How Indians in Their 20s Are Using Option Trading to Beat the Market

Mint

13 hours ago

Just a few years ago, if you were in your early 20s and said you wanted to trade options, most people would either laugh or warn you about losing money faster than you can say 'expiry.'
Today, walk into any co-working space in Bengaluru, scroll through a Telegram trading group, or peek at reels from creators breaking down candlestick patterns and you'll find 20-year-olds casually discussing long calls, bull spreads, and the Bank Nifty like it's no big deal.
It's not about being reckless. It's about taking control.
The traditional route—SIPs, mutual funds, long-term equity—is still there. But for a generation used to 'on-demand' everything, waiting 25 years to see 'compounded wealth' feels disconnected. It doesn't need lakhs of rupees. A few hundred can get you started.
You can learn by action, even if you're just paper trading at first.
The upside (and downside) is fast, visible, and, if understood correctly, manageable.
And most importantly, it feels empowering. For once, you're making the calls, not just handing your money to a fund manager.
There's a clear behavioural shift in how younger Indians view money.
Instead of locking ₹ 5,000 into mutual funds and waiting for the long haul, they're asking: Can I learn to manage this on my own?
What if I test my hypothesis for the next expiry instead?
It's not a rejection of traditional investing—it's a desire to participate more actively. Today, it's easier than ever thanks to platforms that simplify option chains, strategy diagrams, and even backtesting tools.
Let's kill the myth upfront: not every 20-something is making crores in options. Most aren't even profitable. And that's okay. Starting small, with long calls or puts
Learning how price, time, and volatility move together
Using tools that simulate trades before they go live
You don't need a finance degree or Excel modelling skills to understand what you're doing anymore. You just need intent, time and patience to observe.
Say you believe Bank Nifty might go up this week, owing to your market news research and deep dive of the online chatter, especially after a strong Friday close. You buy a Bank Nifty 57200 Call Option expiring on Thursday. Premium: ₹ 200
200 Lot size: 15 units
Total capital used: ₹ 3,000
By Tuesday, Bank Nifty moves as expected and the premium rises to ₹ 350.
You close the trade and exit with a gain.
But here's the catch, this is just one outcome. In another scenario, the market could have stayed flat, eaten into the premium, or moved against your view entirely.
That's why this kind of hands-on experience—win or lose—matters. It helps traders understand how markets behave, how timing plays a role, and why risk control is just as important as strategy.
Instagram, Telegram, and YouTube are playing a huge role in how Gen Z traders learn. A 30-second reel showing 'how I made ₹ 600 in options' gets numerous views.
600 in options' gets numerous views. Telegram groups share daily support-resistance levels and expiry bets.
YouTube channels explain option strategies in plain Hindi or Hinglish and now, even in other regional languages.
While not all of this content is reliable, it's undeniably pulling young Indians into the conversation.The good part? Modern platforms give these users a sandbox to test things out for themselves.
With tools like the Trader's Diary and paper trading, they're able to verify before they commit real capital.
Most young traders aren't jumping into complex plays like Iron Condors or Ratio Backspreads. They're sticking to the basics—and that's smart.
Here's how they usually start: Buy a call when they think a stock or index will go up.
Buy a put when they expect it to fall.
They know their loss is limited to the premium they pay. There's no scary margin call. It's a calculated risk, not a shot in the dark.
Once they've seen a few trades play out, some move on to bull call spreads—a safer, lower-cost version of the long call. It reduces risk even further, especially when trading high-volatility instruments like Bank Nifty.
What's powering this new wave of confident traders isn't just access—it's clarity. For example: Option Chain Tool shows real-time open interest, volume, and premiums at different strikes.
The Trader's Diary lets you track your trades like a gym log — what worked, what didn't, what needs adjusting.
Even if you're not placing live trades, paper trading tools help you test your setups with zero risk.
That mix of real-world feedback and low-pressure learning is what makes it work.
Let's not sugarcoat it. According to LiveMint, a SEBI study revealed that 9 out of 10 individual F&O traders lose money. But if you talk to these traders, many don't regret entering the space. Why?
Because they're not all-in gamblers. They're learning, experimenting, and applying that knowledge across investing, personal finance, and even careers in finance. Limit trades to a small chunk of their capital.
Avoid trading emotionally.
Not treat one loss as the end of the world or one win as proof that they're the next Rakesh Jhunjhunwala.
You won't always find big profits, but you will find something more valuable: young traders who spend their Sundays backtesting Bank Nifty charts, others who quietly paper-traded for six months before placing a single ₹ 600 trade, and those who lost ₹ 3,000 early on only to come back with stricter rules and smarter decisions. It's not glamorous, but it's real. And in many cases, it's more disciplined than what you'd expect from people twice their age.
If you're in your 20s, curious about the markets, and have ₹ 1,000 you're willing to lose in the name of learning, option trading might just be the perfect classroom. But, don't skip the homework. Take time to understand the basics of options, learn how option chains and premiums really work, start with paper trading to test your strategies risk-free, and track every move like you're building a long-term skill.
Option trading isn't just about chasing quick returns anymore. For many Indians in their 20s, it's become a tool to understand risk, timing, and discipline. It's a fast lane to market knowledge, if you're careful and committed.
From charts to strategies, modern online trading platforms are built for this exact journey. Whether you're starting with ₹ 500 or just testing the waters in demo mode, it's never been more accessible.
Because the smartest money move in your 20s might just be learning how to risk a little—albeit wisely.