Option Trading Secrets

• Thu, Feb 23, 2023
• One-minute read

#🧔TheOptionSchool Option Trading Secrets

1. Both buying & selling is necessary for making consistent profit from the markets.
2. IV goes up, when market falls, IV falls when market rises. Keep track of IV.
3. 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.
4. Buy OTM Puts to protect yourself from market fall.
5. Always check for liquidity.
6. Proper Planning Prevent Poor Performance.
7. Ask 5 Questions for Planning.
   1. What is the Max Loss ?
   2. What is the Expected Profit ?
   3. What percentage of capital is allocated with this trade ? ( 20% Max )
   4. At what point I need to do adjustments ?
   5. What will be the adjustment at adjustment point ?
8. Highest OI in PUTS strong support. Highest OI in CALLS strong resistance.
9. Successful traders are good at one or two trade setups. Successful traders do not chase too many rabbits.
10. Never “Average Out” if the position went wrong.

#Investments💷/Options-Trading🎛️