1. Home
  2. Docs
  4. Using SMI for Options Trading
  5. SMI for Option Buyers

SMI for Option Buyers

Option trading requires good knowledge of strike selection. You might want to check pre-requisite before continuing

Options buyer’s best friend is the trending market/stock. Thus wait for below listed scenarios of SBER for options buying for day trading.

Best conditions for option buying (either of these can be used)

  • Breakout of strength and sustenance marking (blue line). Breakouts with big candles are less friendly than usual sized candles.
  • Textual information is showing “Expected: Trend” and no trap alert is shown by SBER SMI. Recommended.
  • There is breakout from “Expected range” shown as textual information.
  • Options buyers prefer buying calls for up trend and puts for down trends.
  • You can always delta hedge your position if not sure about open position.
  • If you are not sure about the strike selection, prefer to trade near OTM when expiry is far, or ATM/ITM when expiry is near (indicative only).
  • Exit the trade if any of above mentioned condition for trade is interrupted.


Do not trade options if textual information reads “Abrupt indecisive moves expected” or “Info NA”