You can be right about market direction but still not make money

 

A problem with OTM options is you can be directionally right and still not make money. Worse is when the IV drops.

And if you are directionally wrong, then it is even worse.

NIFTY is up more than 100 points from pre day open yet 12200 CE buyers struggling to make money. pic.twitter.com/RCT83SBYh6

— KPL (@vfmdirect) November 6, 2020