- 9 months ago
This video talks about Hedged options Strategies and its adjustment, How to try and lock your profits and make the strategy loss free if there is such opportunity exists.
Please read all disclaimer before making any real trades. This video is only for education purpose.
To be a profitable trader one must know that Stop Loss needs to be in the system to avoid any kind of unfavorable event.
Remember that no strategy is 100% risk free there always some risk involve, Please consult your financial advisor before real trading as this is just for educational purpose.
To be a profitable trader one must know that Stop Loss needs to be in the system to avoid any kind of unfavorable event
WhatsApp Number :- 888-264-2637
Twitter :- https://twitter.com/IncomeEquity?s=09
Join the trading community
Twitter :- https://twitter.com/IncomeEquity?s=09
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weekly options strategy,
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Disclaimer: This video is only for educational purpose only and not intended to be done with real money, Please consult your financial advisor before making real trades, We neither take a guarantee of profit nor stand responsible for any losses of any recipient. The recipients of this material should take their own professional advice before acting on this information the recipient is advised to read the information carefully before any investment/trading. Payoff Graphs may not be correct as shown in the video, Actual results may vary. Best Wishes
Please read all disclaimer before making any real trades. This video is only for education purpose.
To be a profitable trader one must know that Stop Loss needs to be in the system to avoid any kind of unfavorable event.
Remember that no strategy is 100% risk free there always some risk involve, Please consult your financial advisor before real trading as this is just for educational purpose.
To be a profitable trader one must know that Stop Loss needs to be in the system to avoid any kind of unfavorable event
WhatsApp Number :- 888-264-2637
Twitter :- https://twitter.com/IncomeEquity?s=09
Join the trading community
Twitter :- https://twitter.com/IncomeEquity?s=09
options trading,
scalping options trading,
expiry day option selling strategy,
intraday option trading strategy,
weekly options strategy,
paid strategy for free,
intraday trading strategies,
intraday option trading,
intraday strangle strategy,
banknifty intraday options startegy
banknifty options strategy
Disclaimer: This video is only for educational purpose only and not intended to be done with real money, Please consult your financial advisor before making real trades, We neither take a guarantee of profit nor stand responsible for any losses of any recipient. The recipients of this material should take their own professional advice before acting on this information the recipient is advised to read the information carefully before any investment/trading. Payoff Graphs may not be correct as shown in the video, Actual results may vary. Best Wishes
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LearningTranscript
00:00Not only you decreased your margin, you have improved your ROI.
00:04At the same time, any kind of a big gap down a circuit is not a problem.
00:09A big gap up is also not a problem.
00:12You have increased your profit potential significantly.
00:16All these things are happening at the same time.
00:19How is it even possible?
00:23Hi, everybody.
00:25Welcome to a very special video.
00:28In this video, you're going to learn a very special, very powerful technique on how you can really adjust your trade.
00:37How you can make it even better.
00:39Most of you will be listening to it for the very first time.
00:43Is it even possible that you adjust your trade and still you have a chance to make around 20% ROI?
00:51Obviously, before adjustment, you can make 5% with almost zero fear of any kind of big down.
00:59You do adjustment.
01:01Tomorrow, nifty hits a lower circuit.
01:03You will have so much confidence in your trading if you watch this video carefully.
01:08Also, I'm going to give you the VIP points in the end.
01:12Reward for people who have patience to stay till the video.
01:15People who are really hungry to learn something really, really solid.
01:20Everything in a nutshell, very easy to understand.
01:24Number one point is, are you still stuck with 2015 style of adjustment?
01:29The theta decay trading.
01:32You make a big range.
01:34Theta is going to decay.
01:35Option sellers make more money.
01:37These concepts, this is the reason why these concepts are popular.
01:41Because when you sell something, maximum time, you're right.
01:45But that one trade which go against you, that wipe off everything.
01:49If you've been trading from last six months, you will really connect to what exactly I'm telling you.
01:54And your number one pain point, I try to completely remove it today.
02:00The number one problem, I will solve for today.
02:02The problem is not that you're doing theta decay or you're doing delta adjustments.
02:06Probably most people don't know any better.
02:08And that's none of their fault.
02:09They're trying their best.
02:10But there is a one big issue when you trade options.
02:13Maximum people.
02:14When you see your trade in profits, you look to book it 2%, 4%, 5%.
