the actual tips and hints documented by you relating to this area. It seemed to be a frightful situation for me personally, but being able to view a well-written fashion you handled the issue took me to weep for contentment. I’m just thankful for your advice and trust you comprehend what a powerful job you’re putting in instructing people today by way of a web site. I know that you have never encountered any of us.

    Reply
  13. I definitely wanted to jot down a brief note to be able to say thanks to you for some of the unique steps you are giving at this website. My extensive internet lookup has at the end been rewarded with pleasant ideas to write about with my colleagues. I would state that that we website visitors are very much lucky to dwell in a very good website with many special individuals with valuable tactics. I feel pretty lucky to have come across your entire web pages and look forward to tons of more fun times reading here. Thanks a lot again for a lot of things.

    Reply
  14. I am only writing to let you know of the exceptional encounter my friend’s princess had reading through your webblog. She picked up lots of issues, including how it is like to possess an incredible coaching heart to have certain people really easily know just exactly some hard to do subject matter. You undoubtedly exceeded people’s desires. I appreciate you for showing the necessary, trustworthy, explanatory and cool thoughts on your topic to Julie.

    Reply
  15. Thanks so much for providing individuals with remarkably terrific possiblity to discover important secrets from this blog. It really is so terrific plus packed with a good time for me personally and my office mates to visit your site a minimum of thrice a week to read the newest guides you have. And indeed, we’re certainly amazed with the unbelievable methods you serve. Certain 3 facts in this article are in truth the most suitable we’ve had.

    Reply
  16. I want to get across my respect for your generosity supporting men and women who must have help with this important content. Your personal dedication to getting the solution up and down had been rather interesting and have truly enabled people just like me to get to their aims. Your amazing invaluable help signifies this much a person like me and much more to my office colleagues. Many thanks; from each one of us.

    Reply

Leave a Comment