Option Buying Simplified

Very important thread for all option buyers 🧵

Just 5 minutes to read but it can change your trading a lot.

Support us by RETWEET this tweet to help most option buyers to gain knowledge & to avoid getting trapped from big players

Also from tomorrow (1st September) starting free Daily LIVE MARKET Session via Youtube Live - Follow us on Twitter @learntotrade365

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Let's first understand the DELTA of a option to get a idea about understanding the option strike price & always as a option buyer don't choose OTM option to trade

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Let's understand how much the option price has a probability to move for every 100 points move in banknifty

Delta effect to the option price movement

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Most retail traders big mistake in choosing option strike with a wrong perspective. Don't think it as a cheap option premium - Better choose the QUALITY

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One of the main reason for retail traders losing money in option buying

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Theta Decay effect on various Option strikes:

Starts mostly in this below order

OTM strike then --- ATM ---then ITM

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Trading with big quantity doesn't mean a traders will make money quickly - In Trading there is nothing called quick money.

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End of the thread

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More from Learn to Trade

Whether OI works for intraday trading ?

Whether OI useful ?

No one has a exact answer. But one effective way to make use OI in a very different perspective - OUT OF THE BOX from Traditional method

Read the full thread 🧵

Kindly RETWEET & share so it can reach many traders


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This is a EOD OI graph of ICICIBANK. Here i am trying to focus on strike price which has more than 2x OI comparing CE vs PE of individual strikes.

Below 880 strike CE vs PE in which 880 CE has 2x more OI (more writers) compare to 880 pe.

Read the message in the image

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From the above OI graph of EOD 04/09 NOW refer the chart below of the same ICICIBANK for 05 sep

Main focus is not to take 880 levels as resistance just because of more CE OI. My focus if 880 is easily crossing and closing above it to open a bullish opportunity

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EOD OI graph of Bajaj Auto. Here i am trying to focus on strike price which has more than or equal 2x OI comparing CE vs PE of individual strikes.

Below 4000 strike CE vs PE in which 4000 PE has 2x more OI compare to 4000 CE.

Read the content in the below image

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Option Buying Simplified (PART -2)

Very important thread for all option buyers 🧵

Just 5 to 10 minutes to read but it can change your trading a lot.

Support us by RETWEET this tweet to help more option buyers to gain knowledge & to avoid getting trapped from big players https://t.co/yBZ6Y7BaGx


I do Intraday Live Market session via Youtube Live on all trading days - Follow us on twitter @learntotrade365

Join the Telegram channel for Live Market updates and more free content.

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Main problem which most option buyers face is Option Premium erosion ( Theta Decay ). So I have shared a simple & effective process to understand the option decay during Live Market before entering option buying trades

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Follow up example from the above chart about Option premium decay during sideways market. In general most option premium erosion (theta decay) happens during sideways market.

Theta is option buyers ENEMY

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Option Buyers high probability zones while trading ATM & ITM strike prices.

VWAP helps a lot in providing data during Live Market

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More from Catagory trading

MEGA LEARNING THREAD

The thread contain all the FREE CONTENT which I have shared so far.

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Make sure scroll down till last tweet in this thread and learn from all the below content shared related Trading.

Join the Telegram channel for live market updates

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Price Action Trading Strategy for Directional traders

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VWAP + PIVOT POINTS Intraday Trading Strategy for Directional traders

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Buyers vs Sellers - To identify index direction using candlesticks charts

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Option Buying Simplified (PART -2)

Very important thread for all option buyers 🧵

Just 5 to 10 minutes to read but it can change your trading a lot.

Support us by RETWEET this tweet to help more option buyers to gain knowledge & to avoid getting trapped from big players https://t.co/yBZ6Y7BaGx


I do Intraday Live Market session via Youtube Live on all trading days - Follow us on twitter @learntotrade365

Join the Telegram channel for Live Market updates and more free content.

Scroll down

Main problem which most option buyers face is Option Premium erosion ( Theta Decay ). So I have shared a simple & effective process to understand the option decay during Live Market before entering option buying trades

Scroll down 👇


Follow up example from the above chart about Option premium decay during sideways market. In general most option premium erosion (theta decay) happens during sideways market.

Theta is option buyers ENEMY

Scroll down 👇


Option Buyers high probability zones while trading ATM & ITM strike prices.

VWAP helps a lot in providing data during Live Market

Scroll down 👇

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This media manipulation effort was inspired by the success of the "kids in cages" freakout, a 100% Stalinist propaganda drive that required people to forget about Obama putting migrant children in cells. It worked, so now they want pics of Trump "gassing children on the border."

There's a heavy air of Pallywood around the whole thing as well. If the Palestinians can stage huge theatrical performances of victimhood with the willing cooperation of Western media, why shouldn't the migrant caravan organizers expect the same?

It's business as usual for Anarchy, Inc. - the worldwide shredding of national sovereignty to increase the power of transnational organizations and left-wing ideology. Many in the media are true believers. Others just cannot resist the narrative of "change" and "social justice."

The product sold by Anarchy, Inc. is victimhood. It always boils down to the same formula: once the existing order can be painted as oppressors and children as their victims, chaos wins and order loses. Look at the lefties shrieking in unison about "Trump gassing children" today.