🔍
Bull Call Spread Option Trading Strategy Free Course | Share Market Training - YouTube
Channel: Pushkar Raj Thakur: Business Coach
[0]
So welcome to the Options Strategies series.
[4]
Today, as it is written on the screen that
you are going to learn the Bull Call Spread,
[7]
first of all, we will learn all those strategies.
[11]
Which you can use when you think that the
market will go up.
[14]
Meaning your view about the market is that
the market will grow from here, then whatever
[19]
strategy you will learn.
[21]
Let me tell you that you will first try these
strategies on Nifty and Bank Nifty.
[27]
I said Nifty and Bank Nifty because it is
the easiest for Beginners.
[31]
If you go directly to the options of stocks,
then you may have higher margin requirements
[36]
there and the strategies here work very well
for new beginners in nifty and bank nifty
[43]
so what is your view for the market, you are
going to learn the strategies related to this,
[47]
so now we are going to talk about those strategies
for which your view is Bullish.
[51]
So, when we make Bull call Spread, before
it We will understand that, Why to make Bull
[56]
Call Spread, Here Bull Call Spread is written,
it means that Bull means that our vision for
[63]
the market is that Market will rise, and if
it is Bear Call Spread, then if Bear comes,
[69]
Bear means that our vision for the market
is that it will fall, now you said Bull Call Spread.
[76]
So Bull means the market will rise, it is
your vision.
[78]
Now Call means that, the strategies we will
make, we are going to use Call Options in it
[85]
And spread means that we will buy and we will
sell also.
[90]
We will work with spread.
[91]
Now you will say that we will buy and sell
together.
[94]
We are going to buy options and we are going
to sell options too, now why do this, alright.
[97]
Now questions come to your mind and I will
answer the questions through my computer screen.
[105]
So here we come on the computer.
[107]
Now I am using sensibull.
[110]
I use sensibull regularly for options trading
and you guys also do.
[114]
After going to sensibull, same what I am going
to tell you and to show you.
[118]
When you log in to sensibull, I will give
the link to sensibull on the description and
[122]
comment box.
[123]
So sensibull is a paid software and they also
give a trial version.
[126]
So it has a trial of seven days then you can
take it and after that, you can go for sensibull.
[131]
So see here, we were already on the strategy
builder and I show you when you will click
[137]
here then you see here written strategy builder,
now you will click on strategy builder, now
[141]
when you will click on strategy builder, then
you will see here ready-made strategies.
[148]
So if your vision for the market is bullish,
then here you can see strategies like here
[153]
we can buy call options, we can sell put options.
[158]
You know it, now we are going to talk about
how we can make Bull call Spread, apart from
[162]
this you can Bull Call Spread, so you see
readymade Strategies here.
[167]
If your vision for the market is bearish,
then there are also strategies for it.
[172]
So you can see it on sensibull.
[174]
But now we talk about why to make Bull calls
Spread.
[177]
Why use strategies, when we can buy call options
simply, so when we buy call options, now,
[184]
for example, nifty is 18100, then At the money
option is 18100, whose price is 101, then
[191]
according to 50, when you do options trading,
it is in lots, then a nifty lot is worth 50,
[197]
price of one option is 101*50, so the price
is 5065, so the 5065 is the price of one lot
[206]
when you bought the option, you bought the
option then you are buying options, so you
[210]
can have unlimited profit, you will say that
if you bought these option of 5000, then you
[217]
can also earn 50000, I will say that you can
earn.
[222]
Anything can happen, unlimited is written
here, so you can earn even one lakh, but Nifty
[226]
will have to take that much jump, and it is
not like Nifty can reach 20000 from 18000
[233]
in one night.
[234]
Anything can happen in the market, so if you
feel it then I show you that suppose nifty
[242]
reached 19930, so your option of 5000, we
are recording this video on 18th of January,
[250]
so the expiry is on January 20, so even if
it happens by January.
[254]
As if something like this happens, if Nifty
reaches 19930 then your 5000 option will earn
[259]
you 86000, then you understand that you can
earn unlimited and what will be your loss,
[265]
we talked in the last video that when you
buy option, especially if you buy naked option,
[269]
then it is like buying, and you have
taken the ticket of the lottery.
[273]
So if you bought the lottery tickets and you
don't win them, then what will be the maximum loss.
