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LETS STARTS- EXPERIMENTING THE POWER OF NIFTY OPTIONS CE/PE BUYING
Today we will discuss about one of My experiments that I’m doing nowadays. Many people might have lots of experience in Intraday trading and have lots of strategies is there. Similarly We shall use another Profitable Intraday trading strategy, which might be helpful for small trader like us, in the field of Intraday Trading.
This Intraday options buying strategy will help for those Traders, whose capital is low and want to earn consistent money from Online Intraday trading using their small margin with high accuracy and risk free or with moderate risk.
So before proceeding Please read The Disclaimer and Statutory warning —-
Especially It is noted that Options Buying and selling and Intraday trading with option is very risky, It might incur financial losses. And all Thought overall trading be it Intraday or Delivery or Swing trading is risky profession, so you people who want to trade please take precautionary measure before entering into trade.
Check your strategy and follow Risk management , Money management properly. And Don’t forget to Trade with the help or consult of your financial Adviser. Options trading is just like to ride on Rocket, It will take you to the moon if it goes according to your planning , And of course it will cause damages if not taken in proper directions or trade goes against you.
And Author of this Article will be noway responsible to the profit or loss which ever happens to you. It is you who are fully Responsible for your profit and losses. This is can be treated as Educational Purposes only.
So Without wasting our time lets get into the Points.
Hope you guys know , All about basic of financial market and its structure and All terminologies like ;
What is Call options CE and what is PUT options or PE and Strike price etc. Assuming that You know the basic structure of financial trading concept, and various Instruments Like – Equity, Derivatives like futures , Option , Call Option Put options Strike price , Index , Index futures, Index options , expiry etc
We will start it from the Direct options so if you don’t know the basic of all these please go through google or any books or any other website and check it and goes through in details.
Okay now let start—-
In our Past experience in Equity and future trading both are really either huge risk or have applies huge brokerage and taxes in our Intraday trading. If we do trade in Equity after some 5-10 lakh minimum volumes it will take another 350-450 total taxes and charges including stamp duty exchange fees GST CGST etc. Other side Future of underlying stocks have their high number of lot size which caused huge risk and needs huge money at least Rs.26000/- 30,000/- for single lot in CO or BO order. It is also noted that this is highly dangerous trade if it goes against our planned way.
So we like small trader have no options to trade and make consistent money with low capital like Rs.5,000/- to Rs.15,000/-.
Here is Nifty options buying or Bank nifty options buying comes into play. Using small margins small trade can easily take trade with confident if analyses made in correct way..
High volatility and high liquidity high volume options can change the game if we take trade in right directions.
So in this Article we shall discuss about Nifty Options Call or Put Buying strategy, which have small risk relatively selling options and safe for small trader.
Why Nifty options ? As because it is really liquidate and high traded volume among others Call put options of stoks options. It is one of the Highly traded instrument which can help us to exit positions at anytime we want. conditions is that we need to choose high volume Call or Put Nifty options.
What’s the strategy ??
You guys have found that Nifty Spot chart have reacts most the times accurately with its Support or Resistance level , means Supply and Demand Zone. If you looks The Hourly chart of nifty or daily Spot Chart of Nifty You can easily mark the Zone. From Where Nifty take reverse. The marking of these Zone is very easy.
Step:-1. Just Draw a zone from where Nifty is Bounced back from Low or Rejected from high level.
Step:-2. Now find out the fresh Zone that Created earlier and wait for that zone to Nifty comes back.
Step:-3. Now when Nifty comes back that zone from where Price Bounced back from low or Rejected from high just
select the high volume Options at right strike price, and Add into your watch list both call and put options instruments with right strike price.
This procedure has been clearly discussed in This Video please go through it.
There are two methods for selecting right nifty options instruments with right strike price.
One is directly from Options chain or from using Fyers One terminal.
Step: – 4 Now open and watch their Market Depth and watch few moments or Minutes and observe their behaviors.
which you help you to take trade in right Directions.
Step:-5 Find out Broad markets Data Like A:D:S data means Advances : Declines: Same(unchanged) data.
Step:- 5 check Global indices if possible. As because Global Sentiment drives our NSE, BSE benchmark and market a lots. As intraday trading drive specially as because as it is driven by lots of market sentiments and global cues and issues news also play vital roles.
Step :- 6. Now if Nifty Gets into the Zone of Supply or Resistance you just Buy PUT OPTIONS THAT YOU SELECTED and Added into your market watch list. Or Buy Call options when markets Fall into Demand Zone or in Support area.
Step :-7 When market Moves into your Desired directions or predicted directions your Price of Call or Put which you have brought will move faster than you think about it.
Be cautious and watch carefully while you are playing with this highly volatile trading instruments.
Step:-8 Each and every time You take trade Analyse Nifty spot Market with 1H, 30 Min candle sticks patter but while taking Entry into trade put it into 3 minutes time frame.
Step:- 9 before taking trade configure your RSI with periods 6 and OVER Brough and Oversold level as 60- and 40 respectively.
Step:-10. Constantly trail your SL when price moved in your Directions.
Step :-11. Entry, Exit and SL should be clear before entering into your trade .
Step:-12. We have watched that Nifty moves near about 30-40 points in one directions when moves do happens, in that particular time Options of that selected strike price , highly traded volume moves near about 7 to -15 to 25 points at at few moments or with in few minutes. Books small profits Rs.400/- to Rs.750/- or maintain SL or wait according to your risk appetite.
But our observations is all these starting strategy effects Best with RISK MANAGEMENTS, AND MONEY MANAGEMENTS.
Which will discuss latter. With another Article of Intraday trading.
This just wanted to show How we can play option buying and with the power of Nifty options so that we like small trader can also enjoy consistency profit from market. Options buying specially Nifty options which lot Size is small – 75 only save lots of Brokerage and taxes and can easily managed with small lots.
Hope This videos and Article will Help you lots. If you have any Doubts and Suggestions and feedback please feel free to share with us in bellow comments sections.
We are waiting for your valuables comments. Which will helps us to grow together.
Wish you Happy Trading. Best of Luck !!!