Now what happens is that we have learnt strategy in option selling. But what is the biggest fear of option selling? The biggest fear is delta and gamma. The day delta and gamma attack you, your profit will be known. I am an option seller. My name is Theta Gainer because I earn money from theta. If I don’t have theta, if I don’t have my shield, my chances of losing will increase. So the day that affects me the most is expiry day. If I have put a strategy on Friday and that strategy has given me money till Thursday morning. So if I haven’t booked it and I have shown a little greed that 20% premium is left, let’s decay it too.
So most probably I am going to lose 80% in it because the market ran for 4 days according to me for 5 days. And now it is going to blast here’s you must have heard a word gamma blast. So gamma blast is the day when theta does not remain on the day of expiry. Theta remains very low. That day gamma blast happens and an option seller loses about5 to 10 times the money. Where only 5 rupees’ premium was left, it does not take time to become 50. And you have seen that on expiry day, many people sell premium of 5 rupees.
So there is a lot of time.80-85% of the time they will win. But that 10% of the time when they will lose, they will lose10 times. Now you have to catch those people. The day they are going to lose 10 times, I will earn 10 times that day. Now I am not saying that you target 10 times. If you have targeted 2 to 3 times and you have earned in it, then you will be able to earn a much better profit than an option seller. You will be able to earn 5 to 6% of your monthly easily if you wait patiently for its now we will discuss the rules, entry, exit, and everything about gamma blast.
And you will find a very small amount in it because I will tell you only one side entry. Directional entry only. It will not happen that you will enter on straddle. You will enter on straddle and see where it goes. If your direction is right, you have also gone in trend, sometimes you lose money because you have given more premium in straddle.
The less premium the buyer will give, the less risk he will take, the better for him. So we will keep one side entry, directional entry, and if possible, we will take a little SL if ever we have to give more premium. We will never do that we have to give 50 rupees for one side and we have lost 50 in its we will save 10-15 rupees in its you have to go from lowest to lowest and when you can book double and triple, you have to see that.
Great. So today you guys are very excited. I remembered that dialogue from your talks, that is how they say in the stock market. That the option buyer has an empty pocket. But the day the seller has a loss, his safe is empty. So you are making someone’s safe empty. I am telling you that my point where I will lose, how can it help buyers. Because the trading of options is a zero-sum game. You earn money only when it comes out of someone’s pocket. If it comes out of the seller’s pocket, it will go to the outside pocket.
So if you are going to learn how to earn money today, understand that the day the seller has a loss, the probability is more. The day the seller will panic, you have to make the panic of the seller your winning point. Now, first of all, if we are talking about the gamma blast, then we know that we are talking about Thursday. We have to keep some rules on Thursday.
What are the rules? Rule number one is that you have to see what the market has done from 9.15 to 1.45. If this movement is below 1%, what do I mean by below 1%? That your instrument, the index has moved below 1%. This is for both Nifty and Bank Nifty. It doesn’t matter. In Nifty, maybe you get a little less money.
But in Bank Nifty, sometimes the blast is such that the thing of 30 becomes 150-200.You try this in both. I will not say that you will do it in Bank Nifty or Nifty. Because Nifty is also very good sometimes. Because the range of Nifty is very small. Between 1700-800.It is 100 points. If this blast happens, it will get another 100 points. In Bank Nifty, the round figure of Bank Nifty where the OI is more is 41,000-41,500. There is a gap of 500 points. Sometimes Nifty gives you a good profit. Sometimes Bank Nifty gives you a good profit. You try it in both. I am telling you the entry of one side.
You can take the entry in both. If it is 1 put buy, then do it in both Nifty and Bank Nifty. What difference does it make? If you ask the Fin Nifty, it will be the same. If you get the same rule in Fin Nifty, then you can apply it there. There is no difference. There is a chart. You have to see that from 915 to 145, the market moves only 1%or below 1%. The less it moves, the more chances of Gama Blast. If the market moves 1% exactly in the morning, then you can understand that you will not earn much from Gama Blast. But if it moves 0.5% or 0.6% and it has spent 4 hours, then the chances of Gama Blast will increase a lot.
Let’s see the latest expiry in the chart. Then we will see the old expiry and then we will see where itis in Nifty. You will see the chart. This is the Friday day. This is the expiry day. I have to judge the movement of the expiry day. How was it till 145? I went to the price range. In the price range, I put a tick on high and a tick on low of145.So, here we will see that there is a movement of 0.67%. From the morning till 145, the market did not move and zigzagged. If it moves 0.67%, then the market will not be in such a scandal. Of course, it will be up and down.
