Options Selling Strategy Episode:-22 - YouTube

Hello Friends, Welcome back to my channel This is Subasish

As I promised you last time before holidays How can you do option selling and can practice

I'm going to teach you this, So make sure to remember one thing

Whenever you are learning something new 110% you are going to get losses\

Put it in your mind, that's why If you'll try setups with maximum probability

if losses happens there, then losses will be less and there is more chances of profitability

then you'll see a positive side of option selling that yeah it can make money

Option selling means now we are going to take profits of theta decay, time decay

So what's best for it is if we'll get some holidays

If you'll see here in holiday list, I have took website reference of Zerodha

4-5 i.e. Thursday and Friday, there is holiday on two days

If we'll see here in next week, let's see the calendar

in next week, 4-5 are holiday At 3'o clock there would be expiry

So our next expiry will be on 11 November so there is two days holiday, so what can we do

So I'm going to tell you a simple set up If we'll sell far call and put then it'll become strangle

If we can do something at "at the money" then it would be straddle

Let me assume, this is our candle of third November

At 3:20 I'll decide, how to plan for no. 11 to purchase trade

So I want to give you some idea how can you plan, Just Imagine we're going to move for the slings

No where we'll see last support resistance

Here we'll see in current it's a U Turn We'll see where the U turn is in the market

here market was coming down, Market pulled up little bit and continued that means

It's a U Turn , It took a sharp turn so there's a support and there's a U Turn, All these are U Turn

So we'll try to sort call and put around support resistance so that it'll give good premium

And I'll tell you what our target should be Keep one point in mind, Let's Imagine

we did Identification 39600 and here 38500, if this type of candle will form around 3 nov

We'll plan to do option sell, If we'll see option chain here, you can get an idea how much premium you are getting

So that I'll tell you how to do fire fight or how to do not, we'll discuss all the points

Let's imagine we decided that we'll sell a call for 39500-39600

Right now its 246 and our's was 38500, its at 170 one you are getting near around 240-260

let me mention 240 here and here let me mention 180 premium

This is your premium... Correct? Make sure to keep one point in mind always

Whenever you do option selling, it doesn't mean that you should wait till it gets zeo

This is my perspective that I'm telling I don't wait till it gets zero because

Whenever premium stays around 10-20

If market do sudden momentum, if it reaches 100rs then we enters in firefight mode

I always prefer, if I have to 60 or 100 rupees from the market

here I took entry of 240 and here I took entry of 180

Again let's say market opens flat after two days, still minimum 40rs will get less here and here

So I will get my target right after market will open

So my aim always is to keep moving by capturing that particular point

40-50rs even if I'll sell out of the money 20-20rs, still I'll get 40rs, But for this, I would've to wait until 11 nov

There can be one big momentum that it can slide from 20 to 100, then at that time I'll go in firefight mode

This is my point of view that I;m telling you, Please listen carefully because many people do many different things

and they are earning also, I respect that But my intention is that I want to earn a fixed premium

If I want to earn 80-100 premium, here I assorted 240 at the last swing

And the swing below that with premium around 180, I sorted it

So after combining these two I'm getting premium of around more than 300

But my target is 100, people thinks that we should wait till it'll get zero

If I'll wait till It'll get zero, then definitely I have to get into firefighting mode

Like where was the last momentum Then I had to do fire fight

So I don't want this to happen My aim is let's say we'll earn 100

What can be the market's situation Let's imagine 4 & 5 got over

Then Saturday & Sunday its holiday then on Monday market got opened

What's the possibility in Monday Market A very big Gap up can open

A very big Gap Down can get open or it can open flat

if It'll open flat, then my target is achieved, so let me clean the chart little bit

Here we sorted on 240, here let's say On 180

So let's say market opened flat, then my target will be achieved immediately that I wanted 100 points in it

If market let's say opened with very big gap down

Then what I'll do?? So always keep one point in mind, whenever market goes down

I'd like to square up the put because market comes down quickly

market went up from this level also, It gave very big momentum of more than 1500 points

But it's slow and steady, so whenever market is going up and we are coming in firefighting mode, then it'll be easy for us

No one never panics in gap up They panics in very big gap down

And in that panic scenario its better that you can leave your put

So there can be two things, Market gap down can open here or very big gap down can open

If market gap down opened here, and market came under your price

so what I prefer is, if it reached until here the remove the put that you sorted at the price of 180

Remove it by giving SL that it's gone, One more Put you can add at a level of around 39200

