[00:05] recover the loss of the entire week or the entire month by taking one trade of Zero to Hero strategy on the expiry day.  Guys let's Demat Diet.  First of all, I will tell you a story which is very relevant to the expiry day trading strategy.  You listen carefully.  2000 years ago there was a
[00:20] very famous Vaidya ji.  A sick farmer comes to him and tells him his problem.  The says, Sir, I go to urinate again and again and whatever food I eat, I am unable to digest it.  I feel hungry and thirsty again and again and I am very troubled here.
[00:33] Actually he was suffering from diabetes.  Now that Vaidya ji was very educated and a scholar. As soon as he heard about Bhola's illness, he understood that he was suffering from diabetes. He took out his medicine bag and took out some seeds from that bag and
[00:45] gave them to Bhola and told Bhola to go and plant these seeds under the Neem tree in his courtyard. Bhola did the same. He went to his home and planted those trees He went to his home and planted those trees
[01:00] that if you cook it daily and consume it with your food, then your disease will be cured within six months. But Bhola actually planted that tree and left many shortcomings there.  He did
[01:14] He did not follow the method told by the doctor completely. Due to which, when he actually consumed that fruit, it not only tasted bitter but he also vomited. Actually this fruit was bitter gourd.
[01:26] Because bitter gourd has some medicinal properties to cure diabetes. Therefore, this Vaidya ji of that time, what I am talking about, is not any ordinary Vaidya ji, I am talking about Maharishi Charak who is called the Father of Ayurvedic Medicine
[01:38] and he has also written a very famous book, The Charak Samhita.  So if such a learned person has suggested a treatment then it should definitely have been effective but actually Bhola had he was not getting the benefit and whenever he consumed that bitter gourd fruit,
[01:53] he would vomit. But the same Maharishi Charak, Vaidya ji, But the same Maharishi Charak, Vaidya ji, and they would come to Vaidya ji and thank him.  Now in the same way, guys, let me
[02:06] tell you the similarities here in option trading.  The treatment he described is of bitter gourd coated with neem.  Bitter gourd, which is already bitter, when planted near neem tree, becomes neem coated bitter gourd and its medicinal properties get doubled.  And I am
[02:19] not just talking out of thin air.  This thing is scientifically proven.  If you have any diabetes, I am telling you this in relation to option trading. See If you do option trading, then option trading is a risky thing in itself.
[02:32] But when you are trading options on the expiry day, the a way, he has become a bitter gourd. So Neemchada bitter gourd is not going to be suitable for every person. This is what I am going to explain to you in this installment.  But those who
[02:47] understand and learn it can recover many of their old losses.  This is absolutely correct.  But this thing is risky.  So look, it is important for you to understand two things and two concepts here.  If you are
[02:59] concept of delta and the concept of theta. So you are going to get both these concepts Here let us first talk about Delta.  So for example, let me tell you that suppose Nifty is
[03:11] suppose you take a call option with a strike price of Rs 24,000.  The strike price was ₹24,000. You took a call option and suppose its rate here is ₹500. Now if NIFI is standing at ₹24,000 and from there it goes to ₹24,100, then with a
[03:25] movement of 100 points, will the premium of the call option you have purchased increase by ₹100?  No.  It will actually increase depending on the delta.   That is, it is the delta that decides how much the premium of your option should increase
[03:38] and by multiplying the number of points movement by the delta, we come to know by the delta, we come to know I am telling you for example.  You have taken a call option of Rs 24,100. You bought it for ₹100.   Let us
[03:52] in Nifty.  That means Nifty has gone from 24,000 to 24,100.  So if let's say the delta at that time is 0.5, which happens to be at the money, the delta is 0.5. When you go in the money, the delta increases from 0 towards one and when you go out of the money, the
[04:06] delta increases towards zero.  So in this way, if you have taken an out of the money call option, then there will be a delta of 0.5.  When it is 0.5, you see how much price movement has come from there and multiply it by delta, then there will be a
[04:19] decide whether you are making profit , loss and how much. But now the main concept that comes up is that of theta.  Theta means that look brother, the people who are selling options here
