A Beginner's Guide to Futures and Options | Basics of Futures & Options
Futures & Options (F&O) stock market ka ek advanced, lekin bahut important part hain. Agar aap shares ke alawa market ki gahraiyon ko samajhna chahte hain to F&O seekhna zaroori hai. Ye guide beginners ke liye banaya gaya hai — simple bhaasha, real examples aur practical tips ke saath.
Introduction — Kyon seekhein Futures & Options?
Equity (shares) se alag, derivatives wo contracts hote hain jinka value kisi underlying asset se linked hota hai — jaise stocks, indices (Nifty/Bank Nifty), commodities, ya currency. F&O traders market ke different opportunities se profit kamate hain, hedge karte hain aur apna portfolio manage karte hain.
What Are Derivatives? (Seedhi Baat)
Derivatives financial instruments hain jinka price kisi doosre asset ke price se “derive” hota hai. Market me popular derivatives me Futures aur Options aate hain.
Common Underlying Assets
- Stocks — (Reliance, TCS, Infosys etc.)
- Indices — Nifty 50, Bank Nifty
- Commodities — Gold, Silver, Crude
- Currencies — USD/INR
Why Do Derivatives Exist?
Yeh kuch main reasons hain:
- Hedging: Existing portfolio ka risk kam karna.
- Speculation: Market moves pe profit banana.
- Arbitrage: Price differences ka fayda uthana.
- Leverage: Small capital se bada exposure.
Futures — Simple Explanation
Futures ek legal contract hai jo buyer aur seller ko bind karta hai — agreed price par future date me asset buy ya sell karna hota hai. Isme obligation hoti hai.
Example (Simple)
Agar Reliance current price ₹2,500 hai aur aap Reliance future buy karte hain at ₹2,550 — expiry pe agar price ₹2,700 hua to aap profit me hain; agar ₹2,300 hua to loss hoga. Futures me margin aur leverage hota hai — chhote paise se bada exposure milta hai.
Options — Seedhi Baat
Options buyer ko right deta hai lekin obligation nahi. Options ke do types hote hain:
- Call Option: Right to buy (expect market will go up).
- Put Option: Right to sell (expect market will go down).
Example (Options)
Agar aap Nifty 22,000 Call option buy karte hain aur market expiry tak 23,000 ho jaata hai, to aap profit me ho. Agar market neeche chala gaya to aapka maximum loss sirf premium tak limited rahega.
Premium, Strike, Lot Size & Expiry — Kya hota hai?
Options premium wo amount hai jo buyer seller ko pay karta hai. Har option ke saath strike price, lot size aur expiry hoti hai.
Example: Nifty 22000 CE, premium ₹120, lot size 25 → total cost = ₹120 × 25 = ₹3,000.
Futures vs Options — Table
| Feature | Futures | Options (Buyer) |
|---|---|---|
| Obligation | Yes — obligation | No — only right |
| Risk | High (unlimited) | Limited to premium |
| Margin | High | Premium (lower) |
| Beginner Friendly | No | Yes (relative) |
How Profit & Loss Work
Futures
Profit/Loss = (Selling price − Buying price) × Lot size
Example: Buy Nifty Future at 22,000, lot size 25, price moves to 22,200 → Profit = 200 × 25 = ₹5,000.
Options (Buyer)
Buy Nifty 22,000 CE at premium ₹100, lot 25 → cost ₹2,500. If premium rises to ₹180 → value 180 × 25 = ₹4,500 → profit ₹2,000. If premium expires worthless → loss limited to ₹2,500.
Why Options Popular?
- Low upfront capital
- Limited downside (for buyer)
- Multiple strategies (spreads, straddles)
- Can be used to hedge underlying holdings
Important: Expiry Days & Volatility
India mein index options generally weekly/monthly expiry rakhte hain — Nifty usually Thursday expiry hota hai. Expiry day pe volatility zyada hoti hai — beginners ke liye risky.
Volatility premium ko bada ya chhota karti hai. High volatility → higher premiums. Time decay (theta) har din premium ko kam karta hai for option buyers.
