Introduction to Intraday Option Buying
Intraday option trading can feel overwhelming for many traders due to fast price movements, time decay, and emotions, but the top stock market institute in Ahmedabad & Rajkot can help you master it with ease.
Why Option Buying Feels Risky for Beginners
Beginners often face confusion and losses due to unclear strategies, emotional trading, and lack of discipline.
How a Rule-Based Strategy Simplifies Trading
By following a simple, rule-based strategy rooted in price action and momentum, intraday option buying becomes easier, more structured, and far more rewarding.
If you’re looking to learn such trading strategies practically, Volchart Stock Market Institute, the top stock market institute in Ahmedabad and Rajkot, can help you gain real market experience.
Strategy Overview: RSI + Volume Breakout
This high-probability strategy is built on two powerful technical indicators:
- RSI (Relative Strength Index)
- Volume (with average volume comparison)
Why RSI and Volume Are Powerful Together
When RSI shows momentum and Volume confirms participation, it creates the perfect setup for a fast intraday move in the index or stock.
When to Use This Strategy (Best Market Conditions)
This strategy works best on trending market days when price breaks key support or resistance levels with strong volume.
Tools and Chart Setup
To implement this strategy, set up your charting platform as follows:
Recommended Chart Time Frame
- Use a 15-minute time frame to reduce noise and catch clear breakouts.
Indicators You’ll Need
- RSI (14-period)
- Volume indicator with 20-period average line
Instruments to Trade (Nifty, Bank Nifty, Stocks)
- Focus on Nifty and Bank Nifty
- You can also use this on liquid stocks with good volume
- Trade ATM or one-strike ITM options
Trade Timing: Why Enter After 9:30 AM
Understanding Morning Market Volatility
The market opening (9:15 to 9:30 AM) is often volatile and can give false signals.
How to Use the First 15-Minute Candle
Use the first candle to mark the range high and low. This helps define key breakout or breakdown zones to act upon.
Entry Rules for Intraday Option Buying
Follow these specific entry rules to increase your success rate:
Criteria to Buy Call Option (Bullish Setup)
- Market has a bullish bias or trend.
- A clear breakout above resistance on the 15-min chart.
- At breakout time:
- RSI should be above 60
- Volume should spike above the 20-period average
- Buy ATM/ITM Call Option
Example:
- Bank Nifty breaks 49,800 resistance
- RSI: 64 | Volume: High
- Trade: Buy 49,800 CE or 49,700 CE
Criteria to Buy Put Option (Bearish Setup)
- Market shows bearish sentiment.
- Breakdown below key support level on chart.
- Confirm with:
- RSI below 40
- Volume higher than average
- Buy ATM/ITM Put Option
Example:
- Nifty breaks 22,150 support
- RSI: 35 | Volume: High
- Trade: Buy 22,150 PE or 22,200 PE
Exit Strategy for Safe Profits
Profit Target Guidelines
- Aim for a 25%–30% gain on the option premium.
Stop Loss and Risk Control
- Set a 20% stop loss or exit on RSI reversal (e.g., RSI falling back below 60 in calls).
Time-Based Exit Rule
- Exit all trades by 2:45 PM to avoid end-of-day volatility and protect profits.
Why This Strategy Works
Role of RSI in Confirming Momentum
RSI helps identify if the move is backed by strong momentum or is likely to fail.
Importance of Volume Spike
Volume validates whether the breakout is supported by real buying/selling activity or is a false move.
How It Prevents Overtrading
Clear rules prevent emotional and frequent entries, helping you stay focused and disciplined.
Learn This Strategy Practically with Volchart
Why Practical Learning Beats Theory
Reading about strategies is not enough—you need to see them live in action. At Volchart Stock Market Institute, we teach intraday strategies in the live market with step-by-step guidance.
What You’ll Learn at Volchart Institute
- Live chart reading
- Option entry/exit timing
- Risk management
- Mindset building for traders
Why Choose Volchart Stock Market Institute?
Volchart is known for providing complete stock market education for beginners and advanced traders alike.
Live Trading Sessions
- Learn by practicing during actual market hours.
Personalized Mentorship
- Get one-on-one guidance to improve faster.
Courses for All Levels
- Intraday, swing, options, futures—all covered.
Certification and Credibility
Get certified from the best stock market classes in Ahmedabad and Rajkot.
Contact Volchart Stock Market Institute
Website and Branch Details
- 🌐 Website: https://volchart.in
How to Enroll in the Best Stock Market Course Near You
- Ahmedabad Branch: 📞 70431 65136
- Rajkot Branch: 📞 91571 65136
Take the first step toward mastering intraday option trading. Learn this proven RSI + Volume breakout strategy with real market experience—only at Volchart Stock Market Institute, your trusted stock market mentor in Gujarat.
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