Hero Zero Trading Strategy: Using Stop-Loss Hunting for Expiry Day Profits

[00:03] which we saw going up to around ₹72. So, you can almost see the put price increasing seven times here. This is what we call a This is what we call a proper zero move, where

[00:16] we saw multifold returns on our capital. As you know, option traders love expiry. five working sessions we get in a week for trading,

[00:30] Now, what happens is that many option traders are very excited because, by chance, if you are an option seller, you by chance, if you are an option seller, you

[00:43] buyer and you catch a good momentum, you can make very good multifold returns there, in terms of percentage of momentum, your capital can double, triple, quadruple, or even eightfold within a few minutes.

[00:59] This is called a Ro-Zero move in the language of option buyers. Welcome, as always, to another weekend special learning video, where we will understand some very important points related to Ro-Zero expiry moves:

[01:14] moves, and when should option buyers avoid expiry and option sellers skip that day. Or, if you want to trade, what precautions should you take? And also, how do we see the stop-loss hunting strategy being used on expiry day?

[01:28] how do we see the stop-loss hunting strategy being used on expiry day? but no one wants to focus beyond the hard work, knowledge, and patience required for it. I'm going to share some very useful experience points and pro tips

[01:41] that will skipping it, If you see, all the points will not reach you. Then, with incomplete knowledge, you will spoil the trading you are doing right now and even the

[01:55] complete knowledge will not reach you. Therefore, keep patience and listen to all the points. It will be a short, simple and to the point video. Let's start straight away

[02:12] first and most important point I would like to share with you is that we see the expiry in these five indices. Now, what mistake many people make is that on Monday they will trade this index, on Tuesday this, on Wednesday this, on Thursday this

[02:25] you are trading in this way, then you are making a big mistake. Understand the complete thing carefully. We should trade only in one index or maximum to maximum two indices. What is the reason behind it? Because all the five indices have

[02:38] different characteristics. Their volumes vary, their price behavior, their nature is different. Now, if I take my example, I like to trade in Bank Nifty. That is, if I take 100% of the trades,

[02:51] I trade Bank Nifty on 90% of them. Let's say correction or a good setup in which I feel confident or comfortable, then

[03:03] I trade Nifty on the remaining 8%. And on the remaining 2%, sometimes, rarely, I trade Fin Nifty on expiry. It is trade Fin Nifty on expiry. It is

[03:15] because, firstly, I have the most follow risk management, then how much capital will be required, how many lots to buy, what percentage stop loss to follow, what percentage target to follow, all this comes to

[03:29] our mind instantly. So, with risk management, our complete execution process becomes very easy. If you behavior is different, their risk management, lot size, etc. are all different,

[03:42] so accordingly I will have to do calculations again and again here, there will be a but all this is also not such a major issue, for example, if I left Bank Nifty and went to trade in Sensex, its

[03:55] volumes are very low, if I went to trade Bank Nifty, then what happens there, what happens in Nifty at expiry, there will be Nifty will remain sideways for the entire time, towards the end, in the second half, after 1 pm

[04:08] or around that time, a small spike will occur when option sellers book profits, this kind of complete expiry remains at 90 of the time, similarly the character of particular index remains different, so my simple point is that if you If you

[04:21] trade in one or at most two indices, you'll become quite familiar with them. You'll know every detail about them, giving you an edge there. Meanwhile, what are the major differences between them and what psychology issues arise?

[04:35] I've already uploaded a comparison video for you get plenty of insights into how both indices behave. You can try this yourself. Take a few trades on just one or at most two indices and

[04:50] see if your psychology will automatically build up. Now we're on the told you, I trade in this the most, so I track every single thing here, what price action movement is happening, everything, both

[05:04] I may or may not track other indices as much, but even in the live market, I keep an If I need something else, I'll be able to see it in the chart. I also have work to do, so I keep tracking here from time to time. feel, a different connected feel to the

[05:17] expiry was on Wednesday, in which we saw a very big trendy move here. we saw a very big trendy move here. if you want to capture this kind of momentum, let's

[05:31] I am planning on expiry. So, the first important point that I will check out is whether the previous chart is lying sideways here. That is, in the last few days, in one or two-three days,

