Survive & Succeed as an Option Buyer – Use This 2-Step Filter!Option Buyer’s Survival Setup – Only Trade When These 2 Conditions Match!
Hello Traders!
Option buying can be highly rewarding — but only if done with timing and logic. Most option buyers lose money not because of direction, but because they enter trades when volatility and structure don’t support the move . Today, let’s uncover a simple but powerful setup I use that helps option buyers survive and thrive by trading only when two key conditions align.
The 2 Conditions for Option Buyers’ Survival
1. Price Action Confirmation:
Always enter trades when the price breaks key levels with a strong candle and volume confirmation .
→ Look for breakout/rejection candles, bullish/bearish engulfing, or range breakout retest setups .
2. IV/VIX Support for Momentum:
Check India VIX or option premiums.
→ Trade only when VIX is supportive (e.g., rising or above 13–14) to allow enough premium expansion.
→ Avoid buying in low VIX chop zones unless supported by strong news or breakout.
Why This Setup Works So Well
Avoids Time Decay Traps: You enter only when a move is expected — not during sideways chop.
Improves RR Ratio: Strong confirmation = better entry + reduced SL hits.
Filters Out Noise: Stops you from overtrading every price move and focuses only on high-conviction trades.
Bonus Tips for Buyers
Prefer ATM Options in Momentum Trades for better delta and faster movement.
Exit Partial at 30–40% Move and trail remaining to maximize runners.
Don’t Trade Every Move — Wait for these 2 rules to align, or skip.
Rahul’s Tip
Being an option buyer is tough – unless you're selective. Don’t buy hope. Buy confirmation. Let structure and volatility guide your trade.
Conclusion
Option buying is a game of survival and sharp entries. If you follow these 2 key rules — structure + volatility confirmation — you’ll avoid unnecessary SL hits and capture the real moves. Discipline is your edge.
What’s your personal filter before buying options? Share below and let’s learn together!