[276]
You will say that the loss will be the ticket
price of the lottery, so the premium here,
[281]
this is your maximum loss, 5000 is what you
can see,5065.
[285]
So it was your lottery ticket price that could
be your loss.
[288]
But you can earn unlimited also but the market
will have to move.
[292]
Generally, the market does not move so much,
so if we take a normal target when we feel
[297]
that the market increases by 500 points from
here.
[300]
If you think it will increase by one to 500
points till the expiry, which is possible
[303]
then your ₹5000 option can earn you almost
₹20000, Here's you can see 19935, so yes
[311]
people can earn money by buying, if your vision
is accurate, now some people ask that how
[315]
they will get to know that market will rise.
[318]
For that we have given you the full playlist
of Technical Analysis, there is a link on
[322]
the I button, you learn the price action,
we also told you that you can also find by
[325]
analyzing the data whether the market will
go up or down and we have also trained you
[332]
on candlestick patterns and also trained you
on the indicator.
[335]
So When you will learn it then you will know
how to catch the price action so that we have
[340]
simply bought a call option here, then we
understood the profit of buying and also understood
[346]
the loss that our 5000 can be completely lost.
[349]
If we sell the put options here, then if we
become sellers, If we are selling something,
[355]
someone will buy something from us, then people
can come and buy the option from us.
[359]
Now that person buys a put option who thinks
that the market will fall but you feel that
[364]
the market will rise, then if you sold the
put options then look here, the maximum loss
[371]
is ₹ 900000 here.
[373]
You had a maximum loss of 5000 rupees, now
9 lakh rupees because the seller can have
[379]
an unlimited loss, so here your loss can also
be very high If the market will not move according to you
[385]
But if you will see POP here then the POP
is Probability of Profit and Probability of
[392]
Profit is 65% for this specific if we talk
about options and if you sell it and if you buy it.
[400]
If you think that the market will fall and
if you think it then your Probability of Profit
[404]
is 35% only then the probability of winning
of buyers is low and the sellers have High.
[409]
I have told you this in short.
[411]
Now look at Fund Required here, the fund is
required here of 104000, which means Just
[417]
now you saw that only four to five thousand
is needed to buy options and to sell the same
[421]
₹ 100000 is needed, why this ₹ 100000
is required because let's say when you saw
[426]
that buyers got a profit of ₹80000, then
from where that amount will come, this will
[430]
come from this seller pocket.
[431]
So your broker will demand from you that if
you are selling the options, then save funds
[440]
He will not do anything with it but save
it with him.
[442]
If the market does not move according to you
and the buyer gets the profit then we will
[446]
give money to the buyer, that is why sellers
have to keep money with themselves.
[450]
Now you understand this too.
[451]
Now if you look at the graph here, then the
maximum profit of the seller, no matter how
[455]
much the market increases, zooms out here.
[458]
So no matter how much the market increases,
then you know that you will get a maximum
[461]
profit of 4645, which is the full premium
that you will receive If you sold the options
[468]
here, now you sold the put options and who
bought the put options here, you got money
[474]
from him, but there is one more question,
this money has come to you.
[478]
But you can have an unlimited loss, then here
you can also get a loss of 28000.
[485]
If nifty came to 17440 and what you were earning,
I just told you earlier in a video regarding
[492]
the theta, so when there is theta decay, then
the entire premium becomes zero, and when
[497]
it becomes zero then it will be your profit
and this is for sellers so here you can see
[501]
values of theta delta and When the market
is live, you will see the value of all, so
[506]
I have already covered that you have seen
the video of option greeks.
[509]
Now if you make Bull Call Spread here then
the graph changes a bit.
[514]
Now you will see the graph like this.
[517]
Now what is this, we just talked about that
when we make a spread, then we are buying
[521]
one call option and we are selling another
call option.
[524]
Now nifty is around 18100 then the option
of At the money, we do in general in a bull
[529]
call spread that we buy the At the money option
and we sell the Out of the money option then
[537]
here call option of 18100, here readymade
strategy is made, then we bought it and we
[543]
sell the option of 18300, so what happened
with it.
[547]
Why did we do this?
[548]
We did this because if you look over here
and see that, your margin was in which you
[554]
needed just one lakh for selling and here
you needed 23000, For both buying and selling.
