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Best Zero Hero Strategy for Expiry

0h 14m video Published May 14, 2023 Transcribed Jul 24, 2026 T Traders Paradise Live
Intermediate 7 min read For: Options traders with basic knowledge of expiry dynamics and option chains.
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AI Summary

This video presents a detailed options trading strategy called 'Zero Hero,' designed to capture large premium moves during expiry days. The strategy focuses on identifying high open interest strikes and using price action to anticipate short covering rallies that can yield 2x to 10x returns.

[00:31]
Zero Hero Strategy Concept

The strategy aims to capture large premium moves on expiry days, typically yielding 2-3x returns, but sometimes 6-8x. It works best when the market has been sideways before expiry, leading to a trending expiry day.

[03:09]
Using Option Chain Data

Identify the strike with the highest open interest (OI) build-up. In the example, 18200 call had 5.11 lakh OI, indicating heavy short selling by retailers. This is where short covering can trigger a big move.

[04:10]
Big Players' Cycle

Big players need liquidity to create a rally. They target strikes where many option sellers are concentrated. By pushing the market 20-30 points, they trigger stop-losses of short sellers, causing a cascade of buying.

[06:22]
Data vs Price Action

Data (OI) is lagging; it reflects past positions. Price action creates data, not the other way around. Traders should focus on price action to confirm which side the market is moving, rather than relying solely on OI.

[07:55]
Selecting the Strike

Choose a strike where the premium is around ₹10-12 for Nifty (₹25-30 for Bank Nifty) and where the highest short covering is likely. The strike should be near the current price so that a small move makes it in-the-money.

[10:25]
Conditions for Zero Hero

The best zero hero moves occur when the market has been consolidating before expiry. On expiry day, if the morning session is sideways, option sellers build more positions, increasing the potential for a big move.

[12:45]
Risk Management

Do not allocate full capital to this trade. Risk only what you are willing to lose per trade. For example, if risk capital is ₹2000 and stop loss per lot is ₹200, you can take 10 lots. Treat it like a normal trade with stop loss and target.

The Zero Hero strategy is a high-probability options trade for expiry days, leveraging short covering at high OI strikes. Success depends on identifying consolidation before expiry, using price action, and strict risk management.

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Mentioned in this Video

Tutorial Checklist

1 02:11 Check if the market was sideways in the days before expiry. If yes, expiry day is likely trending.
2 03:09 Open the option chain and identify the strike with the highest open interest (OI) build-up.
3 04:10 Understand that big players will target that strike to trigger short covering. Look for price action confirming a move toward that strike.
4 07:55 Select a strike where the premium is around ₹10-12 for Nifty (₹25-30 for Bank Nifty) and where the highest short covering is likely.
5 10:25 On expiry day, check if the morning session is sideways. If yes, option sellers build more positions, increasing potential for a big move.
6 12:45 Apply risk management: risk only a portion of capital. For example, if risk capital is ₹2000 and stop loss per lot is ₹200, take 10 lots.
7 13:45 Set a stop loss and target. Treat it like a normal trade. The profit potential is 2x-10x due to short covering.

Study Flashcards (7)

What is the Zero Hero strategy?

easy Click to reveal answer

An options trading strategy for expiry days that aims to capture large premium moves (2x-10x) by buying cheap ATM options at strikes with high open interest, anticipating short covering.

00:31

What is the ideal premium range for Nifty in Zero Hero?

easy Click to reveal answer

₹10-12 per lot.

12:07

What is the ideal premium range for Bank Nifty in Zero Hero?

easy Click to reveal answer

₹25-30 per lot.

12:32

Why does the strategy work best when the market was sideways before expiry?

medium Click to reveal answer

Sideways markets allow option sellers to build large positions, creating high open interest at specific strikes. On expiry, a trending move triggers short covering, causing a rapid premium spike.

02:11

What is the role of big players in the Zero Hero strategy?

medium Click to reveal answer

Big players push the market 20-30 points to trigger stop-losses of short sellers at high OI strikes, causing a cascade of buying that inflates premiums.

04:10

Why should traders focus on price action rather than open interest data?

hard Click to reveal answer

Data (OI) is lagging and reflects past positions. Price action creates data, so traders should use price action to confirm the direction of the move.