02:20You look to exit early without giving it a chance to really give you a big monster profit.
02:27But when it comes to loss, maximum people, they become optimistic.
02:31That maybe they'll do adjustment, they'll do something.
02:33But they are scared to book the loss.
02:36How about we turn the table today in this particular method which you are going to learn.
02:42Very, very nice.
02:43So let's start all the fun now.
02:45Let's learn it.
02:46So we are here on an option simulator.
02:48And what we have done, I have went out of the money.
02:51In our market currently, it's 22,500.
02:54So we went out of the money.
02:55This is April 24.
02:57And then we have shorted 22,400 put.
03:01So this is sort of a short strangle, you can say, around at the money.
03:06And then to take the margin benefit, to have some kind of safety, we look forward to hedge it.
03:11Because I know most of you do not do naked selling, maximum of you, right?
03:16And then we buy 22,600 call.
03:19And then we buy 21,300 put.
03:22Because we want to take some kind of margin benefit.
03:25Also, trade becomes slightly lesser risky comparatively, okay?
03:30Now, I have taken April month.
03:32Because I want to show you a trending month.
03:34Because if I show you a really high-flying trending month, it's going to give really high ROI.
03:40And that will not be good.
03:41If I show you a really stuck-in-the-range month, that's going to be a profit that will not even require me to do any kind of adjustment.
03:48So I've taken a month which has been trending, but not trending so much so that the ROI is infinitely high.
03:54So we want to keep it realistic.
03:55A month which is slightly sideways and then it starts to trend.
03:59So we have taken like this.
04:00So this is the strategy which maximum people do when they sell options, okay?
04:04So now let's see what we are going to do with this, how we are going to adjust it, okay?
04:09So 1st of April, okay?
04:11And now let's see.
04:12Now, maximum people try to adjust it as soon as the breakeven is breached.
04:17They try to adjust their trade.
04:19Now, doing early adjustment, it's not good.
04:23Breakeven is really down and really up on the upside.
04:26Have a look at the payoff really carefully.
04:29There is no need to panic.
04:30We're going to do adjustment.
04:31If our breakeven comes under threat, only then we are going to do.
04:35Otherwise, we're going to hold the trade.
04:37Let's see what happens to this.
04:38Remember that you have sold options and you bought the hedges really far.
04:42So you are paying higher margin competitively, okay?
04:46So let's go ahead.
04:47Let's see.
04:48Okay, market is going up.
04:49We obviously know that, you know, one of the breakeven will come under threat.
04:53And we are not really interested to know that we are making money here.
04:56Because you are here to learn the adjustment.
04:59So let's see what happens now.
05:01And as you can see, around 16th of April in the morning time, we are keeping the same time.
05:06The market has come over here, which is sort of a threat to our break E1.
05:11Now, what do we need to do?
05:13We need to adjust it.
05:15Now, maximum people do one kind of adjustment, which I'm going to show you, right?
05:21And then we're going to compare it.
05:22They match their deltas and they waste their precious time.
05:26We're not going to do that.
05:27We're going to instead, we're going to make it a lot safer.
05:29So point number one, which we are going to do is that we look forward to completely remove the put, which is under threat.
05:39Which one is it?
05:40It is $22,400.
05:41So whatever price it's trading at, obviously, we got to book loss in this.
05:45And we are exiting at $277.4, which is the market price.
05:49And we completely booked it.
05:51That is point number one.
05:52We have to remove it, completely take it out.
05:55Point number two, this call, which you see, which you bought out of the money, people trade it because they want to get the margin benefit.
06:03We are trading it because now the time has come to get this call into its primary use.
06:11What we're going to do, we're going to book it.
06:13Obviously, this is also going to be in loss.
06:15So we book it.
06:16This is 3.15.
06:17We entered at 21.15.
06:20This is done.
06:21Okay.
06:22So two, we exited, we took loss.
06:23Now, what we're going to do, the call which we sold, 22,800 call, what we're going to do, we're going to long a call, which is 100 points, you know, towards the market.
06:36So it becomes 22,700.
06:38So very easy, breezy.
06:39We're going to long this call, 22,700.
06:43Remember, not 900, 700.
06:45So basically, you have sort of converted into a debit spread because earlier, you sold the call naked.
06:54But now, when you bring your call, you know, ahead of the sold call, it becomes a debit.
