How to learn options trading, step by step

The 12-week learning path

1. Understand derivatives and options Week 1-2What futures and options are, calls and puts, premium, strike, expiry and lot size.Options trading for beginnersCall and put optionsClassroom: derivatives
2. Read the option chain and open interest Week 2-3Where traders are positioned, support and resistance from OI, PCR and max pain.Open interest explainedNIFTY option chainNIFTY max pain
3. Learn the Greeks and volatility Week 3-5Why premiums move: delta, theta, vega, gamma, implied volatility and India VIX.Option Greeks calculatorIndia VIXClassroom: Greeks
4. Learn a handful of strategies well Week 5-8Directional spreads, straddles and strangles, iron condors - when each fits and what it risks.Option buying vs selling67 option strategiesClassroom: strategies
5. Risk, margin and position sizing Week 8-10Margin, maximum loss, stop-losses and how much of your capital to risk per trade.Margin calculatorF&O expiry calendarF&O lot sizes
6. Practise, review and refine Week 10-12Plan trades in a strategy builder, size small, keep a journal and review every trade.Strategy payoffsVideosWebinars

Self-study or a live program?

Mistakes that cost beginners the most

• Trading before understanding time decay. Buying far OTM options near expiry because they are cheap.
• Selling naked options. Collecting small premiums with unlimited risk.
• Sizing too big. Risking a large part of the account on one trade.
• Following tips. Without understanding why, you cannot manage the trade when it goes wrong.
• No exit plan. Decide the target, stop-loss and maximum loss before you enter.

The odds are real. SEBI found that about 9 out of 10 individual F&O traders lost money between FY22 and FY24. Learning properly is the cheapest insurance there is.