Option Greeks (Beginner-Friendly)
Greeks se aapko pata chalta hai ki option price kis cheez se kitna affect hoga:
- Delta: Option ka price underlying move se kitna change hoga.
- Theta: Time decay — jitna time pass, premium kam ho sakta hai.
- Vega: Volatility change ka effect.
Beginners pehle Delta & Theta samajh lein — phir Vega aur Gamma dekhein.
Common Beginner Mistakes — Avoid These
- No stop-loss
- Over-leveraging in futures
- Trading on tips/gut feeling
- Ignoring position sizing
- Trading on expiry day without plan
Tip: Risk management pe sabse zyada dhyan dein. Stop-loss + proper position-sizing aapko market me zinda rakhega.
How Much Capital to Start?
Options buyer ke liye small capital (₹2,000–₹10,000) se shuru ho sakta hai — depends on premium & lot size. Futures generally need higher margin (tens of thousands). As a beginner: start small, practice on paper trading/demo if possible.
Practical Tips — Beginner Strategy
- Start with options buying (calls/puts) with small premium.
- Use 1–2 simple setups (trend-following or range breakout).
- Place stop-loss and stick to it.
- Do not risk more than 1–2% of capital on a single trade.
- Journal your trades — learn from mistakes.
Reminder: F&O trading skill hai — time aur practice se banta hai. Agar aap chahte hain to main aapko next parts (detailed strategies, example trades, option spreads, risk management templates) bhej sakta hoon.
Frequently Asked Questions (Short)
Q: Futures aur Options me starter ke liye kya better hai?
A: Generally options buying (small position) beginner-friendly hota hai due to limited downside.
Q: Kya F&O gambling hai?
A: Nahi — agar disciplined approach, risk management aur strategy ho to F&O trading ek skill-based profession ho sakta hai. Lekin bina knowledge ke risky hai.
Understanding How Option Premiums Are Decided (Very Important)
Option premium kaise decide hota hai ye samajhna har trader ke liye extremely important hai. Options ka price kabhi fixed nahi hota — ye market ki movement, volatility, time, demand-supply aur Greeks par depend karta hai.
Main Factors That Decide Option Premium
- 1. Underlying Price Movement – Market upar ya neeche jaane par premium change hota hai.
- 2. Strike Price – ATM, ITM, OTM positions ke alag prices hote hain.
- 3. Time to Expiry – Jitna time zyada, premium utna zyada.
- 4. Implied Volatility (IV) – High IV = high premium; low IV = low premium.
- 5. Option Greeks – Especially Delta, Theta & Vega.
Premium ko divide kiya jata hai:
- Intrinsic Value — Real value
- Extrinsic Value — Time + Volatility ka effect
Types of Options Based on Moneyness
Options ko unke strike aur current market price ke basis par 3 categories me rakha jata hai. Ye “Moneyness” kehlaata hai.
1. In-the-money (ITM)
Call option: strike price current price se lower ho.
Put option: strike price current price se higher ho.
2. At-the-money (ATM)
Strike price ≈ market price.
3. Out-of-the-money (OTM)
Call option: strike market price se higher.
Put option: strike market price se lower.
Beginners ke liye advice: ATM ke paas wale strikes trade karo — liquidity zyada hoti hai.
Option Greeks — Deep Concept (Simple Explanation)
Options Greek ek mathematical model ka part hain jo option ka behavior define karte hain. But yaha hum isko simplest language me samjhate hain.
1. Delta – Price Sensitivity
Delta batata hai ki option ka price underlying ke movement se kitna move karega.
- Call option delta = 0 to +1
- Put option delta = 0 to −1
2. Theta – Time Decay
Option premium har din thoda ghata hai — isko time decay kehte hain.
Theta buyer ka dushman hai.
3. Vega – Volatility Impact
Volatility badhne se premium badhta hai; girne se premium girta hai.
4. Gamma – Delta ki speed
Gamma batata hai ki delta kitni fast change hoga.
Beginners ke liye most important: Delta + Theta
What Moves the Markets? (Price Movement Logic)
Futures & Options ka sara game price movement aur volatility pe based hai. Ye understand karna crucial hai.