07:01So let's see now.
07:02Let's see how does this look.
07:04And here we go.
07:06This is how it looks.
07:07So three kind of adjustments we have done here now.
07:09And this is how it looks if I squeeze it a little bit so we're able to see the strikes, right?
07:14We took out the put.
07:16This has reduced our, listen to this very, very carefully.
07:20This is a very important point.
07:22The concept which you must know now, okay?
07:25So the put which was bleeding, this needs to be taken out completely because you don't want to take chances.
07:31Market can really, really give you a big amount of loss.
07:34So first, we completely exit this put.
07:37Done.
07:38Fantastic.
07:39Now, the call which you bought, which was so out of the money, the further initial position, what is it doing there now?
07:44Market is down.
07:45Bring that call inside.
07:47Now, which strike to pick?
07:49A slight thumb rule I've given you.
07:51You can play around with this.
07:52You can see how it looks like.
07:53And then you look forward to buy a call which is 100 points more in.
07:58Remember, when you do this, your margin requirement go down significantly.
08:04Ask me why?
08:05See, your call is sold, right?
08:08But you have also bought the call.
08:10So you have one short position on the call, which is covered, obviously.
08:14And you have one long put position.
08:16So there is no naked selling you are doing.
08:20Your margin is ultimately is going to come down.
08:23Who can stop it?
08:24That's the rule of the margin.
08:25It become a completely 100% hedge strategy now.
08:29Also, if you have a look at the payoff, if you take this trade and if market hit a lower circuit the next day, you can't even imagine the amount of ROI this particular strategy have potential to give you.
08:44Now, maximum people will ask, what if market gives us a gap up?
08:49If market gives us a gap up, it's going to be a really, really big amount of ROI.
08:54How much it is?
08:55I think easily going to cross around 40% ROI.
08:5940, exactly.
09:00Yes.
09:004, 0.
09:02That's what I mean.
09:03That's what is going to happen.
09:04And if market stays where it is, then also there is no kind of an issue.
09:08This is what the adjustment which you're learning right now, the better, the solid way of doing it.
09:14But I'm going to compare this with what public do.
09:17And then I will leave it to your intelligence.
09:20Which one is better?
09:21Which one is safer?
09:22Which one you don't have to really worry about any kind of a gap up, gap down?
09:26Which one is better?
09:27So now, let me take you to other simulator.
09:31And as you can see over here, same strikes I have already picked.
09:35Same date when we did that adjustment.
09:38Suppose if you don't know this adjustment.
09:40What you're going to do mostly, you're going to do the adjustment which maximum people are doing.
09:45It's not their fault.
09:46They don't know any better.
09:47Till today.
09:48But I hope things are going to be much better from today.
09:52Remember, there's nothing holy grail in the market.
09:54Nothing holy grail.
09:55But you can always elevate.
09:57You can always improve the standard of your trading.
10:00You can really, really take it up.
10:02It's all a matter of skill.
10:04And skill can be learned.
10:05And if you really want to get solid methods, solid strategies, which can really help you
10:10elevate your trading game, all you got to do is simply WhatsApp on the number flashing
10:15on the screen.
10:16The WhatsApp one-touch link is also in the first pin command.
10:21The adjustment, the technique which you learn, you can also use it in a lot of other strategies
10:26as well.
10:27That's a very, very powerful thing.
10:30Now let's focus here.
10:31So now, suppose during this time, if someone has to do adjustment, then what do they do?
10:36They adjust their data because they have to get the theta.
10:39Am I correct?
10:40So what that trader is going to do, obviously, is the traders look forward to, first of all,
10:44book the call, which is 20.15 because this call is making a big amount of money.
10:49That's a very, very good thing.
10:51Am I correct?
10:51So let's see here.
10:53And now what he's going to do?
10:54He's going to bring this call inside.
10:56And he's going to look forward to sell 22,300 calls, which is here.
11:01And he's going to look forward to sell this.
11:03And this is the adjustment, which most likely maximum traders are going to do.
11:09Because when you do this, your break-even go further down, which is very, very common
11:14thing to do, which we haven't done.
11:16We have done something which is completely, completely different.
11:19So now we are here on our adjustment, and this is the adjustment, which is done by public.
11:26Same strike, same everything, absolutely same.
11:29Now let's go ahead and let's see what happens to this.
