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How to Select the Best Stock to Trade? Sensibull Screener - YouTube
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would it help if you could know in which
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stocks fresh positions are being formed
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and in which stocks traders are exiting
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positions yes right sensible screener
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can help you find the best stock to
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trade how we learn that in this video
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hello and welcome to this demo session
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of sensible screener in this video we
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learn how to use sensible screener to
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select the best stock to trade but
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before getting started if you are loving
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what we are doing give this video a
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thumbs up and subscribe to sensible's
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youtube channel
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moving on
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we all know that when you go to buy any
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product on amazon these filters help you
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a lot in narrowing down your list as per
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your preferences
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we have created a similar feature for
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options trading
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this will assist you in narrowing down
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your stocks as per your preferences we
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all know that in market stock selection
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is the most important factor to make a
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good profit sensible screener also helps
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you sort stock based on volume spike oi
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percentage change iv change ivp and pcr
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we learn these features one by one but
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before we get into understanding these
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features here are some disclaimers
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do not use this data alone use it with
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the charts and technicals
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see the broader markets trend before
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taking a trade as people say
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index is a river and stocks are boats
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it's very hard for boat to go against
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the river flow and very easy to go with
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the flow if the market or nifty is
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bearish big stocks which are showing
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bearish data and bearish chart
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structures similarly if the nifty is
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bullish go for bullish stocks
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with these disclaimers in mind let's
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dive right in the first filter is liquid
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stocks
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this filter shows the most liquid 50
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stocks of yesterday and today based on
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the underlying stock volume
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this need not mean the options are
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liquid but there is high correlation
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between the liquidity of the underlying
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and the options
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next month's options are usually not
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liquid even if the underlying is liquid
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you will find this filter on as a
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default and i insist you to keep it that
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way in options trading if you get stuck
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in an illiquid rate you can lose big
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the bit of a gap can cost you a lot and
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if you didn't get an exit from an active
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trade that's even worse
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second filter is volume spike this will
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show you the stock in which we have seen
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volume spikes today
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this filter gives you stock whose cash
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volume is two or more times the average
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volume of the past 200 days from this
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you can immediately see in which stocks
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big buying and big selling is happening
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here i have taken an interesting case
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study of heromotocop
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if you see this heromotocop chart you
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can see whenever the stock is falling to
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2 200 levels strong buying is happening
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with big volumes that's pushing these
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stock up and you can find the stock in
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these screeners list as well
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by using this screener you will not have
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to go and find stocks manually you can
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get the list of stocks in which the big
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volume is there with just a click
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below volume filter you can see the
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events filter
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we know that stocks near events can be
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very volatile and trading in these
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stocks is just gambling so by using this
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filter you can avoid these stocks in
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which some events are happening such as
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result
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here you can also see on which dates the
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result for respective stocks are coming
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out
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next filter is oi action
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open interest activity can be divided
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into four parts
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long build up
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short covering
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long unwinding and short buildup
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don't worry i explained these terms in
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simple way
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number one
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long buildup
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when the future price is going up and
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the future oi is also going up this is
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called long builder
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don't worry if this is confusing for you
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just focus on what market participants
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are doing which is more important by the
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way and you can anytime refer to this
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chart by clicking on this help button so
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when long build up is happening market
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participants are betting the stock will
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go up so this is the time to go long in
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the stock
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number two
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short covering when future price is
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going up and future oi is going down
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this is called short covering and in
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short covering market participants are
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getting out from their shorts
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so
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this is the broad indication that don't
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go short here
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third short buildup
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so when future price is going down and
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future oi is going up
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this is called short builder and in
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short builder market participants are
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betting the stock will go down
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so this is the time to go short in the
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stock
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fourth and last long unwinding
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so when future price is going down and
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the future oi is also going down this is
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called long unwinding and the market
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participants are getting out of their
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loans so
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don't go long
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with the help of these filters you can
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instantly get the list of stocks to sell
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or buy
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so when there is a long buildup is
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happening so you can go long in these
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stocks and when the short buildup is
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happening and go short in these stocks
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but as i said before don't take trades
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based on this data
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in fact you should not be using anything
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alone in the market
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use this data with your technicals and
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chart
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continuing our euro motor corp example i
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can see the stock is in the long buildup
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phase which means market participants
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are bidding on the upside of this stock
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so you can see i have on the liquid
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filter i have on the long buildup filter
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i have on the volume filter and hero
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moto cop is the only stock in that
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particular list now coming to the final
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topic that is id and ivp
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do you know that iv that is implied
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volatility is the measure of uncertainty
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in the market
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for a detailed explanation of iv see
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this video from our auction series and i
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highly recommend to watch the option
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series also so
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we also know that you should sell
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options in high iv and buy options in
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the low ib because when id is high
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option premiums are high and we know
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that ib tend to come to its normal state
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so when iv will go down option premiums
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will go down so selling is the good
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choice when the iv is high and when iv
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is low buying is the good choice but how
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will you know
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which iv is high and which iv is low
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for that we use ivp that is implied
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volatility percentile not percentage
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percentile
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ivp tells you on the scale of 1 200 1
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being the lowest and 100 being the
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highest
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how high or how low the iv for the stock
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is
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this helps you understand whether the iv
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is low or high a general assumption is
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that if ibp is greater than 80 ib is
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considered to be high and if ivp is
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lower than 20 ib is considered to be low
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between 20 to 80 ib is considered to be
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normal
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i know it's confusing but if i if i can
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talk in simpler terms uh ivp is a scale
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on which it shows that if iv of a stock
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is high or low let's see this example
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for tata power atm id is 38
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and for hdfc iv is 35
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so how can i tell which iv is high and
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which iv is low
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for tata power atm iv of 38 is low and
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for hdfc
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atm ib of 35 is high
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how do i
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let us look at ivp for both
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ivp for tata power is 24 which is saying
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that 38 is very low iv because it's near
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20 the ivp is near 20.
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on the other hand the ivp of hdfc is 98
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which is showing the 35 ib is very high
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now we have understood what ivp is and
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iv is iv is a measure of uncertainty and
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ivp is a measure of how high and how low
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the ib is
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now if the ivp is greater than 80 we'll
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look to sell the options because we know
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that ivs tend to return to normal and
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when i we get cool down the option
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premium also goes down giving the profit
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to option sellers
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coming to our example of hero motor pop
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by seeing the chart structures it's
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making a nice double bottom formation
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right
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in the screener it qualifies for the
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bullish stock the ivp of hero motorcock
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is 98
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which is saying that iv is very high for
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the stock so option selling will be a
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good idea so by seeing all these factors
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i can say we can go for put cell trade
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or bull put spread trade here
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this is how you can use ivp to get a
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high ib trades you can also filter these
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stocks by putting down your id and ibp
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values in the filter section to get the
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desired results
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there are some more things you can do
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with the sensible screener
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like ivp you can also see the pcr for
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different stocks here and you can filter
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the low pcr stocks and the high pci
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stocks from the list
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number two you can see the max pay for
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all these stocks on the list
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third you can get the stock list from
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different sectors also
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fourth you can see the heat map for the
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list of stocks and finally you can
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explore the filters for future price
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change and oi changes
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i hope this video gave you a good idea
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of how to use the sensible screener to
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get the perfect stock for you to trade
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before wrapping up i have a quick
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question for you just to check whether
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you have understood the concept or not
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go to sensible's screener and let me
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know in the comment section whose iv is
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high
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in fee or jindal steve
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link to screener is in the description
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that's it for this particular video if
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you love what we do
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give this video a thumbs up subscribe to
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census youtube channel and till then we
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wish you safe and happy trading with
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sensible
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you
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