How 90% of Problems Can Be Solved!

Ever felt like the market is stacked against you when you're trying to buy options? You're definitely not alone — and honestly, you might be onto something.

In this blog, we’re diving into why nearly every newbie stumbles in the world of options trading, how the whole system really operates, and most importantly, how YOU can steer clear of becoming just another statistic.

This isn’t financial advice — it’s a straightforward chat, written in a relatable tone for anyone looking to not just survive but thrive in the options trading arena.

Let’s Get One Thing Straight: The Stats Are Eye-Opening!

According to various industry studies and brokerage reports:

About 90-99% of option buyers consistently lose money.

Why is that? Are they clueless? Are they just lazy? Not at all. They’re simply playing the wrong game with the wrong mindset.

Reason 1: Options Are a Decaying Asset (Time is Not on Your Side!)

When you buy options, you’re investing in something that loses value every single day, even if the stock price doesn’t budge.

This phenomenon is known as Theta Decay.

Imagine you bought a Call Option, hoping the stock will climb. But even if it stays the same, the price of your option drops daily — because time is ticking away.

"Options are like ice cubes... they melt away over time."

And many new traders completely underestimate this decay.

Reason 2: Most Option Buyers Are Lured by Quick Cash

Let’s be real — most beginners jump into options because:

They saw someone turn ₹5,000 into ₹50,000

They think it’s simpler than grasping futures or stocks

They believe “lottery-style” profits are a breeze

But here’s the kicker: that’s exactly what the savvy sellers want you to believe.

They sell you those options and then kick back while time decay works its magic.

Fear and greed are weaponized against buyers every single day.

Reason 3: Poor Strike Selection = Guaranteed Loss

Most newbies opt for OTM (Out-of-the-Money) options because they’re cheap.

But just because something is cheap doesn’t mean it’s worth anything.

Here’s how it typically plays out:

You buy an OTM Call for ₹20
Stock moves a little, but not enough
Expiry comes close — and boom, your ₹20 becomes ₹2 or zero

You’ve just paid the seller — again.

Reason 4: No Plan, Just Hope

This is harsh, but true:

Most option buyers don’t have a trading plan.

They have hope, FOMO, and Twitter screenshots.

No risk management
No entry/exit plan
No understanding of Greeks (Delta, Theta, Vega)

They just enter based on tips or "gut feeling" and exit when they panic.

Reason 5: Options Buying Is a Low-Probability Trade

Even if everything goes your way…

The stock moves fast
Your direction is right
News supports you

You still might lose because the premiums were too expensive when you entered.

Why? Because options are already pricing in the expected move.

This makes buying a low probability game unless you’re highly skilled.

So, How Do You Solve These Problems?

Great question. If 99% lose, what’s the 1% doing differently?

1. Trade with a Plan — Not Emotion

Set target & stop loss
Use proper position sizing
Only risk what you can afford to lose

2. Understand the Greeks

Know how Delta & Theta affect your trade
Avoid buying just before expiry unless you're scalping

3. Avoid Buying Deep OTM Options

Stay near ATM or ITM if you're buying
OTM = High reward but near-zero probability

4. Use Options as a Tool — Not a Gamble

Use it for hedging or directional view confirmation
Don't expect every trade to hit jackpot

5. Practice First. Go Real Later.

Use virtual trading apps to learn
Track your win-loss ratio before using real money

Bonus Tip: Learn to Sell Options (But Carefully)

While this blog is about option buyers, eventually you’ll realize:

The real consistent earners in options are option sellers.

They use probability, math, and time decay to their advantage.

But selling requires:

Bigger capital
Solid risk management
Deep market understanding

If you're serious — learn both sides of the game.

Final Thoughts: The Market Is Not Against You — It’s Against Ignorance

99% of buyers lose because they follow the herd blindly.
But you can choose to study the game, slow down, and learn properly.

Options trading is not a casino — it’s a business.

If you treat it like gambling, you'll burn out.
But if you treat it like a craft, you’ll get better, slowly but surely.

Want to Master Options?

How to Raise Capital for Trading in the Stock Market: 5 Smart Strategies for Beginners (2025 Guide)

Changpeng Zhao (CZ): The Crypto Trader Who Built Binance & Revolutionized the Crypto World

If you’ve ever dipped your toes into the world of option trading, you probably know how overwhelming it can feel. Tons of indicators, endless YouTube videos, and everyone shouting about their "secret" strategy. But what if I told you there’s one scalping setup—simple, tested, and remarkably accurate—that beginners and even busy professionals can actually use?