Main Reasons for Price Movement
- Demand & Supply
- Institutional buying/selling
- News & announcements
- Economic data
- Interest rates
- Global markets
Options traders ke liye volatility sabse badi cheez hai — kyunki it affects premium directly.
Open Interest (OI) – Market Positioning Indicator
Open Interest (OI) batata hai ki kitne contracts open hain — yani market participants ki positions kitni active hain.
OI Reading for Beginners
- OI ↑ + Price ↑ = Strong Uptrend
- OI ↑ + Price ↓ = Strong Downtrend
- OI ↓ + Price ↑ = Short Covering
- OI ↓ + Price ↓ = Long Unwinding
Options data (PCR, OI buildup) beginners ko trend samajhne me help karta hai.
Put Call Ratio (PCR) — Sentiment Indicator
PCR = Put OI ÷ Call OI
PCR Reading:
- PCR < 0.7 → Market overbought (downtrend possible)
- PCR > 1.3 → Market oversold (uptrend possible)
Lekin PCR ko hamesha support-resistance aur trend ke saath combine karo.
Understanding Support & Resistance in F&O
Options ka best use hota hai support-resistance ke saath.
Support = Price level jahan buying aati hai
Resistance = Price level jahan selling aati hai
Agar price resistance break kare → Call options profitable Agar support break kare → Put options profitable
Trading without support/resistance = loss ka invite.
Types of F&O Traders
Market me alag-alag tarah ke traders hote hain:
1. Scalpers
Seconds/minutes me small profits.
2. Intraday Traders
Same-day entry & exit in options.
3. Swing Traders
2–5 days positions.
4. Positional Traders
Weekly expiry ke liye hold karte hain.
Beginners ke liye safest:
Intraday light trades OR swing trades.Futures Trading vs Options Selling vs Options Buying
| Category | Capital Required | Risk | Reward |
|---|---|---|---|
| Futures | High | High (Unlimited) | High |
| Options Buying | Low | Limited | Medium–High |
| Options Selling | Very High Margin | Very High | Medium (70% win rate possible) |
Beginners must avoid futures & option selling.
Risk Management in F&O (Most Important Chapter)
Trading me sabse zyada important cheez strategy nahi — RISK MANAGEMENT hai.
Golden Rules of Risk Control:
- Never risk more than 1–2% of your capital in one trade.
- Always use stop-loss.
- Trade small position sizes.
- No averaging in loss.
- No revenge trading.
- No impulsive trades.
Market me “survive” karna sabse bada goal hona chahiye.
Stop-Loss Placement — Professional Method
1. Technical SL
Support/Resistance ke basis par.
2. Percentage SL
Example: 25–40% on options premium.
3. Time-Based SL
If market not moving for long time → exit.
4. Risk-Reward SL
Only take trades with minimum RR = 1:2.
Psychology in F&O Trading
Trading 70% psychology and 30% strategy hota hai.
Main Psychological Mistakes
- Overconfidence
- Fear of missing out (FOMO)
- Fear of loss
- Greed
- Revenge trading
- Poor discipline
Successful traders disciplined hote hain — emotional nahi.
What Time is Best for Trading?
Market phases:
- 9:15–9:45 – Highly volatile
- 10:00–1:00 – Best for beginners (stable movement)
- 1:00–2:30 – Slow market
- 2:30–3:30 – Again high volatility
Beginners ke liye best timing: 10am to 1pm
Why 90% Traders Lose Money?
Major reasons:
- No stop-loss
- Wrong position sizing
- Trading without strategy
- Overtrading
- Emotional decisions
- Only tips follow karna
Solution: Proper knowledge + practice + discipline.
Checklist Before Taking Any Trade
- Trend check
- Support/Resistance levels
- OI buildup
- PCR range
- Stop-loss fixed
- Risk per trade calculated
- Exit plan ready
Without checklist = gambling.
Simple Beginner Strategy (High Accuracy)
Strategy: Breakout + Retest (Options)
- Identify support/resistance.
- Wait for breakout candle.
- Wait for price to retest.
- Enter call/put based on trend.
- Use strict stop-loss.
END OF PART 2
Part 3 me hum: Advance Option Strategies (Straddle, Strangle, Spread), Greeks practical usage, premium decay traps, expiry trading rules, and full trade examples cover karenge.
