Hero or Zero Option Buying Strategy: The Ultimate Risk Reward Trade

[00:03] becomes ₹100. . So what is Zero or Hero Trading in this video ?

[00:17] When do we take those trades? What happens when the market moves? So ? You are going to learn all about this subject. Do You will definitely have Yusufullah . Let's see what happens with the first Zero or Hero trade

[00:30] . sharp movement happens as we expected, our profits

[00:46] trade. If no such movement occurs, our premium, i.e. trading capital, will become completely zero. So let's call this zero trade. So, let's make a profit many times over and become heroes. Otherwise, we will lose the total premium and

[01:01] become zero. So, this type of trading is what we call zero or hero trading market movement, then we will have the possibility of making a profit not just three times, but . This is a loss, so if

[01:16] will lose. This trading is something only Exbury Tales would do. So this is what we call our Zero or Hero trade when we can take this Hero or Zero trade next and what the conditions are for it.

[01:29] This trade is always made on the expiration date . Similarly, if you look at the timing, . Similarly, if you look at the timing, . Why would it

[01:44] in the market, so if there is a balance, the premium will be very low out of the hour. If there is any sudden movement in that area, then move. That's why we should try to

[01:59] . The next premium must premium, you can only buy out-of-the-money products with this kind of premium

[02:12] four strikes away from the main bet and 200 points away . So how do we enter this? Where should we take our trade? If so, there must be a clear breakout. That means

[02:24] trading within a range. After the afternoon session, if there is a breakout on the upside or a breakout on the downside, then a call option at that point. If there is a breakout on the upside or a breakout on the downside,

[02:39] buy a put option at that point. trading. Somehow the market has gone from high to low . If the same trend comes back and continues, you can

[02:55] . Otherwise, you can also take a trend reversal entry. can also take a trend reversal entry. If you see a trend reversal like this or a pullback happening, it's a

[03:07] . The third trend reversal should occur. If it's like this, you've entered a breakout trading, and you've entered a pullback entry and entered a trend confirmation and reversal, a spike will come.

[03:26] time when you should enter that trade . Is the next day you're planning on having Exbury Day or not? There shouldn't be any major news on that day Exbury Day or not? There shouldn't be any major news on that day

[03:41] . If there is no date for this RBI policy, there should not be . Likewise, there should be no unexpected volatility. Why is

[03:53] that? It seemed like the market was going to make a big move what will happen is that your premium will

[04:05] be much more expensive than the normal value. Then it would be like making our pie too rich gives us the same in-case movement, our premium won't go up as much as we thought. Okay, so we shouldn't be making this kind of trade during times of volatility

[04:21] to understand this too. So, please understand these four points clearly. points clearly. These are the rules for when and how to take the entry condition, and whatever else we see.

[04:35] if you look at the delta value outside of the hour, it will be something like 0.2 to 0.3. We've already seen . If you need a full explanation about it, I'll check it out, it'll definitely be useful. Now, if the Nifty we have taken moves by

[04:50] our option premium will increase by two or three points. This is a

[05:02] Nifty spot is near 24750. So what do we think? We expect the market to go above 24900

[05:14] . That expiration date is going to increase by 150 points. Because we feel like there's some kind of breakout going on because the spot price will come and we will have 24750. So if 24750 comes and we will be at the money

[05:29] . The 24900 call option would be out of the money the value of that delta will be 0.2 or 0.3. So what does that mean? This means that even if the market points will come up and go up .

