Chirag Rathore — Stock Options Intraday Strategy
CHIRAG RATHORE
Stock Options Intraday Strategy
BB + RSI + VWAP + Previous Day Pivot Breakout
Intraday • Stock Options (NSE F&O) • 1-Hour Timeframe
STRATEGY AT A GLANCE
Instrument: Stock Options ONLY (CE / PE) — NOT Index Options
Timeframe: Monthly + Weekly + Daily (trend filter) | 1-Hour (entry trigger)
Indicators: Bollinger Bands (20, 2) | RSI (14) | VWAP | Prev Day High / Low
Lot structure: 2 lots — Lot 1 at Target 1, Lot 2 with trailing stop
Hard exit: 3:15 PM | Max loss: ₹4,000 per lot
For Educational Purpose Only | Not SEBI Registered Investment Advice
Chirag Rathore — Stock Options Intraday Strategy
1. Why Stock Options — Not Index Options?
Chirag Rathore specifically focuses on Stock Options rather than Nifty or Bank Nifty options. The reason is
backed by SEBI data spanning three financial years:
Financial Year Total Retail Loss Index Options Loss Index % of Loss
2022-23 ₹65,000 Cr ₹45,000 Cr ~70%
2023-24 ₹74,000 Cr ₹51,000 Cr ~69%
2024-25 ₹15,000 Cr ₹10,500 Cr ~70%
Key insight: Nearly 70% of retail trader losses come from Index Options. By trading Stock Options, this
dominant source of loss is eliminated.
Additional reason: Index options can be manipulated by large operators with ₹50-100 crore. Individual stock
options are much harder to manipulate, making them fairer for retail traders.
2. Core Philosophy
Principle Explanation
No overnight risk. Whatever happens tomorrow — global news,
Intraday Only
Trump tweets, war — does not affect your position.
70% of retail losses come from Index Options (SEBI data). Stock
Stock Options Only
options offer cleaner price action.
If a stock moves 4-5%, its options move 30-50%. Intraday profit
Options for Leverage
equivalent to swing trade, with zero overnight risk.
You are not a compulsive trader. Trade only when conditions are
Trade on Your Terms
right — health, mindset, network, capital all must be fine.
Maximum loss capped at ₹4,000-4,500 per lot. Position sized and
Minimum Risk
structured so capital is protected.
For Educational Purpose Only | Not SEBI Registered Investment Advice
Chirag Rathore — Stock Options Intraday Strategy
3. Indicators Used
Indicator Settings Purpose in Strategy
Identify trend direction (price above/below BB Mid)
Bollinger Bands Period 20, Std Dev 2
and squeeze (low BB width = breakout imminent)
Momentum confirmation. RSI > 50 = bullish
momentum. RSI < 50 = bearish momentum. Price
RSI Period 14
rising but RSI not rising = no momentum, skip the
stock.
Entry timing reference and Stop Loss trigger. VWAP
Standard (resets angle (45 degree = strong trend day). Price always
VWAP
daily) revisits VWAP around 12:30 or 1:30 PM — use that
as re-entry point.
Key breakout/breakdown levels (Pivot levels).
Prev Day High/Low Daily chart Breakout above Prev Day High = bullish trigger.
Breakdown below Prev Day Low = bearish trigger.
3.1 Timeframe Structure
Timeframe Role What to Check
Is price above BB Mid? Is RSI > 50? This is the highest
Monthly Macro Trend
filter.
Confirm same direction as Monthly. All three must
Weekly Intermediate Trend
align.
Price above BB Mid + RSI > 50 (bull) or below BB Mid
Daily Short-term Trend
+ RSI < 50 (bear).
This is where you actually enter the trade. Watch
1 Hour Entry Trigger
for pivot breakout + confirmation.
Rule: All three higher timeframes (Monthly, Weekly, Daily) must agree on direction before looking for
entry on the 1-Hour chart.
For Educational Purpose Only | Not SEBI Registered Investment Advice
Chirag Rathore — Stock Options Intraday Strategy
4. Pre-Market Setup Checklist (Before 9:20 AM)
Every morning before the market opens, run through this checklist for your chosen stock:
# Check How to Verify
Monthly chart: Price above BB Mid + RSI Open TradingView, switch to Monthly chart, check
1
> 50 (Bull) or below + RSI < 50 (Bear) BB and RSI
Switch to Weekly, confirm BB Mid and RSI
2 Weekly chart: Same direction as Monthly
alignment
Daily chart: Same direction as Weekly and Switch to Daily, confirm all three timeframes
3
Monthly aligned
Note Previous Day High and Previous
4 These are your breakout trigger levels for today
Day Low
Check current stock price proximity to
5 Closer = higher probability of trigger today
Prev Day High/Low
RSI on 1-Hour chart — is momentum
6 Price rising but RSI flat = skip this stock
present?
