Is SL really helpful in Options trading.?

[Jatin.great]

Hello Fellow traders,

Recently i am trying to learn some strategies in Options trading. I wanted to keep a SL @ 50% of my target point. Eg. If i have targeted a movement of +10 points, then i would like to keep my SL as -5.

But now the things is and as we all are aware, options value (CALL and PUT) increases and decreases very rapidly. So my question to the experts is that if i follow my above mentioned discipline, will it gonna help.?

Also i would like to know if there can be any other way apart from i mentioned above that can help me limit my losses. Thanks in advance.

P.S. I have already lost few thousands trying to learn options strategy.

 

[Jatin.great]

Nobody to address my query.?

 

[tomjerry]

Nobody to address my query.?

I don't know strategies. But I am trading Options so here is my view:

At the start of F&O month, ATM Option price changes slowly. During last week of F&O month, ATM Option price changes with spot price.

e.g.: Nifty spot is changing from 5400 to 5300 on the first day of f&o month, at that time 5300 call will change from 180 to 150.

e.g.: Nifty spot is changing from 5400 to 5300 on the last day of f&o month, at that time 5300 call will change from 100 to 0.

 

[tomjerry]

Also i would like to know if there can be any other way apart from i mentioned above that can help me limit my losses.

Support and Resistance Levels of Spot Price is important. e.g. Nifty has long time support around 5170 so it reversed from that level and faced resistance at 5499. Now again if Nifty is coming around 5170 level then option volatility will increase and option price will change very fast while nifty is trading around 5170. same may happen if nifty is coming around 5499 level.