[05:43] we have not seen any good momentum here. What I mean by momentum is a good trendy momentum like this or like this? Has any such trendy momentum been seen here? So, as far as truth, there is no big trendy momentum here? Momentum is

[05:55] not visible. This was momentum, but even on this day, if you look carefully, the formed a good base, and then went upwards. So basically, we are not seeing a particular trendy day market kept flowing in one direction the whole day. So what does this tell us? The

[06:09] market here is exhibiting volatile sideways behavior, where After that, the next important point is that we have to check out the last three to four expiries of Bank Nifty. Did

[06:23] Randy move means you understand that there should be a one-sided upward or one-sided downward movement on the chart. Now, if we look back here, where were we seeing Wednesday first? We will where were we seeing Wednesday first? We will

[06:35] If we look a little behind it, then where are we seeing Wednesday here? trendy move happen here or not? Due to momentum here, the market had almost turned sideways and was within a range. If we go a little further back, then

[06:48] we will have to look at the Thursday before that because the month has changed here. We are going to the previous month. So, we of Bank Nifty on Thursday. So, this was Thursday here.

[07:02] little further back, and if we come and check out the Wednesday before that, then the move here, but after giving a small momentum, it turned sideways and recovered back to the top. This third point that we have checked out, the previous expiry,

[07:15] what do we know by checking it out? For example, if two expiries have been chances arise. On the third expiry, the market can make a trendy move. If it does not do so on the third, then the chances of doing so on the fourth increase even more.

[07:28] If it does not do so on the fourth, then on the fifth, there are 100% chances that we will definitely see a trendy move. This is how probability works. So, market has not given any one-sided trendy move on the previous expiry two to three times,

[07:44] expiry, which can be the fourth and fifth, and can we can take a long hold on the trade or set a big target etc. At the same time, what is the second probability that suppose on the previous expiry itself, the

[07:59] that suppose on the previous expiry itself, the market has made a big trendy move and ended up doing so. And secondly, the second point that we discussed was that if the market was already making a trendy move here It's already coming, so the chances of seeing

[08:14] Both the points that we discussed here were in our favor. that is, we were seeing momentum on both sides in intraday like this. And the expiry point that we checked, in the last four expiries also we

[08:27] and it is I am sharing everything with you, I am sharing all the points. when it was about to expire here last week, the expiry

[08:40] expiry of Bank Nifty, even then I had recommended that video to you, if you haven't checked it out yet then you can do it, you will learn a lot of things, I am talking about this video, in it already I had covered all these points in many basic points,

[08:53] expiry trading In the video about how we can see a good momentum, I had shared all these points with you. Along with that, when we were doing analysis here on Tuesday or Wednesday, I had told you a simple thing that right now we are

[09:07] market breaks down this level or the market breaks out of this level, we will see a big move outside of it and here on the downside, I had also told you clearly that the support zone that we are seeing here has

[09:20] next time the market goes below this, it will not be able to give support, if the market goes down from here, then we can see a good momentum on the downside and who are coming from the upper side here again and again, the market is chasing them away in this

[09:34] came here, then the market chased them away, then the sellers came here, then the market chased them away, only left, the market hasn't chased them away yet, so we're only seeing a few sellers on the upside here. As soon as they leave, we didn't see any sellers on the upside here,

[09:50] told you as well: if we move down from here, we can easily come down to around the 500 level. we're seeing a gap pending here.

[10:02] you check out this clip, I'll share some very important learnings with you. Bank on the ODI time frame. Here, the market has formed an inside candle. I if the market breaks the high or low of the candle inside the inside candle, then

[10:16] and we'll only see major momentum when this big one breaks here. This is a If you like to do expiry trading, then which is available on the main channel, then definitely check it out.

[10:28] which will be very useful in your expiry trading. some buyers etc. in the market here. This zone till now. But what we are seeing here is that

[10:44] market breaks down, then can plan a good short here, etc. Then these buyers etc., these buyers All of them are sitting with cut down their positions. Then how far can we go on the downside? If I show you the chart like this, then

[10:57] here we can see the first support around 47500. There below this here we can see a big gap, a pending one. Now apart from that, upper side here, there will be stop losses of some sellers etc., some of the selling that came

[11:09] disappeared from the market here. Now let's suppose the market opened here, there was a sellers etc. sitting here, so there is nothing to do here. We simply have to wait and getting threatened here. From here the market can move up.

