Option Trading Secrets
#🧔TheOptionSchool Option Trading Secrets
- Both buying & selling is necessary for making consistent profit from the markets.
- IV goes up, when market falls, IV falls when market rises. Keep track of IV.
- Use hedged selling strategies when IV is High. Use hedged buying strategies when IV is low. The challenge is to know what is high & what is low on IV.
- Buy OTM Puts to protect yourself from market fall.
- Always check for liquidity.
- Proper Planning Prevent Poor Performance.
- Ask 5 Questions for Planning.
- What is the Max Loss ?
- What is the Expected Profit ?
- What percentage of capital is allocated with this trade ? ( 20% Max )
- At what point I need to do adjustments ?
- What will be the adjustment at adjustment point ?
- Highest OI in PUTS strong support. Highest OI in CALLS strong resistance.
- Successful traders are good at one or two trade setups. Successful traders do not chase too many rabbits.
- Never “Average Out” if the position went wrong.
#Investments💷/Options-Trading🎛️