Why You Must Have a Plan B Before Selling Options!

Meet Praful Kulkarni, a seasoned option seller who stays realistic about his trading journey. He emphasizes that a trader’s psychology plays a crucial role in success, especially when faced with losses.

During the conversation, he highlighted that the capital required for option selling depends on individual goals and circumstances, whether you aim to trade full-time or part-time, have financial dependents, or anticipate major expenses.

Sharing his own experience, Praful revealed that he started option selling only after securing enough savings to cover his expenses for two years. He also had a solid backup plan that if trading didn’t work out within that period, he was prepared to pursue an MBA and other career opportunities.

He stressed why small capital isn’t ideal for option selling. Without a financial cushion, losses can easily impact a trader’s psychology, leading to a cycle of recovery and revenge trading.

His key takeaway? Never enter options trading without a Plan B. A well-thought-out backup plan can be the difference between success and emotional downfall in the market.