Part 1 Support and Resistence

Long Straddle (High Volatility Bet)

Best for: Beginners who expect big move but don’t know direction.

Market Outlook: High volatility (e.g., before results, elections).

How it works:

Buy a call and a put at same strike price.

Example:

Nifty at 22,000.

Buy 22,000 call at ₹150.

Buy 22,000 put at ₹160.
Total cost = ₹310.

If Nifty moves strongly (up or down), one option gives profit. If Nifty stays flat, you lose premium.

✅ Pros: Profit in any direction.
❌ Cons: Expensive, loses money in sideways market.

Long Strangle (Cheaper Volatility Bet)

Similar to straddle but uses different strike prices.

Example: Buy 21,800 put + 22,200 call.

Cheaper than straddle but requires bigger move for profit.

Iron Condor (Sideways Market Strategy)

Best for: Beginners who think market will stay in range.

Market Outlook: Neutral.

How it works:

Sell an out-of-the-money call.

Buy a further out-of-the-money call.

Sell an out-of-the-money put.

Buy a further out-of-the-money put.

This creates a “range” where you earn profit.

✅ Pros: Works best in stable market.
❌ Cons: Complicated, limited profit.