When to buy or when to avoid options (guide for buyers)

Avoid trading over earnings because of high volatility it will be unpredictable nature of trade. If you are a risky trader you can do that but for most of you avoid it.

In earning days direction changes extremely fast.

In sideways better to avoid buying stock When Open Intrest is less than 250 avoid in this case as well and when you see abnormally high volatility. On expiry date also try to avoid due to high theta effect.

When should you buy options if it is in trend if you can find the bullish or bearish direction or PA says the direction?

The primary level of trend you are able to identify.

If you have done 5 levels of analysis and it confirms the direction.

Short checklist before buying an option

1. Delta should be at least 50

2. If option strike price talking about ITM open interest should be over 1000

3. Try to buy far from the expiry date

4. Are you avoiding earnings and nuisance?

5. Delivery and volume says / Webull data says consolidation will end soon