--- title: 'Best Strategy to Go from Zero to Hero in Options Trading' source: 'https://youtube.com/watch?v=drQe6gH6-tA' video_id: 'drQe6gH6-tA' date: 2026-07-22 duration_sec: 1053 channel: 'NIFM Institute' --- # Best Strategy to Go from Zero to Hero in Options Trading > Source: [Best Strategy to Go from Zero to Hero in Options Trading](https://youtube.com/watch?v=drQe6gH6-tA) ## Summary This video presents a trading strategy called the 'Long Strangle' for options, designed to profit from high volatility during weekly or monthly expiries. The instructor emphasizes risk management by limiting investment to small amounts and deploying the strategy when premiums are low, typically between 12:00 PM and 1:00 PM. The goal is to achieve unlimited profit potential with a capped maximum loss. ### Key Points - **Strategy Overview** [00:16] — The strategy aims to earn more money by investing less, specifically using options with small capital. - **Risk Warning on Options** [00:42] — Advises against investing large sums in options without experience; recommends starting with ₹1,000 to ₹5,000. - **Market Condition for Strategy** [01:51] — The strategy works best during high volatility, such as weekly or monthly expiries, when large moves are likely. - **Long Strangle Definition** [03:20] — A long strangle involves buying out-of-the-money (OTM) calls and puts simultaneously to profit from a big move in either direction. - **OTM Options Selection** [04:29] — OTM options are chosen because premiums are small, but they can become valuable if the market moves significantly. - **Best Time to Deploy** [05:46] — Deploy the strategy between 12:00 PM and 1:00 PM when premiums are lowest, reducing cost and risk. - **Example Setup** [06:11] — With Nifty spot at 24,000, buy a 24,250 call (OTM) and a 23,950 put (OTM), each with a premium of ₹10, total cost ₹20. - **Risk and Reward** [08:23] — Maximum loss is limited to the total premium paid (₹20), while profit is theoretically unlimited. - **Break-Even Calculation** [08:36] — Break-even points: call strike plus total cost (24,250 + 20 = 24,270) and put strike minus total cost (23,950 - 20 = 23,930). - **Profit Example at Expiry** [09:44] — If market expires at 24,200, call premium becomes ₹150 (spot - strike), net profit ₹130 after deducting ₹20 cost. - **Profit Example on Downside** [12:28] — If market expires at 23,800, put premium becomes ₹150 (strike - spot), net profit also ₹130. - **Strategy Conditions** [13:17] — This is expiry-specific and news-based; deploy only on weekly or monthly expiry days when premiums drop around noon. - **Option Chain Analysis** [14:02] — Option chain shows market direction: increasing call writing indicates bearish sentiment, while put writing indicates bullish sentiment. - **Theta and Direction** [14:31] — Theta decay affects options differently based on market direction; directional moves can offset theta decay. ### Conclusion The long strangle strategy can turn small investments into significant profits during high-volatility expiry days, but it requires discipline in risk management and timing. The key is to deploy with minimal capital and wait for a substantial market move. ## Transcript to market risk. Please carry out your due diligence and read all the related documents carefully before investing. Don't forget to subscribe to the channel. forget to subscribe to the channel. Now this strategy that I am going to tell you, this strategy is a very good strategy. This is a strategy to earn more money by investing less money. You must have heard a lot of people saying heroes. It is in options, if you invest ₹1000, make ₹00 and lose ₹1000 then there is no need to worry much. But I But I can tell you one true thing based on experience that you should neither do options after a lot of practice nor with a strategy. But always keep three things in mind that never invest unnecessary money in options. You will invest such nonsense because in options 10 for one is becoming 20 for one, so you get tempted to invest ₹1 lakh or ₹00, one should ₹1 lakh or ₹00, one should who invests ₹1 to ₹5000 in options, okay and I say that one can invest a large amount only when he has either made a huge profit or has become a great expert, one should not do it before that, this is my advice to you, you can understand anything so that you will at least stay away from options. Look, it is important to learn everything because you never know which knowledge will be useful to you in life. But not every knowledge is applied in life. Some things are just for learning. Apply here only after learning how to do it but with very little money. big money. Ok? And if you become greedy, which most people do, then you will definitely suffer losses. teach you about a strategy that can turn very small money into very big money. The condition is that there should be a big move in the market. So tell me one thing, what are the chances when there is always volatility in the market. when there is always volatility in the market. And those are the chances when there is weekly or monthly expiry in the market. Have you seen it? What happens in weekly and monthly expiry ? There is a lot of volatility in the market. You have seen it, right? There is a lot of volatility in the market on Thursday. Isn't it ? So this strategy, we will make it in such a market view where there is high volatility in the market. What is Market View? High volatility. And the biggest thing is that you do or down. So the market can go anywhere on this side. This is true. So for example, let's take the this side. This is true. So for example, let's take the spot market as an example, I take 24,000 and high