Buying options—whether Call or Put—is all about timing + volatility + trend. Here's a breakdown to help you decide the right time to buy an option:
✅ When to Buy a Call Option (Bullish)
👉 Buy a Call when you expect the underlying stock/index to rise significantly before the option’s expiry.
🔍 Ideal Conditions:
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Price is at support and bouncing upward
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Breakout above resistance or trendline
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High momentum indicators (e.g., RSI crossing 50, MACD crossover)
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Implied volatility (IV) is low but expected to rise
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Before news, earnings, or event that could push the stock higher
✅ When to Buy a Put Option (Bearish)
👉 Buy a Put when you expect the underlying to fall significantly.
🔍 Ideal Conditions:
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Stock is at resistance and reversing
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Breakdown below support level
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Bearish chart patterns (e.g., Head & Shoulders, Double Top)
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Volatility is low but expected to increase (e.g., upcoming event)
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Weak fundamentals or news flow
🕰️ Best Time During the Day to Enter:
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Between 9:45 AM – 11:00 AM → Market stabilizes after gap-up/down opens
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Avoid last hour unless you're scalping or near expiry
⏳ Best Time in Option Lifecycle (Time Decay Consideration)
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Buy options with 2–3 weeks to expiry
➤ Enough time for the move to happen
➤ Avoids excessive time decay in the last week -
Avoid buying deep OTM options near expiry → high risk, low chance of profit
💡 Pro Tip:
Before buying, check:
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✅ Trend: Is the stock/index trending?
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✅ Volatility: Is IV low (cheap option)?
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✅ Risk/Reward: Can you at least double your premium?
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✅ Support/Resistance levels
📊 Tools to Use:
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Option Chain (NSE)
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Indicators: RSI, MACD, Bollinger Bands
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Open Interest (OI) Analysis
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Implied Volatility (IV) Tracker (Sensibull, Opstra)
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