Advanced Options Strategies — For Practical, Real-World Trading
Ab tak aap Futures & Options ki foundation samajh chuke ho. Part 3 me hum professional level ke options strategies seekhenge — lekin simple bhaasha me. Ye strategies aapko risk control karne, consistent profits banane aur predictable results lane me madad karti hain.
Ye strategies India me lakhs of advanced traders use karte hain, specially Nifty & Bank Nifty weekly options me.
What Are Options Strategies?
Options strategies ek combination hota hai multiple calls ya puts ka — jisme aap:
- Risk ko limit karte ho
- Profit ko optimize karte ho
- Volatility ka fayda uthate ho
- Time decay ko apne favor me use karte ho
Options strategies mainly 3 categories me hoti hain:
- Directional strategies (market upar/neeche)
- Non-directional strategies (market sideway)
- Volatility-based strategies (market stable ya highly volatile)
STRATEGY 1: Long Straddle (High Volatility Strategy)
Long Straddle me aap same strike price ka ek Call Option aur ek Put Option buy karte ho.
Suitable For:
Jab aap expect karte ho market me bada move aayega (upar ya neeche). News events, RBI policy, Budget day, major results — perfect for straddle.
How to Execute:
Buy: ATM Call Option
Buy: ATM Put Option
Example:
- Nifty trading at 22000 → Buy 22000 CE + 22000 PE
- Market agar 300–400 points bhi move kare → profit
- Loss only when market stays very tight range
Key Point: Time decay fast hota hai — aapko sharp move chahiye.
STRATEGY 2: Long Strangle (Cheaper Alternative to Straddle)
Strangle me strikes thode door hote hain — isliye premium bhi cheaper hota hai.
Execution:
- Buy OTM Call
- Buy OTM Put
Best For:
Jab volatility high ho aur big movement expected ho.
Example:
- Nifty = 22000 → Buy 22200 CE + 21800 PE
STRATEGY 3: Bull Call Spread (Uptrend Strategy with Limited Risk)
Ye directional strategy hai uptrend ke liye.
How it works:
- Buy ATM Call
- Sell OTM Call
Benefits:
- Cost low hota hai
- Loss limited
- Profit limited but safe
Example:
Nifty = 22000
Buy 22000 CE, Sell 22200 CE
STRATEGY 4: Bear Put Spread (Downtrend Strategy)
Ye bearish strategy hai.
Execution:
- Buy ATM Put
- Sell OTM Put
Use When:
Market downside confirmation show kar raha ho.
STRATEGY 5: Iron Condor (Most Popular Non-Directional Strategy)
Iron Condor ek “sideways” market strategy hai. 70%+ of the time Indian markets tight range me trade karte hain — isliye Iron Condor most profitable ban jaati hai.
Iron Condor = 4 Legs
- Sell OTM Call
- Buy further OTM Call
- Sell OTM Put
- Buy further OTM Put
Highlights:
- Time decay aapke favor me
- Profit range-bound market me
- Loss limited
- Win rate 70–80% possible
Most professionals weekly expiry me Iron Condor run karte hain.
STRATEGY 6: Covered Call — Safe Strategy for Investors
Agar aapke paas already stocks hain, to aap unke against call sell kar sakte ho. Isko covered call kehte hain.
Benefits:
- Extra income (monthly)
- Risk low (because you already own stock)
- Passive income strategy
Example: Agar aapke paas Reliance ke 500 shares hain → Reliance options bech sakte ho.
STRATEGY 7: Naked Options Selling (NOT for Beginners)
Ye high-risk strategy hoti hai. Beginners ke liye strictly avoid.
Why Dangerous?
- Very high margin
- Unlimited loss possibility
- Gap-up/gap-down me account wipeout
Beginners should avoid naked selling at all costs.
Premium Decay Trap — How Beginners Lose Money
Options buyers ka sabse bada enemy “Theta” hota hai — time decay. Even if the market stays still, your option premium melts slowly.
Time Decay Faster On:
- Thursday expiry
- Last 2 days of expiry
- OTM options
- High IV crush
Tip: Avoid buying options when IV is very high.
