Intraday Call and Put Option Tips Today
TL;DR:
Intraday call and put options let traders profit from short-term market moves. Key tips include following trends, identifying support/resistance levels, using stop-losses, monitoring volatility, and applying disciplined entry and exit strategies.
Intraday trading in call and put options is one of the fastest ways to participate in the market. Unlike holding positions overnight, intraday trades require quick decision-making, precise entry and exit levels, and strict risk management. Today, we’ll cover practical tips to help you navigate intraday call and put option trading effectively.
Understanding Intraday Call and Put Options
Call Options: Give the right to buy the underlying index or asset at a predetermined strike price. Profitable if prices rise during the trading day.
Put Options: Give the right to sell at a predetermined strike price. Profitable if prices fall during the day.
Intraday trading involves buying and selling options within the same trading session, so timing and market analysis are crucial.
Key Intraday Call Option Tips
1. Follow the Market Trend
Identify whether the market is bullish during the day.
Use short-term charts (5-minute, 15-minute, or hourly) to confirm the trend.
Enter call options only when the market shows upward momentum.
Example: If Nifty opens at 18,500 and rises steadily, buy a call near short-term support around 18,480 for potential upside.
2. Use Support Levels for Entry
Enter call options near strong intraday support levels.
Avoid buying calls at resistance levels where reversals may occur.
3. Set Stop-Loss
Place a stop-loss based on premium paid or underlying index level.
Example: Buy call at 18,480 with premium 50, set stop-loss at 45 or if Nifty falls below 18,460.
4. Exit at Resistance or Target
Identify intraday resistance levels and plan exits accordingly.
Trailing stops can help lock in profits while allowing for further gains.
Key Intraday Put Option Tips
1. Trade in a Bearish Market
Enter put options when intraday charts indicate a downward trend.
Confirm trend using indicators like RSI below 50 or MACD bearish crossover.
Example: Nifty opens at 18,500 and drops steadily; consider buying a put near minor intraday resistance at 18,520.
2. Use Resistance Levels for Entry
Resistance levels act as ceilings; entering puts near these levels increases probability of profit.
3. Stop-Loss Management
Set stop-loss slightly above the resistance level or based on premium risk.
Example: Buy put at 18,520, premium 40, stop-loss if Nifty rises above 18,540 or premium drops to 35.
4. Target Exit Levels
Exit near intraday support levels to secure gains.
Adjust targets based on volatility and market momentum.
Intraday Option Trading Tips for Today
1. Monitor Market Volatility
High volatility increases premiums and intraday price swings.
Use Average True Range (ATR) or other volatility indicators to adjust strike price and stop-loss.
2. Focus on Liquid Strikes
Choose strikes near current index levels for better liquidity and smaller spreads.
Avoid deep out-of-the-money options, which may have low volume and high premium decay.
3. Use Technical Indicators
Moving Averages: Identify short-term trends and dynamic support/resistance.
RSI: Helps spot overbought/oversold conditions for timing entries.
MACD: Confirms trend direction and strength.
4. Stick to Predefined Risk
Limit the maximum loss per trade, usually 1–2% of capital.
Avoid overtrading, even if market momentum is strong.
5. Time Your Trades
For intraday options, enter after market opens and exit before market closes.
Avoid holding positions overnight unless using longer-term strategies.
Practical Intraday Call and Put Examples
Call Option Example
Nifty opens at 18,500, uptrend observed.
Support level: 18,480, resistance: 18,550
Buy call at 18,480, premium: 50
Target: 18,550 → Exit call for profit
Stop-loss: Nifty falls below 18,460 or premium drops to 45
Put Option Example
Nifty opens at 18,500, downtrend observed.
Resistance level: 18,520, support: 18,450
Buy put at 18,520, premium: 40
Target: 18,450 → Exit put for profit
Stop-loss: Nifty rises above 18,540 or premium drops to 35
Risk Management Tips for Intraday Options
Define Risk Per Trade: Limit capital exposed to 1–2% per trade.
Use Stop-Losses: Protect against sudden reversals.
Position Sizing: Adjust number of contracts based on risk tolerance.
Avoid High-Leverage Trades: Large trades amplify losses in volatile markets.
Monitor Market News: Intraday spikes can happen due to announcements.
Record and Review Trades: Learn from winners and losers to refine strategy.
Key Takeaways
Intraday calls profit in upward-trending markets; puts profit in downward-trending markets.
Use support and resistance levels to time entries and exits.
Monitor volatility and choose liquid strikes for smoother trading.
Set stop-loss and profit targets to protect capital and lock in gains.
Stick to short-term charts (5–15 minute) for intraday decisions.
Maintain discipline and avoid emotional trading for consistent results.
Combine technical indicators with market trend analysis for higher probability trades.