Intraday Option Trading Strategy for Beginners: Call & Put Options

[00:00] hello traders today we'll be discussing about an excellent and simple option trading strategy i personally use the strategy when i trading in option buying is that your risk is very less but your profit

[00:14] is unlimited specially with the strategy your trade most of the time will finish in just 1.5 hours or 2 hours by morning 11 30 12 o'clock your trade will be completed but please remember this strategy has to be used only when

[00:28] you're buying a call option and put option do not use the strategy an option then you definitely can use the strategy because this is very simple but very very effective at the same time the capital what you need to trade in

[00:44] 5000 rupees you can trade in options so anyone who's new to this channel please if you found it useful now without further delay let us check out the

[00:57] with the strategy there are just three or four simple rules which you need to with the strategy okay i will explain all the rules one by one now the first

[01:12] thing what you need to do is exactly at 9 25 am you need to come i will share it in the description box below you can use that link and come to this website once you come here if you scroll down you can see

[01:26] top gainers and top losers here what we will do in top gainer list we will choose that stock okay at 9 15 we should not check

[01:38] at 9 25 which are the first two stocks in top gainer list you need to select those two stocks so this is the stock selection process stocks so now we got to know with which stock we have to use the

[01:54] strategy correct now the second point what you need to do once you know that immediately go to that stocks chart okay example we pro chart i will go here the time frame has to be 10 minutes you have to use the strategy with 10 minutes

[02:09] you change the time frame to 10 minutes the third thing what you need to do is check what kind of candle the stock is making okay now the stock

[02:21] has to make any of these three candle patterns okay this is second most bullish candle and this is normal bullish candle it has to make any of these three candle patterns

[02:34] okay so if i go back to wipro and see what kind of candle it's making here this is a bullish candle right so we got to know the stock is bullish now the rule number four we need to check the high of the scandal

[02:46] of the first candle 925 candle right at this high what is the price of the stock 478.95 so instead of buying at the money call option at 478 rupees

[03:02] 500 rupees call option okay i hope you understood this instead of buying at 470 strike price you need to buy out of the money that is 500 strike price you need to buy now traders if you

[03:17] will answer that for you okay now once you understood the stock is bullish we need to enter the trade i will show you exactly where to enter where to keep stop loss okay now traders this is v pro

[03:31] 500 call option chart okay we need to take a position here so the first thing what we need to do see the date is 22nd of april right this is the first candle now as soon as this candle closes the immediate next candle

[03:44] whatever is the price we will enter the trade okay now what is right where will we keep our stop loss our stop loss will be here first candle is very big like this you have to keep

[04:01] only up to 60 percent so if this is the candle up to 60 percent the pro 500 call option at the high of the scandal we entered at

[04:13] the low of the scandal we kept stop loss now we understood this is the stop loss entering at 3.28 so the stop loss where we will exit is 2.07 so 3.28

[04:28] minus 2.07 is 1.21 right so 1.21 into what is the lot size of your pro call option the lot size is 3200 so if you want to

[04:40] trade in wipro option you have to buy 3200 quantity correct so 1.21 into 3200. so your risk for this trade is 3800 rupees okay please remember 3800 rupees is the risk now

[04:56] how far the stock went see the stock price went up to this level right from 3.2 rupees it went up to 8 rupees but let's not consider 8 rupees let's say we exited the trade here somewhere 7 rupees okay

[05:10] seven rupees minus three point two eight it is three rupees 70 percent right we need to multiply this with the lot size what is the lot size the lot size is 3200 okay so what is

[05:26] your profit your profit is 12 000. so for the 3800 risk that you're traders what was the second stock in the top gainer list it was icsa bank right on 22nd of april the first candle here okay it is less bullish than wipro

[05:46] scandal right that is why i selected touchstock if you see the wick of this this is a normal bullish candle the wick is little smaller than the body that's the reason i choose that stock but still if you had traded with

[06:00] can be slow but still it went to the next level now to show the consistency of the strategy i'm going to pause this video and start shooting the next video for 23rd and on that day we will see how

