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Intraday Trading Options Scalping Strategy

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There are a lot of traders who want to trade intraday or in other word indulge in day trading involving options.
There is nothing wrong with this except the problem is they want to do this while having a day job.

Do you know I was caught red-handed doing day trading in my office and was sacked immediately the day I was caught in the office doing day trading.

So if you want to day trade its fine but make sure you are doing it in your mobile and safely from the eyes of your boss – else the results can be bad.

With limited loss capability option buying intraday trading looks like a great idea, but even if direction is right sometimes the option may not increase as much as possible. Option does not increase as per the stock’s direction is because of the time value component. You can read about time value in options here. The time value has so much power that it can dampen any price movement – and if wrong the trader suffers more.

Near-the-money options are mostly traded for intraday purposes. Near the money options have the benefit of intrinsic value going up with the underlying stock price, but to some extend this gain is offset by the loss of time value. So the trader never sees a one point rise in option with a one point gain in the stock. Some traders therefore shift trading to futures. This is again a mistake.

In some options strikes especially the Out of The Money (OTM) options due to liquidity issues there is a big difference between ask and bid prices thus affecting the option premiums. In India the bid-ask spreads are usually wider in stocks, sometimes up to 2-3 points. This reduces the profit potential of the Intraday trader.

So if you are planning to do intraday trade options, you must overcome these two problems.

How to overcome these problems?

1. Index options like Nifty and Bank Nifty are very liquid – so its advisable to trade them rather than stocks.

2. If you still want to trade stocks look for liquidity first in the option strike then decide the trade. If a particular option is not traded much, its better to ignore that option. in that case you may have to stock to the strike that’s being traded more for that day.

3. Trade near the money options – they have a balance time value and intrinsic value if In the Money. Of course risk is more which can be tackled by a stop loss but profit potential will also be more.

4. Set up a target and stop loss in the system so that you do not have to manually take a stop loss or profit.


What you should do now

1. If you have still not subscribed for my free 5 days course you can do by filling the form above. You will learn a lot about option trading.

2. If you are a new option trader, not much experienced and are making losses you can do my paid course. I recommend Nifty Conservative Option Course for beginners because it is easy to understand and easy to trade. Even a 18 year old young trader or a housewife can learn it and start trading from next day. It will help you to earn consistent monthly income without any software or speculation or stress or big risk. You will learn proper hedging strategies that works in any market condition.

3. If you are banknifty weekly options trader you can do my Bank Nifty Weekly Options & Futures Strategy Course. You will learn future and option hedging strategies that works in volatile market condition.

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What Traders Say About My Course

Course fees: Click here to know the course fees.

Here is complete process of my course

1. Once you pay I will send you the course materials for studying to your email.
2. You read and ask me questions via phone/whatsapp/email to clear doubts.
3. Then you start paper trading and still can ask me questions.
4. After about one month you can start trading.
5. Since doubts can come anytime the support will be there for one year.

Within one month you can start trading on your own. No need to depend on anyone once you are on your own.

If you have any question you can contact me.

You can read about me here and my trading mistakes here.

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Dilip Shaw, Founder

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INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However every trade depends on the trader and his level of risk taking capability, knowledge and experience. Moreover stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website. Please note that I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other form of social media. I strictly adhere to laws of my country. I only offer education on finance, investments on stock markets in the best possible way as much as I can through this website. Still, you must consult an authorized advisor or do thorough research before investing in any stock or derivative before trading any strategy given in this website. I am not responsible for any investment decision you take after reading any article given in this website. Knowledge is the only way to get success in stock markets. I try my best to give stock market investing and trading knowledge through the articles posted in this website. Thanks for visiting my website.

Where To Place Stop Loss In intraday Trading

About the author: I started trading stock markets since 2007. However my first 3 years were losses. Then I dedicated almost 1 year on studying, researching, paper trading options and learned a lot in that time. Since 2011 I am trading Nifty options profitably. Call me if you need any help trading options on 9051143004.

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