Earning a consistent “50 points” in option buying is not guaranteed, but you can increase the probability of catching such moves with a structured, rule‑based approach. Below is a practical framework.

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1. First be clear: 50 points in option = how much money?

Example (just for understanding):

- Instrument: NIFTY weekly options

- Lot size: 50

- If option premium moves from 120 → 170 (50-point move)

- Profit = 50 points × 50 = ₹2,500 per lot (before charges)

For BANKNIFTY/FINNIFTY the lot sizes and rupee outcome will differ, but the logic is the same.

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2. Choose the right options

1) Highly liquid indices

- Prefer NIFTY, BANKNIFTY, FINNIFTY weekly options.

- Liquidity = tight spreads + better fills.

2) Strike selection

- Focus on ATM or slightly ITM options for intraday.

- Avoid far OTM for “jackpot” trades; they move fast but go to zero very often.

3) Expiry selection

- For intraday: current week expiry is fine (cheap + fast-moving), but be aware of time decay and gamma risk.

- For positional: prefer next week/monthly to reduce theta burn.

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3. Trade only high-probability setups

You need setups where the underlying index itself can move strongly; option will then give you 50 points.

Common high-probability environments:

- Breakout from a tight range (previous day high/low, opening range of first 15–30 mins).

- Clear trend days (strong move above/below VWAP / moving averages).

- Event days (RBI policy, major global cues) – but be careful of volatility spikes and whipsaws.

Simple example setup (for learning, not a tip)

- Instrument: BANKNIFTY weekly ATM CE/PE

- Timeframe: 5-min chart

- Rules (example only):

- Wait for first 15–30 minutes to complete; mark day’s high/low.

- If price breaks above day’s high with strong candle + volume, buy ATM CE.

- Initial SL on underlying (e.g., below breakout candle low) and convert to option SL.

This kind of breakout can often give 100–200+ points in underlying, which can translate into 30–80 points in ATM option premium, depending on delta and momentum.

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4. Fix risk and reward before entry

If you target 50 points in premium, your risk per trade must be predefined.

Example plan (illustrative):

- Buy ATM option at 150

- Stop-loss: 120 (risk 30 points)

- Target 1: 180 (+30 points)

- Target 2: 200 (+50 points)

Rules:

- Risk–reward at least 1:1.5 or 1:2.

- Book partial profit at +30, trail stop for rest to hold for 50+ points.

- Never allow a winning trade to turn into big loss.

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5. Use basic confirmation tools (keep it simple)

Don’t overload charts. Use 2–3 of the following:

- Price Action: Higher highs–higher lows (uptrend), or lower highs–lower lows (downtrend).

- VWAP: Stay with trades where price holds above VWAP for longs / below for shorts.

- Support/Resistance: Only buy near support in uptrend, sell near resistance in downtrend.

- Volume: Breakouts with strong volume are more likely to give 50+ point option moves.

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6. Avoid common mistakes that kill 50-point opportunities

- Overtrading: 8–10 trades a day with random entries usually wipes out all gains.

- Buying just before expiry hoping for lottery: Far OTM options can go to zero very fast.

- Trading against the trend: Continuously buying calls in a clear downtrend (or puts in uptrend) rarely works.

- No stop-loss, averaging losers: This is how small accounts blow up.

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7. Backtest and practice

Before targeting 50 points:

1. Backtest your setup on historical intraday data (at least 2–3 months).

2. Paper trade / very small quantity for a few weeks.

3. Track:

- Average favourable move (MFE) in points.

- Average loss.

- Win rate.

- Does your setup even justify a 50-point target?

If your data shows typical move of 25–30 points only, then a consistent 50-point target is unrealistic for that setup. Adjust expectations to what the market actually offers.

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8. Risk disclaimer and realistic mindset

- Options are high-risk leveraged instruments.

- Aiming for fixed 50 points every day can push you into overtrading and revenge trading.

- Focus on:

- Capital protection

- Following your rules

- Taking only A‑grade setups

- Accepting no-trade days when conditions are not right

Over weeks and months, process consistency is more important than hitting 50 points in every trade or every day.

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If you have any further queries, please connect with us on 022-6290-10141 (Timings : 09.00 AM to 05.00 PM) or you can email us on info@cniinfoxchange.com