[11:22] First, we can plan for the upper side from 48000 to around 48000 077 080 see an important resistance like this and here there is a swing like this, till here these small sellers who have come in this candle would also have moved away from here,

[11:35] so I hope you must have understood that we had already planned this whole thing that below which we will see a good momentum, above which we will see a good momentum, where are the stop losses etc. etc. When the market

[11:47] exactly hit its high here, this entire trendy move has started, this time was around 1 PM, I personally also entered in the put of 48000 strike price here, I had bought that put for around ₹10, which was seen going here,

[12:02] ₹10, which was seen going here, we got ₹72 Till around, that is, when the market made a low here in intraday, we saw its high around ₹ 72, so almost you can see that we saw the price of the put increasing seven

[12:14] times here, this is what we call a proper Hero Zero Move, where we got to see multi-fold returns on our capital, and this is still the low of this put was placed, at the time when I was entering,

[12:30] we were seeing a low around ₹ 8.50, from there we got to see profit almost 10 times, 11 now the next important point to be kept in mind in Hero Zero Move is that if anyone gives profit 11 times here, then hold the low at the very low and

[12:45] exit at the very high, this is not possible, so for Hero Zero Move, first of all you have to keep in mind that you have got your sufficient target, like for example, you can also think from here If there is a big move, you will be able to do 2x at the most,

[12:57] 3x or 4x. You have to exit at the point where you are satisfied because no one knows what will be the low and no one knows what will be the high. It is our stop loss should be clear from where we are entering. For example, in this trade, my

[13:11] stop loss was only ₹3030. I had thought that as soon as the I will exit from there. So, my stop loss would be a maximum of 30-32 points and the target which I had personally thought was that the profit will double from ₹880, that

[13:26] is, I will exit there around ₹10. My stop loss was becoming only ₹10. my risk reward was becoming more than 1:5. All the things that we are discussing here,

[13:39] I will show you my trade book here. a trade book will be coming in front of you here, which you can easily check out. Here, around 1:4, exactly, this big red candle started forming here.

[13:53] if you look carefully at the time of target booking, then I have booked the target here around this level. And you will be able to see the entry price. The entry was made at ₹10. I have exited here around ₹10. Stop loss, as I told you, the

[14:06] stop loss here was around ₹10 and I was personally thinking of double the target, that I definitely want 100% return here, so I was is planned, where your stop loss remains small and you

[14:21] says that you can note this down as well. It will be very useful for you too that once the too, as I booked it at 210, it first went up to around 272 in front of my eyes, from

[14:33] there it started returning again, that is, I had seen a return of around 272, that is, I had thought of a target of around 1:5, I had

[14:45] if I exit at a loss from there, then it will be foolish on my part because the market gave me a return, but I was not able to book it, I booked the price here around 210. Now, all this

[14:58] discussion that we did is not as useful to you as it is that why did where we saw a one-way fall, if you understand it, then it will be we saw a one-way fall, if you understand it, then it will be

[15:12] based on stop loss hunting, but we have to keep this in mind When the day of expiry comes, then on that day we have to look at stop loss hunting from the perspective of option seller. As you know, among option sellers, there is one call seller and one

[15:25] put seller, here it is given in the name of PES. Now understand carefully here closed here, it closed within a proper range. There is a high from the upper side and a low from the lower side, a range is being formed within it, so

[15:39] obviously there will be some call sellers sitting on the upper side who will have short calls here. There will be sellers sitting on the down side who will have short puts here. The market opens directly gap up, so gap up is open, so who is going to be scared here, the call sellers

[15:52] are going to be scared and as now If you carefully checked out the clip of the analysis, explained to you that when the market is repeatedly giving pullbacks from here, then the not allowing them to settle down properly. So, the

[16:07] only at the end time. Because of the few sellers who had come here, some people might have been holding their positions here. Now, as soon as the market gave a gap-up opening here, after that, it

[16:21] but from around 48000, there was a momentum of around 160, 100-150 points on the upside. So what does a call seller do here? They start exiting because what is the job of an option seller, he has to eat the premium. So when he knows

[16:33] around that level. So from here, downside so that even when the market comes around him, And if it doesn't come down and closes here, he should still

[16:48] see a profit. If it goes up, he should still see a profit. So, this is how call sellers and put sellers work here at expiry. If you know how to look at OI data, n't, you can understand this by looking at normal price action as well.