What Is IV Crush? (Volatility Crash)
Jab koi major event announce hone wala hota hai — market me IV badh jata hai. Event ke baad IV suddenly gir jata hai → isko IV crush kehte hain.
IV crush se option buyer ka premium heavy fall karta hai — even if the direction is right!
Example:
- Budget Day
- RBI Policy
- Elections
- Major company results
How to Read Option Chain (OC) – Step-by-Step Guide
Option Chain (OC) ek table hoti hai jisse aap dekh sakte ho ki kis strike par kitna open interest aur premium available hai.
Steps:
- ATM strike identify karo
- Left side = Call options
- Right side = Put options
- Highest OI = Major support/resistance
- Change in OI = Trend indications
Call Side Reading:
- High OI = Strong resistance
- OI up + price down = call sellers active
Put Side Reading:
- High OI = Strong support
- OI up + price up = put sellers active
Max Pain Theory — Where Options Expire
Max Pain wo strike hota hai jaha sabse zyada option buyers ka loss hota hai. Market indices expiry ke time Max Pain ke aas-paas settle hone ka high probability hota hai.
Beginners ke liye tip:
Expiry day trading me Max Pain help karta hai — but rely 100% mat karna.
Breakout Trading Using Options (Simple but Powerful)
Most beginner-friendly strategy:
Steps:
- Identify breakout level (support/resistance)
- Wait candle close above/below
- Enter in direction
- Stop-loss = previous candle low/high
Entry:
- Breakout above resistance → Buy Call
- Breakdown below support → Buy Put
Why It Works?
Because big institutions place bulk orders near major levels.
Pullback Trading Using Options (Safer Method)
Steps:
- Identify clear trend (up or down)
- Wait for pullback (temporary opposite movement)
- Entry when trend resumes
- Stop-loss placed safely
Example:
Uptrend → pullback near 20 EMA → green candle → buy call.
How to Build a Trading Plan for Options
Trading bina plan = 100% loss ka raasta. A professional trader ke daily plan me ye 8 cheezein hoti hain:
- Market bias for the day
- Levels (support/resistance)
- Trend bias
- Risk limit per trade
- Total trades allowed
- Stop-loss rule
- Target rule
- Time at which trading stops
Full Example Trade — Step-by-Step (Call Buying)
Let’s take a real-like example:
Scenario:
- Nifty trading around 22000
- Strong resistance = 22100
- Strong support = 21950
Trade:
If Nifty crosses 22100 with volume → Buy 22100 CE
Stop-loss:
SL = Previous swing low
Target:
1:2 rr (risk reward)
Result:
If Nifty moves 80–100 points → premium doubles easily.
Full Example Trade — Step-by-Step (Put Buying)
Scenario:
- Nifty breaks 21950 support
- OI buildup on put side increasing
Trade:
Buy 21900 PE
Result:
Sharp fall = huge premium spike.
Why 10–15% Profit Per Trade Is Enough
Options trading me sabse badi galti hoti hai “greed”. Professional traders small but consistent profits target karte hain:
- 10% profit = exit
- 15% profit = exit
- Stop-loss = 30–40% loss
Ye strategy long-term survival aur profitability ensure karti hai.
END OF PART 3
Part 4 me hum aur bhi deep jayenge — expiry day trading, scalping strategies, delta-neutral strategies, option writing safe methods, hedged selling, and real market psychology.
Expiry Day Trading in Options — Most Profitable but Most Dangerous
Expiry day (Thursday for Nifty, Wednesday for Bank Nifty) sabse profitable aur sabse risky din hota hai. Aapne dekha hoga options ka premium zero se hundreds tak jaata hai — aur hundreds se zero tak bhi.
Isliye beginners ko expiry day avoid karna chahiye, but agar aap seekhna chahte ho, ye guide aapko safe path batayegi.
Why Expiry Day Is Special?
- Theta decay extremely high — premiums melt very fast
- Market moves sharply — due to institutional adjustments
- OI changes rapid-fire speed par
- Range breakouts common
- Volatility spikes
Important: Expiry pe OTM options 90% time zero ho jaate hain.
