Checklist for Indian Stock Options Traders
Checklist for Indian Stock Options Traders M Kanagasabapathy According to SEBI , a bout 89% of individual F&O, options traders lost, with average loss of ₹1.1 lakh. SEBI's updated report shows 93% of individual traders incurred losses. General risk management, for minimizing the loses 1. Never risk more than 1.5 % of trading capital. For 1,00,000, maximum risk is 15,000. 2. Hedging the position reduces risk of sudden events - Selling a Call option at deep OTM and buying at ATM. 3. Physical delivery risk (critical for stock options)- Since stock options in India are physically settled, avoid holding at ITM on expiry. 4. Always place, correct stop-loss. 5. Never average a losing options, instead take hedging. 6. Book partial profits intermittently. 7. Check Liquidity and volume. 8. Check News and Events. 9. Brokerage cost is significant, eat s...