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[LIVE] Selling Options on Expiry Day for Rs 1 Lakh 27 Thousand Profits - YouTube
Channel: Indrajit Mukherjee
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So welcome back friends.
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Today was the
future and options expiry for the month
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of March.
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And the month of March was
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really tough for the traders.
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We have
seen a sharp fall in the month of March.
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And after that for the last couple of
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days the market is in recovery mode.
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So
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after every sharp fall there is a sharp
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recovery.
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So market is now recovering.
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And
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we are seeing that the VIX or the
volatility index is at the highest point.
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I have never seen VIX at these high
levels.
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I am there in the market for the
last 20 years but still I have not seen
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the VIX in so high point in my lifetime.
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So my dear friends when there is high
volatility the options are having high
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premium.
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When there is high premium for
the options there is high chance that if
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you sell those options you can get good
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amount of profit by selling those
options.
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And options selling are the game
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of the professionals.
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So in this video I
will show you how I have shorted options,
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how I have shorted nifty options in
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today's expiry and how we have made 170
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points gained just by shorting nifty
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options.
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So nothing to do, just you can
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sell 50 options because there are high
premiums.
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And as in options they are
having a time value along with the
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intrinsic value.
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So the time then slowly
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decays along with the time.
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As the option
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comes closer to the expiry the time
value ultimately becomes zero.
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So I will
show you how in the live trade we have
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made 175 profit just by selling nifty
options.
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But before that let me give you
a short intro of mine.
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Hello friends, I am Indrajit Mukherjee from
StockManiacs.net.
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If you want to grow your wealth from the stock
and commodity markets hit the subscribe button
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and hit the bell notification icon.
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You can also send me your stock market related
queries through WhatsApp in my number +91-9674321856.So
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my dear friends we are just around 10
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minutes past 11:00 in the morning.
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And
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the market is trading around 8550.
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And
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we have added 50 points away calls and puts
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8500 put and 8600 call.
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And you can see
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both are traded around ninety five
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rupees.
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So we will be shorting both these
calls and puts.
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8600
call and 8500 put.
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So we will
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be short selling 8500 put option.
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You
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need to provide your own quantity and
you need to fire the order to the
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exchange.
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Similarly you need to short
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sell the 8600 call option.
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You need to
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provide your quantity and fire the trade to
the exchange.
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Now my dear friends why
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we have chosen the 8600 call option and 8500
put
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option.
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Because both are fifty points
away from the current market price.
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88600 call option is just out of the
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money fifty points away from the current
market price.
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And 8500 put option is also
50 points away just out of the money, fifty
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points
away from the current market price.
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So my
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dear friends we have actually shorted
just out of the money calls and puts
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both side.
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And we will be holding for
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some time and we will check how much
money we can make.
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So friends we have
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shorted both the call and the put and
ninety-five rupees each.
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So total premium
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that we have received by selling the
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call option and put option is 95 x 2
that means 190 points.
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Now my dear
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friends now we will check what is the
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power of the strategy where we will make
the breakeven and how much profit total
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profit we can make in this expiry.
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So
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we will use an option trading tool
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called sensibull.
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So in my last video
I have already given you an example of
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sensibull and how
sensibull works.
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And in this video I will
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show you how the option strategy bulider sensibull
works.
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So let us go to
the option strategy builder
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sensibull.
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So please remember this link, the link is
bit.ly/sensibull1.
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So I am repeating the link
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once again bit.ly/sensibull1.
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So you need to
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remember this link bit.ly/sensibull1.
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And I will also give you the
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link in the video description.
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So from
there you can directly go to the
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sensibull options strategy builder.
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So
let us click the link.
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So you can see it
has come to the options strategy builder.
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So the options strategy builder page is
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now opened.
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So now my dear friends
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there is an option to login with your
broker.
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So you can login with zerodha, you
can login with 5paisa, you can login
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with a Alice blue or you can log in with
Motilal Oswal.
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So here I am already
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having accounts with zerodha.
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So I will be
logging with zerodha only.
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But if you do
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not have accounts with any of these
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brokers I will give you the link to join
zerodha.
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And I will give you the link also
to join 5paisa in the video
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description.
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So from there you can join
any of the brokers.
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And you can log-in
to sensibull.
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And you can also see that
sensibull is having a free seven-day
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all access trial.
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So before you purchase
any plan of sensibull, you can check how
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sensibull works.
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So here I'll just log in
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with zerodha first.
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So I am clicking on
login with zerodha.
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So you can see my dear friends we're
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into the sensibull dashboard.
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And in the
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sensibull dashboard there is a option
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called strategy builder.
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So I will be
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going to the option strategy builder of
sensibull.
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So you can see here the live
nifty price is being updated.
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And here
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you can actually add legs of the option
strategies.
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So you can put which option
you want to buy or sell, you want to
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check your strike price.
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And you can add
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the call option or put option that you
want to buy or sell.
