Option buyers lose 70% of the time—here's why
50sIt reveals a harsh truth about option buying and the exact market condition needed to actually profit.
▶ Play Clip"Delivers the promised EMA strategy, but padded with repeated disclaimers, a platform pitch, and an extended live demo."
This video teaches a directional option buying strategy based on the 9 EMA and 20 EMA crossover. It explains how to catch major market moves, avoid range-bound markets, and manage trades using support and resistance, with live chart examples and risk-reward demonstrations.
The strategy is designed to catch market moves from top to bottom or bottom to top, making it directional.
Uses 9 EMA (short-term trend) and 20 EMA (mid-term trend) to determine direction.
Trading window is 9:15 to 3:30 (6 hours), within which option buyers face sideways conditions most of the time.
Use 5-minute for quick trades (15-25 minutes) or 15-minute for holding half-day trades.
5-minute is recommended to avoid theta decay and get quicker moves.
Trade only in directional structure — higher highs/lows for calls, lower highs/lows for puts; avoid range-bound markets.
After a breakout, wait for a pullback to the 9/20 EMA, confirm with a bullish candle, enter with SL below swing low.
On a breakdown, wait for a pullback to the EMAs, confirm with a bearish candle, enter with SL above swing high.
The strategy can yield 1:5, 1:8, or even 1:10 risk-reward ratios on directional moves.
Keep riding the trend until price closes above/below the 9/20 EMA or reaches a key support/resistance zone.
If price repeatedly crosses above/below the EMAs in a range, wait — these zones eat stop losses.
In a live example, premium jumped from ₹40 to ₹200, showing a risk-reward of 1:6.72.
The 9 and 20 EMA strategy is a simple yet powerful directional approach for option buying, but its success depends on strict market structure analysis, avoiding sideways markets, and consistent practice through backtesting and forward testing.
What two EMAs does the 920 EMA strategy use?
9 EMA and 20 EMA.
03:23
What is the recommended time frame for quick trades?
5 minutes.
05:33
What percentage of the time is the market sideways for option buyers?
70% of the time.
04:48
What is the trading window for the Indian market?
9:15 to 3:30 (6 hours).
04:35
What market structure is required for call-side trades?
Higher highs and higher lows.
06:57
Where is the stop loss placed in a bullish 920 EMA setup?
Below the swing low.
08:59
What risk-reward ratios can this strategy provide?
1:5, 1:8, or 1:10.
09:29
Why should you avoid trading when price crosses above/below the EMAs repeatedly?
It indicates a range-bound/trap zone that can eat stop losses.
16:23
9/20 EMA as a Directional Compass
Combining short and mid-term EMAs gives a clear directional bias that filters out noise.
03:23Option Buyers Lose in Sideways Markets
70% of the time the market is sideways, so a directional strategy is essential for consistent profits.
04:48Trade Only on Breakout and Pullback
Waiting for a breakout, pullback, and confirmation improves accuracy and avoids false moves.
08:04Ride the Trend with Defined Exit
Staying in the trade until price closes beyond the EMAs or hits a key level can multiply risk-reward to 1:10.
10:24Backtest and Forward Test Before Going Live
Testing the strategy first helps understand its drawbacks and potential, which is crucial for real-money trading.
25:30[00:01] video I'm going to tell you about a strategy [music] that changed my entire I am sure if you understand this strategy and learn it carefully then you will learn to catch the top and bottom within this strategy. Because the strategy I am going to
[00:15] give you today is a directional strategy. That means whenever you want to catch the market moving from top to bottom or from bottom to top, if you apply this strategy and take the trade on this [music] then I am sure you will learn to capture this move.