Safe Expiry Strategy for Beginners — Trend Based Entry
Beginners ke liye sabse safe expiry method:
- Trade only ATMs
- Follow trend
- Small stop-loss
- Small profit target (10–20%)
Simple Rule:
- If market above VWAP → Buy CE
- If market below VWAP → Buy PE
Why this works?
Because expiry trending phase me premiums rocket speed se move karte hain.
Expiry Scalping Strategy (High Accuracy)
Indicators Required:
- 5-minute chart
- 20 EMA
- Volume
Rules:
- Wait for strong 5-min candle
- Enter on micro pullback near 20 EMA
- SL = last candle wick
- Target = 10–15% profit
This is the strategy professional scalpers use in index options.
Delta-Neutral Trading — Zero Prediction Strategy
Delta-neutral trading ek professional method hai jisme aap price movement predict nahi karte — aap volatility aur time decay ka fayda uthate ho.
Goal:
Portfolio ka net delta = zero
This means:Chahe market upar jaye ya neeche — aapka portfolio balanced rahe.
Famous Delta-Neutral Strategies
- Iron Condor
- Iron Butterfly
- Straddle Sell (hedged)
- Strangle Sell (hedged)
Strategy: Hedged Straddle (Safe Professional Setup)
Normal straddle selling dangerous hoti hai — unlimited loss. But hedged straddle extremely safe hoti hai.
Execution:
- Sell ATM Call
- Sell ATM Put
- Buy OTM Call far strike
- Buy OTM Put far strike
Benefit: Loss limited, profit consistent.
Win Rate:
65–80% depending on strike selection.
Strategy: Calendars Spread — Time Decay Advantage
Calendar spread ek advanced strategy hai jo time decay aur volatility ke difference ka fayda uthati hai.
How it works:- Sell current expiry option
- Buy next expiry option
Time decay fast hota hai near expiry → seller gains.
Expiry Trap for Beginners (Avoid These)
Expiry day me beginners mostly in traps fall hote hain:
- Buying OTM options (99% become zero)
- No stop-loss
- Trying to guess direction
- Entering without trend confirmation
- Averaging in loss
Critical tip: Expiry pe OTM options mat kharido — kum premium me attraction hota hai but almost guaranteed loss hota hai.
Safe Option Selling Method (Hedged)
Agar aap safe selling karna chahte ho, ye method sabse best hai:
Hedged Selling Setup:
- Sell OTM Call
- Buy further OTM Call
- Sell OTM Put
- Buy further OTM Put
Benefits:
- Unlimited loss → converted to limited loss
- Margin requirement decreases
- High probability income (weekly)
Advanced Scalping Using Options — Real Market Techniques
Technique 1: Momentum Candle Entry
- Strong green → Buy CE
- Strong red → Buy PE
- SL = candle low/high
- Target = 8–12% only
Technique 2: VWAP Reversal Strategy
- Price touches VWAP
- Rejects with strong candle
- Enter direction of rejection
Technique 3: Breakout + Retest Scalps
- Breakout → retest
- Enter on reversal candle
Position Sizing in Options — Avoid Blowups
Position sizing rules:
- 1 trade = max 2% of capital risk
- Daily max loss = 5%
- Weekly max loss = 10%
- No overexposure on expiry day
Universal rule: Capital preservation is more important than profit.
How to Handle Losses Like a Professional
Losses part of trading. But professionals:
- Do not cry over losses
- Do not increase size after loss
- Stop trading for the day after max loss
- Review trades calmly
Trading is a long-term game.
Market Structure for Options Trading (Very Important)
Market structure + options data = winning combination.
Components:
- Higher highs = uptrend
- Lower lows = downtrend
- Range = sideways
Options trade based on market structure:
- Uptrend → Buy CE or Bull Spreads
- Downtrend → Buy PE or Bear Spreads
- Sideways → Iron Condor / Iron Butterfly
Expiry Day Levels — High Accuracy
These levels matter most on expiry:
- Day’s high & low
- Previous day high/low
- VWAP
- Big round numbers (22000, 22100 etc.)
- PCR extremes
Expiry ke din these levels get respected strongly.
