Swing Trading Stock Options - High Momentum Strategy

🔥 Stock Options Trading Strategy – Built on Core Swing/Positional Principles (85% Win Rate Setup) -

As a continuation of my last post on Swing and Positional Trading Setup with 85% Win Rate, I’m now sharing a Stock Options Trading Concept that follows the same core principles but is tailored specifically for liquid stock options.
You’ve already been provided with a list of 100+ high-beta, liquid stocks. For this strategy, you will strictly focus only on those stocks.

✅ Strategy Setup
🔹 Timeframe Filters:
• Monthly RSI > 60 (RSI has crossed and is holding above 60)
• Weekly RSI > 60 (same condition as above)
• Daily RSI: RSI must be crossing 60 or on the verge of crossing
Now, on the Daily Chart, mark the current swing high and swing low.
📌 Two Entry Approaches:
Approach 1: Breakout Entry
• Entry: When swing high is broken.
• Stop Loss (SL): Swing low or previous week’s low.
Approach 2: Pullback Entry
• Wait for a retracement from swing high (should not exceed 50% retracement).
• Confirmation of pullback weakness: Volume bars should be shrinking/decreasing.
• Entry: On breakout of the last candle high of the pullback.
• Stop Loss: Swing low or previous week’s low.
Once in the trade, trail your stop loss to cost after 3 consecutive bullish candles.
📤 Exit Rules
• Exit the Stock Options position only if the Daily RSI drops below 60.

⚠️ Important Guidelines for Stock Options
• 💡 Trade with only 1 lot. Never exceed your lot size.
• 📅 Enter after 2 days of the monthly expiry and exit before 2 days of next monthly expiry to avoid smart money manipulation.
• 🎯 Choose strike prices in multiples of 25, 50, 75, or 100 for better liquidity.
• Example: If stock is at 1564, choose 1550 ITM or 1575 ATM.
• ⏱️ For quick exits, always place exit orders at round numbers like 5 or 10 levels.
• Example: If you entered at ₹70 and the option is at ₹144, place an exit at ₹140 or ₹145—not any random price.


For PE buying-
Monthly RSI < 40
Weekly RSI < 40
Daily RSi crossing 40 or below

Same process for PE with 2 approach as you like but in reverse form.


🧠 Final Thoughts
Stick to this simple, structured setup. Don’t complicate it.
✅ Backtest thoroughly
✅ Understand each setup
✅ Plan your trades BEFORE entering, never after.
Let the market come to you—don’t chase it.


Disclaimer -
These posts are only to educate you all. You are responsible for the actions you take. Consult your advisor if you need. I am a Sr. Research Analyst in Equity Firm BUT not yet SEBI reg.

100+ Stocks List - High Beta -
🚗 Auto
• Bajaj Auto
• Bosch Ltd
• Eicher Motors
• Hero Motocorp
• Maruti Suzuki
• TVS Motors
• Tata Motors
🏦 Banking & Financial Services
• Bank of Baroda
• Kotak Mahindra Bank
• Axis Bank
• ICICI Bank
• HDFC Bank
• IndusInd Bank
• Bajaj Finserv
• Bajaj Finance
• SBI
🧪 Chemicals
• Aarti Industries
• Atul Ltd
• Navin Fluorine
• UPL
• Tata Chemicals
🍫 FMCG
• Britannia Industries
• Godrej Consumer
• Tata Consumer
• DMart
• Hindustan Unilever
• Dabur
💊 Pharma & Healthcare
• Apollo Hospitals
• Alkem Labs
• Biocon
• Divis Labs
• Dr. Reddy’s
• IPCA Labs
• Laurus Labs
• Lupin
• Aurobindo Pharma
• Sun Pharma
• Cipla
💻 IT Sector
• HCL Technologies
• Infosys
• LTIMindtree
• TCS
• Tech Mahindra
• Wipro
⛓️ Steel & Metals
• APL Apollo Tubes
• JSW Steel
• Jindal Steel
• Tata Steel
• Hindalco
• L&T
🛢️ Oil & Gas
• Reliance Industries
• Gujarat Gas
• Indraprastha Gas (IGL)
• Mahanagar Gas (MGL)
• Tata Power
🏢 Realty
• DLF Ltd
• Godrej Properties
• Lodha (Macrotech Developers)
• Oberoi Realty
• Phoenix Mills
🛋️ Durables & Others
• Sona BLW (Sona Comstar)
• Amber Enterprises
• Bata India
• Crompton Greaves
• Dixon Technologies
• Titan Company
• ACC Cement
• Ambuja Cement
• Ultratech Cement
• Voltas Ltd
• Polycab India
• Mazagon Dock (Mazdock)
• Asian Paints
• Berger Paints
Cummins

Best of luck. Comments if you have any doubts. God bless you all, be happy!

Faraaz T
Sr. Equity Research Analyst
Stockholm Securities - UK