[00:28] But the condition is that you will have to watch this video till the end and understand exactly how this strategy works. Because in today's video I am going to properly decode the strategy and tell you which time frame it is. How to
[00:41] apply it. Which indicators to apply and how [music] it is visible on the chart and how momentum comes into the premiums when there is a move [music] in this strategy. And let me give you a clear disclaimer. I am
[00:53] I'm just sharing a strategy that can help you ride the entire trend. Right? So if you want to understand and learn this video, you will have to watch it carefully. You have to watch till the end and make sure you like this video
[01:06] and subscribe to the channel because the upcoming videos will help you a lot in learning trading the right way. For this I will take you to the first screen. If you look at my screen, there is a BSE chart open here. Secondly, BSE
[01:20] call option is open here. And under this strategy, this BSE call option has this BSE call option has shown a jump of around ₹80 to ₹240. First of all let me me give you another disclaimer that this strategy which I am telling you now, this is
[01:35] if you want to trade in the Indian market, there is one of the best platform which is 11, the If you tap on the link, an Where you can find this is a savvy registered
[01:48] features i.e. it is a one stop solution for all the traders and here you get a bolt mode feature in which you will get multiple strategies. Bolt mode will automatically tell you when a trade is being made on those strategies. If
[02:02] you want to make a trade plan, do it. If you don't want to do it, don't do it. Which strategy which strategy has performed well in the past seven days also gets automatically filtered here. So you
[02:18] people understand the strategy but they do not understand when to plan the trade on that strategy. So inside the bold feature, when the trade is being made on that strategy , when it is not being made, where will the entry be, where will the SL be, where will the
[02:30] target be, everything becomes known. So this is a platform place. So its link is in the description box. You can open your account free of cost and
[02:44] For strategy, I open directly on Lemon's platform. And here I am showing you an option that when the strategy moves, where does it move from ? C From here support was created within the strategy. And from here came a movement within a strategy.
[02:57] You must be seeing that the end movement is of 450 points within the Sensex. And I would like to pick up exactly from here, around this area. If you look, make your move from here. Premium of ₹4050 is ₹225 i.e. ROI of ₹350% within this premium
[03:11] means we got the move within this premium. Now let me explain this strategy to you once. So that you can understand the strategy clearly. Look, this is one of my best strategies. I have been applying this for the last three to four years.
[03:23] is a directional strategy. So this is the name of this strategy. So the name of this strategy is the name of this strategy. So the name of this strategy is 9 and 20 EMA. 920 EMA strategy. We use two indicators inside this. The first is 9 EMA and the second is 20
[03:37] we use 9 and 20 EMA exactly here ? Look at the 9 EMA me short term. Ok? Short term trend tells what is happening in the short term? The end 20 combination of short term and mid term. We get very good direction in this.
[03:52] Short term means 9 EMA previous nine candles if I am 9 EMA previous nine candles if I am an average momentum of the last nine 5-minute candles ? This will
[04:06] tell us the strategy. If I am applying 20 EMA in the same 5 minutes. Right? So this will tell what kind of momentum the past 20 candles of 5-1 minute are giving. When I combine both the candles, it gives me a good direction which
[04:20] term. What is happening in the long term does not matter to me talking about the Indian market here. I don't care what the trend is in the long term. you must be aware that the timing of the Indian market is from 9:15 to
[04:35] 3:30. That means our window is only 6 hours. There is a 6 hour window. We have to work within a 6 hour window. Now if you are an option buyer, you buy options, you will know that the market moves in your favor
[04:48] only 30% of the time. 70% of the time the market remains sideways. An option buyer in a sideways market will always make a loss. It will never a directional strategy. Use it only when you have a
[05:03] breakout or breakdown of any range. And I will tell you now how to use it. For now, you should understand this strategy carefully. Right? There is a 6 hour window. We also have to capture the entire momentum of the premium within a 6-hour window. You
[05:18] leave. Which EMA did I use? 920. I have told you why I used it. The first EMA was discovered. Now we will use time frame. What is our time frame going to be you can work in two time frames. If you go for Quick Momentums, Quick
[05:33] want to close your trade within 15, 20, 25 minutes. Go with 5 minutes time frame, which is the standard time frame to trade the Indian market. If you plan a small trade for two or three hours, i.e. in the second half, then you want to hold the entire second half.
[05:47] want to hold the entire first half. Go with 15 minutes. Now let me talk about You get this accuracy in 15 minutes because this strategy is directional. better accuracy you will get. But this accuracy does your work on the spot.
[06:02] Listen carefully. Why am I saying this? Because the accuracy is good but when our time comes, we get DK. DK means premium would have been our melt. If it were melted, the longer you hold, the price may have stopped. The
[06:15] price remains high but your premium will gradually come down. If it goes down then you will suffer unnecessary loss. So that's why I recommend it here. I Because 5 minutes time frame is one of the best. The
[06:28] move that I got inside it, I get that move quickly. If not found then I exit the trade within a specific time period. Did you understand the time frame? 5 & 15 min EMA understood. 9 & 20 EMA will be the default.
