Nifty, Bank Nifty and Stock option trading tips absolutely free with low risk and high reward.
80 best high volume stocks with highest option trading activity are screened out for Option Trading.
All these stocks are observed regularly based on Elliott Wave Theory to identify 5-6 stocks with possibility of 8-10% move in quick time.
Later we check Option data of these 5-6 selected stocks to find out bottom or stoploss of its Call Put Options. Reading of Option Data includes Open Interest analysis, Implied Volatility analysis and last 3-4 days of mass trading activity at most active strike price.
Finally, best 2-3 Option trades are decided which meets all our selecting parameters and then we wait for our low risk buying range to trade.
Trades are done mostly on Calls side because we observed in last 6 years of our Option Trading Experience that Buying Calls is most rewarding than Buying Puts (reason is change in implied volatility). So, we select the stock with possibility of quick upside in coming sessions.
Stock and Bank Nifty Option buying trades have risk rewards ratio of more than 1:3. We initiate a trade if our stoploss is less than Rs. 3000 and target is more than Rs.9000.
Option buying trades has accuracy of about 50-60% because abnormal Option Premium fluctuation ruins a trade some times. So, risk reward ration of option buying trades must be 1:3 or above.
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