11:32If we just spend a couple of days here, let's see what happens to this.
11:36Now, obviously, you know that there's not much kind of loss here.
11:39What you see is just waiting a couple of days, it's giving you around 4,255 over a margin
11:45of probably less than, I think, 17,000, something like that.
11:49So it becomes a really, really high-flying ROI.
11:53Because if I show you a month where market really go down fast, it's going to really
11:58jump up the ROI.
11:59But that's not the point.
12:00The point is to show you the realistic number.
12:03You can achieve pretty much high ROI if you know better methods, as you know here.
12:08So we are making good in terms of ROI.
12:10It's really high.
12:11Now, same 19th of April, if you do the adjustment, which almost everybody do, thinking that they
12:18know trading, trading is all about delta adjusting.
12:21Believe me, it's not even a tip of the iceberg.
12:23Trading, option trading is so deep, it's really a subject to study.
12:28And remember, you only have to only crack it once in your life to really, really make
12:33it.
12:33Now, when you do something like this, remember you are paying much higher margin.
12:36So this ROI, which you see now here, 19th of April, if market go down, what are you going
12:42to do?
12:42You're going to keep on adjusting.
12:44You're going to keep bringing it here, but it's giving you loss here.
12:47And this one is giving you profit.
12:494,255 on a lesser margin.
12:52And this is minus 3,362 on a higher margin.
12:57Correct?
12:57Now, here you make money if market go up.
13:00Am I correct?
13:00Now, here you will make even more money if market go up on any kind of gap up.
13:05Market gap down, this strategy is going to give you mother of all losses.
13:09But here, if market kinds of gap down and market continue the trend, there is no issue.
13:16You tell me, is there any kind of issue here?
13:18Of course not.
13:19Now, which strike to really move, which strike to really remove, that will take certain amount
13:25of practice.
13:26So, I leave it to you, how you can really pick.
13:29I've given you a framework.
13:31Now, it's up to you to make this kind of method your own.
13:36Enough of delta adjustments.
13:38I have to give you VIP points now, by the way.
13:40So, let's go to VIP points and let's learn even more.
13:44Time for VIP points.
13:46Why is it even working?
13:48The answer is, you are reducing your risk, you are reducing your margin, and you're increasing
13:56your profitability.
13:57Tell me, isn't this something which every trader wants?
14:00Aren't you really enjoying this kind of concept?
14:02I'm sure you are.
14:03If you've been trading in the markets and you wanted to have some kind of better method,
14:09upgrade, here we go.
14:11That's how we do it.
14:12Can you do it in weekly, intraday?
14:14Now, any strategy I do, and with all due respect, most of the people ask me that, can you do
14:19it intraday?
14:20Can you do weekly?
14:21So, before you ask me, in comment section, let me tell you.
14:24Intraday, if you do any strategy, your gamma risk is really up to the roof.
14:30There is hardly any time for you to do adjustment.
14:32If you trade in US markets, zero DTE, zero DTE, your gamma is your number one enemy.
14:39You've got to take care of it.
14:40So, we don't do intraday.
14:42Weekly, you can consider, but only after some experience.
14:46Only then you can do it.
14:47Otherwise, there is no point doing weekly.
14:49That's something which you must, must know.
14:51What to do is important.
14:53What not to do sometimes.
14:55It's even more important.
14:57Okay?
14:57So, that's why I say hit and trial way of trading.
15:00One must completely avoid.
15:01There is no need to hit and trial.
15:03Try to figure things all by yourself.
15:05No.
15:05Strategies are ready.
15:06If you think that you can learn the craft in record time, you want to get better methods.
15:10This is the contact number.
15:11Like I told you, less monitoring, premium strategies are perfect for low stress trading.
15:18Trading is all about having a rock solid defense.
15:22It's not about making ROI.
15:23It's all about hedging techniques, which is obviously can really elevate your trading and
15:30you can go to the next level.
15:31Alright guys, so that's it from me today.
15:33I hope you really enjoyed something.
15:35Give it a thumbs up if you have learned something really good and you think that it's going to
15:39really elevate your trading game and obviously you can contact if you want to really scale
15:43up really, really fast.
15:45Alright guys, so I wish you all the very best and thanks for watching.
15:48And like I always say, you are going to do so well in trading, you will surprise everyone.
15:54I wish you all the best.
15:55Bye bye.
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