Option buying strategies are one of the most popular and profitable ways to trade in the stock market. They allow you to take advantage of the price movements of stocks, indices, commodities, and currencies without owning them.
You can buy options for a fraction of the cost of the underlying asset and sell them for a huge profit when the market moves in your favor. Sounds too good to be true, right?
Well, in this blog post, I will show you how I make 17 lakh in a month with option buying strategies. I will share with you the secrets of my success, the tools and techniques I use, and the mistakes to avoid.
If you want to learn how to make money with option buying strategies, read on.
Why I started with option buying strategies this year?
I have been trading options for almost six years now. I started with option selling strategies, which involve selling options and collecting premiums from the buyers. Option selling strategies are considered to be safer and more consistent than option buying strategies, as they have a higher probability of success and can generate income in any market condition. However, option selling strategies also have some drawbacks, such as high margin requirements, unlimited risk, and low reward potential.
This year, I decided to shift to option buying strategies, which involve buying options and paying premiums to the sellers. Option buying strategies are considered to be riskier and more volatile than option selling strategies, as they have a lower probability of success and can lose money if the market does not move in your favor. However, option buying strategies also have some advantages, such as low margin requirements, limited risk, and high reward potential.
Why did I make this shift?
Well, there are two main reasons.
First, the Indian stock market has been witnessing a lot of volatility and momentum in the recent months, which is favorable for option buying strategies. Option buying strategies can benefit from large price movements and capture huge profits in a short period of time.
Second, I wanted to challenge myself and learn new skills. Option buying strategies require more analysis, timing, and discipline than option selling strategies. Option buying strategies also offer more variety and creativity, as you can use different types of options, such as calls, puts, straddles, strangles, etc.
Another reason why I shifted to option buying strategies is the availability of many algo trading tools to backtest and execute option buying strategies. Algo trading tools are software applications that can automate the process of trading options based on predefined rules and parameters.
Algo trading tools can help option buyers to save time, reduce human errors, optimize performance, and enhance profitability. Algo trading tools can also allow option buyers to test their strategies on historical data and simulate their outcomes before applying them in the live market. Algo trading tools can also provide real-time data, alerts, and reports to help option buyers monitor and manage their trades.
Some of the popular algo trading tools for option buying strategies are Zerodha Streak, Algotest.in, Tradetron, and Opstra. These tools offer various features and functionalities, such as strategy builder, backtesting, paper trading, live trading, risk management, portfolio analysis, etc. These tools also support different types of options, such as Nifty, Bank Nifty, stocks, commodities, currencies, etc.
I use these tools to backtest and execute my option buying strategies. I find them very useful and convenient, as they help me to improve my trading skills and results. I will share with you how I use these tools in the next section of this blog post.
How I make a Profit of 17 lakh in a month with Option Buying Strategies?
Trading with option buying strategies to achieve the profit of 17 lakh, goes with 2 steps.
- First step is backtest and then optimise a strategy for your risk appetite.
- Second step is the seamless execution of the strategy to reduce the slippage to get desired result.
Let me share both the steps in details:
Step 1 #: Backtest and optimise option buying strategy
As you know option buying strategy required high skills to achieve the success. But thanks to the innovation and the technology we have, we can easily backtest our strategy and optimise it based on our risk appetite.
I used Algotest.in to backtest my strategies. After backtesting 100s of different strategies with different combinations, luckily I found a combination that are generating positive return. I went ahead and optimise the strategy to that extent where I was getting my desired result with required ratio analysis.
I follow Drawdown, Return/MDD, Expectancy ratio, win % and no of loss making days in a raw. These ratios are helpful when you execute the strategy. Once you get
I have written a detailed blog about the strategies and the performance of these strategies. You can check on the below link:
Step 2 #: Execute the option buying strategy
After your strategy is ready, next step is seamless execution so that you can reduce the slippage. Again I thank to the developer community. Because of their expertise, now a days we have many tools available in the market that we can use to execute our strategies.
One such tool is Stoxxo by Algobaba. I use stoxxo to automate my strategies. Its an user friendly with stable environment. I'm using it from last 8 months to execite my Option Selling Strategies for Intraday and Option Buying Strategies for Intraday.
Here is the screenshot of the strategies with Profit/loss:
My Backtest Option Buying Strategies for Intraday in Bank Nifty and the seamlessly execution with this algo tools helped me to achieve the profit of 17 lakh in a month with option buying strategies.
Here is the screenshot of the profit/loss of the entire November, 2023 month:
I have deployed 20 lakh of capital to achieve the Profit of 17 lakh in a month with Option Buying Strategies. It's almost 88% return in a month.
I have shared about the option buying strategies with the backtested result on my blog. Click on the below button to check it.
Ready to claim your piece of the pie?
Don't let this life-changing opportunity slip through your fingers. Dive into the "Best Bank Nifty Option Buying Strategy for Intraday"—my premium guide that lays bare every step I took to conquer the market and secure that 17 lakh windfall.
This isn't just another theoretical strategy; it's battle-tested and proven to deliver in the fast-paced world of intraday options. With insider tips, actionable tactics, and real-life examples, you'll be well on your way to replicating my success.
Remember, the market rewards the informed and the bold. So, are you ready to make your move and unlock your financial freedom potential? Grab your copy of the "Best Bank Nifty Option Buying Strategy for Intraday" today and let's turn your trading dreams into reality.
Click the Button below, and let's get started!
(P.S. Don't forget to share your thoughts and experiences in the comments! I'm here to support your journey every step of the way.)