volatility means 24,000 and high volatility means 200-300 points for me. So let us assume 24,200 on the upper side 200-300 points for me. So let us assume 24,200 on the upper side this is high volatility because 200 points in Nifty in intraday is not a big deal but still we will assume high volatility. So we have considered the spot price of Nifty to be So we have considered the spot price of Nifty to be 24,000. This became the market view. So in such a market view, there can be high volatility in the market either side. We deploy a new strategy in such markets which is called Long Triangle. What is its name? Long strangle. Now this long strangle is also considered an expiry specific strategy that is deployed in weekly expiry and monthly expiry. Now look, there are four expiries in a month Now look, there are four expiries in a month and in total you can say that and in total you can say that we try with not more than ₹5000 in these 50 expiries, then we can get many opportunities. Isn't it ? If we try with ₹5000, we will get many opportunities. So this strategy can be deployed 50 times a year. Now look here to deploy this strategy, as we do not know here whether the market will go up or down, but one thing we do know is that there are high chances of volatility in the market. This means that the chances of a one-sided move are very high. We know this. What will we do when we know this ? We will buy both calls and puts in the market. Now this strategy is deployed on out of the money calls and puts. Out of the money because its premiums are very small. And when the market takes a directional move of 100, 150, 200 points, then the same out of the money becomes a huge premium. Hello friends, are you thinking of starting in the stock market? And are you at a loss as to where you should begin? So I am going to suggest you a course which can change your life and I am talking about change your life and I am talking about NIFM's Advanced Level of Smart Investor Course which can change your life. Yes , you heard it right. NIFM brings you a wonderful course that will show you how to successfully earn money in the stock market. And this course is the advanced level of smart investor. The Advanced Level of Smart Investor Course gives you information about every small and big detail of the market and all this information proves to be very helpful in earning money in this market. So after doing this course you can 12:00 to 1:00. From 12:00 to 1:00 the premiums become very low and from 12:00 to 1:00 if you deploy then for ₹500 you can buy a lot of premiums. Like, one or two lots are easily available. Ok? So what does that mean? 12:00 to 1:00 is also the best time to deploy it. So what will we do first? We are applying this on Nifty Pay. So I assume Nifty's spot here. I assume it. It here. I assume it. It is 24,000 and on Nifi of 24,000 is 24,000 and on Nifi of 24,000 I would give a call buy. I will call you bye. The OTM call will be out of the money. So I will buy the strike here at 2450, I will buy the strike here at 2450, 50 because the premium is cheap and 50 because the more it goes above this, the more will be my profit. my profit. If I take Rs 2400, it may result in loss instead of profit. If I take 24,200 then there will be a sure loss because the market will also move 200 points from there. So I have to take it out of the money but closest to out of the money so that the chances become higher. If there is a big move then my chances of profit will increase. Now it is available here for very little money. I paid ₹10 as premium. So, here I am assuming that there is a premium of ₹10. You see, you get a premium of ₹5. At the most it is available for ₹10. Let's assume ₹10. Ok? So, I bought a premium of ₹10 here. My cost came to ₹10. I paid it. Now in this scenario I am bullish on the market. Ok? So what is my view here ? The view is bullish. If the market goes up, ? The view is bullish. If the market goes up, this call will make me money. That's right. But what if the market goes down ? I will incur a loss on my call. So what should I do? If the market goes down, I should make profit instead of loss. That's why I would also buy a put. So I will buy the put. So I will buy the put also OTM and the strike will be 23950 i.e. 50 points above and 50 points below. Here also hypothetically we have assumed that our premium is ₹10 and here also I have paid it. So here I got bored. One second. So my view here is bearish. Bullish here. Yes. That's why it is called a strategy. So what happens in strategy? Two positions have to be made simultaneously. Are you getting it? Now here what is our net cost between ₹10 and ₹10 ? That means our net cost is ₹20 and this ₹20 is also our maximum loss. So how much is there to lose? How much? Just ₹20 How much is the max profit? very good. That means unlimited money to win and only ₹20 to lose. Now break even here. Look, what would be the way to break even here ? We will minus and plus our cost. Because we are not able to calculate individual break even here. Total break even has to be calculated. Ok? So here the break even will come. Please understand carefully. Here the break even will come, I will add ₹20 to the strike of the call. So my break even point was ₹2,000. Ok? In this I added ₹20 or whatever my cost is. I added ₹20 or whatever my cost is. And the break even of the put will And the break even of the put will come, well done. That means it will come after subtracting come, well done. That means it will come after subtracting 23930, that is, what I did was I subtracted ₹20 from it. 23930, that is, what I did was I subtracted ₹20 from it. Now if the market goes above 2470 