HOW TO TRADE OPTION CALL PUT

PLEASE KEEP IN MIND

1. Clear Vision of Target

We must always remember that reward and risk go hand-in-hand in trading and that we cannot expect to achieve high returns without planning for high risk (i.e. draw-downs). Your objectives and goals will be very specific to you, but they must have the following characteristics to be useful:
Be measurable
Be achievable
Be worthwhile
Be positive 

2. Discipline

This is most important part of option call put trading. In order to realize the full potential of your trading systems it is critical that you take every trading entry, adjust every stop, and close out every trade as and when your system says you should do.

3. Never add to a losing trade

Averaging is Options could prove to be very dangerous as there is always time factor.

4. Don’t take too much risk

Risk associated in every Option call put call should be very low and well calculated before entering any trade.

5. Minimize all trading business costs

You should select your broker carefully and should be aware of all the cost associated with each trade.

6. Be well educated
Keep a track of board meetings, any possible major event in market Etc because they create huge effect on Option call put pricing.

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