I am going to share a very simple option strategy that works both for option buying and selling .
In the strategy i will use 2 things
1) Divergence
2) Elliot correction waves.
Option buying
This is hdfcbank 1300 CE.
You can see on the hourly chart there is a bullish divergence.
It means soon we can get a pullback . The pullback in elliot is known as correction.
Correction usually happens in 3 wave ABC
So whenever you get a trendline breakout , go for the buy .
Option selling
Similar strategy for option selling also
This is 1300 PE
once we get divergence ,followed by trendline breakout ,go for selling .
The pullback will happen in 3 wave ABC.
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