My First Stock

My First Stock

16-10-2022

07:10

Option buying - A basic thread 🧡🧡 Some Important points for Beginners Kindly Re-Tweet for Max Reach πŸ™

1) OTM Options Sucks your money everyday - In case of - No move Small move in favor Small move against Big move against You will loose everyday if holding OTM Option

2) Buy Horizontal chart and Enjoy Vertical move Look at the Ambuja Chart posted - - You need some basic charting knowledge for this - Buy when it is about to break resistance - Less volatility low premium - Buy Horizontal Enjoy vertical

3) Hedge Hedge Hedge - Always hedge even if with distant option - Market opening at gaps and once spot price moved against you it is difficult to make money in stock options - So hedge by selling any of next strikes and keep risk small Don't hold weekly options overnight πŸ™πŸ™

4) Don't get influenced with MTM Screenshots - Everyone loose - They post MTM only when in profit - Overnight weekly position can blow your account in days - Research stocks based on technical analysis and buy options when stock is about to breakout

5) You should know Greeks - at least basics - Delta and its importance, how OTM ATM options move as per delta - How you can hedge with delta - Overall delta and other greek values of the position Its your hard earned money, STUDY BOSS before loosing it

6) Always buy ATM - - Less decay at least for first two weeks - Better hedge available in options or equity or FNO - No melting everyday

7) A basic no loss strategy - Buy a stock ATM option when stock is near Breakout - Once it break out and moves say 10% in your favor then hedge 100% with best available next strike Say you bought 300 call and spot moved to 330 Now sell 330 or 340 call to earn best

8) Position size kills - - Its the position size that kills a beginner account - On a single tip they are ready to put all money in an option - The best archer even sometimes miss the target - So keep position small and try multiple times with low risk high reward

9) Option buying is low risk high reward - - For this you should keep holding your winners as per chart and strategy - Only take small risk in every attempt - Keep atleast 1:3 Risk Reward Don't get Pagal watching profit - let it run

You can follow my handle @myfirststock99 for more such information as I keep posting such learning stuff every weekend. Join telegram too πŸ™



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