06:22

How should risk be managed in Zero Hero trades?

medium Click to reveal answer

Risk only a portion of capital equal to the stop loss amount. For example, if risk capital is ₹2000 and stop loss per lot is ₹200, take 10 lots. Treat it like a normal trade with stop loss and target.

12:45

💡 Key Takeaways

🔧

Zero Hero Strategy Concept

Introduces a high-reward expiry strategy that can yield 2x-10x returns by buying cheap ATM options.

00:31
🔧

Using Option Chain Data

Explains how to identify high OI strikes where short covering is likely, a key step in the strategy.

03:09
💡

Data vs Price Action

Clarifies a common misconception: data is lagging, and price action should be the primary guide.

06:22
⚖️

Risk Management

Emphasizes not to allocate full capital and to treat Zero Hero like a normal trade with stop loss.

12:45

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[00:02] this is a street video, now I will be back with a new video and this will be a Streets video, now usually I keep such good strategy videos exclusive in my course so that its value is maintained and only limited people have access, but there are

[00:17] some Streets which I think can help the public a lot, now this strategy is going to be a game changing strategy, basically Streets will be basically Streets will be 0 and Hero strategy, okay, zero and zero,

[00:31] we all know the expiry because Tuesday's expiry has come, then Nifty's expiry is on Wednesday, Midcap's expiry is on Thursday again, so the expiry has come a lot, there are many people who think that friend, understand me,

[00:47] keep a sale of ₹500, but for example, okay, why don't we buy an ATM for ₹10, in which again the risk will be only ₹500 and then he will pay that By trading ₹500,

[00:59] I should also plan that trade for 30, 40, whatever can come, okay, so this is the concept of Zero Hero, but now what is this, Zero Hero which is formed simply happens only two to three times in a month, basically you catch all the expiries, it

[01:15] cannot be formed on every expiry or I mean the one in which the market gives 6 times, 7 times, 8 times premium, but if you see, constantly the market speaks of 10 to 20, 25,

[01:28] we definitely get that, but this will be a special strategy, here I also made a video last time, the trade which is coming at 600%, was captured live on Sarita, so here I had given a hint, but here I am going to

[01:41] explain this strategy to you in detail, now here you have to understand two-three things because I have made a playlist of three videos, you can watch a secret recipe on Big Mom Face of Market and this will be the third video in which you will learn

[01:57] how to capture big moves on expiry. You can do this, so you must be aware of these two videos, you must have seen them, if you have n't seen them then watch them, after this video you have been given a hint about when you can get a big free, right, so you have to analyze

[02:11] how the market was before the expiry, was it sideways or trending or how was the previous market sideways, basically if on Thursday, for example, the expiry is on Thursday and the

[02:23] Tuesday-Wednesday market was sideways, then there is a chance that the Thursday market can be trending very much, or if on Thursday the market is from morning till 1:00 in the afternoon, if there is a sideways arrangement, then due to high change, today there is going to be a

[02:39] big zero, you will get the idea of ​​this in these two videos, now you keep two things in mind, okay, first you have to

[02:52] your mind is set that the market can be trending today, after this, what you have to do is use the data, now the option What is an option chain? An option chain basically option What is an option chain? An option chain basically

[03:09] tells you the bad starts of all the states and positions of people, but the most important thing in this option chain is its 's open positions. Now, you can say people's open positions. We can see experimentally

[03:21] that people sit here with their positions. If I want to see it from a seller's perspective, here the call is short on the left and the put is short on the right. If you want a detailed video on the option chain as well, let me know in the comments. Now, you have to see at

[03:37] which strike price in the option chain is the highest wide data build-up. Now, if you look at the 6x Capital Sarita, okay, where it comes, look, the highest was at 18200, comes, look, the highest was at 18200, which was around five lakh 11000, okay, highest.

[03:51] And now look, there was not so much short in put, if you look at the highest in put, it was if you look at the highest in put, it was 18000. At that time, the market was 18000. At that time, the market was around 18, okay, it was

[04:10] Look at the mindset of the big players. If there is a big market in the market, If there is to be a move, only big players can bring it about. So understand the cycle of big players. For a big rally, they need stop-loss. The most important thing is liquidity. You can say that

[04:25] if someone is in the middle of people's positions, then only they will be able to buy. If they want to make the market rally, then they cannot put random quantity. If an option seller is sitting short yesterday, then only they can inflate any premium.

