OPTIONS TRADING CHEAT SHEET - Bookmark it 🔖

Before trading options in Indian market, know these basics: 1. Spot Direction Nifty/Bank Nifty trend matters more than indicators. 2. Time Decay (Theta) Option buyers lose money if market stays sideways. 3. IV Matters High IV = expensive premiums Low IV = cheaper premiums 4. Strike Selection ATM = balanced OTM = risky but high reward ITM = safer but costly 5. Don’t Ignore Greeks Delta → speed Theta → decay Vega → IV impact 6. Risk Management > Accuracy Even 40% win rate works with proper SL. 7. Avoid Overtrading Most losses happen from revenge trades. 8. Event Days Are Different Expiry, RBI policy, Budget, Results = high volatility. 9. Selling & Buying Need Different Mindset Buyers need momentum. Sellers need time decay. 10. Capital Protection First Survival is more important than one big profit. Most beginners focus only on “CALL & PUT”. Professionals focus on probability, risk and position sizing.