For Intraday Options Trading which is Best, Monthly Options or Weekly Options both for Call and put.
Depends on your strategy and targets. I prefer weekly.
It totally depends on you but for intraday I prefer Monthly as there is more liquidity and there is a high chance of recovery. Weekly options is more suscptible to time decay.
If you are a beginner and want to make money in options buying I suggest you monthly options.
But which is best ITM, ATM or Otm for Intraday,and is there Good Volume, and can U Suggest best Intraday Trading Indicators.
Buying → ATM, ITM
Selling → OTM, ATM
Banknifty & nifty → excellent volumes (except very deep ITM & OTM)
Finnifty & Midcpnifty → no volumes. Avoid.
Stock options → good volumes for ATM (nifty 50 stocks)
Large ask-bid or no liquidity for deep ITM/OTMZ
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Options that are available on a weekly basis are more cost-effective than those that are available on a monthly basis.
But what about Volume,it is low right,risky
You will have to check that for yourself. Weekly options work fine for me.
for Intraday
I think you are beginner so start with monthly, later start with weekly.
Buying option is suitable only when you are highly bullish or bearish and expect a big move.
And whenever you buy option prefer ITM ,and ATM and when super bullish you can also buy 1-2 strike OTM but not more than that. AND ON EXPIRY DAY BUY ONLY ITM OPTION OR JUST ATM . DON’T BUY OTM ON EXPIRY DAY.
SELLING IS PREFERRED WHEN YOU ARE MODERATELY BULLISH OR BEARISH OR NEUTRAL.
AND FOR POSITIONAL USE OPTION STRATEGY DON’T CARRY FORWARD NAKED OPTION.
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What to buy ITM or Otm, if I expect Market to open gap up next day for Example.
You can use sensibull or opstra to check this.
You have to check whether the loss of theta will be covered by the gap up or not.
But for safer side you can buy ITM if you near the expiry.
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Weekly. It will move 2x compared to monthly. Also has less time value and premium. So monetary exposure to market is less.
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