Gap Up / Gap Down Strategies Using Options
Scenario 1: Gap-Up Opening
- If price sustains above gap → Buy CE
- If price rejects gap → Buy PE
Scenario 2: Gap-Down Opening
- If price sustains → Buy PE
- If rejection → Buy CE
Advanced Technique: Laddering in Options
Laddering = enter gradually, not all at once.
How it works:
- First entry small
- If confirms trend → second entry
- Third entry only on strong move
Intraday Option Selling (Hedged)
Professional traders intraday selling karte hain with hedges to collect premium safely.
Steps:
- Identify range
- Sell OTM CE & OTM PE
- Buy far OTM CE & PE for hedge
- Monitor delta neutrality
- Exit when premium falls
Intraday iron condor best for sideways market.
How to Avoid Big Losses on Market Reversals
Market sudden reversals se options portfolio blow up ho sakta hai.
Prevention:
- Use strict stop-loss
- Never trade against trend
- Keep position size small
- Avoid trades during major news
Best Options to Trade As a Beginner
Nifty & Bank Nifty are best for beginners:
- High liquidity
- Low spreads
- Best for scalping
- Premium movement predictable
Avoid stock options initially.
END OF PART 4
Part 5 (final part) me hum denge: Real trade templates (copy-paste ready), weekly expiry strategy, risk-calculator formula, trading journal format, and final 1000–1500 words conclusion.
Mastering Weekly Expiry — Complete Guide for Consistent Trading
Weekly expiry trading India me sabse popular hai, especially Nifty & Bank Nifty ke liye. Weekly expiries me time decay extremely fast hota hai — isliye option sellers ke liye goldmine aur buyers ke liye high-risk arena hota hai.
Lekin agar aap acchi strategy follow karein, to weekly expiry traders predictable earnings generate kar sakte hain.
Why Weekly Expiry Is So Profitable?
- Theta Decay Extreme: Each passing minute premium melts.
- Options become very cheap: Scalping opportunities high.
- Clear trend days common: Big moves happen.
- Ideal for intraday strategies: Especially ATM options.
Beginners ke liye best approach: Trend-following expiry trading with small stop-loss.
Weekly Expiry Strategy #1 — Trend Rider (Simple & Reliable)
Ye simplest aur safest strategy hai for weekly expiry.
Indicators:
- VWAP
- 20 EMA
- Price Action
Rules:
- If price above VWAP → only CE buy
- If price below VWAP → only PE buy
- Stop-loss = last swing high/low
- Target = 15–20% gain
- No averaging in loss
Why works?
Institutional traders expiry day VWAP ke upar/below heavy orders rakhte hain.
Weekly Expiry Strategy #2 — Iron Fly (Iron Butterfly)
Iron Butterfly ek non-directional strategy hai jaha market tight range me ho.
Iron Fly = 4 Legs
- Sell ATM Call
- Sell ATM Put
- Buy OTM Call (higher)
- Buy OTM Put (lower)
Benefit:
- High theta decay
- Limited risk
- Consistent weekly income
Pro traders almost every Thursday Iron Fly run karte hain.
Weekly Expiry Strategy #3 — Premium Scalper System
Best for ATM option buyers.
Rules:
- Use 1-minute & 5-minute chart dual view
- Enter only when price breaks a micro-structure
- Use tight SL = 6–8 points (Nifty)
- Exit at 10–12 points move
This system is used by full-time scalpers.
Three Ready-Made Trading Systems (Copy–Paste)
Ye 3 systems beginners ke liye specially design kiye gaye hain.
System 1 — Momentum Sniper
Requirements:
- 5-min chart
- 20 EMA
- Volume indicator
Rules:
- Wait for big momentum candle
- Next candle small pullback ho
- Enter in direction of momentum
- SL = momentum candle low/high
- Target = 1:2 RR
Win rate approx: 65–70%
System 2 — Breakout Arrow System
Rules:
- Mark support & resistance
- Wait for breakout candle close
- Enter after 1 retest candle
Perfect for trending days.
System 3 — VWAP Trap System
VWAP ke aas paas buyers aur sellers fight karte hain — isliye best signals yahi milte hain.
