Simple Option Buying strategy which can lead to huge gains

[Michael Gonsalves]

Most traders prefer Option Buying instead of selling because they lack the capital required to deposit as margin money. Thankfully, there are a number of simple option buying strategies which can help traders to make money.

Vikram Prabhu, an expert who goes by the trade name 'Pivot Call' has explained the details of one such option buying strategy.

He has explained when the strategy should be implemented (i.e. when the CPR or Central Pivot Range is very wide), what should be the position of the Candle stick, how much stop loss should be placed and what the stop loss should be.

He has cautioned that like every other strategy, the options buying strategy also does not work all the time. However, even if it works only 50% of the time and if the risk-reward is 1:2, the trader will have a profitable outcome.