Intraday options trading can be extremely rewarding — and equally punishing — for those who enter the market without discipline. According to market analyst and educator Sanjay Kathuria, successful intraday options trading is not about luck or tips, but about rules, risk control, and repeatability.
In this article, we explore 5 proven rules shared by Sanjay Kathuria to trade options intraday profitably, even in volatile markets.
🔥 Rule #1: Trade Only After 9:30 AM — Let the Noise Settle
The first 15 minutes of the market are often driven by overnight news, gap-ups, gap-downs, and volatile order flows. Beginners often get trapped by false signals.
Why this matters:
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Real trend often starts after 9:30 AM
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Indicators and price action settle post-initial volatility
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Gives you time to analyze market structure (gap filling, range formation, or breakout)
Katha-Tip: “Avoid being the early bird in options. Be the sniper.”
🧭 Rule #2: Direction First, Trade Later – Follow the Trend
Jumping into options without market direction is like driving blindfolded. Use a combination of price action + volume + moving averages to determine trend.
How to find direction:
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Use 5- or 15-min charts with EMA crossover (e.g., 9 EMA & 21 EMA)
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Watch for volume breakout near key levels (yesterday’s high/low)
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Stick to one direction per trade – either buy CE or buy PE, not both
Katha-Tip: “Market gives only 1-2 good moves a day. Wait, then ride.”
🧮 Rule #3: Fixed Risk, Flexible Mindset – Use Stop-Loss Always
This is where 90% of intraday traders fail — no stop-loss discipline. Sanjay emphasizes risk management over accuracy.
Intraday SL Rule:
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Risk per trade: 1-2% of capital
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Use SL of 30-40% of premium value
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Avoid revenge trading or doubling quantity after a loss
Example: If buying NIFTY 22500 CE at ₹100, keep SL at ₹65–70.
Capital: ₹25,000 → Risk per trade: ₹500 max.
Katha-Tip: “It’s not about being right, it’s about staying alive for the next trade.”
🛠 Rule #4: Avoid Overtrading – 2 Trades a Day Are Enough
Chasing the market with 5–10 trades a day is a shortcut to burnout. According to Sanjay, most intraday profits are made in 1 or 2 good trades.
Suggested Approach:
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Max 2 trades a day (1 directional + 1 fallback if needed)
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Avoid trading post 2:30 PM unless you have an open trend
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Focus more on quality setups than quantity of trades
Katha-Tip: “Be a trader, not a thrill-seeker. Less is more.”
🧪 Rule #5: Use the Right Tools – Indicators & Option Chain
Successful traders don’t guess — they read data. Sanjay Kathuria recommends using the Option Chain, Open Interest (OI) data, and volume breakout techniques to time entries.
Tools to use:
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NSE Option Chain: Find support/resistance via highest OI
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OI Change: Watch for fresh positions
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Volume Spike: Confirm breakout/breakdown
Combine this with VWAP (Volume Weighted Average Price) to avoid chasing late entries.
Katha-Tip: “The market speaks through data. Are you listening?”
🏁 Bonus Tips from Sanjay Kathuria:
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Trade only liquid options (NIFTY/BANKNIFTY, ATM/near-ATM)
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Use 1-2 strategies only (directional CE/PE buying, straddle breakout, scalping on big moves)
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Keep emotions in check: Don’t get greedy when in profit, and don’t freeze when in loss
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Maintain a trading journal – track your wins, losses, setups, and emotions
📊 Quick Summary: Sanjay Kathuria’s 5 Golden Rules
| Rule No. | Strategy |
|---|---|
| 1 | Avoid trades before 9:30 AM – let the market settle |
| 2 | Follow trend with EMA, price action, and volume |
| 3 | Use hard stop-loss – never risk more than 2% capital |
| 4 | Limit to 2 trades/day – avoid emotional overtrading |
| 5 | Use option chain + OI + VWAP for data-backed trades |
🧠 Final Words by Sanjay Kathuria
“Intraday options trading is a business, not a lottery. With rules, patience, and risk control, you can build consistent profits — one good trade at a time.”
Whether you’re a new trader or looking to improve your intraday performance, these 5 rules offer a strong foundation. Stick to them, practice with discipline, and success will follow.