Then it will move this much in 145.If an option buyer thought of making a profit from the morning, then he was going to lose almost 90% or 95%. He was not going to earn here. If the option seller is not a proper trend trader, I don’t think he would have been able to earn here. Because from the perspective of the option buyer, the booking amount, the exit time is very important. Suppose I entered at Rest. 30.The thing of Rest. 30 goes to Rest. 90.But within 5 minutes, it goes from Rest.
90 to Rest. 20.If a put buyer had entered the market at the second candle, then he is getting 40-50 points in the next three candles. But he will take 40-50 points of the next two candles and takers. 10 more than the main premium. So, the exit time is very important. If we look at the market, the closing price is at Rest. 43,920. If we calculate the straddle, it will be Rest. 43,900. If we look at the premium, it will be Rest. 60-65 or Rest. 70 with respect to the risk. If the risk is high, then you can get Rest. 80-90 or Rest. 100.In the lower risk, you will get Rest. 70.Now, we have a platform called charts where we can see the historical data. If I want to see the price of the expiry 20 weeks ago, then I can see it on this platform.
Here, I have put the historical data of Bank Nifty at Rest. 43,900. It is a combined chart, which means that both have a combined premium. If it is running at Rest. 70, then it means that the straddle is running at Rest. 140.First of all, you have to understand how to filter out. If you go on the basis of Dow Theory, if the premium of the straddles going down, then what can be bought? No, this is the benefit of the seller. The straddle is going down, which means that the buyer should take the entry.
The buyer should take the entry when the seller has a problem. And the seller will have a problem when there is a spike in the straddle. So, the way we follow the normal trend on Dow Theory, that the market is going down, by mistake the market did this. Now, the buyer’s entry is made here’s, whenever there is a breakout in the straddle, whenever it will change its trend, and basically, it is going up. If it is going down, then the seller is getting the benefit.
The buyer should not enter in the interest of the seller. As soon as the seller has a panic, that is, when there is a spike, you have to enter. So, we see here when the panic was created on the option seller and when you can take the entry of the bank. I have just told you that 9.15 to 1.45. Many people will say that they will take the entry at 1.45. It is not like that. You have to come to this straddle. You have to check the straddle whether the straddle has a breakout or not. Whether the price was able to break the old high or not. So, here you will see, I have drawn a line.
The straddle is going on at 1.45 rupees. Now, we just have to see whether the high is a breakout or not. Now, what is the high? 192.Did the entry break here? Is the entry made here? The entry was not made at 1.45. It is simple. The market went straight down. It created another low. It created another low. After that, you will see that another high was created and then another low. You see, what is the benefit of not taking this entry? The thing of 1.45 rupees has come to 88 rupees in total. You saved the 70 rupees that you were going to lose. You saw the straddle. The premium of both is going down.
You did not take the entry. Your 70 rupees are saved for free. Otherwise, if you had taken the entry, then your 70 rupees were lost. So, this is a filter point. You see when you do not have to take the entry. Now, you will see, if we come to this place, what high did it create? It created a high of 112 rupees. Now, you just have to remember that if this 88, the time when it is breaking 112 rupees, the market is going in the trend at that time. You buy the thing on its side.
Now, we will see here, almost exact, the market has broken at 3 o’clock. This is the candle of 3 o’clock. If I make it smaller, in a minute, you will see exactly when it happened. Here it is. It has broken at 3 o’clock.
The market has broken at 3 o’clock. Where it has broken, we will buy that thing. Now, we will see in the chart, at that time, which thing, which strike we had to buy. Mostly, you buy at the money. Some people buy at the money, some buy in the money. So, if we see, where is the opening of the chart at 3 o’clock? So, here is the opening of 3 o’clock. At 43,833. So, some people will buy at 43,800, and some people will buy at 43,900. These are two different people. It doesn’t matter. It doesn’t matter if you buy at 43,800 or 43,900.But I will tell you what will happen at the money
So, let’s go and see the pricing of 43800Here we come to the iChat took the value of put43800I did a short chart This is also a historical value, you can see here put a 1 minute chart hereon this 1 minute chart, you will see almost See this, this is the candle of 3 o’clock will put it down so that you can see the time This is the candle of 3 o’clock So, they are trading from time, they will buy from 40 to 900The old high has broken This is our entry time You will see the closing value of this Closing value is 52 rupees You will buy at the closing, I will tell you how to enter in the mid candle
Nothing like that You have to enter at the closing You are getting this for 52 rupees You have to keep the target of 1 is to 2 minimum If you are going to 0 to 0 call You will see in the market, if you want to work with Slay people say that they bought and left don’t want to do this, I want to put SL in this If it comes back, I don’t want to lose bought a bike for 52 rupees will put SL in the low Which is 25 rupees If it comes back, I will lose 25 rupees And my trade will end My whole day’s analysis is overs is of 25 rupees You bought at 52 rupees You will see that the market did not close any candle And the market put a high of 11852 rupees has doubled If you talk about risk-reward You have taken a risk of 25 rupees
According to 25, it gave you 50 rupees Even then it gave a ratio of 1 is to 2So in both ways Your logic and analysis was proved And you took a profit of 1 is to 2Now what I told youth 90% of 0 to 0 call If you didn’t book like this Then you see It took only 5 minutes to come back from 117 to 14 rupees So this is the point When option buyer Can’t book it by mistake Or those people who say that they leave it You don’t have to leave it You can either book in running trend Or you can trail your Slithered are only two ways If you leave it,
then you lost 52 rupees You lost here also You did so much analysis and chart And the market took it back Because sellers will not leave their pressure But you have to catch the panic point of the seller At the time when they closed And book it Here 52 rupees went to 117Means you got 1 is to 2 You book it and leave And those who think That it will be 30 rupees per day It is not like that You are getting 1 is to 2We will see another example.
