Candle Patterns Risk Management in Options
While options offer opportunities, they also carry risks:
Selling naked options can lead to unlimited losses
High leverage can magnify mistakes
Emotional trading during volatility can destroy capital
Ignoring Greeks can cause unexpected losses
Disciplined traders use:
Stop loss
Position sizing
Hedging
Proper strategy selection
Options should always be traded with clear logic, not hope or fear.
Chart Patterns
Part 1 Ride The Big Moves Why Traders Use Options
Options offer several unique advantages:
1. Leverage
With a small premium, you can control a much larger position.
2. Hedging
Investors can protect portfolios from downside risk using puts.
3. Income Generation
Selling options—especially covered calls—creates consistent passive income.
4. Flexibility
You can profit in:
Upward markets
Downward markets
Sideways markets
High or low volatility environments
This flexibility gives options an edge over simple stock trading.
PCR Trading Strategies The Role of Premium
The premium is the price you pay to buy the option.
Premium is influenced by:
Underlying price
Strike price
Time to expiry (more time = higher premium)
Volatility (higher volatility = higher premium)
Interest rates
Market demand
The buyer’s maximum loss is limited to the premium paid, but the seller’s risk can be much higher—sometimes unlimited.
Part 2 Support and Resistance Straddle – Big Move Expected (Either Side)
Market View: Highly volatile ±10%
How it Works:
Buy ATM Call + ATM Put
If stock shoots up or crashes, you earn big
Used During:
Results day
Budget announcement
Major news event
Strangle – Cheaper Version of Straddle
Market View: High volatility expected
How it Works:
Buy OTM Call + OTM Put
Cheaper than straddle
Requires bigger move to profit
Part 1 Support and Resistance Bear Put Spread – Low Cost Bearish Trade
Market View: Moderately bearish
How it Works:
Buy ATM/ITM put
Sell lower strike put
Cheap alternative to buying a naked put
Iron Condor – Sideways Market Strategy
Market View: Neutral/Range-bound
How it Works:
Sell OTM call spread
Sell OTM put spread
Collect premium from both sides
Profit in a non-trending market
Best For:
Market consolidation
Expiry day premium decay
Option Trading Strategies Covered Call – Income Strategy
Market View: Moderately bullish
How it Works:
You hold shares of a stock.
You sell a call option on those shares.
You earn premium as profit.
Best For:
Generating fixed income in a sideways/bullish market.
Low-risk traders.
Risk: Stock may get “assigned” if it crosses strike price.
Part 2 Master Candlestick PatternBull Call Spread – Low Cost Bullish Trade
Market View: Moderately bullish
How it Works:
Buy ATM/ITM call
Sell higher strike call
Reduces cost + reduces risk
Best For:
Controlled bullish trades
Trending markets
Bear Put Spread – Low Cost Bearish Trade
Market View: Moderately bearish
How it Works:
Buy ATM/ITM put
Sell lower strike put
Cheap alternative to buying a naked put
Part 1 Master Candlestick PatternCash-Secured Put – Buying Stock at Discount
Market View: Moderately bearish
How it Works:
You sell a put option by keeping cash aside.
If stock falls, you buy it at lower (strike) price.
If stock stays above strike, you keep the premium.
Best For:
Investors wanting stock at a discount.
Very safe strategy.
Live Market trade- Bank nifty * Market open near PDL and sharp up move toward seller stoploss where maximaum people put.
*After stop out, market make bearish candle @ 09:40hr , so we took sell order and expected targer whould be day low, but market took reversal and give re- entry @ 11:05hr again target would be day low.
* We exit from position. target just missed by 40 points.
* But trade was good. we are getting ready to take loss of 140 points and booked profit @203 points but re-entry stop loss was 85 points and exit @ 185 points.
thanks for supporting.
We are try to record video with audio, so this will be coming soon.
Divergence Secrets What Are Options?
An option is a financial contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a fixed price (called the strike price) on or before a certain date (called expiry). There are two types of options:
Call Option – gives the right to buy.
Put Option – gives the right to sell.
The person who buys an option pays a fee known as the premium. The seller (also called the option writer) receives this premium and has the obligation to carry out the contract if the buyer chooses to exercise it.
Part 2 Intraday Trading Master ClassWhy Option Trading Is Growing Rapidly in India
In recent years, India has seen an explosive rise in options trading due to:
Weekly expiries (more opportunity)
Low entry capital
High liquidity in BankNifty and Nifty options
Rise of online brokerages
Wide availability of market data and tools
Social media awareness
Because of the leverage and excitement options offer, many new traders are drawn to them—though disciplined ones survive longer.
Part 1 Intraday Trading Master ClassWho Wins More—Option Buyers or Sellers?
Option buyers have limited risk and unlimited reward, but their probability of success is lower because:
Time decay works against them.
They need strong directional movement within a short time.
Option sellers (writers) have limited profit but higher probability of winning because:
Time decay works in their favor.
Markets stay range-bound more often than they trend strongly.
Thus, professional traders often prefer option selling strategies like:
Iron condor
Straddle
Strangle
Credit spreads
Covered calls
Retail traders, on the other hand, prefer buying options due to lower capital requirements.
Learn Candle PatternsCandlestick patterns are one of the most important tools in technical analysis, used by traders around the world to understand market psychology, predict price movement, and identify buying or selling opportunities. Each candle on the chart tells a story—who is in control (bulls or bears), the strength of the price move, and the potential reversal or continuation of the trend. When combined into patterns, candlesticks offer powerful signals that help traders make better decisions.
