What are the best options trading strategies to constantly make money?… One can look at short strangle, for making money constantly every month. A well planned and properly execution of this strategy can yield close to 40%-60% returns per annum. I do rotational trading using this strategy.
Remember option strategies are aimed of earning risk less profit. So don’t aim for aggressive returns using option strategies. If you could make at least 5% per month out of this option strategy, for me its a happy returns. Because it is far better than other investment opportunities.
To make money in option strategies one should have on of the below outlook on near month or next month or far month market performance.
- Bullish,
- Bearish,
- Neutral with high volatility
- Neutral with low volatility
- Bullish with high volatility
- Bearish with low volatility
I generally look for near month and will choose the strategy.
I make it simple, using with three things,
- Checking Weekly and Monthly charts, for technical analysis:
Using weekly and monthly chart, I determine my outlook. Look at Nifyt Monthly chart, March 2016 month is highly bullish (Bullish Marbuzo), so I do expect then April 2016 could be positive, now I choose strategy here.
- Options premiums for determining the volatility,
Check option premiums, for 2 ITM. 2 OTM, 2 ATM options, in case premiums are very high then usual then expect high volatility in the coming month.
- Quarterly results, major elections, fed announcements.
Every market blogs will give you this news or events which are upcoming, so be aware of volatility.
Once you have over view on outlook, then determine you strategy base on Fyers Option strategies.