Yes, I’m talking about a clean, no-nonsense intraday scalping setup that’s been working consistently in today’s volatile market conditions. No fluff, no fake promises—just price action, momentum, and timing. And no, it’s not one of those “get-rich-quick” fantasies. It's a system that demands discipline, but rewards those who learn it.

So whether you're trading part-time after your 9-to-5 job or just starting your journey in options, this is for you.

Understanding Scalping in Option Trading

Let’s clear the air first—what exactly is scalping?

Scalping is a trading strategy where traders enter and exit positions within minutes (sometimes seconds), aiming to capture small price movements. In options, it becomes even more powerful due to the leverage factor. The goal is simple: small profits, multiple times a day, leading to a decent cumulative return.

But here’s the catch: you can’t scalp randomly. Timing, setup, and discipline matter more than anything.

The Core Setup: Price Action + VWAP + Breakout Confirmation

This scalping strategy is based on three pillars:

Price Action at Key Levels
VWAP (Volume Weighted Average Price)
Breakout or Breakdown Confirmation with Volume

Let’s break it down.

Step 1: Identify the Right Stock or Index Option

Your first job? Pick the right instrument. For most scalpers, Bank Nifty, Nifty 50, or high beta stocks like Reliance, HDFC Bank, or Infosys are ideal. The logic is simple—they move. You need movement for scalping.

Now, here’s where beginners often mess up. They choose illiquid options. Big mistake. Always go with ATM (At-the-Money) or 1 strike ITM/OTM, and ensure it has enough volume and open interest.

Step 2: Mark Your Pre-Market Levels

Before the market opens:

Look at yesterday’s high, low, and close
Mark any visible support/resistance zones
Note any gap-up/gap-down zones

This sets the stage for your scalping setup.

Step 3: The Opening 15-Minute Candle is King

Wait for the first 15-minute candle to form after market open.

Why?

This candle often sets the tone for the day. If the price breaks the high of the 15-min candle with strong volume above VWAP, you’ve got your first potential long trade. If it breaks the low with volume below VWAP, it’s your short signal.

This is NOT about guessing. It’s about reacting to what the market shows.

Step 4: Entry Rules (The Real Meat)

Here’s the exact entry criteria:

Price above VWAP = Bias is bullish
15-min high breakout with a strong green candle
Volume bar must be above the last 10 candles average
Entry on breakout candle close or retest
Stop Loss = Just below VWAP or previous swing low
Target = 1:1.5 minimum RR (risk-reward)

For shorts, reverse the logic.

This sounds simple, right? Because it is. But don’t confuse simplicity with ineffectiveness. This strategy works when followed to the letter.

Step 5: Exit Like a Pro

Most traders mess up their exits. Greed, fear, overconfidence—they all sneak in. Stick to this:

Fixed RR (1:1.5 or 1:2) — Book profits mechanically
Trail Stop-Loss only if the move is strong
If VWAP is breached against your direction, exit immediately

Real-World Example

Let’s take a Bank Nifty trade on a volatile Thursday (expiry day). The market opens flat. First 15-min candle forms a range. The next candle breaks the high with strong volume and price is well above VWAP.

You enter a Bank Nifty 45000 CE at ₹120.

Stop Loss: ₹90
Target: ₹150-160
Achieved in 10 minutes. Done. Out.

This may sound like a one-off, but this pattern repeats more often than people realize—especially if you focus only on 1–2 good trades per day.

But What About False Breakouts?

Excellent question.

That’s where volume and VWAP become your filters. If the breakout is weak, and price barely holds above VWAP, stay out. Also, avoid trading in a tight sideways zone. Patience is your best defense.

Tips for Beginners and Working Professionals

Don’t overtrade. 1–2 trades a day are enough.
Trade only between 9:20 AM and 11:15 AM — that’s when moves are clean.
Always use stop-loss. This is non-negotiable.
Start with paper trading if you're unsure.
Use a reliable broker with fast execution—no lag.

Final Thoughts: No Holy Grail, Just Discipline

Look, no strategy gives “100% accuracy” forever. Markets evolve. But this setup has worked consistently because it’s rooted in price action and volume dynamics, not random indicators.

The real “secret” is not the setup—it’s the execution. Most traders fail not because the strategy is wrong, but because they don’t follow it.

So the next time you sit down to trade, don’t hunt for magic. Stick to a proven system. Master this scalping setup. Trade with confidence. And let compounding do its work.

Disclaimer: Trading in options involves risk. This blog is for educational purposes only. Please consult with your financial advisor before taking any investment decisions.