Option Buying Simplified (PART -2)

Very important thread for all option buyers ๐Ÿงต

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

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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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Option buyers want,

Direction
Momentum
Price should not spend more time on & around VWAP

If above confirmation is not there during Live Market wait for the opportunity. Make Trading as simple as possible.

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Main work of a option buyer is to stay with the current market direction. When all clues from the chart is showing,

Bullish means focus more on CE
Bearish means focus more on PE

40% to 50% of your loss will be reduced by following the above steps

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End of the thread

If you find the thread useful make sure to RETWEET & Like the first tweet. Your support is very important.

Follow us on twitter @learntotrade365 to get more trading content & strategies.

Also do check this MEGA Learning thread ๐Ÿ‘‡
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More from Learn to Trade

2 hours of non-stop Twitter space by @kapildhama

Topic - Data Points to check as a Option seller

Mega Thread ๐Ÿงต of all the data points to check as a option seller shared by Mr. Kapil Dhama is complied

Retweet to reach wider -Learning should never stop

#StockMarketindia
1/18 https://t.co/m0NXToSU1p


2/18

-Make your own trading system
- First identify what suits you ?
Trend Following
Directional or Non-directional option selling
9:20straddle
Naked option buying/selling

-Never take more than 1% loss in intraday
-There is no specific trick in market only important is process

3/18

-Chart & Data plays a important role ( Understand to combine to identify trades/direction )
-In all trades knowing exit point is very important

Simple target for Kapil sir in straddle is 100 points in a week on BNF & Loss exit point is 50 points after adjustment (R:R 1:2)

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- Simple target for Kapil sir in straddle is 50 points in a week on NF & Loss exit point is 25 points after adjustment (R:R 1:2)

Check data after 3:00 p.m Chart + Data ?

Check how is the closing ( Location of closing - Near Day high or Day low or mid of the day )

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Example:

-If market is near high ( Check in data whether Near ATM PE has more writing & in CE writing whether is less at higher strike price) - It is a Probability

Once Data is bullish along with the close he choose

Strangle- Rs.70 PE & Rs.40 CE or scroll down
Twitter is filled with knowledge so let's today focus on few trading related knowledge shared by various traders

A mega thread ๐Ÿงตon various content related to trading

1/11 ๐Ÿงต

Retweet and share to benefit maximum traders

Checklist for Option buying thread by ( @asitbaran )

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Trading via spread by @Ronak_Unadkat complied by @AdityaTodmal

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Option strike price selection by @ITRADE191 complied by @AdityaTodmal

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Data points to check as a option sellers by @kapildhama

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Highly effective Trading strategy which can help to follow the trend & ride the direction in BANKNIFTY ( Without Indicators)

For Option Buyers, Option Sellers & all Directional traders

Simple strategy help to make more profits

Retweet this thread ๐Ÿงต to reach many traders


I also do Intraday Live Market sessions on all Trading days ( Monday to Friday 09:00 a.m to 01:00 p.m) - Follow us @learntotrade365

Join the Telegram channel -
https://t.co/VU0bCGAX9s

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My approach here is to focus on Low risk High Reward strategy with simple 1st 15 Minutes High & Low. You can personally do your testing.

Chart 1 Scroll down ๐Ÿ‘‡


Trading involves both profit & loss. But still becoming a profitable traders is a skill of proper position sizing. Good position sizing is fix your losses and taking quantity according to the STOPLOSS

Chart -2 Scroll down๐Ÿ‘‡


Everyone want to make money from trading but ultimately traders who's main focus is on following the PRICE with risk management end up making big money from trading

Focus on Price. Rest is Noise

Chart 3 Scroll down ๐Ÿ‘‡

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