Thread by @KatariyaPran

There are basically 3 ways to Trade Options. Option Buying, Directional Option Selling and Non Directional Option Selling. Each requires a different set of skills and mindset.

Option Buying is perhaps the most difficult. It requires some way of finding quick Directional moves. It also requires an extremely good knowledge of Option Theory to structure a Trade when the opportunity has been identified and a great understanding of the Greeks.

If you have a good sense of direction and momentum but a poor knowledge of Option Theory, you are better of Trading Futures as you will in all probability do far less well with Options and even lose money. It's like being a sharpshooter aiming at a distant Target.

You have to take into account the distance, air speed, the kind of rifle and bullet being used etc. Amongst my friends @SubhadipNandy16 is perhaps the best exponent of this style.

Directional Selling is far more simple. It just requires a decent method of determining direction. It's far more forgiving and can make money even if your initial hypothesis was wrong. It's like attacking a Target with buckshot. You might hit it but not neccesarily kill it.

Non Directional Selling is perhaps the most popular. All it requires is to identify Tending Markets or underlying and stay away from them. To be successful, you have to be a good technician and know how and when to adjust during the lifetime of the Trade.

It's like being a moving Target avoiding the sharpshooters lurking in the background. Creativity and Imagination in structuring Trades differentiates an average Trader from a great one. My friends @itjegan and @PRSundar64 excel with the latter getting full marks for creativity

When asked whether they prefer Buying or Selling Options, many say that one should be an opportunist and do both when necessary- but that's easier said than done. Both require different mindsets and one will tend to gravitate to one or the other.

Sometimes you will see a Buyer do a great Trade Selling but that's a bit like De Villiers play the reverse sweep. He does it occasionally but that doesn't make him a left hander. Sobers was perhaps the only cricketer of repute who could bowl with both hands with equal dexterity

But the style of bowling with hands was different- and even he couldn't bat both right and left handed to take advantage of the kind of bowler bowling to him.