[04:36] win this bet. I told you that option trading is a They are only charging you a fee for placing the bet and that fee is Theta and what is this fee? Their fees increase with time.  What I
[04:51] mean to say is that if I explain it to you with an example, let us assume that you have to travel 10 km.  I have to do walk running. 10 km  If you are given, say, 7 hours to run, then your probability is that you will run that 10 km. Completing the running of 100 km in 7 hours is too
[05:06] your probability has reduced. Whereas if you are being given 1 minute or 1 second then in 1 second it is 10 km. No one can score runs.  So its probability we place a bet in options, the condition is that on the expiry day, the price of this particular
[05:20] contract will be so many rupees. But if that expiry is about to come, that is, the But if that expiry is about to come, that is, the probability of that particular index or that particular
[05:32] asset reaching that price within 1 hour becomes very less.  So theta decays.  Due to which the melted.  Let me tell you with an example.  It will become clear to you from the example.   Let us assume that here we are taking a call option, Nifty is at 24,000 and we are
[05:45] suppose you have bought this call option on Monday, then if you hold it for one day till Tuesday, then your premium was ₹200, if you had bought it on Monday for ₹200, then similarly, without doing anything, if Nifty is trading at the same price, then
[05:58] without doing anything, your premium on Tuesday will reduce from ₹200 to ₹150 because the time for expiry has reduced.  That means the day on which the bet was placed that the price of this particular index of this asset should be this much on this day,
[06:13] theta to decrease and your premium will automatically decrease without you having to do anything.  So when you trade in a sideways market, your premiums automatically decrease. Even if the market is trading at the same place and hence trading on the expiry day is
[06:25] Now I am not actually telling you that you don't have to take zero to hero trades. Zero to Hero trade means that you cover your past losses in a single trade is actually possible because volatility is high on the expiry day.  There is a lot of
[06:38] volatility in the market and the premiums you are getting are also being offered at lower prices. This means you can trade with less capital.  On that day, you get all the same options which you were getting at a higher price the previous day, but at a
[06:53] how you should trade on the expiry day.  First of all, you have to do position sizing and your risk management here.  Very well. told you in the last video.  I will give you the link in the button above.
[07:07] How many trades you should take, how many you should not take and what size those trades will be, i.e. how much amount those trades will be worth, So first of all you have to understand position sizing.
[07:20] After this, you should not take long trades on the expiry day.  Long trades do and forget about it. Talking about any options.  You Your premium will melt within 3-4 hours. Your premium will be lost due to theta decay.
[07:33] So you should not take a trade of more than 30 minutes on the expiry day. trade even if you are taking it early in the morning before 12:00, in fact trend reversal happens around 10:30. If it has to happen then in the market
[07:48] you have to book your trades by 11:15 or last 12:00.   Be it You are not allowed to do any trading after 12:00 pm.  After this, another important thing is that you should try to take at
[08:00] the money trades on the expiry day because at the money you get more delta.   This means that with fewer movements, you will have the same chance of the price changing here.  Or if you want,
[08:12] you can also trade in the money. There also theta is more. Trading out of the money will not give you any benefit on the expiry day.  I hope liked it, please like the video and I have given the links of my favorite demat accounts
[08:24] can go there and create your demat account from there. My demat accounts are also maintained in these. Which I have been using for many years. Safe & Secure Trusted Demat want to join me on Telegram channel where I can share screenshots of my trading and investing activities
[08:37] So you will also find the link to my Telegram channel in the description below.  From where second part of Zero to Hero Trading Strategy, then more comments like this we get, the sooner we will
[08:53] today's video guys. See you in a new video.  Please excuse See you in a new video.  Please excuse me till then.  Jai Hind.  Victory