What happened in the last We can see this in nifty Let’s see another example Right now, the move is coming at 3So people will think that it is a 3 o’clock move It will be there Let’s find new example where this thing is applied will tell you where you don’t have to take this trade Because in that If you identify that you don’t have to take You will save many times Because in this trade, we have to accumulate this profit You will not get it again and again You may get it once or twice in a month
So you have to save its we will judge where you don’t have to do it Let’s see an exampleExpiry3, 4 This is 4th expiry of 4th May You will see in this We will open a range of 1 to 45Here is the range9 to 151 to 45Here is the candle You will see high and low You will get the same exact 0.7%Means market did not move 1%SimplyAnd this is 4thI opened the straddle chart again Which strike will we take here Here is the closing price of 3 to 45After that, the candle started from 43 to 400.
So this is the place where we will see the straddle charts this is 43 to 40043 to 400And put a strike43 to 400Which date is this? Of course 4thSo 4th May Show Chart Let’s see the 5-minute chart Here it is It is clearly visible but if we talk about 1 to 45Here is the peak of 1 to 45We just have to take the peak of the previous one Whether it has been break out or note are waiting for the peak of 1 to 45And waiting for the next peak Again,
do theory This is 1 to 45Now this is 1 to 45Do we have to take the entry here or not? Until this peak does not break If it is not breaking, then you do not have to take the entry Let’s go to next It has made another lower low It has made another lower low Your entry is not yet Whenever it will break this high Then you will take the entry Your entry starts from 1 to 45
You don’t have to take the entry at 1 to 45But after that, whenever the last swing will break As soon as the last swing breaks, you just have to go to the chart See which side has been broken You have to buy or call from the add the money You have to book 1 to 2And trade is over Now we will see what the market has done here Simply see this Market went 1 to 45This made high and this made high This has broken here Almost break has happened According to 5 minutes On 2 to 40 candle Break out has happened on 2 to 40Now let’s see what happened on 2 to 40 Market has broken up on 2 to 40
Means we have to buy or call Now this opening is above 43500We take the add the money chart43500Let’s take the chart of 2 to 45Means 2 to 40We went back and opened the chart of option Historical chart Bank nifty Expiry date is 4th May4th May Call option and 43500CorrectHere the date will come 4th May The price of 2 to 40 opening Is 4500 Now this is red candle As soon as it broke outfit broke out at 62 rupees.
It will have entry on closing will not say that I caught the green candle will take entry on closing If you see the closing price, it is around 75 rupees If you see the low, it is around 46 rupees Again you have the same 25-30 rupees You have to book double You have to book 140 for 70 You will see within 4 candles It has put 170 high It has not shown retracement It is 1 is to 2I have booked Normally what I will say You book it Your SL is of 30 points1 is to 2 is of 200
You have got 1 is to 3Your capital is 3 times If you see the risk reward You have got 30 points You have got 140 points You have got 1 is to 6If you are a trend follower If you have booked double You have got 2 times If you are a trail follower You have got 1 is to 6 Your capital is 3 times30 points risk and you have earned 140This is the second Now we will see where we don’t have to trade We went back to the chart There is an expiry told this in the beginning It is the expiry of 11th.
