Why Making 100 Points in Sensex Options Is Simpler Than Most Traders Think?
Many traders believe that earning 100 points in Sensex options requires exceptional skill, speed, or access to privileged information. In reality, it often requires none of those. What it does require is the ability to recognise trend structure, align bias correctly, and execute a simple, repeatable process without emotional interference. Most losses in options trading do not come from lack of opportunity but from lack of discipline.
The Sensex, by design, offers clean intraday trends on many sessions. When those trends are respected and traded using deep in-the-money options, even modest price movement in the index can translate into meaningful option gains. The challenge is not the setup itself, but the patience required to wait for it and the courage to stick with it.
Understanding the Role of Trend
Everything begins with the trend. A strong trend simplifies decision-making. It reduces the need for prediction and increases the probability of follow-through. Trading Sensex options against the trend is like swimming upstream. It may work occasionally, but it demands perfect timing and invites unnecessary stress.
Identifying trend does not require complex indicators. Higher highs and higher lows define an uptrend, while lower highs and lower lows define a downtrend. When the index is trending clearly, the trader’s job is not to anticipate reversal but to participate in continuation. This clarity alone removes half the confusion most traders face during live markets.
Setting the Bias Before Entering a Trade
Bias is simply your directional intention based on structure. It is not a prediction. Once the trend is identified, the bias becomes obvious. In a rising market, the bias is to buy dips or breakouts. In a falling market, the bias is to sell rallies or breakdowns.
Most traders struggle because they keep changing bias mid-trade. A well-defined bias allows the trader to ignore counter moves and noise. Without bias, every candle feels important. With bias, only specific levels and confirmations matter.
Why Deep In-The-Money Options Matter
Deep ITM options behave more like the underlying index and less like a lottery ticket. They have higher delta, lower theta impact, and smoother price movement. This makes them ideal for trend-based trading where the goal is consistency, not jackpot returns.
Many traders are attracted to cheap out-of-the-money options because of their low price. Unfortunately, these options decay rapidly and require perfect timing. Deep ITM options, on the other hand, allow the trader to focus on price structure rather than premium noise.
For traders aligning index structure with options execution, disciplined participation often improves when combined with:
Waiting for Strength Confirmation
One of the most effective confirmations in a trending market is strength after consolidation. In practical terms, this means higher highs and higher lows in the option premium, combined with a close above a meaningful level such as the morning high.
This confirmation prevents premature entries. It ensures that participation happens only after buyers or sellers have demonstrated intent. Traders who enter before this confirmation often find themselves stuck in the grind, questioning their decision and exiting early.
Defining Stop-Loss and Position Size
Risk definition transforms trading from gambling into a process. A stop-loss should be placed at a level where the trade idea is proven wrong, not at a random point. Once the stop is defined, position size must be calculated so that the loss remains acceptable.
This approach removes fear. When risk is predefined, the trader is no longer emotionally attached to the outcome. Losses become part of the process rather than personal failures.
Managing the Trade: Target or Trail
In strong trends, profits often come in waves. Traders can either exit at a predefined target or trail the stop to capture extended moves. Both approaches are valid, provided they are decided before entry.
The mistake many traders make is switching management styles mid-trade. Consistency matters more than optimisation. A trader who captures 100 points repeatedly with discipline will outperform one who chases 300 points inconsistently.
Why This Setup Works Repeatedly
This setup works because it aligns with market structure rather than fighting it. It respects trend, waits for confirmation, controls risk, and avoids unnecessary complexity. There is no dependency on indicators, predictions, or speed.
Markets reward those who simplify. When traders remove noise and focus on price behaviour, the path to consistent profits becomes clearer. Making 100 points in Sensex options is not extraordinary; repeating it with discipline is.
Investor Takeaway
Derivative Pro & Nifty Expert Gulshan Khera, CFP®, believes that consistency in options trading comes from respecting structure and process rather than chasing excitement. A simple trend-aligned approach using deep ITM options, defined risk, and disciplined execution can deliver steady results over time. Long-term success lies in repetition, patience, and emotional control. Explore structured market insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
