Option Buying Simplified

Very important thread for all option buyers 🧵

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

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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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