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@  happyjas : (22 May 2020 - 07:08 PM) @master Chosen3000.. :lol: I got a Lambo cake here.. want some?.. :lol:
@  happyjas : (22 May 2020 - 03:14 PM) ktp :lol:
@  Noname : (22 May 2020 - 07:50 AM) BinaryTriumph
@  traderpusa : (22 May 2020 - 01:31 AM) Quarantine does weird things to different people lol.
@  Dyabolus : (21 May 2020 - 03:12 PM) u r delusional...
@  euro_rapp : (21 May 2020 - 01:41 PM) Seems when you are to good, people start talking about you :D
@  euro_rapp : (21 May 2020 - 01:41 PM) Lol it seems my name spreak widely in the Forex community that even people in Telegram groups know me when i just entered them and even on this forum haha
@  happyjas : (18 May 2020 - 02:44 PM) very cliché sounds like.. looks like.. blah.. blah..
@  happyjas : (18 May 2020 - 02:39 PM) and it stinks..
@  happyjas : (18 May 2020 - 02:37 PM) no evidence.. just saliva..
@  happyjas : (18 May 2020 - 02:36 PM) no meat.. all bones.. well no dogs here..
@  Dyabolus : (18 May 2020 - 02:32 PM) only empty talking so far
@  euro_rapp : (18 May 2020 - 02:26 PM) At least i can afford my Lambo with my jokes ;)
@  Dyabolus : (18 May 2020 - 02:20 PM) lmao what a joke
@  euro_rapp : (18 May 2020 - 02:12 PM) I even opened now the trades for next week since i already know in which direction the market will go
@  euro_rapp : (18 May 2020 - 02:11 PM) Lol sometimes i enter a trade before it happens since i trust my 100% accuracy to much and get bruned.
@  euro_rapp : (18 May 2020 - 02:11 PM) Already knew they EUR would break out but it took longer than i expected. It helped me to double my account :)
@  euro_rapp : (18 May 2020 - 02:10 PM) The breakouts where so great today. Took all of them. I expected them to happen yesterday.
@  happyjas : (18 May 2020 - 07:48 AM) good morning!.. EU H1 breakout :blink:
@  traderpusa : (18 May 2020 - 03:00 AM) you never know for sure but you could use S/R levels for it.

Photo

Options STRATEGY that returns 2% return every month


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18 replies to this topic

#1 fasih

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Posted 02 September 2019 - 04:47 AM

*
POPULAR

For the past six months, i have been trading options on stocks for income on the order 1-2% a month .. till date, i have a 80% win rate and the trades that i "lost" also made money.. This is not a new strategy by any stretch, pros have been doing it for a long time..

            If enough people here are interested , i will detail the strategy here in some detail.. otherwise i will pass on it since it is a " binary options " forum after all.. :)


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#2 traderpusa

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Posted 02 September 2019 - 04:51 AM

always interested to learn something new.


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#3 Tripack

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Posted 02 September 2019 - 08:02 AM

Sounds great !
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#4 singu

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Posted 02 September 2019 - 08:24 AM

always interested to learn something new.

 

Me too  :)


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#5 Abdul777

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Posted 02 September 2019 - 08:30 AM

Le' go


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#6 Sambo

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Posted 02 September 2019 - 10:32 AM

i'd be interested to hear  :) This is basically a fx forum now anyway lol


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#7 ameint

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Posted 02 September 2019 - 11:43 AM

sounds very good
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#8 fasih

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Posted 02 September 2019 - 12:30 PM

In this strategy, we are not interested in "trading options" ,  we are merely after a predictable stream of monthly income .. trading options involve assessing risks using delta, theta , vega etc, which means we have to be able to reasonably predict the direction of the underlying stock.. we are not particularly interested in that.. in fact, if we are correct in our analysis, we will make money regardless of the movement of stock in either direction..

 

              the strategy involves selling ( writing ) deep out of the money put options on good stocks.. to clarify, when u sell options, u receive a premium ( how much? this depends on the strike price, volatility and time of expiry as calculated by black scholes options pricing model, which u dont need to know ) ..

 

             What is selling put options mean? it means u r telling someone ( an option buyer) that u will buy his stock if the price of the stock falls below a certain price ( strike price).. for example,  assume a stock  is trading at $60 a share , u will tell someone that u will buy his stock during a certain time period( say 1 month),if  the price of stock falls below say $50 at specified predetermined amount of $50 ( which is called a strike price )..   in compensation u demand a option premium of lets say $5 a share.. so if at the end of the option time period, the stock is trading at $45 , u will buy it at a price of $50..  

             this is a form of selling insurance to the put option buyer and u making an income out of it .. good news is that majority of put options  expire worthless..

 

   http://www.clipular....mqzmXOTo0ko-LDs

 

    that means majority of the time, ull collect premium income without any hassles ...

 

up coming next :

 1) how to identify good stocks to base this strategy on? 

 2) how to determine the optimum strike price for your option  ( using discounted cash flow analysis ) ?

 3) what to do when the option is exercised and ur obligated to buy the stock from the option buyer .. good news? u will still make money from it..

 

  thats it.. happy trading..


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#9 Singh

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Posted 02 September 2019 - 07:30 PM

Finally someone is talking about real options vs binary options.

I have trades naked calls and puts myself with moderate success and I buy out of the money calls and puts with directional bias.

Selling calls and puts always scared me due to unlimited risk and limited reward.

Looking forward to your further explanation Fasih, specially about how to choose stock and if you use any scanner.