[17:01] check out occasionally. I just try to see maximum things here in the price itself. Therefore, I am practically seems to happen here that when the price opens above, call sellers

[17:15] exit here and put sellers start moving here. held here for a long time. It remained sideways here for a long time. Now the thing to understand here is that the market has been in an uptrend here for so long. So when the

[17:29] market has been in an uptrend here for so long. So when the market will go up again from here. Along with this, when the price had come around this while holding here,

[17:41] maximum retailers etc. who follow this type of trend line etc., that the market had taken support here before also, it took support here before that also, so the And it also shows that the market is taking support here. Now let me

[17:55] zoom in here and show you what has happened. So as soon as the market consolidated a little here in the uptrend chart around the closing price near this trend line, formed a strong green candle here. This is a 15 minute time frame candle. The entire candle has closed here,

[18:09] so everyone here had become a buyer. Mostly people had come in the category of buyers here. Everyone felt that the price would go up from here. Now this is the beauty of the market that when everyone is on one side, the market likes to go to the side

[18:21] where there are fewer people. Keeping this in mind, as soon as the market started showing a slight reversal here, because it was clearly understood that when everyone was buying here after

[18:35] where would their stop loss have come, they would have come down here. This was the reason and when it was stopping around this price, then I exited here, in which I got almost 3x return.

[18:49] If I talk to you in percentage terms, then 262 A return was seen around 100, which is a sufficient return. Now, what is happening here after that? I returns. I exited and closed the position. What is happening here after that? The

[19:03] market exactly comes around this level and told you this before that it has already taken support here three times. So, But it needs to go down. When the stop loss is placed, it first

[19:19] started stopping for a while. Then as soon as it broke down here, after that you can see a proper inside candle formed here. That day I told you that with a price confirmation, this kind of move will come back up. Then,

[19:33] if it is going down again, we can see a very big move. First, we may reach around the 500 level. If we huge gap pending here. Let me share one more pro tip with you that the trend that is going on at the expiry, as the market has

[19:46] not yet crossed this high, so do not think of calling buy here, that is, let me simply explain to you that when the market breaks out or breaks down, prefer to trade on that side, on shorting at resistance, buying at support, stop doing that. Now

[19:59] expiry of Bank Nifty, whose expiry happens the next day, Nifty 50, so let me whose expiry happens the next day, Nifty 50, so let me this was Thursday where Nifty 50 had its expiry. Now what are we seeing on this day, the

[20:13] market is moving in counter trend, that is, it is going in the trend of the trend that has been going on here, so if you zoom in and look carefully here, you will understand the momentum of the candle. I will come to what was the momentum of these candles versus you can see the momentum of this candle

[20:26] here, meaning you understand that it went up by 20 points, then came down by 15 points, then went up by 25 points, then came down by 15-20 points. So on the day of expiry, especially if you are taking a trade in the counter trend, that is, if

[20:38] either reduce the quantities there or plan small targets. Now after that, the next day the Sensex expires on Friday, so here you will see that when the price here has a good momentum on both the up and down sides, then

[20:50] if the market is opening in the middle here, then there is So, call sellers are sitting safe on the upper side here, put

[21:05] sellers are sitting here If we are sitting safe on the lower side, then there is call seller and put seller are already safe here, so in the middle of the chart, only the small their stop losses are being cut, they are buying, they are selling, so due to this

[21:19] we do not see any special momentum in the expiry here, along with this you can check out, we have a holiday on Monday and we got to see the expiry of Nifty Mid Cap here on Friday only, hence we got to see it a day before on Friday, you

[21:33] can see here also, it is exactly the same situation, the market remained trendy on the lower side, it was happened, the call seller is safe on the upper side, the put seller is safe on the lower side, so in the middle here, the market does not get much stop loss for option sellers,

[21:46] so on that day there is no Trendy Move: Avoid planning a big move. Here, you can see that the market closes almost around the same level where it opened. So, who is dominating here? Sellers are dominating. So, these are the types of days

[21:58] where the market opens around the same price and then moves up and down in a zigzag manner and ends there, so that the entire premium DK can be eaten up by option sellers. option buyers have seen good profits. Momentum trading has taken place.