A single candlestick is made of four data points: open, high, low, and close. The body represents the open-to-close range, while wicks (shadows) show the highs and lows. Bullish candles generally close above the open, and bearish candles close below the open. Understanding this basic structure is essential before analyzing patterns.
Candlestick patterns are broadly categorized into reversal patterns and continuation patterns. Reversal patterns indicate a potential change in trend, while continuation patterns suggest the existing trend is likely to continue. These patterns can be single-candle, double-candle, or multi-candle formations.
Premium Chart Patterns Chart patterns are one of the most powerful tools in technical analysis. They visually represent how price behaves over time and help traders understand market psychology, identify trend direction, and predict future price movements. Whether a trader is dealing with equities, commodities, currencies, or indices like NIFTY or BANKNIFTY, chart patterns offer high-probability setups for both intraday and positional trading.
At their core, chart patterns indicate market sentiment—fear, greed, indecision, accumulation, distribution, breakouts, or reversals. When repeated price behaviour forms recognizable shapes on a chart, traders can use them to anticipate the next move. These shapes emerge from support, resistance, trendlines, and consolidation zones.
Broadly, chart patterns are classified into three categories:
Reversal Patterns – Signal a trend reversal
Continuation Patterns – Indicate the trend will resume
Bilateral Patterns – Suggest breakout in either direction
Part 12 Trading Master Class With ExpertsRisk in Option Trading
Although options can be powerful, they carry risks:
1. For Option Buyers
Premium can become zero if market doesn’t move as expected.
Time decay works against buyers.
2. For Option Sellers
Potentially unlimited loss in selling naked calls or puts.
Require higher capital and margin.
3. Volatility Risk
Sudden drop in volatility can reduce premium even if direction is correct.
4. Liquidity Risk
Some strike prices have low liquidity, making entry/exit difficult.
Part 11 Trading Master Class With Experts Who Should Trade Options?
Options are suitable for:
Traders with directional view
Investors needing hedging
Income seekers using option selling
Advanced traders who understand Greeks
Beginners should start small, learn concepts deeply, and practice on charts before investing heavy capital.
Part 10 Trade Like Institutions Option Trading in the Real Market
In India, most retail traders use options for:
Intraday trading
Weekly expiry trades (especially Nifty & Bank Nifty)
Hedging equity positions
Short-term directional bets
The NSE options market is one of the world’s largest due to high liquidity.
Part 9 Trading Master Class With Experts What Are Options?
Options are financial contracts that give a trader the right, but not the obligation, to buy or sell an asset at a fixed price (called the strike price) before or on a specific date (called the expiry).
The underlying asset could be a stock, index, commodity, or currency.
Because options provide choice (whether to exercise or not), they are called “options.”
There are two main types:
Call Option – gives you the right to buy at a fixed price.
Put Option – gives you the right to sell at a fixed price.
In both cases, you pay a premium (price of the option). This is the maximum loss for option buyers.
Candle Patterns Explained Doji Candle – Indicates market indecision where opening and closing prices are almost equal.
Hammer Candle – A bullish reversal signal appearing after a downtrend with a long lower wick.
Shooting Star – A bearish reversal pattern with a small body and a long upper shadow at the top of an uptrend.
Bullish Engulfing – A large bullish candle fully engulfs the previous bearish candle, signaling potential trend reversal upward.
Bearish Engulfing – A large bearish candle fully engulfs the previous bullish candle, hinting at a possible downward reversal.
Premium Chart AnalysisHow to Trade Chart Patterns
To effectively trade chart patterns, follow these steps:
Identify the Pattern Early
Use clear trendlines to mark support and resistance zones.
Confirm shape and symmetry before assuming a pattern.
Wait for Breakout Confirmation
A breakout should be supported by volume expansion—this validates the move.
Avoid acting before confirmation; false breakouts are common.
Set Entry and Exit Points
Enter after a confirmed breakout (preferably with candle close beyond resistance/support).
Target = Height of pattern projected from breakout point.
Stop-loss = Just below (for bullish) or above (for bearish) the breakout level.
Use Multiple Timeframe Analysis
Confirm pattern on higher timeframes to avoid false signals.
Align short-term setups with long-term trends for stronger conviction.
Part 8 Trading Master Class With ExpertsRisks in Option Trading
While options offer great potential, they also come with risks, especially for sellers.
Time Decay: The value of an option decreases as it nears expiry.
Volatility Risk: Unexpected drops in volatility can reduce premium value.
Unlimited Loss (for Writers): Option sellers can face huge losses if the market moves sharply against them.
Complexity: Understanding option behavior and Greeks requires knowledge and experience.
Therefore, beginners should start small and practice on demo accounts or low-risk strategies before committing large capital.
Part 7 Trading Master Class With Experts Types of Option Strategies
Option trading is not just about buying calls or puts; it involves strategic combinations to profit under various market conditions. Some popular strategies include:
a) Bullish Strategies
Bull Call Spread: Buying a lower strike call and selling a higher strike call.
Bull Put Spread: Selling a higher strike put and buying a lower strike put.
b) Bearish Strategies
Bear Call Spread: Selling a lower strike call and buying a higher strike call.
Bear Put Spread: Buying a higher strike put and selling a lower strike put.
c) Neutral Strategies
Iron Condor: Selling one call and one put at close strikes while buying further out-of-the-money options.
Straddle: Buying both a call and put at the same strike to profit from big moves in either direction.
Strangle: Buying a call and a put at different strikes to benefit from volatility.
These strategies allow traders to earn consistent returns by managing risk rather than relying purely on market direction.






