On this level you can sort one more call Because this will be a last swing,

market is going down after opening here so you can add a call of 39300

So you have one call of 39600, one of 39300 You'll get at least 300 premium from both of them

And here that you sorted at 180, you'll give at least 100 points in it

or you'll get loss of 100 points or you'll get a loss of 150 points minimum

Because it was going down slow & steady, premium on put side will increase

So you are giving 150rs to the market and you still have 300rs in your hand

If market goes down continuously, and you have taken out put by giving SL

Then here you'll get At least 100 points easily You'll get even more if you'll hold

And if you won't hold then you'll get at least 100rs

If market comes reverse after going down for sometime

If it comes reverse as I told you, If market will go up than 39300-39600, then you'll get a major loss

If market reverse again after 38200-3800 points that means if market rallies up again 400 points

then you'll add a 38000 PE, and you'll get its premium of 150rs around also

So what will happen while doing it is No doubt time has been spent in the market

and chances are, by the time you are planning all this, you may achieve your target of 100 points

This will give you confidence Let's say you got 50-60 or 80 points

then make sure to take it, then when next holiday comes then you can plan in that way

If someday it opens flat instead of major gap up or gap down

It'll be going to capture more than whatever I mean you planned to earn 100rs

But both can open 70-70 points because market haven't moved

and there is 3-4 days left for the expiry then definitely if you got 60-60rs easily from both sides

you planned 100rs and you may get 150rs Always keep one point in mind,

if market is going down then don't do any fire fighting, This is my concept...

I don't fire fight, I just releases it respectfully because from here it was very painful for an option seller

This option from here wasn't painful for the sellers this can adjust easily, but this was drastical momentum and very quick

I hope you understood this point whenever market goes done, panic scenario creates and market goes done very quickly

and here you released SN, I told you when It'll touch 38500, and you'll take out SN

Just imagine if market is going up continuously after opening flat then we'll give some chance to the Put

you have sorted a CE of 39600 here and here you have PE of 38500 also

When market will reach at "at the money" and will touch 39600, what you'll do is

When market will be going up and will touch near 39600 and converted at "at the money"

Then you can sort one more Put of 38900 or 39000 this means you have one call sort and 2 PE will add

Let's say if market moves very drastically Let's imagine 40,000

Because whenever market comes in sell up Its not easy for the market to subtend the pull back

So there comes little bit sort at every rally Like here, Market went up but sort came in the rally

Then market will go up near 48,200, then sort will come in a rally so in these cases, your 100rs premium will easily decrease

So do one thing, Practice in one lot Don't be smart that you have 50-100 cr

then you'll take 10-20 lots, You are just doing practice Holiday is in this year and next year also

what I want is, if you are playing the game Let's say you lost 100-200rs

You're not going to feel any bad, but when it's very drastical scenario just imagine that market opened here

or it opened at 37,200, if you got losses of 100-200 point in one lot

Because you sorted in a good premium even if you loss 100-200 points

You're not going to feel bad Just Imagine those who traded with 100 lots

It'll be nightmare for them if this much big gap up or gap down will open

Let them struggle, As a trader first start to earn premium if you have 10-15k profit in the account, then you can do aggressive trade

First start to earn in lakhs, first add some profit in your basket then your confidence will be raised already

Along with confidence you can trade also, and you'll have liberty also to do mistakes

Because as a human being its certain that you'll do mistakes, but we controls it up to some extent

When you'll have profit then gradually you'll start to do less mistakes, I hope you are understanding my point

I never wait for he option to get zero, My target is if I got 100rs premium in a week then it's very good for me

so you can also plan, let's say you got 50-60rs premium just by sitting, we sorted here and there

Like market struggle, let market open a very big gap up or if it opened flat then it's easy for us

let the market struggle that a very big gap up opened, we were thinking 100rs but we go 30rs

We'll add one more lay and will do little bit fire fight not extreme

because we don't know what's the depth of the market

Market can go 2000 points today or can go 3000 points next morning

I don't know what is my pocket size and how much money I'll keep filling

so for that, it better to remove Put when market is coming down

And you can do an additional sort you can wait when market is going up

Because whenever it'll go up after selling market, they'll create little bit hurdles, It happens always

I hope you are understanding all these points I do trade little more aggressively

But I'm giving you this mark again, that you can make before holiday

Watch this video 2-3 times, No doubt you'll understand

If you liked the video then please like and share this video friends

That's it for now... Thank You!