Options Trading Facts 1

 

• If you like do intraday options trading probably you like to be more into the action part of trading and does not like sit idle much and eager to participate and see results quicker 

• While the fact is that you are less likely to be  more profitable than a positional/ swing trading unless you have higher capital or take higher risk or both.

• Being more active or less both are fine as long as it fits into your mindset  but what really matters is to maintain same consistently always. 

• Just like the option buying being profitable Is harder than option selling It is no doubt that decision making on either way on smaller timeframes is more harder than other way.

• Backtesting your rules gives you much more confidence than otherwise in order to stick to your rules in your real trade. But Truly how many retailers in options selling has backtested solid rules for every different market cycles and stick to it ?

• Do make sure plan to put that money into short/medium/long investing in good quality stocks on mutual funds or other liquid funds as per your risk appetite, time horizon and expertise so as to benefit from the  additional collateral benefit  for option selling capital from it by pledging them.

• Intraday option trading also gives risk like freak trades scenarios since hedging used only margin with far tom and stop loss may misfire

• Intraday volatility brings in high volatility without having enough lesser reflex action timeframe ignorer to judge and decide the bet adjustment options even with experience.

• No matter you look at open interest or volatility or chart levels or greeks  ,end of the day options trading is speculative and all the traders  skills narrows down to how much of your probabilities of your anticipated price range went right or wrong.

• If you have finally managed to learned the tricks of the game hard way over the years and also made small but decent money in options trading, in order for wealth generation.