Option trading requires good knowledge of strike selection. You might want to check pre-requisite before continuing
Options buyer’s best friend is the trending market/stock. Thus wait for below listed scenarios of SBER for options buying for day trading.
Best conditions for option buying (either of these can be used)
- Breakout of strength and sustenance marking (blue line). Breakouts with big candles are less friendly than usual sized candles.
- Textual information is showing “Expected: Trend” and no trap alert is shown by SBER SMI. Recommended.
- There is breakout from “Expected range” shown as textual information.
- Options buyers prefer buying calls for up trend and puts for down trends.
- You can always delta hedge your position if not sure about open position.
- If you are not sure about the strike selection, prefer to trade near OTM when expiry is far, or ATM/ITM when expiry is near (indicative only).
- Exit the trade if any of above mentioned condition for trade is interrupted.
Do not trade options if textual information reads “Abrupt indecisive moves expected” or “Info NA”