which strikeprice option to buy?

- very far out of the money, like 5-10 value = for thrill, not trading

- far out of money like 30-35 value = for aggressive betting on profit from earlier trades

- out of the money like 70-100 value = normal trade position

- in the money like 100-150 = when you are confident 

- deep in the money like 250-400 = alternate to buying futures

- deeper in the money = not much extra benefit though risk increases

Once the value of the option enters the next, higher level, you may skim the option to lower/earlier category and take some profit/money off the table.

Caution : Never put 5% (at worst 10%) of your trading capital in single trade.

except aggressive betting of profits of one trade. eg you turn 10 to 12 lac....and want to bet aggressively with that 2 lac profit, provided you have an evolved dependable tested plan. several traders have made big sums with that approach.

my simple trading strategy with sma

assume there are 4 chart timelines

1) 1 min chart= grandchild

2) 5 min chart = child

3) 15 min chart = father

4) 30 min chart = grandfather

buy on the basis of child chart, when price cuts sma 50 from below IF price is above sma 15 in father chart. with stop loss as the points when price cuts child or father chart respective sma mentioned above.

similarly, you can make strategy for short trades.

this strategy is for short term trading.

i know of some retired para commandos who can tackle any hound with bare hands and any big cat with just one stick. similarly, i also know some traders who trade with just sticks of sma....the simple the strategy, the better.... complexity confuses

standard disclosure : no responsibility of the outcome. pl consult certified financial advisor before trading. always trade small which you can afford to lose without losing sleep. trader discretion advised