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I am writing this solely based on today's learning.
forward test it.
I traded 5-6 trades on deep OTM (share price below 20)
crux of today's learning:
1) buy call when spot is breaking out from good level
2) buy put on breakdown
I am writing this solely based on today's learning.
forward test it.
I traded 5-6 trades on deep OTM (share price below 20)
crux of today's learning:
1) buy call when spot is breaking out from good level
2) buy put on breakdown
suppose spot giving breakdown, then these levels r watched by many traders and on put options, many sellers SL will get hit giving some spike.
Now the idea is to jump into this spike quick and get out quick. (needs better execution speed as well as better platforms.
Now the idea is to jump into this spike quick and get out quick. (needs better execution speed as well as better platforms.
Let's understand with the help of chart and take one such breakdown incidents:
Focus on breakdown candle (see it failed but still spike was seen on put)
1)first chart is of banknifty spot showing breakdown
2)2nd is 18900PE chart
read very carefully
Focus on breakdown candle (see it failed but still spike was seen on put)
1)first chart is of banknifty spot showing breakdown
2)2nd is 18900PE chart
read very carefully
CAUTION:
1) option buying is very dangerous to your trading capital as you need all stars in your favor to profit in buying.
2) if u r not able to perform with quick speed, don't attempt
3) everyone has different abilities, don't force trade a strategy.
4) wait and don't haste
1) option buying is very dangerous to your trading capital as you need all stars in your favor to profit in buying.
2) if u r not able to perform with quick speed, don't attempt
3) everyone has different abilities, don't force trade a strategy.
4) wait and don't haste