Check VWAP angle once market opens Steep 45 degree VWAP = trending day. Flat =
7
(post 9:30 AM) sideways, avoid
5. Entry Rules
5.1 Bullish Entry — Buy Call Option (CE)
Ste
Condition
p
1 MTF Trend Filter: Monthly + Weekly + Daily all Bullish (price above BB Mid, RSI > 50)
2 On 1-Hour chart: Previous 1H candle closed BELOW Prev Day High
Current 1H candle CLOSES ABOVE Prev Day High (breakout confirmed on close, not intra-
3
candle)
4 RSI on 1H chart is above 50 and rising
5 Price is above BB Middle Band on 1H chart
6 VWAP slope is at approximately 45 degrees upward (trending day confirmed)
EN
TE Buy Nearest OTM Call Option — ATM Strike + 1 strike above current price
R
For Educational Purpose Only | Not SEBI Registered Investment Advice
Chirag Rathore — Stock Options Intraday Strategy
5.2 Bearish Entry — Buy Put Option (PE)
Ste
Condition
p
1 MTF Trend Filter: Monthly + Weekly + Daily all Bearish (price below BB Mid, RSI < 50)
2 On 1-Hour chart: Previous 1H candle closed ABOVE Prev Day Low
3 Current 1H candle CLOSES BELOW Prev Day Low (breakdown confirmed on close)
4 RSI on 1H chart is below 50 and falling
5 Price is below BB Middle Band on 1H chart
6 VWAP slope is at approximately 45 degrees downward (trending day confirmed)
EN
TE Buy Nearest OTM Put Option — ATM Strike - 1 strike below current price
R
For Educational Purpose Only | Not SEBI Registered Investment Advice
Chirag Rathore — Stock Options Intraday Strategy
6. Strike Price Selection
This is one of the most important parts of the strategy. Chirag is very specific about which strike to buy.
Direction Strike Rule Example Strike to Buy
ATM + 1 strike ABOVE Stock at ₹676 ATM =
Bullish (Buy CE) Buy 680 CE
(Nearest OTM Call) 675 CE
ATM - 1 strike BELOW Stock at ₹116 ATM =
Bearish (Buy PE) Buy 110 PE
(Nearest OTM Put) 115 PE
Why Nearest OTM and Not ATM?
• Lower premium required — less capital at risk per trade
• Faster premium appreciation — when price moves in your direction, OTM options gain premium much
faster than ATM options
• Risk-reward is better — small investment, large percentage return
Do NOT go deep OTM (2 or 3 strikes away) — those options have very low delta and will not move enough even
if the stock moves significantly.
7. Entry Timing — Two Methods
Method When to Use How to Enter
Enter immediately on candle close. This
At the moment of breakout — 1H
Method 1 is the ideal entry — you are entering at
candle closes above Prev Day High
Breakout Entry the station (VWAP area) as the train
(Bull) or below Prev Day Low (Bear)
begins to move.
If you missed the breakout, wait for Enter when price touches VWAP and
Method 2 VWAP price to pull back to VWAP. This RSI confirms momentum. Target
Retest typically happens at 12:30 PM or 1:30 achievable from VWAP retest to 2:15
PM on most trading days. PM window. Do not chase the move.
Chirag's principle: Enter at the station, not in the moving train. The VWAP is your station. Enter there, not when
the price is already running far from VWAP.
For Educational Purpose Only | Not SEBI Registered Investment Advice
Chirag Rathore — Stock Options Intraday Strategy
8. Stop Loss Rules
This strategy uses VWAP-based stop loss — NOT the traditional candle low stop loss used in swing trading.
SL Type Rule
Stock price closes BELOW VWAP on the 1-Hour chart. Exit the Call
Primary SL (Bull Trade)
option immediately.
Stock price closes ABOVE VWAP on the 1-Hour chart. Exit the Put
Primary SL (Bear Trade)
option immediately.
Maximum loss of ₹4,000-4,500 per lot. If option P&L hits this, exit
Hard Loss Cap
immediately regardless of VWAP.
3:15 PM — Square off ALL open positions. No exceptions. Do not
Time-Based SL
carry options to expiry intraday.
Do NOT use the breakout candle's low as stop loss. In swing
What NOT to Use as SL trading this works, but in options the large candle SL wipes too
much premium.
Key insight: Hourly timeframe smooths out noise. You do not need to watch every 5-minute tick. Only act when
the 1-Hour candle closes. This prevents panic exits on intra-candle wicks.
9. Target and Exit — 2-Lot Structure
Chirag uses 2 lots for every trade. The exit is split into two stages to maximise profit while protecting gains.
Stage Lot Exit Rule
When stock reaches the FIRST PIVOT (Prev Day High
Exit Lot 1 (50% of
Target 1 for CE, Prev Day Low for PE). Book partial profit here.
position)
This locks in gains and removes risk.
Let Lot 2 run. Trail the stop loss: if price reverses back
Target 2 Trail Lot 2 (remaining
below the first pivot (CE trade) or above the first pivot (PE
(Trail) 50%)
trade) on a 1H close, exit Lot 2 immediately.