[06:15] the strategy works this is day number 2 april 23rd you can see it here so continuously for the second day we are checking how the strategy works now if i one is power grid another one is ntpc so we have to use a

[06:30] first we will open power grid stock chart and we will see how it's performed see this is a chart of power grid okay 10 minutes time frame so here if you see the opening candle that is

[06:44] 925 candle is so big right even though this is a bullish candle it's a very big candle if the scandal size was somewhat we could have entered at the high of the scandal right but that is not the case

[06:58] in power grid as of today so it is better to ignore a stock which is too see the second top gainer stock the second stock in top gainer list is ntpc let's check that stock this is a chart of ntpc

[07:13] 10 minutes time frame the date is 23rd of april if you see the first candle it is a thick bullish green candle this candle is almost like this candle right so it is the most bullish candle so this is the third point

[07:26] you remember right the first point is we need to choose the stock then we have to come to the stock and change the time frame to 10 minutes and third point is we need to see what type of bullish green candle it is

[07:38] very good bullish candle so instead of choosing power grid what was the high of the first candle so this was the high of the first candle

[07:51] the stock price is 99.32 so what we have to do instead of entering the trade at this price we need to enter the trade at like 105 or 110 call option so if i enter a trade at 105 call option

[08:08] we'll see what happens this is ntpc 105 call option chart all right so previously only we discussed where do we enter the our entry will be here at the high of this green candle as soon as the next

[08:23] candle open there will be a stop loss a stop loss will be little lower so entry price is 0.55 and stop loss is 0.45 so 0.55 minus 0.45 it is 0.1 so 0.1 multiply this by the lot size

[08:40] what is the lot size the lot size is 5700 so multiply this by 5700 for this trade will be 570 rupees now you might have a doubt in the first

[08:54] we have to keep but why are you keeping it little lower see this comes with experience when you keep looking at charts what kind of moments the stock will do when the risk is just 570 rupees and my

[09:12] risk appetite is more so that time i can buy more lots right so what is our risk our risk is just 570 rupees so until what level the stock went the stock went up to 0.90 but let's say

[09:24] somewhere here you exited the trade you saw the market going up down exited the trade so somewhere around 0.80 let's mark this level so what will be our profit in this trade 0.80

[09:39] minus 0.55 this is our exit price this is our entry price so 0.25 is our profit so 0.25 into what is the lot size of ntpc it has one is to three register reward right for 570 rupees

[09:56] risk you will be making thousand five hundred rupees if your risk appetite is quantities right so you can clearly see the consistency will be making this movement you can easily take advantage that to

[10:12] the strategy is very simple right traders please remember we should strike price if stock price is 550 try buying 600

[10:25] call option or 650 call option because there will be a lot of option you will enter the trade at 9 25 itself right at that time you can see a very good moment in the stock price with addition

[10:41] money using the strategy there might be some case where the market might reverse after you take the trade at that time traders when you see the market goes against you that means

[10:57] after you take a trade if the market is showing little loss you nse website here you see who's the top loser okay switch to 10 minutes time frame see date is 23

[11:14] right here what is the low of the scandal this is the low of the scandal one simple thing what you have to do buy a put option in a lower strike price

[11:26] somewhere around 750 700 you buy a put option okay see this is m m 750 put option chart okay 23rd of april what happened the market went down and then it went up

[11:40] rupees okay if you're losing any money there you can make here but what happened in that trade also you made money and in this trade also you're making money okay you can always use put option for

[11:54] hedging traders i hope you understood the strategy it's very very simple right just go to nse website see who's the top two gainers go to the chart change it to 10 minutes

[12:06] enter the trade but make sure you buy it at a higher strike price and if the stock just buy a put option i suggest you to watch this video

[12:20] once or twice so that you get better understanding the strategy but it's very simple if you follow this can make consistent profit in options traders i hope you enjoyed this video if you like this video please

[12:32] comment section below if you found this useful share it with your friends and if you're new to the channel please subscribe that's all for this video i'll see you in the next one