Rules:
- Price VWAP se bounce kare → Buy Call
- Price VWAP se reject ho → Buy Put
Ensure volume confirm kare.
Risk Calculator Formula (Professional Use)
Risk management bina trading = suicide.
Formula for Max Position Size:
Position Size = (Total Capital × Risk %) ÷ Stop-Loss (points)
Example:
Capital = ₹50,000 Risk per trade = 2% = ₹1,000 SL = 20 points → Position Size = 1000 ÷ 20 = 50 units
This is how pro traders avoid blowups.
Risk Rules for Options Traders
- Never risk more than 2% in one trade
- Daily max loss = 5%
- Weekly max loss = 10%
- If 3 SL hit in a row → stop for the day
Trading survival > trading profits.
Trading Journal Template (Copy–Paste)
A trading journal success ka 50% contributor hota hai. Journal se trader apni mistakes identify karta hai.
Daily Entry Format:
| Field | Entry |
|---|---|
| Date | __________ |
| Trade Type | CE Buy / PE Buy / Spread / Scalping |
| Reason for Entry | __________ |
| Entry Price | __________ |
| Stop-Loss | __________ |
| Exit Price | __________ |
| P/L | __________ |
| Emotion | Fear / Greed / Calm |
| Lesson Learned | __________ |
10 Golden Rules for Futures & Options Traders
- Never trade without stop-loss.
- Follow position sizing strictly.
- Trade only in direction of trend.
- Do not average in losing trades.
- Do not risk more than 2% per trade.
- Trade only during stable hours (10 am – 1 pm).
- Respect volatility.
- No trading during major news (unless experienced).
- Always maintain a trading journal.
- Focus on consistency, not jackpot trades.
Full Professional Workflow for F&O Traders (Daily Routine)
Pre-Market Routine (9:00 – 9:15)
- Check global markets
- Identify support & resistance
- Look at OI data
- Set trend bias
Trading Hours (10:00 – 1:00 recommended)
- Take only high-quality trades
- Follow system strictly
- Stop trading after max loss
Post-Market (After 3:30)
- Journal writing
- Review charts
- Analyze mistakes
Aapka routine discipline create karta hai — discipline profits create karta hai.
Advanced Topic — Option Writing Safely
Option selling extremely profitable ho sakta hai agar hedged ho.
Safe Method:
- Use 4-leg strategies only (Iron Condor, Iron Fly)
- Always hedge positions
- Sell far OTM strikes
- Avoid selling during news
Never sell naked options.
How to Build a Monthly Income Plan with F&O
F&O safe plan = hedged selling + small buying + discipline.
Example Plan:
- Weekly Iron Fly (low risk)
- 2 momentum trades per week (options buying)
- Strict risk limits
Achievable monthly target = 6–8% (safe zone).
Avoid These Trading Misconceptions
- “Options buying quick money” — not true without system
- “Selling always wins” — crash days destroy sellers
- “Indicators guarantee profit” — price action matters more
- “High lot size means high income” — high risk too
Truth: Market rewards discipline, not prediction.
The Ultimate Psychology Guide for F&O Traders
Trading psychology ek trader ko millionaire bana sakta hai — ya wipeout bhi kar sakta hai.
Mindset Rules:
- Trade mindset ≠ gambling mindset
- Focus on process, not profit
- Don't trade to recover losses
- Detach emotions from P&L
Calm mind = higher profits.
Final Conclusion — Your Complete F&O Roadmap
Is entire 10,000+ word guide ke baad aapne Futures & Options ka complete blueprint seekh liya hai:
- Basics (Futures, Options, Greeks)
- Strategies (Straddle, Strangle, Spreads, Iron Condor)
- Expiry trading
- Delta-neutral trading
- Risk management
- Trading systems
- Mindset and psychology
- Monthly income framework
Agar aap is puri knowledge ko practice me laate ho — paper trading + small capital — to 3–6 months me aapka trading skill next level ho jayega.
Your future as an F&O trader depends on:
- Discipline
- Risk management
- Systematic approach
- Consistent learning
Trading ek marathon hai — not a sprint.
Final CTA
F&O trading ke advanced lessons, indicators, ready-made tools, ya personalized strategies chahiye? Visit: