Strategies for Intraday Options Trading

Jul 11, 2024

Intraday Trading Options Lecture Notes

Main Topics

  • Intraday Trading: How to earn profits from the stock market within a single day.
  • Options Trading: Option buying, option selling, directional and non-directional strategies.

Options Trading

  • Option Buying: Predicting the market movement.
  • Option Selling: Usually makes a profit, trading on lower strikes.
  • Zero Hero Trades: Identifying the right time, not adding pressure while making a profit.

Strategy Elements

  • Initial Setup: Implementing strategies on any trading platform.
  • Market Observation: Observing the market at 9:20 AM, checking market levels.
  • Call and Put Premium: Analyzing the at-the-money (ATM) premium.
  • ATM Premium: Declines over time.

Trading Plan

  • Selling Plan: Selling on closing below VWAP (Volume Weighted Average Price).
  • Booking Profit: Capturing 70 to 80 points, with a 10-point trailing SL.
  • Loss Cutting: Cutting losses when ATM price goes above VWAP.

Indicators

  • VWAP: Key indicator, price closing below VWAP is essential.
  • Supertrend: Used in quick momentum, setting of 20 and 2.

Zero Hero Setup

  • Three O'clock Move: Capturing the move at 3 PM, taking advantage of premium decay.
  • Price Action: Identifying big movements in market price over time.

Important Tips

  • Don’t invest a huge amount initially, gather more information.
  • Observe the market and repeatedly test the strategy.
  • Do not rely on cluttered or excessive information, use one indicator correctly.
  • Apply the strategy at the right time, proper use of VWAP and Supertrend.

Conclusion

  • Strategic Impact: A strong strategy that can regularly earn money if adopted.
  • Proper Training: Essential to follow techniques and rules correctly.

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