Options Trading For Beginners: What To Trade And What To Avoid

Options trading often appears lucrative, but a lack of understanding is the primary reason why nearly 90% of F&O traders end up losing money. In this episode, we address a viewer query on how to choose the right stocks for high beta and low beta options trading. Senior Research Analyst (Technical & Derivatives) at Angel One, Osho Krishan, explains the fundamental difference between high beta stocks, which are highly volatile and offer frequent trading opportunities, and low beta stocks, which are relatively stable and show limited price movement. The discussion covers how traders can identify suitable stocks using beta classifications available on the NSE, and why tracking open interest along with price action is crucial before taking any options position. The episode also highlights common beginner mistakes, the importance of understanding momentum and build-up, and why option buying is generally advised for first-time entrants due to margin and risk considerations. A must-watch for anyone looking to approach options trading with discipline, clarity, and a professional framework rather than chasing quick rewards.