Zerodha co-founder Nithin Kamath said in a post on X (formerly Twitter) that the trick to “being a successful trader is to survive the bad days”. The post detailed strategies such as Bull Call Spread, Bear Put Spread, Iron Condors that offer less trading trouble.
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He said, “One way to ensure you don't lose money due to volatility is to trade fully hedged options strategies, such as spreads. Of course, this alone won't help. You also need to ensure that you have you have a strategies to manage risk, size your positions appropriately.”
See Nithin Kamath's post here:
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Sharing a post by Sensibull on how to use fully hedged options strategies such as spreads, he wrote, “The loss is limited, if you trade a spread, such as a bull call spread or a bear put spread, no matter what the market does, your losses will not exceed a fixed number.”
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{{/usCountry}}Sharing a post by Sensibull on how to use fully hedged options strategies such as spreads, he wrote, “The loss is limited, if you trade a spread, such as a bull call spread or a bear put spread, no matter what the market does, your losses will not exceed a fixed number.”
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{{/usCountry}}He explained, "I've said it earlier, trading actively is the toughest way to make easy money in life. The trick to being a successful trader is to survive the bad days.
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“Over the past year or so, there have been sudden spikes in option prices on expiry days, and traders keep getting caught off guard,” he added.