[06:42] always have to keep in mind. When you are working on this trade. You are working on this strategy. working on this strategy. is the structure of the market? Right? How is the market structure doing? You have to keep this in mind. The
[06:57] Higher High, Higher Low, Higher Hi, Higher Low, Higher Hi, Higher Low. Well and good. You will find the call side trades amazing. If the market then you will get very good trades on the put side. The market structure is
[07:11] not going anywhere. If the market is sitting in a range , then this is a zone where you should not trade. If you want to increase your win rate, increase your profitability , you should not trade in this zone when the market is stuck between support and resistance.
[07:25] stuck between support and resistance. profits in the markets. You will remain impatient. The profit earned in the market will also go out of your pocket. How? The market is stuck between a resistance zone and a support zone.
[07:38] Just wait. This is your zone where you have to wait and support, if it breaks out then you will start getting trades in the strategy. Right? Once it breaks down, you will start getting trades in the strategy. And its
[07:51] accuracy after breakout and breakdown is very good. Isn't it ? I cannot claim here that this strategy gives accuracy of 90, 80, 20% but 60 to But where does the accuracy of this strategy drop? When you do
[08:04] unnecessary trading in a range bound market. Ok? we have a bullish trade plan. How will the bullish trade be planned? Some market gave a breakout. After giving a breakout, it gave a pullback.
[08:19] After giving a pullback, a bullish candle was formed. What will the support support pay? One is taking support on the market structure. This is also where we have resistance become support. This was the support we had. Now this resistance will work as I think support here.
[08:31] But two of our EMS will be coming here. The first is This One Is Not. The other is This One Is 20. The price takes support above the 9 & 20 EMA. After moving up it takes support and after taking support it
[08:46] gives the formation of a good candle. This is a zone where you have to enter and after that you you have to enter and after that you Your stop loss will be below the swing low. Same thing if the market
[08:59] goes into a down trend. From here, for example, the market fell down. From here a range was formed and the market gave a breakdown, gave a pullback and went like this. How to make a trade plan ? What will happen here? There will be a 20 EMA coming up , there will be a 9 EMA coming up which will be
[09:12] touching the price. Right? You have to bearish candle will form in the same direction on the downside. This means that is a confirmation zone where you have to enter.
[09:29] trade will be made on the short side. Then You Can Ride This Complete Trade. As long as the price is moving below the 920 EMA, keep riding is a strategy that gives you 1:5 1:8 1:10. The potential you have is to
[09:42] capture such large trades. I will show you inside the live chart now. And then at the end I will show you two examples that I have taken live trades. And I give a lot of them like this.
[09:57] you will understand how money is made in trading. How this strategy works. Because by opening the previous chart, everyone will show everything. Everyone will tell you, look what kind of work you did. But did you actually make money by trading on that chart?
[10:10] Do I have any ? Made money. Yes, you will find two examples at the end of this video. how to plan the trade exactly and how to ride that trade. Right?
[10:24] So you have to ride this till the price closes below the 920 EMA or gives a closing below it on the downside or a closing above it on the upside. When the price is moving up and below the 920 EMA, that is, there is no crossover of 920. Right? Or the price is not reaching any important lower support or upper
[10:39] upper resistance zone will be in this area, so do n't go here. So you have to understand the market structure, understand the price action , and not trade in the range. Range breakout will start getting you trades on the 920 strategy. Wait for the
[10:52] price to be above the 920 EMA, a pullback occurs, take support at the 920 EMA, place a candle in the same direction, enter the trade, place a stop loss and ride the trade. This money will make you tall only if practice a lot. Let's go to the chart. If you look at the chart, today
[11:07] is the expiry of Sussex in the market. So first let me show you the chart of Sussex. Let's Come on, its expiry is going on. So let's work on this. I told you that the is to mark the levels to show where the support and resistance are because that will
[11:21] help you a lot in understanding and learning things. This is a support zone around which the price is revolving repeatedly. Right? And this is the resistance zone. And if you mark these support and resistance zones in larger time frames , they will help you a lot. There
[11:33] is a resistance zone above here as well. Look, let me first mark a support resistance here on a quick chart and not know how to mark support and resistance, you will never be able to trade. It is better that you read about support resistance in my entire series.
