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high probability options trading strategies

What is probability and how it works in Stock Market?

Probability theory:

A field of mathematics concerned with the examination of random processes is known as probability theory. A random event’s outcome cannot be predicted before it occurs, although it could be any of multiple possibilities. The final result is said to be dictated by chance.

Now how does that apply to stock market?

A Stock/index has three probibilities that is

  1. it can go up that is increase
  2. it can go down that is decrease
  3. it can remain around same price

So, there is 33.33% probability of a event above happening.

Now, how does this apply to stock/index options?

Call option and put option have 33.33% of success, so that is very clear to anyone.

Stock remaining around same price … Read the rest

Successful Weekly Options Strategies – Greeks work for you !

How does this tricks work for Successful trading?

The trick works by making the Greeks work for you but not against you like Theta, Delta, Vega.

How to make a Trade on Options based on Trading day

Highest decay in Option premiums happen closer to the expiry.

For weekly options

  1. On Start of weekly options say Friday and Monday you can look for buy strategies with limited risk and limited reward using the Option strategies like Bull Call spread etc.. based on market outlook. Or even long iron condor if you anticipate a huge movement on any side.  Long straddle and Long straddle can also be used.
  2. On Towards end of Week that is Wednesday and Thursdays, time decay is
… Read the rest