P&L summary (Nifty option writing) for Dec.

Power of selling options-

Below is the P&L summary shared with us by one of our client (he has been kind enough to share this and we are posting this with his due permission).

Now the special thing about this summary is that all trades have been executed in out of the money Nifty call puts in 2-3 lots ( max 4 lots in one go) using our trade recommendations.

We recommend going long/short in Nifty futures however for every buy recommendation this client has been selling out of money puts and for every sell recommendation Nifty calls have been sold. Now one might argue that by buying/selling Nifty futures one could have made a lot more money and thats true but the point is that by selling out of money call/puts one reduces the risk by a great deal ( more than 50%) and even if Sl is trigerred one is likely to exit with no or very negligible loss.

Now even after reducing the risk he has earned >30K in one month ( which might not seem a lot but it translates to > 10% return in one month ( >100% PA) and if someone is expecting more then he should head for vegas and not for Stock markets.

Nifty P&L

Nifty P&L