[04:40] Okay, this is point one. Look here, 1000 positions. At the time of expiry, yesterday 's short was the highest. Now what the big players have is that they just have to raise the market by 20 points,

[04:52] 20 to 30 points, so that the stock plus of those who shorted yesterday at 18200 stock plus of those who shorted yesterday at 18200 starts getting triggered. Now Now here you can see how much the premium was. Let's enlarge the chart a little.

[05:08] Look here, these people are looking at ₹7 and ₹1. You can imagine even 0.350. Meaning these people must have already shorted yesterday, so there are one lakh positions each, even at 0.20

[05:21] one lakh means how deep can you go, at 19000 if you see ₹1 lakh position remains in the market, so what do these yesterday sellers do, at expiry ₹10 ₹5 they know that the market is not going to move a thousand points, they take more quantity, take a

[05:36] premium of ₹8 and keep it, so at that time the market was at 18 and was making a little, time the market was at 18 and was making a little, but 5 lakh 11000 people had shorted yesterday and were sitting with a premium of ₹8 at 7.9, so these people were basically planning that the market will

[05:52] not be able to rally so much and they will get a premium of ₹8 for free, this is how

[06:10] they think that where there is a high avoidance in the market, the market will rally to that side, which is the biggest mistake over data is just data and

[06:22] when do people create their positions in the market Seeing this, I saw the projection and I am getting worried. What did I do? I shorted yesterday. My data shows that yesterday so many positions were taken on the short. Yesterday, the market went up from here. Immediately, the market changed, the data changed, so

[06:39] focus on the price action. Price action always creates data. If the market is rallying, you will see a different PCR. You will see all the databases. If the market started falling, the data will be verified. So, the data is of the market after the price action.

[06:54] After the market moves, the data gets updated. But people have this misconception that whatever data is formed, the market will move accordingly. But you have to understand the data only and do not trade on that basis. Now, we have shown the data pack that yesterday, the

[07:09] Now, we have shown the data pack that yesterday, the highest short was taken by people yesterday. For highest short was taken by people yesterday. For example, at 18000, we understand that ₹340 is the highest short. Now what do we understand that all the retailers are sitting short yesterday at 1850. Now,

[07:24] if the market is making any bullish price action and now it is 350, then look at the time, the premium will be ₹10. You will get ₹12. Okay, after 1:00 pm, so now see after 1:00 pm, so now see if the market is around ₹300 or ₹320. What

[07:39] this means is that the market needs just 20 or 30 points to cross ₹350. After that, the trade which was ATM or ATM will become in the money and it will start rallying. So to choose such a strike price, you have to look at the price action

[07:55] choose such a strike price, you have to look at the price action and basically the highest short covering. You know the concept of short covering, where most of the people sit after selling. Okay, by selling, but for example, most of the people are sitting after selling me. So

[08:09] when the market price action changes, the stocks move gets activated. Okay, so now just imagine that here you have ₹511000

[08:23] people sitting after shorting yesterday and for a premium of ₹7, now what happens to them is that they do not take much risk, the maximum risk is 14 or Their excel will be 15 rupees, okay, if we talk to describe, then just imagine that maybe the market seems to go up, it goes from

[08:37] ₹7 to 15, topless hunting starts on the positions of 5 lakh people, you know there are topless hunting starts on the positions of 5 lakh people, you know there are

[08:49] exit out of fear, due to which what happens is that those who had a premium of ₹8 at 7.9, would have held ₹8, those who would have shorted the premium of ₹8 yesterday, start exiting, the

[09:01] and there are high chances that it will reach 40, 50, that day, particularly it had hit 65, so it may be in bank, Nifty or Nifty as well, now whenever you see at the Nifty as well, now whenever you see at the expiry, whenever there is a big mobile, then the

[09:16] premium where the highest term comes, has reached a very big peak there and if you see if any term comes, it is okay or the strike price is very low, that is, for example,

[09:28] we If there are your premium will not increase much because of the simple logic of bar and seller profit.

[09:41] If a seller is sitting here after shorting some premium, then when the option seller buys it, then basically someone will buy it tomorrow, then the seller's sale of this tomorrow will be hit, then the seller will get the money tomorrow. Now see, on Fridays, the premium moves very strangely.

