Option trading tips

Tip to option trading 

1) if you can get 50 percent profit in 3 days of trading, close it

2) it is not about how much you want to make. It is better to get 5 percent profit with 95 percent probability then to get 50 percent profit with lower probability 

3) risk management is important in option trading. Don't ever do nake option. It is better to make lesser then to lose money. Never risk 1 percent of your capital in 1 counter

4) You can find the day high within first few hours then queue for that day high (sell call) to sell vertical and go to sleep. Or use the option calculator to help you estimate how much option should cost


5) buy option when iv is low and sell option when iv is high. You realised even if stock doesn't move, but you sell during high iv, you will make a very good profit the next few days

# What Pitfalls Have You Encountered When Trading Options?

Modify on 2024-06-17 20:16

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  • mertiger
    ·06-21
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    question when it profit ...I sell it how come become loss ..
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    • mertigerReplying toDrdeedee
      now I just sell .. but it show Order modification or completion will result in the last modified time changed .. it show I still can make amends cancel it as already submitted.  so should I cancel .. or just let it go through..
      06-21
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    • mertigerReplying toDrdeedee
      but I sell it when is profit .. .
      06-21
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    • Drdeedee
      Learn about Iv else you will get burn as a buyer
      06-21
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  • Tiger V
    ·06-17
    Great tips, indeed
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  • zingzy
    ·06-17
    Thanks for the option trading tips
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  • Great advice
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