[05:44] What's happening in the stock market right now? If it increases by 150 points and goes to 24900, then we have that call option that we took at 24900, right? Now it will change, it will change, it will change. Because it was out of the question when it came before

[05:59] . Because the spot price came with it and it was at 24750. Now, if the spot price goes up to goes up to 24900, the spot market will go up to 24900, and then the call

[06:11] will change. The delta will change something like 0.45 or 0.5. Now why are we looking at all this? If you

[06:25] one such thing. If changes are happening . That is, there are only a few minutes left before the market closes, maybe 10 minutes, 15 minutes, or maybe

[06:39] 20, 25 minutes. If that's the case, what happens when the underlying line that we have taken, i.e. Nifty, comes and gives a movement and the price moves with it? Then the delta will also move. Then, when that delta

[06:52] comes and moves at a high speed, a gamma explosion occurs at that location. if you watch the premium version of Satana, it will give you rapid movement . If you look at the premium of ₹510, it will be ₹60. So this is what happens, come on, paste on the delta and

[07:07] gamma effect, this is what we call the gamma explosion. Next, we're going to look at how we manage risk in this trading or hero trade, you should only use it on small caps

[07:20] . This means that if your trading capital is the same as the capital you use in that trade, your overall capital should be 1%. Suppose you have 1 lock piece, so you only need to invest ₹1000 in

[07:34] . This kind of zero or hero trade. Why is there a chance that it will be a loss even if it comes to 100% So what should you do, Mendela? You should already be fixed. There is a very high chance that we will lose 100% on this trade .

[07:49] Why did this come about and the Zero or Hero trade. If that's the case, there's a chance that our total premium will also be a loss . So, you should have that kind of mindset, let's come to our risk and . Your trading capital is also like this,

[08:02] 1%. You will only use a percentage of the overall cap in this trading . That means you We already told you, didn't we? If you

[08:18] . If you just keep it will become an even bigger problem. It will drag you down with a very big loss . If you are

[08:31] then it would be better for you to avoid this type of trade . Because what many people do is, they can't make that loss base and keep saying they can adjust it somehow, so they average it or do something else. They don't do anything fast, they keep

[08:44] or do something else. They don't do anything fast, they keep That's why we told you to fix it. Think about when you will trade without fear. When will you not react emotionally?

[08:57] until you control your risk . So, if your risk is not that high, and you . So, if your risk is not that high, and you Even if it's a loss, it's not a big issue . This is how

[09:11] you invest 50,000 in that trading . What if there is a 15 15 R 20,000 any fear or anxiety? Then we'll have an emotional week. That's why we shouldn't come to this place and

[09:29] . You should also accept it. S This is where Zero or Hero comes in. There is a S This is where Zero or Hero comes in. There is a chance that we will all lose. You have to accept that and

[09:42] you will be able to conduct market research. Otherwise, what will happen in one or two trades? Your overall capital will be washed out if you do that. This is why I would generally

[09:55] I would n't recommend it for beginners. But that's not what happens in the market. This is why so many beginners enter, and that's why they base their trading on Zero or Hero . People enter the market with this kind of expectation:

[10:07] Will they get 10,000 if they buy 1,000? Will they get 50,000 if they buy 5,000? you came here and . So, if you're going to take this trade, there

[10:23] are a few warnings. As our Alredy said, this is don't trade like this.

[10:36] management and risk management, you should consider entering into anyone do if they did n't focus on risk? So you see that the but the success rate is very low.

[10:52] That means if you take a 10 trade, you can come and win. What everyone else is doing is not calculating the probability the amount is, but it

[11:07] only happens once in a while. I don't understand why a 10x10x event happens, but . So you should keep this in mind too. In the final, you shouldn't overtrade in this trade, right?

[11:20] strategy. What will they do in the first week? If so, the market will go favor will go against them again . So they would keep taking random trades, saying that there's a chance that it will happen again this week .

[11:34] What happens when you do that? It puts you at a very high risk. Because what happens when you lose a lot of capital every time you trade? If you overtrade, you will lose a lot of money. I need to understand how this trading came about. It's like coming and buying a lottery ticket. We buy

[11:47] and then we win a lakh rupees . They believe it or not, but when it falls, it one watt for a 10-expiry or one watt for a 20-expiry. If you

[12:01] make it a fish and overtrade this trade repeatedly in the same session, it will be like losing your entire capital. So, please keep all this in mind. If then you need to look at all these aspects. You should not enter this trade just by

[12:16] focusing on your target and your profit . Share it with your friends too . If you have any doubts, please comment. Don't forget to subscribe. Thank you.