Optionbuyers — Trading Ideas on TradingView

Option Buying Strategies (Beginner to Advanced) – Complete Guide 1. Understanding Option Buying An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price (strike price) before or on expiry. Types of Options Call Option → Right to buy (bullish view) Put Option → Right to sell (bearish view) Why Traders Prefer Option Buying Limited risk (loss = premium paid) High leverage Defined reward–risk ratio Suitable for directional and event-based trades 2. Key Factors Affecting Option Buying Before applying any strategy, understanding these factors is critical: 1. Direction (Price Movement) Options need a strong move in the expected direction. 2. Time Decay (Theta) Options lose value daily due to time decay. Buyers should trade when fast movement is expected. 3. Volatility (Vega) Rising volatility benefits option buyers. Falling volatility hurts option buyers. 4. Liquidity Always trade liquid options (NIFTY, BANKNIFTY, FINNIFTY, stock F&O). 3. Basic Option Buying Strategies 1. Long Call Strategy (Bullish) Market View: Strongly Bullish Instrument: Buy Call Option Example: NIFTY at 22,000 Buy 22,100 CE Profit: Unlimited if price rises sharply Loss: Limited to premium paid Best Used When: Breakout above resistance Strong bullish candle Positive news or earnings 2. Long Put Strategy (Bearish) Market View: Strongly Bearish Instrument: Buy Put Option Example: NIFTY at 22,000 Buy 21,900 PE Profit: Increases as price falls Loss: Limited to premium Best Used When: Breakdown below support Weak market structure Negative global cues 4. Neutral Option Buying Strategies 3. Long Straddle Market View: High volatility, direction unknown Structure: Buy ATM Call + Buy ATM Put Example: NIFTY 22,000 Buy 22,000 CE + Buy 22,000 PE Profit: Big move in either direction Loss: If market remains sideways Best Used During: Budget day RBI policy Election results Major earnings 4. Long Strangle Market View: Volatile but slightly directional Structure: Buy OTM Call + Buy OTM Put Example: Buy 22,200 CE + 21,800 PE Advantage: Lower cost than straddle Disadvantage: Needs larger move 5. Advanced Option Buying Strategies 5. Directional Breakout Buying Concept: Buy options when price breaks a key level. Steps: Identify strong support/resistance Wait for candle close beyond level Buy ATM or slightly ITM option Keep strict stop-loss Works Best In: Trending markets Opening range breakout High-volume breakouts 6. Pullback Option Buying Instead of buying at breakout, buy during a retracement. Example: NIFTY breaks resistance Pulls back to retest Buy Call at support Advantage: Lower premium Better risk–reward 7. Trend-Following Option Buying Rule: Trade only in the direction of trend. Indicators Used: 20 & 50 EMA VWAP Supertrend Strategy: Buy Calls in uptrend Buy Puts in downtrend Exit when trend breaks 6. Intraday Option Buying Strategies 8. Opening Range Breakout (ORB) Mark first 15 or 30 minutes high & low Break above high → Buy Call Break below low → Buy Put Stop-Loss: Below breakout candle Target: 1:2 or 1:3 RR 9. VWAP-Based Option Buying Buy Call if price holds above VWAP Buy Put if price stays below VWAP Best during trending intraday sessions 7. Positional Option Buying Strategies 10. Event-Based Buying Used before: Earnings Budget RBI policy Global data (US Fed) Risk: IV crush after event Solution: Exit before announcement or book partial profits. 8. Risk Management in Option Buying Risk management decides success more than strategy. Key Rules: Risk only 1–2% of capital per trade Always use stop-loss Avoid overtrading Trade only liquid strikes Prefer ATM or ITM options 9. Common Mistakes in Option Buying Buying far OTM options (lottery mindset) Ignoring time decay Trading in low volatility No stop-loss Emotional trading 10. Best Indicators for Option Buying Support & Resistance Volume VWAP RSI (momentum confirmation) Moving Averages 11. Option Buying vs Option Selling Factor Option Buying Option Selling Risk Limited High Reward Unlimited Limited Skill Needed Timing Capital & patience Volatility Needs high Needs low 12. Final Thoughts Option buying is not gambling when done with discipline. It works best when: Market is trending Volatility is expanding Entries are precise Risk is controlled Successful option buyers focus on quality trades, not quantity. One strong move can recover multiple small losses.

Nifty Institutional levels | intraday 10-JUNE-2024 | 9:15 IST #Optionbuyers #Niftyoptionscalping Zones you always Like:- Green zone- institutional support Red zone - institutional resistance Gap between institutional zones is always of 100 points Zone is created with the help of pivot points and Fibonacci Advance version of price action Trades based on Nifty future chart Trade Execution:- Trade confirmation on order flow data Timeframe - 1 min and 5 min Risk Reward Ratio always 1:2 Strike price always ATM & slightly ITM Maintain position sizing according to your own method House Rules in trading:- Sharp at 9:15 AM Priority to risk management Fast execution (morning breakfast) Stop-loss 10 points (strictly) #ThankU For Checking Out Our IDEA , We Hope U Liked IT 📌 🙏FOLLOW for more ! 👍LIKE if useful ! ✍️COMMENT Below your view !

Nifty levels for 19th July Good Morning Traders, Yesterday was a good day for everyone i think right, except Hero Zero Trade of Fin NIfty, am i right? Because we had got momentum for both side. Okay now let's focus on today's scenario. Nifty is going to form a bullish flag pattern i think. Just assuming but we will trade according to price action. If there will be bullish flag pattern we will wait for breakout to enter for grabbing momentum. Global scenario is looking mixed till now, American market have given best intraday closing yesterday. Asian market struggling as Hang Seng already down 1.39% till now. So let's see how our market is going to behave. I have already market all the levels on chart, but still i will write here too. Nifty Important levels for today:- Buy Nifty above 19806, if levels got sustained at least for 15 mints. Targets we can see in upside 19875/19950+ ( New All time high ). keep Stop loss at 19699 Sale Nifty below 19699, if levels got sustained at least for 15 mints. Targets we can see in downside 19615/19564 Keep Stop loss at 19806 Note:- Avoid trade in No trading zone as if you are a option buyer then you will lose money. And Always wait for the best entry or levels to execute trades. And always follow strict stop loss to save your capital from unexpected market direction. Disclaimer:- Please always do your own analysis or consult with your financial advisor before taking any kind of trades. Dear traders, If you like my work then do not forget to hit like and follow me, and guy's let me know what do you think about this idea in comment box, i would be love to reply all of you guy's. Thankyou.