[559]
If you remove the option of buying here even
by mistake, then it has become 95000 straight
[565]
away then there your fund's requirement increased
and as soon as you have bought, now it means
[570]
that you have hedged your position, so you
hedged that's why fund needed to be reduced
[576]
here, now you have to understand some things
here, now understand it quickly.
[580]
Maximum profit is defined, Unlimited is not
written here.
[583]
Here 6388 is written and the maximum loss
is also defined as 6313, the loss will be
[589]
around 3600, and the profit will be around
6300 and 6400, then you understand that the
[595]
risk-reward Ratio is 1:2, which you can see
here and the probability of profit is 42%.
[602]
You will understand it in different trades
as we will talk about strategies and POP,
[606]
or you see here, there was no need to calculate
risk to reward, you understood the ratio of
[611]
1:8, and nowhere the market will give breakeven
on 18172, which means if you executed this
[620]
trade, here you can see trade all button,
you will click on it then either you have
[625]
an account on Angelone or Upstox or ZERODHA,
or even with 5Paisa, you can execute your
[630]
trade here, and you can also virtual trade,
the paper trading we were talking about, you
[636]
can do that paper Trade by clicking on virtual
trade.
[639]
So your strategy
is working, and you can do it without real
[642]
money and also with real money.
[643]
Now here you see, that you know the breakeven
is coming around 18172, so here I show you first.
[652]
We come around 18172, so you can see breakeven
around 18172, so if it becomes 18180, then
[660]
you will have a profit ₹400, after that
you will start to get the profit, you know
[664]
that profit will start from here, but your
profit will define around 18300, that it will
[672]
be 6388 and after that how much market will
go up, here if the market will be 18680, or
[678]
it becomes 19000 or 20000, your profit will
be 6388 and your loss is also defined, no
[685]
matter how much market falls, your loss will
be 3613 and here we are talking about expiry.
[691]
If you change this, the value may change.
[694]
Value can change beforehand, so here the graph
will also change and your breakeven will also
[699]
change, so this strategy builder tells you
in advance that If you go through a strategy
[705]
how much will be your maximum profit and what
will be your maximum loss, then your Risk
[709]
to Reward is already defined here.
[712]
And with it, you can do better trading.
[715]
If you will trade by making your strategy
then you can also make better decisions here,
[720]
so it was the Bull Call Spread.
[722]
I hope the concept is clear, now the strategies
and concepts you are learning, then when the
[728]
market is live, first define your view for
the market, your view should be defined here.
[736]
What you think is that the market will go
up and will go down or it will remain sideways.
[742]
Now whatever your view is, choose the strategy
according to that and if you do paper trade
[747]
or virtual trade, but do trade that you will
get to know whether your strategy is working or not
[752]
Today you learned about Bull Call Spread,
that we feel that the market will go up and
[758]
call means that we are going to trade in the
call Options and one we will sell and one
[763]
we will sell.
[764]
We buy At the Money, ATM, and we sell Out
of the Money, OTM.
[771]
Generally, we can do work according to a difference
of 200 points, and you can also take in the
[776]
money, then you can also buy in the money.
[781]
And here what we are doing, we are already
calculating our profit and risk, so here this
[788]
is the main reason for using Bull Call Spread.
[792]
And we have to do I when our view of the market
is slightly Bullish, it is not like that market
[795]
will increase too much.The market is going
to move at 1000-2000 points, then you can
[799]
trade in Naked Option also, but If you think
it is Slightly bullish then go for Bull Call
[804]
Spread.
[804]
Today you learned one strategy, in the next
video we will talk about a new strategy, so
[810]
stay tuned.
[811]
How was the video, you can tell in the comment?.
[813]
Ask your questions in the comments, we will
try to cover them in the next video, like
[817]
this video to give your love.
[819]
Follow if you are watching it on Facebook
and subscribe if you are watching it on YouTube
[821]
and subscribe and click on the Bell icon.
[822]
If you have not had your demat account till
now, then there are links of leading brokers
[825]
in the description and comment box, you can
open your demat account.
[828]
The link to sensibull is also in the description
and comment box, so see you in the next video
[831]
till the time you go self-made.
Most Recent Videos:
You can go back to the homepage right here: Homepage