[22:10] Basically, big momentum movements have been seen, but they are still in the middle. So, the time for option sellers has come here. So, either leave these days for option sellers. not, I trade in Sensex. Today is the expiry too, but I have to trade in this, then you

[22:23] Today is the expiry too, but I have to trade in this, then you And the mistake most traders make is that they remain oversold on the expiry day. When trading starts here, if the market appears to be falling, we will buy a put. It starts going up a little. The

[22:37] premium starts falling. We will cut the put and immediately buy a call. The shows a little profit. We exit with a little profit. After that, it appears to be going up further. We will buy the same call again. In this way, we indulge in random

[22:50] trading and over-trading anywhere. We even take 10-15/25 trades and at the end, we are left with nothing. Due to over-trading, brokerage etc. increases further. If we trade in this way, If we trade in this way,

[23:03] increase and our confidence will decrease. This is the best thing to do. Prepare a plan for your expiry here according to the points I have told you. Then keep an eye on what is happening at the expiry. If the chart is moving according to your plan, if the

[23:15] then take a trade there. If the trade. If there is a stop loss in that too, then either close it or see a very good setup around the third trade, then take three trades max to max,

[23:29] if you incur loss in all three trades, then cut it down immediately and close it, in this then your chances of success increase a lot, after the third trade even if you see a very good setup in the fourth trade which gives a move of 500-1000 points from there,

[23:42] still you should not take that trade, you have to trade with this discipline trade with discipline the market will tempt you again and again to spoil your discipline and take a new trade, like for example you kept a target of three trades, your

[23:55] three trades got completed or whatever your stop loss is of per day or target per day, it got fulfilled, even after that the market will show you if you keep going up from here, call me buy, I will go down from here I'm going to buy a put, and

[24:08] in this process, the market will try to break your discipline. If you're breaking the rules and not following discipline, then You don't have control over your emotions. I've been getting

[24:22] Midcap Nifty. Please provide analysis for that as well." they said they trade new expiries every day in the hope of gaining momentum, doubling and tripling their capital, and earning good returns. But

[24:37] you need to understand that we shouldn't chase expiry; I've discussed the expiry setup thoroughly with you here, discussing all the points. We need to wait for the time when all those ticks

[24:50] appear, and when that appears to be happening. To opportunity come to you automatically. Wait for that time. Focus on one or two particular indices so that you automatically know when the expiry might be trendy.

[25:04] And the day you stop chasing the expiry in this way, you will see for yourself that when that opportunity comes to you automatically, at that time when you will losses will be safe. For

[25:16] made a return on it around 260. Now I can use that return in my stop loss and take more trades from it in the future. This will keep me confident. momentum, I will be able to take good trades even on daily time.

[25:30] heard, option sellers have a opportunity here. The rest of the option buyers have a probability of around 33 here.

[25:43] option buyers have a probability of around 33 here. trading with the same aggression, or chasing the expiry. You'll find yourself falling into an unnecessary trap at the option seller's expiry. It's better to be patient and

[25:58] wait for your turn. When your turn comes, you'll generate good returns. means we see sideways or momentum on both sides at 66. But their percentage

[26:13] returns are lower than ours. As compared to option buyers, our better here. We just have to wait for our turn. We can't trade by chasing every expiry. A long weekend was coming up, so I

[26:26] Many of you had doubts about this, and I thought I'd share my Hopefully, this video will definitely add some value to your trading life. You video will definitely add some value to your trading life. You

[26:40] can tell me by commenting on which topic you want the video. If you liked it, you will