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How to Avoid Losses When Buying Options on Breakouts

Name: How to Avoid Losses When Buying Options on Breakouts
Uploaded: 2024-08-01T15:20:51Z
Duration: 22 min 29 s
Channel: Vigneshwar Iyer
Description: Why Nifty and BankNifty breakouts fail and how price and open interest percentiles help check a breakout before buying options.

Intermediate·English·22 min·581 views·2 years ago

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Option buyers trading breakouts in Nifty, BankNifty and F&O stocks run into common problems: failed breakouts, stocks with no follow-through, buying only because Nifty fell, or selling only because it rose.

This video proposes price plus open interest analysis as the check. Using the Price OI Percentile, a move to a recent price high with OI also near its recent high is treated as a stronger breakout, and a recent price low with high OI as a stronger breakdown. It also stresses managing risk in breakout trades, and the YouTube description adds building strategies in the Option Architect.

What you’ll learn

✓Common reasons option buyers lose on breakouts

✓Why OI participation matters for a breakout

✓Reading price and OI percentiles above 80 or below 20

✓Managing risk in breakout trades

Read and practise

SPEAKERVigneshwar IyerTrainer, Quantsapp

5+ years of market experience, mentored several people in options trading. Sound understanding of the concept of demand and supply zones using option strategies.

All 130 videos by Vigneshwar →