If I see the first candle The first candle is almost near to 1%I have put the low Almost 95%Almost 1%Almost 1%People hold your words If the person said 1%I will take trade at 0.99I will say the chart Today’s resistance is 43,460In the first blog We said that resistance is always a zone Support is also a zone You can’t make a point If I said 1%It is 0.95It means it has moved If you keep searching You will see It has given breakout But the buying price It has not given movement You will not get double money You will lose the trade If you will judge this in the beginning
You will not take trade Like this trade mostly put more money in the last expiry And in normal expiry put money only after the break of the straddle If I see That it is 1%It is 0.95, 0.98I think my strategy of option selling Will give me more money Rather than option buying Judgment of this is very important If you hold this You will be saved from loss We also told how to earn profit And how to save from loss If option buyer save from losing money He can go 10 times ahead of the option seller It will take 10 years to do the work of option seller
Many times option buyer can do that work in 2 years Because here you will need more skills And the skills of expiry We have taught here You normally do this kind of work Don’t leave it like this have made a call of 50 rupees, let’s leave it Why should I let it be 0It doesn’t mean that you have left it It is just above the market It is logic, logic is important If I am doing this kind of work You should also do this kind of work. Do this kind of work Every time you will get 30-25 rupees It is expiry day You are getting 1-2-3Keep trailing My friend did this kind of trade He made 1.5 lakhs to 6 lakhs But we have greed That we will make 5-6 lakhs
Every time If my friend will think That we will make 1.5 lakhs every time That 6 lakhs will not go anywhere Here one thing is important For people to understand Suppose someone has 1 lakhs CapitaLand he wants to trade expiry He thought that 50% of my capital will go Today you thought 50% of my capital will go You were thinking that I will trade according to 1 is to 1 that am losing 50,000 and I will earn 50,000.You couldn’t earn 50,000, your 50,000 went. Now think a little, you wanted to take a profit of 50% but after that, your psychology50% capital, then your 50,000 will go and 50,000 will remain.
Will not work Why? Because if you think of 50% which you will not get every time, I am talking about expiry, if you think of 50% then you have to earn 50,000 to 25,000. But still your initial capital of 1 lakh will not reach there. Because for that you will have to earn double. Now you don’t need 50% you need 100%Which is not possible every time. I will tell you another tip, we all know about option buying, option seller wins 7 times out of 10 if he is selling out of the money.
This is a logical fact. Option buyer wins 3 times out of 10 and loses 7 times. Now if I see that someone applies this strategy10 times, I believe that he has made a mistake 7 times. He will earn 3 times and cover everything, maybe double or triple. Now if I take a trade for the first time and take 5 lots, I lose this. I took the next trade and took 5 lots, I lost again.
I took the third time and lost again. Now it has been 3 times, I am psychologically drained. Now my motivation is getting over with the strategy. Now when am taking the next trade, I will have a thought that I have lost a lot of money. Now I have less money and my lot size will be 3. And this time you have earned. What happened? You lost 5 lots 3 times. When it is your turn to earn, you have earned 3 lots.
You can do this. So in this, I will also say that whatever you are doing, do it equally. Don’t ever do this that you lost 5times, you lost 2 times, you lost 10 times in the next. Now it’s my turn, you will lose 20 times. You have to keep it equal. Whenever you lose, you are making a profit. This will never make you biased. You will never be psychologically drained that you have made3 lots here, you have earned a profit.
You have already lost3 lakhs here. Whatever you have earned, it will never cover. The same example you told that you are thinking that I will earn 50-55% and you will never reach your capital. This is also an example of that. So always let 5, 5, 5, 5, 5,5 run. You will see that after 10 times, you are above this 3.
But if you have ever lost and thought that I will reduce the lot, I will not make more loss, this point must have come when your point was right. If he has not followed money management and position sizing, he will come to this point. So whether it is option selling or buying, position sizing and money management are important in every way. Buying and selling does not mean that you have used 100% money.
You are getting 20 lots to buy, so you have bought. No, as I say in option selling that use 30% money to deploy, here also use 30%. You are going to earn money over the year similarly. If the option seller slowly adds 30-40 points, you will add it in 10 times. But at the end, the longer growth you will see that at the end, if you are a good trader, then the status of both the people will be there.
That is, you reach a little more, the next person will slowly add 20-30 points. He also makes a loss, he also saw 20-100, you have earned that20-100, so both are right in their place. So if both are righting their place, then both should have equal position sizing, rules, risk management for everyone. So that’s why it is important to follow both in option buying and position sizing. Whatever strategy we tell, if these two are not followed, then you will not earn anything. And finally, there is a disclaimer for all of you.
You are trading in options, and options are a highly leveraged product. You are trading in leverage, there is a lot of risk here. You have to be psychologically prepared because you come to earn profit and you give it to the market. And I am telling you this fact that initially the market will take it slowly. It is possible that you have already traded and you have already made a profit in the first trade. It is not necessary that it will happen every time.
So here the game is of risk to reward and a game of discipline. So trading is a business, it takes time, no billionaire is made overnight. Today you are listening to this jackpot strategy, you are watching, let me tell you this thing, it will not work every time. I am giving you a disclaimer right now, it will not work every time. And it is your own money. You see your risk appetite, see your personality. If it suits you, then you follow this strategy. Otherwise, there are many safer strategies, you can try them at the beginner level