Regards,

Singh
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"The game taught me the game. And it didn’t spare me rod while teaching."
- Jesse Livermore

 

My Youtube channel for trading videos -  https://www.youtube....user/mindpl4y3r


#10 traderpusa

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Posted 03 October 2019 - 12:14 AM

Hi Fasih,

 

hope you are doing fine.

 

A bit sad after a good start to see this thread die all of the sudden.

 

Would have loved to learn more about share option trading.

 

kind regards

TP.



#11 DeejaySnipes

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Posted 04 October 2019 - 10:47 AM

waiting in anticipation to learn more. 



#12 Singh

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Posted 05 April 2020 - 01:24 AM

Since Fasih kind of forgot about this thread I thought I will revive it for those who are interested in learning about options trading.


This is a great course which will give you good understanding of what are options and how they work.
https://www.youtube....DwqFBf8hEVeua6Y


Below is a great strategy for those who want to buy or sell stocks of certain companies. Video will explain how you can leverage options to buy/sell that certain stock at a discount.

https://youtu.be/8vgUkZtM_BE

Finally, to Fasih's original post. Option writing or selling is a great strategy with almost guranteed wins in certain market conditions specially nowadays but you have to be very careful when writing options and have to be willing to own the stock and last need a decent size account, I would say atleast 25k account size.

Best broker for options trading is Interactive Brokers or TD Ameritarde and both offer demo accounts if one wants to test the water. I currently use interactive brokers also known as IBKR.

If anyone needs more info is more than welcome to ask questions or dm me.



Regards,

Singh
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"The game taught me the game. And it didn’t spare me rod while teaching."
- Jesse Livermore

 

My Youtube channel for trading videos -  https://www.youtube....user/mindpl4y3r


#13 traderpusa

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Posted 05 April 2020 - 01:42 AM

Great post Singh, will check out the vids.
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#14 Singh

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Posted 09 April 2020 - 09:46 AM

Made a quick scalp on tesla options. Risked $60 made $40,had the potential to make $150 which it did later but hey green is green and not bad for 3 minutes work. Bought at 560 pivot pullback,target was 570 upper pivot but for out early.

Cheers

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"The game taught me the game. And it didn’t spare me rod while teaching."
- Jesse Livermore

 

My Youtube channel for trading videos -  https://www.youtube....user/mindpl4y3r


#15 Singh

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Posted 09 April 2020 - 10:16 AM

Took a buy call option on USO next week expiry. Feel like it should go to 6 with all the OPEC talk. Cost $30 profit set at $60 for 100% return.

It is bit expensive contract and time decay will eat it alive if it doesnt move quickly but playing with profits from Tesla so free trade.Let's see what happens.

If it goes more down,will buy another contract at $10,then total cost will be $40 with avg price $20 and potential gain at $60 which will be 200%.

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"The game taught me the game. And it didn’t spare me rod while teaching."
- Jesse Livermore

 

My Youtube channel for trading videos -  https://www.youtube....user/mindpl4y3r


#16 Singh

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Posted 09 April 2020 - 02:30 PM

Took a buy call option on USO next week expiry. Feel like it should go to 6 with all the OPEC talk. Cost $30 profit set at $60 for 100% return.
It is bit expensive contract and time decay will eat it alive if it doesnt move quickly but playing with profits from Tesla so free trade.Let's see what happens.
If it goes more down,will buy another contract at $10,then total cost will be $40 with avg price $20 and potential gain at $60 which will be 200%.



When everyone expects upside it goes down. Option went down to $0.1 very quickl so I bought 5 more, now I have 6 contracts with average cost of $0.14 means $14 so total cost $90ish including tax. I have till April 17th next week to be right and if WTI price goes up I will make good money. How much I will make? Well that depends on how far it goes up and when. See attached picture to see profit loss scenarios.

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  • fasih likes this

"The game taught me the game. And it didn’t spare me rod while teaching."
- Jesse Livermore

 

My Youtube channel for trading videos -  https://www.youtube....user/mindpl4y3r


#17 Singh

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Posted 13 April 2020 - 04:24 PM

Ok here is the last post for options.

Oil trade still going on,currently at a loss of $65ish. Did 3 more trades on Apple,Roku and spy(sp500) made around $75ish,oil trade was a free trade from tesla profits last week so overall up.

Side roku is up huge after market close,if held would have been easy another $100 but green is green.

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"The game taught me the game. And it didn’t spare me rod while teaching."
- Jesse Livermore

 

My Youtube channel for trading videos -  https://www.youtube....user/mindpl4y3r


#18 fasih

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Posted 16 April 2020 - 06:56 PM

Nice going singh, its easy to get going once you get the hang of things..
R u solely going off price and time decay? Implied volatility proves a lot more helpful to me..
This is an example of simple strategy thats researched academically..

https://papers.ssrn....ract_id=2525991

In short, the VIX and VIX front contracts decline substantially right around the major news events like fomc, and shorting the VIX on that day produces a risk adjusted return of 10% p.a
There are lot of proven ways to skin the volatility game already in academic research..
Just thoughy, some one might find it useful..
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#19 Singh

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Posted 24 April 2020 - 05:00 PM

Hey Fasih,

I just focus on underlaying mostly and day trading so time decay is not big deal.

Will check out the study you posted.

Regards,

Singh

"The game taught me the game. And it didn’t spare me rod while teaching."
- Jesse Livermore

 

My Youtube channel for trading videos -  https://www.youtube....user/mindpl4y3r





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