Futures and options as alternative source of income

Hi to all group members.

Iam basically a novice investor with long term horizon.

I want to have alternative source of income from Futures&Options. Senior members please let me know the pros & cons and whether futures & options can create a steady source of monthly income?
What are the best books to read? Any online sites to learn.

Iam a radiologist by profession, as with everybody else the time to
dedicate is limited, please let me know the most effective ways
to reach my goal.

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Towards Risk profile: FnO segment is very risky , if you can’t able to handle volatility this might not be the option for you. Swing trade is the better option with limited risk reward ratio.

on a lighter note: Long term investor ko market saalo me koi din nanga karata hai , Trader ko market roz karvata hai !! XD)

Future & Options should be avoided, not for retailers. F&O are mainly for hedging that too for large (institutional) investors

Honest opinion- I don’t think future and options work as a alternative source of income. For me alternative source is to get spare time from my routine job/business and where I don’t have to pay higher attention and can earn the money.

Futures and options is highly a time requirement exercise, where you have to constant monitor and if bets are not in the favor you need to square off, because their nature are such. Where volatility comes into picture you need to adequate understand the product and given the time you need to adequate evaluate the betting possibilities.

I think, futures and options are for whom who can constantly engaged with the markets in minute to minute basis. Even after giving the full time attention the success ratio is not been in favor to approach.

As you seem to be working and novice I highly suggest to get a grip in cash markets by positional trades as it requires less attention and try paper trading of Futures and options as it also requires a high capital and high temperament to bear the loss and book the profits without regret. If you can do all this thing with an ease than you should try your luck. But keep in mind the success ratio and temperament. If you can’t see volatility never go with options and futures.

All the best.

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I agree with @Pujanshah3.
First you should get a grip on the cash market and understand what drives the shares, and why is the F&O segment active for some of the shares, and not all of them.

Also I feel with the right tools and right knowledge once could consider F&O for an alternative source of income, but for that you need to know how to devise hedged strategies as per the market conditions, also you should be dealing in stock options rather than indexes as stock options are slightly less liquid as compared to the indexes.
Also I feel personally in order to have sufficient margins in order to devise proper strategies, one should atleast have a capital of 15-20L in your demat account, so in case you dont have that, you are just shooting in the dark.

My journey towards F&O - Hope you might learn something…

I looked for the options in market - F&O attracts the most, where the Judgement will be quick and instant, Like novice trader i deployed 50K lost the entre capital (money big for me) - For experiencing the F&O i did that not a big deal now.

The emotions can’t be controlled in F&O markets / If you not building a system for yourself (Before you take a trade you need to be fixed with you are Risk & rewards ratio).

Cash Market (Equity) will be the easy play for beginners.

Still if you are interested in leaning about F&O.

Books (Basis only) -

  1. Option Dummies.
  2. Zerodha - Varsity (Free version).

Youtubers - (This is not for promotion)

  1. P.R Sundar - For Basic only (he is a option seller).
  2. C.A. Rachana Ranade - For Basic only.

Back testing - (Check your F&O strategies)

  1. Opstra - (Free ware / Paid version).
  2. Sensibull - (Paid version) .

Broker :- (If did in mobile)

  1. Upstox - Personal Experience

Update of Rules in NSE to monitored regularly other wise you will get cheated easily.

Need to keep on learning single everyday.

Even after the above all you need to have a deeper understanding how the market functions in F&O.

Recommend :- Only do trade in index F&O (Nifty or Bank-nifty) / Don’t even think about F&O for stock - until you gathered substantial knowledge.

Conclusion :- if you are looking for passive income or every month standard income, this not the horizon for you.

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Anyone following the thread?Any new ideas in F &O ?