Now if the market goes above 2470 or below 23930 then I will make profit in both the cases. If it expires at this level then neither will I make any profit nor will I make any loss. Now we will assume that the market will expire. See, since this strategy is expiry specific, the market should also have a particular expiry. So if the market expires, what will be your loss profit in that case? Let us take a look and assume here that the market expires at 24,200. We are assuming this. So the expiry has happened at 24,200. So now 24,200 becomes the spot price, right? So which premium will increase now? Which one will become zero? The one on the put side. So now here put side. So now here is the spot price, this power of number theory is such a great theory that after doing it you will have a different experience and you will feel that perhaps this is what you were looking for. After many years of trading and investing, you probably needed a product that would give you the confidence in the market to make money every day and as much as you want. So this power of number theory of ours is to fulfill all your desires. And you will see that after following this theory, your confidence, your accuracy, your ability to earn money from the market will increase a lot. And you will see that after doing this course, you will experience so much better during your trading or investment which you had not experienced before today. your trading or investment which you had not experienced before today. our call price means spot minus strike, so here the spot price minus the strike price. Now here our spot price has become 24,200 and the strike of the call that we had bought was value will become ₹150. This means that our premium which was ₹10 has become ₹150, so we got ₹150, okay, but out of ₹150, so we got ₹150, okay, but out of ₹150, we had also paid ₹20, so minus cost ₹20 and we had also paid ₹20, so minus cost ₹20 and this is our net profit which is ₹130, this is our net profit which is ₹130, so in our example we put how much was so in our example we put how much was ₹20 and how much net did we earn, ₹130, ₹20 and how much net did we earn, ₹130, this is our pay off. This is called pay off. Your loss profit is called pay off. So what is the payoff here ? ₹130. Call it net profit, call it payoff. Are you getting it ? Now in this case, we will understand another example that if the expiry happens we will understand another example that if the expiry happens at ₹23,800 then what will happen? So, everyone wrote it down. I'm deleting it. Now our formula will also be reversed. Now our formula will also be reversed. Now here we understand that the expiry has happened at 22800 23800. So here our formula will be reversed and will become strike minus spot. So here the strike we took was 23950 was 23950 and the expiry date is 23800. So in this case, our premium for the put will increase to 150, but here also we will subtract the ₹20 premium that we had paid. Ok? And our net profit will be Rs 130. This will be our net profit in this case also. Ok? The second strategy is news based. Because this is an expiry special. This can be deployed only on expiry. Second for News Base. That's why we deploy weekly or monthly. Premiums are reduced between 12 and 1:00 pm. So the 12 to 1:00 pm I taught are reduced. So the risk will also be reduced. If you do it early in the morning, the premiums are a little higher. If you wait a little, the better to use it at a lower premium. Now see that in the market, call writing is increasing and increasing. You see, when we saw, there were two lakh contracts and one 1 lakh contract here. 33 lakh contracts have been signed here. Look, is this okay? You see it has increased. it grew. it grew. Everything has increased, right? That's it grew. Everything has increased, right? That's why the market is coming down. And look, look at these minus ones here, who were put writers and put writing was happening. Now look here, the contracts that were there are decreasing. Yes, I've come in a minute. Ok ? So this option chain tells you brother what is the direction of the market? Look, brother what is the direction of the market? Look, we can't understand option Greeks that way. What happens normally? Now understand this. Now, in options, there is neither call nor put. understand this. Now, in options, there is neither call nor put. Now let us assume this is the case, then the theta of both the call and put of 24,300 will be the same. Don't record this. Ok? The theta of both the call and the put will be the same. What will be the difference? Theta of one will decay and theta of the other will decay as well. DK will do the second one too. But he will do more for one and less for the other. Why? Because in whatever direction the market is moving, its theta will gradually decrease because volatility will save it in premium. Now let's assume that you are seeing the market, look here, I will show it to you here, let's assume that this is it normally. Ok you here, let's assume that this is it normally. Ok ? This is an example. Now here is a ? This is an example. Now here is a ₹30 premium DK for ₹4,600. So to grow technically, growth was also required. But this should not be increased. required. But this should not be increased. Why? Why didn't it increase? There are many reasons. Because wherever there is direction, the dk there is more. Ok? So theta is the same for both. But will it be more or less than dk? It depends on the direction. Now many times people do not give neutral data. I will teach you this later. However, there is no problem. I will get that done. 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