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And it will show
you the profit potential or the probable break-even
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of that particular
thing.
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So I will be adding the 8600 call option
. So I am putting my quantity.
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And I'll put
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here sell.
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So 8600 call option I have
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given here and you can see it has come.
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Now I'll be adding the 8500 put option.
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So same like before
we need to add a link.
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We need to choose
the strike price and we need to also
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choose whether it is call or put.
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So I am
selecting put and now I'll select the
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strike price.
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The strike price will be
8500.
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So I have selected 8500 put option
of 26 March.
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You can see here I will be
adding my Lots, 10 Lots here I am having.
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And here my dear friends I have made a
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small mistake instead of adding a short
sell thing I have added buy.
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So I needed to
change back to sell and I needed to
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change the strategy once again.
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So you
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can see now my strategy is set on the
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strategy builder.
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So my dear friends you
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can see the payoff ratio, the pair of
graphs is shown here.
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And we can also see
where is the break-even or the other
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details of this option selling strategy.
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Now my dear friends I'll slowly scroll
up the page a bit.
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And my dear friends
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you
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can see the maximum profit at expiry is one
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lakh forty seven thousand two sixty
three.
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So that is the total premium that
we have earned.
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And we can also see the
break-even at expiry that is the
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break-even levels are at eight thousand
three hundred four and eight thousand seven
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hundred ninety six.
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So my dear friends
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whenever we have shorted the options the
Nifty price was around eight thousand
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five hundred fifty.
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And we can see the
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break-even levels are around eight
thousand three hundred four and eight
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thousand seven hundred ninety six so that
is almost 250 points away from my
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short sell zone.
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And my dear friends for
short selling these ten lots of
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nifty options, the margin required is
actually twenty point zero nine lakhs.
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So
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that is the total capital required.
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And
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if we can capture the whole premium the
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total intraday return may be seven point
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two seven percent on the invested
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capital.
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So that is the power of these
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options selling strategy.
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Now friends we
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have done our job.
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We have given the
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order now it is the job of the time.
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It
is the job of the time to actually decay
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the premium of the options and give us
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profits.
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So friends I am checking back
after two and half hours, still there is not
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much progress, still the actual game has
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not started, still the price decay has
not started.
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We have shorted the two
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options at one ninety points and still
the combined price of these two options
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are 145 points.
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So still the actual game
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has not started.
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So what I will do my
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dear friends I just complete my lunch
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I'll take my lunch and I will come back
after two o clock or after 2:30.
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Let us
wait for the real game to start and my
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dear friends do not go away it is a real
game.
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You will be amazed to see the game.
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So friends I have once again back after
having my lunch around 2:30 and let us
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check
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what is the scenario now.
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Yes my dear
friends now the game has started you can
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see in the last half an hour the premium
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has actually decayed by 45 points.
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So the
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total premium is less than 100 now.
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We
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will wait for more fall.
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Just watch the
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game.
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This is why my dear friends option
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selling is actually practiced by the
professionals.
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No need to judge the
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market trend, simply Short sell the
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options and eat that time decay that's
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all.
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And we will close our total positions
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before 3:15.
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We will not allow the broker
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to close our trades.
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So friends we are
back to the trading terminal just before
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3.15.
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Now let us check what is the price
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structure of the options.
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So we can see
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the put has almost become zero and the
call option is close to 20 rupees.
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So
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the combined premium we have sorted both
of them at a combined premium of 190.
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And
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currently the combined premium is close
to 20 rupees.
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So my dear friends it is
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the time to buy that both the put option and
the call option.
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And in this
trade actually we are looking 170 points
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profit.
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So we have sold the call option
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and the put option at a combined premium of
190 points.
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And now we are buying them back
at a combined premium of 20 points only
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. So my dear friends I have shown you how
you can make money by just short selling
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options in the expiry market.
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So no need
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to judge the market rate, no need to
judge the market direction where the
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market is going, no need to judge
anything.
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If you just get options costly
simply short sell them.
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And the time will do the rest of the job.
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Now my dear
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friends where to keep the stop-loss.
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So I will suggest keep the stop-loss
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more than half of the total premium
. Suppose our total option short sold
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value was 190 points so that means our
total combined premium earned was 190 points.
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Now we will keep a stoploss
190 plus half of 190
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that means 190 plus 95 so that will be
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our stop loss.
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So that means 285 points
will be our stop loss and our target
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will be zero.
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So this time we could not
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achieve the zero target but we have
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achieved 20.
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But our target will be zero most of the times.
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So in this way you can
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make consistent amount of money just by
short selling options on the expiry
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days.
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So, friends, I have completed today's webinar.
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If you have liked today's video please do
not forget to hit the like button.
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Please also do not forget to share it with
your friends.
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Because if you share it, someone else can
also be benefitted.
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If you have any queries, just ask me in the
comments.
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I will try to answer you as early as possible.
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Friends, thanks a lot for watching this webinar
till the end.
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Bye bye!
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