Stock Options Gurus! How do you spot long-term, deep OTM options with juicy premiums?

F&O
1

:bulb: Stock Options Gurus! :bar_chart::fire: How do you spot long-term, deep OTM options with juicy premiums? :thinking_face::sparkles:
For instance: I sold NIFTY-30-Jan-2025-22500-PE for ₹34 (deep OTM and feels a safe strike price), but then the premium skyrocketed :rocket: to ₹94 before settling around ₹46. Had I sold at ₹94, my profit could’ve tripled! :money_with_wings::exploding_head:
Any hacks, tips, or frameworks to identify these opportunities in advance? :face_with_monocle::hammer_and_wrench:

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Nothing works 100% of the time. But looking at past option premiums data can help you decide if it is a good time to enter/exit, as well as have an idea about the upside/downside. This works well for index options and the top few stock options where there is enough liquidity to ensure a (somewhat) rational movement of option premiums.

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How to determine/take a decision whether it is right time to enter an option trade? Any particular charting platform you recommend?

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I am mostly an option buyer. I look at past data to evaluate if a current option is undervalued, and hence it is a good time to enter. It also helps understand how much the premiums can potentially move on a fixed move in index, this is more useful the closer you get to the expiry.

I only look at the data in excel and not the candlestick charts so I don’t feel the need to use a platform.