3:15 PM — square off everything. No holding options
Hard Exit Both lots
overnight under any circumstances.
Typical outcome: Entry after breakout. Target 1 hits within 15-20 minutes in strong trending markets. Maximum
holding time is 1 hour. If neither target nor SL is hit within 1 hour, review position against VWAP.
Profit potential per 8-point stock move: Approx 3 to 4 rupee move in the option = Rs 4,000 per lot (at 1,400-1,500
lot size). Chirag's example from the video.
For Educational Purpose Only | Not SEBI Registered Investment Advice
Chirag Rathore — Stock Options Intraday Strategy
10. VWAP Angle — Trend Confirmation
The angle of the VWAP line from 9:15 AM onwards tells you whether it is a trending day or a sideways day.
VWAP Angle Interpretation Action
Steep 45 degrees Take bullish breakout trades. Price likely
Strong bullish trending day
upward to move well above Prev Day High.
Steep 45 degrees Take bearish breakdown trades. Price
Strong bearish trending day
downward likely to fall well below Prev Day Low.
Avoid trading. Breakouts will fail. Wait
Flat / horizontal Sideways / choppy day
for another day.
How to judge: Look at the VWAP line from 9:15 AM onwards on your 1-Hour chart. The steeper the line, the
stronger the trend. A flat VWAP means the market is consolidating and breakouts will likely reverse — this is not
the day to trade this strategy.
11. Risk Management Summary
Parameter Rule
Instrument Stock Options ONLY. Never Index Options.
Trade Type Intraday only. No overnight positions.
Lots per Trade 2 lots always. 1 for Target 1, 1 for trailing.
Max Loss per Lot ₹4,000 - ₹4,500. Exit immediately if hit.
Stop Loss Method VWAP-based (1H close), NOT candle low.
Time Exit 3:15 PM sharp. All positions squared off.
Trade Frequency Not every day. Only when all conditions align.
Only on trending days (VWAP at 45 degrees). Skip sideways
Market Condition
days.
Holding Time Target in 15-20 minutes typically. Maximum 1 hour.
Trade only when mindset, health, network, and capital are all in
Capital Mindset
order.
For Educational Purpose Only | Not SEBI Registered Investment Advice
Chirag Rathore — Stock Options Intraday Strategy
12. Complete Trade Flow — Step by Step
# Stage Action
Pre-market (Before 9:20 Check Monthly, Weekly, Daily trend. Note Prev Day High and Low
1
AM) for your chosen stock.
Market Opens (9:20-9:30
2 Observe VWAP angle forming. If flat, consider skipping the day.
AM)
Watch for Breakout (Any Monitor 1H chart. Wait for candle to CLOSE above Prev Day High
3
time) (Bull) or below Prev Day Low (Bear).
Check: RSI > 50 (Bull) or < 50 (Bear). Price above/below BB Mid.
4 Confirm Signal
VWAP sloping at 45 degrees.
Buy 2 lots of Nearest OTM option (ATM+1 for CE, ATM-1 for PE).
5 Enter Trade
If missed breakout, wait for VWAP retest at 12:30 or 1:30 PM.
Watch 1H candle closes. Do NOT react to 5-min noise. Only act
6 Monitor Position
on hourly close above/below VWAP.
Stock reaches first pivot. Book 1 lot. Profit locked. Lot 2 continues
7 Exit Lot 1 (Target 1)
to run.
Move SL for Lot 2 to first pivot level. If price reverses through first
8 Trail Lot 2
pivot on 1H close, exit Lot 2.
If stock closes below VWAP (Bull trade) or above VWAP (Bear
9 SL Hit
trade) before target, exit both lots immediately.
Close ALL open positions. No exceptions. Log the trade. End of
10 Time Exit 3:15 PM
day.
13. Do's and Don'ts
DO (Follow These) DO NOT (Avoid These)
Trade Stock Options only Trade Nifty/Bank Nifty options
Wait for 1H candle close for all decisions React to 5-minute or 15-minute noise
Use MTF trend filter before every trade Trade against the higher timeframe trend
Trade only on trending days (VWAP at 45 deg) Trade on flat/sideways VWAP days
Use VWAP as your SL reference Use candle low as SL for options
Always trade 2 lots for staged exit Hold options overnight or into next day
Exit all positions by 3:15 PM Buy deep OTM options (2-3 strikes away)
Buy Nearest OTM (ATM+1 or ATM-1) Trade when mindset or health is not right
Cap loss at ₹4,000-4,500 per lot strictly Average down on a losing option position
For Educational Purpose Only | Not SEBI Registered Investment Advice
Chirag Rathore — Stock Options Intraday Strategy
This document is prepared for educational purposes only based on publicly available strategy content. It does not constitute SEBI-registered
investment advice. Trade at your own risk.
For Educational Purpose Only | Not SEBI Registered Investment Advice