What percentage of option traders are successful?

Option trading is risky and the success rate in India is quite low, say about 11 %. No matter, traders involved in option trading take all preventive and corrective measures such as stop loss, and trading strategies like strangle, butterfly, and straddles for option selling still volatile markets prevents the profitability which ultimately leads to little success.

Likewise, for option buying, you will find strategies such as momentum strategy, breakout strategy, reversal strategy, etc yet very few mark profitability levels.

In a broader sense, investors/traders who indulge in option selling can make big money in trading stocks while option buying traders make a little money in comparison.

Hence, you can take it for granted that selling options can pay rich dividends. Even in selling options or engaging in futures and options you need to be highly cautious because they produce limited profits and can cause high risks in trading.

The stock trading dynamics are such that option buying generates huge profits and low risks. The chances of losing money is more in option buying even though you select all risk management techniques such as stop loss.

Your success rate depends on the guidance and advice given by the stock experts provided you are well driven by good stock brokers such as Zerodha, 5 Paisa, Upstox, etc.

Therefore, if you want to be a leader in the stock markets then one must consider several issues such as the type of option you choose to trade.

The kind of underlying asset portfolio you maintain, the prevailing market conditions, and the trading strategies you adopt to keep up the win situation, and a trustworthy broker.

In the long run, option sellers make better returns than buyers and usually, the market trends between -1% to 1%.

Securities and Exchange Board of India (SEBI) has released information stating that 11 percent of the traders made profit in the futures and options (F&O) during the financial year 2021-22.

Statistics reveal that the average loss is at Rs. 1.25 lakh. There is an impressive increase in the individual traders of about 500 percent from FY19 to FY22.