[11:48] strategy? Two indicators are installed. First one is nine. Second one is 20 you will get to see here. 9820 indicator. You have to write EMA in the indicator section. Your indicators will be installed like this. Right? Meanwhile, if you
[12:02] because that is the default indicator. They must always be in your chart. in the market right now. The market is currently hitting a resistance zone right now which is resistance zone from where the price took support. Then I broke it and came
[12:17] down. You can see it reacting to the resistance zone. Now what we need to see is that the price moves above the 9 and 20 EMA. Price opened above the 920 EMA from here, look here first. Went upstairs. Rejected at 9 EMA. Should have come down. It should have
[12:31] given such a pullback and gone down. But it failed. The down side trade was not made. Now let us see that if the trade is made then where is it made? Made of upside. How did it happen? Look at this. The price went up. It came down from 9 EMA by rejecting from 920 but did
[12:46] not give continuation. Went upstairs. Gave closing above 920 EMA. This means this is a time where you have to be alert. The price is trading below the 920 EMA. Continue twisting. Went above 920 em. We have to be alert. No entry is required.
[13:00] Absolutely avoided for beginners. Second, the price moved above the 920 EMA. Right? After moving up, moved above the 920 EMA. Right? After moving up, it took support at 920 here. it took support at 920 here. The price after taking support was below the 9 EMA. The
[13:14] 20 EMA was up. The price went up. The 920 EMA crossover has occurred. That means the 9 EMA is now above. The 20 EMA is down. The 20 EMA is slightly larger than the 9 EMA, so it
[13:26] reacts a little late. If the 9 EMA is shorter then the 9 EMA reacts quickly. As soon as the 9 EMA crosses above the 20 EMA, the end price should be taken above the 9 and 20 EMA to take support. Look here, support was taken at this place and after taking support, the
[13:39] So if after taking support your entry is made here. This becomes your SL. your entry is made here. This becomes your SL. And this becomes your TP. You will see the target price. Ok? Where did you enter from? Entry was made from this place. The price
[13:52] came in, went up, and pulled back. This entry was made at this place. And this is the complete trend and keep on riding. This is as far as it goes, as far as it goes, keep on , keep shifting. Your profit will also be secured here.
[14:05] And you will keep on riding the trend. One trade is less than enough to cover up your month or week's losses because this strategy lets you leave it for today. Let's go tomorrow. What happened inside the market yesterday? Ok? This was a bullish
[14:20] trade. Now look at the setup of the bearish trade. The setup for bearish trade is also very good here. resistance zone. You have to always remain active in these zones. Because what is the price around these zones? Reacts. How did you react? It is in the resistance zone.
[14:33] So what did Price do? A breakout type is shown here. It crossed above the 920 EMA. It will move above the 920 EMA. Have to remain alert. What did we have to wait for after the alert? Prices came down. Took support at 920. But did it remove this high? Did not
[14:45] remove. If you entered at support, you would have placed a small SL. Small SL right? The price fell below 920. After going up, I came down. We have to be alert. Ok ? We have to be alert. Pullback was given after the price came down. It went out. Your
[14:58] entry is made here. Create your SL above this swing high. This is your entry zone. And look at the trend. How far was it captured? Up to a support zone. Because there was a support zone. You have to be alert here. It captured the entire trend up to this support zone.
[15:13] What would have moved the premium in this? Let's leave this and look back. We will look at the premium in a bit. Right? I'll delete the side drawing and then let's go back and see what happened. Now look, here also the price went up above 920.
[15:27] Right as soon as it opens? The price came down. Took support at 920. You got a momentum here. Now leave it, the price was moving down, the price went up at 920 EMA, it took support, the entry was made here, you will hit the SL of swing low and look at this, this entire
[15:42] move till here, support at 920, you got an exit by coming and going somewhere here or you got an exit by going somewhere here, from where was the trade made, let's go back, you might not have understood this yet, let's go back and
[15:55] remove these drawings, look anywhere where the market is directional, you will see these trades being made there. Where it is non-directional, is not a very busy market here. Around this area I'll show you that SLs will go a lot.