[09:57] Many lovers do not remove it. The reason is because there are you will see that the premium also usually does not increase so much on Fridays, right, the premium is a little stable. If there are the

[10:10] highest number of option sellers on Thursday, then how fast does the premium fall? Even if a big candle of ₹10 becomes ₹20 instantly, so this is the power of expiry, so you have to keep this plan, so you have to remember this rule. Whenever you

[10:25] take this trade, see where the highest ID data is being formed, that is, basically it is being formed towards tomorrow. It is forming towards put here if you add total 18200 or here if you add total 18200 or ₹18000 from 150 you will see 2 lakh 5 lakh 2 lakh

[10:39] this data was forming towards short yesterday, comparatively it was not so much towards put, so if zero is to be formed the best low will be formed where most of the people are sitting, most of the retailers are sitting against them, if you go to the market there, the biggest

[10:54] move comes, then that add comes and your mind will be set, if zero is to be formed then it will be formed mind will be set, if zero is to be formed then it will be formed towards put only, otherwise if the market should keep normal targets, okay, that means expectations should not be kept there,

[11:11] second thing check and see previous trade because it is simple logic, if the market is because it is simple logic, if the market is trending then there will not be that much time till expiry, it is a simple thing because most of the

[11:25] positions are formed in consolidation, if the market consolidates then only the data will be formed, only then people's positions will be formed, what will happen in a trending market already If one person is losing money and the other is making a profit, then money will not be made in a trending market.

[11:40] where I have explained that you can look for different phases and secret recipes for big moves. Okay, this is the second part. You also have to see whether the morning session on the day of expiry was sideways or a big rally because if the morning

[11:53] session is sideways then the positions of option sellers will increase a lot that day. Okay, the what to do with this thing. ATM or ATM. What are ATMs? Many times confusion is created. So here I have given a round number of the premium.

[12:07] Okay, the premium of Nifty should be around ₹10, 10-11 or 8 to 8 to 12, only then will it be good, otherwise if you buy two-three rupees then there will be chances of it becoming basically zero,

[12:19] so 10 to 12 because it is just logic, friend, if it is 10-12 then only the interest rate for the option seller will be there in it tomorrow. If you short a position of ₹2, you won't find a seller there, so you need a premium of ₹10 to ₹12.

[12:32] Okay, whether it's an ATM, sometimes you get ₹10 to ₹12, sometimes you get ₹10 to ₹12. Okay, remember this thing, second, for Bank Nifty, you need ₹25 to ₹30. Even if it starts from ₹20, ₹ 20 to 30 will do.

[12:45] For Bank Nifty, you need a premium of around this. Okay, so basically, if you talk about risk management, if you do the load here, it will become ₹500. Here also your risk will become ₹500. But if you let the lota become zero, then the most important thing is

[12:59] what people will do here, they will put the entire capital in the zero hero. Okay, you do n't have to put the entire capital here, you have to put only as much capital as your stop loss. Basically, if you can risk ₹2000 in one trade and your stop loss is ₹1000. Consider the loss to be of

[13:13] ₹0.00, okay, of ₹0.00, so multiply it by the lot size of Nifty, that is, how much it becomes, ₹200, so consider yours to be at risk of ₹200 and you have a risk capital of ₹2000, so now divide this lot by your risk capital,

[13:29] so basically this will be your 10 stalls, so if you have the capital, you said that I want to trade in this trade for only ₹2000 on 00, then you can take only 10 stalls, if there is a profit of ₹4 in it, if you want a video on risk management in detail, then

[13:45] tell me in the comment, I will make a video on that too, do plan it like a normal trade, keep a normal sale, keep a normal target, keep a normal sale, keep a normal target, what will be the benefit in this, you will have the chance of

[13:59] short covering in this and because the premiums will be cheap, then you have premiums will be cheap, then you have chances of 2x 3x this type of premium You will get it, this will happen, that is why it is called Zero Hero, if you get

[14:13] many such strategies, psychology basics, options, everything is included here, one of the best strategy I B Said is also included in this master bundle, where you are also getting a lifetime premium channel, where we post all the stock

[14:28] scripts and its analysis date today, the second thing is that we do giveaway in Sarita, if you want to participate in that giveaway, then you just have to you just have to

[14:41] premium channel and course live Sarita videos, thank you videos, thank you so much

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