Part 12 Trading Master Class

Key Tips for Beginners
1. Start with Defined-Risk Strategies

Vertical spreads (bull call, bear put)

Covered calls

Iron condors
These limit losses and prevent account blow-ups.

2. Avoid Selling Naked Options

Beginners should fully avoid selling naked calls/puts because:

Risk can be unlimited

Sharp market movements can cause huge losses

3. Understand Option Greeks

You don’t need to master all, but focus on:

Delta → Direction strength

Theta → Time decay

Vega → Impact of volatility

4. Use Proper Position Sizing

Never use more than:

2–5% of capital on a single trade

10% total exposure to naked buying (calls/puts)

5. Back-test and Paper Trade

Before risking real money:

Test strategies on historical charts

Use virtual trading platforms

Study how premiums behave near expiry

6. Trade with Market Structure + Volume Profile

Since you’re already learning volume profile, combine it with options:

Identify liquidity zones

Sell options at premium zones

Buy options near support/resistance breaks