Prior to that, you must go through below 5 things which will help you achieve a higher success rate in options trading. We do provide Option intraday tip with a high success rate and is worth checking.
- We always suggest trading in options if you are well versed in it. Please remember that option buyers generally lose their premium 80-90% of the times and thus you have to keep the option seller technique in mind while buying the options. Thus following the option writer holds a lot of importance.
- The maximum stake of option writers is at stake and thus they happen to be the right majority of the time. Options need to be traded like a chess game by keeping the action of option writer in mind beforehand.
- Remember that the majority of the time, lower the premium means that chances of option becoming fructified are poor. Always keep sure that you know India VIX which helps you know the volatility. Thus do not be on the lookout for lower premiums in options as the likelihood of its loss is very high. It is low priced because its chances of becoming fructified is remote.
- Higher the volatility in stock higher is profit and higher is the loss if you happen to go wrong.
- Positions be taken in the first week or the first day of the weekly option and get out of the option by the third week. Time value deteriorates faster when the time value goes down very past after the third week.
- Please use the stop loss in options always and every time.
Watch this Video on Options Trading to Increase your Profit and this video is courtesy ICICIdirect. The video will load below this line.
You
should Trade Less But Trade Accurately & this is Achieved with our Tip.