[16:09] I will talk about the reality of what happens. The price broke above the 920 EMA. From here we will see that it was going down. Range Bound came up. Took support. There is is made. You are getting a bigger SL. Keep very close SL. This move brought the price down. The
[16:23] range is still running. Up down up down up down up down here. It is going up and down two or three times. This means wait. Do n't enter there. This is a zone which is a trap zone where you will get a lot of trades. But you have to learn to avoid it here.
[16:35] If you do not avoid such zones, then when the real direction comes in the market, you will not be able to catch the trade because you will lose all your money in such zones. So that is why it is very important for you, that is for every trader, to be aware of
[16:47] this strategy that do not trade on sideways market, ranging market. This will completely destroy you. If you move in a range bound market, you will see a lot of unnecessary trades.
[17:01] Ok? Now let's talk about practical examples because if you go back and look at Nifty, Bank Nifty, then I will show you so many trades in it on daily basis when there is no sideways market, then I will show you so many trades which you are seeing here.
[17:13] Look here, a good amount of trade has been seen here. Right? It was range SS will eat a lot in range bound. Once the move came, the pullback came and went away. Ok? Now let's go a little further back. Let's go here. Look at this. Look at this,
[17:27] how good a trend range bound market you are seeing even from the top. You will always find a lot of entries in the range bound. You wo n't understand. Ok? The price came down. I broke this lo. Took a pullback at 920. Your entry is made here. The SL is formed at the swing high. Look
[17:39] reward. What a huge risk reward. You have to improve your accuracy. The risk reward has to be improved. Have to do it well. What do you have to do? You have to capture the big moves. How to catch it? From here, entry for short trade is done at
[17:52] SL above this swing high, above 920 EMA, till what extent is SL held, see, you have caught this entire and if you see the risk reward, then 1 9.7 of 1:10, risk reward ratio is around 1:10, I am not saying that you should hold 1, you can at least hold 1:5, you can hold 1:6
[18:07] because it gives such a big move in it, but the condition is this and in the sideways market, you have to avoid it, if it goes above or below 920 two or three times, avoid it, wait because it is currently in the sideways zone, that is a meaning of it, it is an indication, right now let us
[18:20] talk about today's premiums. For this I open today's chart, current chart potential. How much is this? Now let me show you the premiums on the chart to see what the potential is. Next I will show you two live trades that
[18:33] I took with my brother to teach him how to trade at 920. I will teach him how to trade at 920. I will you have understood this without seeing the examples, but have not seen the examples, then it means that you have
[18:46] seen only half of the strategy. You will not understand part. Everyone explains the strategy, but this is how things work. It has to be made like this, it has to be made like this. Any strategy you like on the past date will work. But when its
[18:59] execution is going on live, everyone's situation becomes tight. So show its premium. I will convert this into two charts. Right? Now we will look at today's call side premiums because call side premiums have gone up.
[19:12] Right? So now you will see that there is a premium on the call. Here I Look at the potential. Where did the trade come from? from this point. Here we have an entry made. You waited for the pullback. You created a long position from here. Ok? SL your
[19:27] TP below this swing low you can go with this. Rejection, I have not found an exit yet. Isn't it ? You have to take exit within the premium because it is the Indian market. You will have to decide on your window at some point. Where did the entry
[19:39] come from? This candle arrived. Ok? A candle was made at this place. Right? This is where your stop loss goes. And look at the risk reward. The risk reward you have got in this is around 1:6.72
[19:53] 1:7, you can see the risk reward here. 1:7 Don't hold. Catch the six. Grab five. Two, catch it. Catch three. Start with two. Go to three. Go to four but see the jump in the premium, where is the premium, this premium was
[20:06] around ₹40, where did it go from 40, around ₹ 1880, around ₹200 the premium has touched, so you can expect how much percentage move we will calculate percentage wise here, I will
[20:20] talk practically because no one can capture this much percentage, 300% means your money should not be more than three times, if you do it three times or two times, then the money can become two times, so you is a directional market, you sit to take the trade, this is today's two directional. Now let me
[20:33] show you the one of tomorrow. I'll put a put option on it here. You will get to see tomorrow's put option. Now let us see how yesterday's put option moved. For example, this is a put option. We will install this. And see its internal
[20:45] movement tomorrow. What was the price fall from here yesterday ? Where was the entry made? The price came down inside our 920 EMA. Gave a pullback. I got my entry here. SL end above this swing high from here till yesterday's close. Let's
[21:00] Right? Now let us see where the entry has been made. Our entry is made at this place. Somewhere Around became our entry here somewhere. Right? We will have SL at this point and swing low at this low.
