Advice for Option traders for success?

First Advice:

Plan your trade and trade your plan. Nifty Market preys on peoples’ fear and greed, and these two emotions can be detrimental to your portfolio. With flexibility, it is easy to change your mind or strategy, and then you end up chasing the market constantly.

Second piece of advice?

Diversify your options portfolio into different strategies. Option trading is a business and it needs to be treated as such. When creating a stock portfolio, it is important to diversify. There are times in the market when it makes sense to buy options and there are times when selling options is a better decision. Become a buyer and seller of options depending on market conditions.

Third piece of advice:

Time can be a friend or enemy. As buyers of options, we want to have enough time for our prediction to come to fruition. People tend to buy front month options because the price is cheaper. Options are a wasting asset and the extrinsic value of an option erodes greatly during the last 30 days of an option. Extrinsic Value refers to the price component of the option that includes time and volatility.

Now Last but important Advice is Backtesting

Backtesting: Don’t Trade Without It! Backtesting is a key part of developing your trading plan. Why backtest? You
want to make sure your strategy is profitable. If you are getting recommendation/strategy suggestion from any “expert” it just makes sense to see how his methodology has performed in the past by backtesting it. I always recommend doing your own homework.