Generating Consistent Monthly Profits from Option Derivatives Trading
A lot of individuals dismiss the notion that consistent monthly returns can be achieved in the market using derivatives. However, as an experienced option seller, I firmly believe that with a disciplined system, it is entirely feasible to generate considerable profits from trading options derivatives.
How to Earn Financial Freedom through Derivatives
I have developed a strategic system that enables me to consistently generate a decent return, allowing me to create secondary income on a 7-figure capital base. This method has been in place for the past three years, emphasizing risk management as the cornerstone of this approach.
A Disciplined Approach to Trading
Under this system, I limit my trading activities to two days a week, and within those days, I utilize a range of safe option strategies, such as leveraging Theta Decay, shorting Vega, and capturing Gamma Spikes, to generate a steady stream of income in a conservative manner.
The Key Factors of My System
To ensure the success of my trading strategies, I focus on the following five major pointers:
Candlestick Pattern Analysis
For over 17 years, I have conducted rigorous backtesting on Nifty and Bank Nifty. This analysis revealed 12 specific candlestick patterns that I rely on to initiate trades. A trade is only considered when any of these patterns is observed.
Domestic and Foreign News Monitoring
It is crucial to avoid trading when domestic and international news may impact the market. I abstain from trading before or during any significant announcements or press releases. Additionally, I closely monitor institutional activities such as the buying behavior of mutual funds, hedge funds, and other investment entities.
Market Liquidity and Open Interest Analysis
I pay attention to the open interest (OI) of various strike prices, and generally, I prefer trade positions that are around 800-1000 points away from the spot level. This allows for a small but certain premium capture.
Statistical Distribution Curve Model
Utilizing a statistical distribution curve model, I identify events that are highly unlikely to occur in the market. By focusing on the least probable outcomes, I reduce the risk and increase the accuracy of my trades. For example, the implausibility of Nifty dropping by 1000 points or Bank Nifty falling by 2000 points on a given day.
Case Study and Proof of Success
Since implementing this system, I have been consistently outperforming market expectations. For instance, last year, I demonstrated robust profitability, achieving significant positive results. If you wish to inquire further or explore the details of my system, feel free to reach me via WhatsApp at 9717791544.
Conclusion
With a well-structured trading plan and disciplined execution, generating consistent returns from option derivatives trading is not only possible but also provides the potential for financial freedom. By focusing on risk management and thoroughly analyzing market indicators, one can effectively navigate the complexities of the derivatives market and achieve impressive results.