[21:18] ? 67 65% of the deployed capital risk reward 1:2.76 Here you can see the risk reward. Right? And if we look back, we will hardly see that the premium expires, so we will not be able to understand that much. But if
[21:31] I take this further back because the expiry of Sussex is today, then there is still I will put a call chart here on this side. Let me show you in the end call chart this side. Let me show you in the end call chart
[21:47] ago. From here I take a long position. Took support above 920. Price gave an upward movement. Right? And I'll put this here. So you can see we place long position here. And where will our long position
[22:01] trade be made? Something will be made from here, from this place. Right? SL below this swing high you can lift the TP up to here. Still a 40% move risk reward 1:3. Ok?
[22:13] You are getting ₹30 for a risk of ₹10. So, this could be the best I don't think so strategies to work within the market. I hope you have understood the strategy. This And in the next video I will explain the same strategy for the crypto market
[22:26] that how to work in the crypto market. The window of the Indian market is only 6 shown the options here. The crypto market window is not 6 hours. The crypto how to apply the same strategy to the crypto market. And how do you make big moves
[22:40] in the crypto market, brother, it happens in such a way that you will not understand where you [nasal noise] Right? In the Indian market we have a barrier In the Indian market we have a barrier which is theta decay and expiry
[22:52] Within that, we have a lot of volatility in the first half. 70% of the time the you catch this direction in the market, you have the capabilities to multiply your money 2x, 3x, 4x in options through
[23:04] this strategy. I hope I have explained this strategy to you very deeply through this video. Now you have to see two perfect live trade examples on this strategy which will explain to you
[23:18] how to execute trades on this strategy. So do watch this video till the end. Look guys, here the price was making higher high higher high. I have given a breakdown of this low. Our structure has broken. So what happened to us here? Break of structure
[23:32] below 920 mm. As it came down, we started creating short positions from here. End price is currently falling. And this gap is still completely left. Hopefully the market will complete the gap by the end market close. If the gap is completed then we will be in good profit. Right now the
[23:47] entire movement has to be captured. Let's look at NiFi. What NiFi was doing premium has moved well. So, right now we have shifted the chart to 5 minutes. And it is coming around the support zone. And got good clarity in 5 minutes.
[24:01] and is going to test a zone where we will have to book it. So both the trades are giving good momentum right now. ₹26,000 is around ₹25,000 for 2 lakh plus and this is the booking zone at support. Close it.
[24:17] and this is the booking zone at support. Close it. Close position one, this also close position And here we exited. Our entire trend line here is
[24:33] breakdown below 920 for 15 minutes, so we created our setup in that. So I hope guys you have understood through the examples how using 920 EMA you can buy options [music] inside the market and
[24:49] link to which you can find in the description box. Your account will be opened free of cost. And there [music] you'll see this strategy soon available. The 920 EMA strategy can also be seen there in the On the Bolt feature mode. Right? So I
[25:03] hope you have understood how to take directions. How a Directional Strategy Works and What Exactly the 920 EMA Strategy Is [Music]. I will instantly profitable with this strategy. Make sure
[25:18] see if you understand it exactly or not. Can you work on this [music] or not? Because unless you do back testing and forward testing of this strategy and try it with small capitals,
[25:30] what is the potential of the strategy? How to bear it and how to face its drawbacks. Because a profitable trader can only be made if he next to impossible for you to make money in the market. So make sure you do
[25:45] backtesting, forward testing and try to understand this strategy a little bit. If you understand then apply it. If you do n't understand it, work on. So you can go for another strategy. In the next video,
[25:57] you will see how you can apply the same strategy in the crypto market. And brother, I have implemented this [music] strategy in the condo market gives such a direction that we do future trade there [music] and there we do not have any tension of theta decay. So thank you so much for
[26:10] helped you. If it helped you or you learned even a little bit, please like the video and subscribe to the channel. Press the bell notification button. Press the bell notification button. And yes [music] trade but learn
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