What is a Zero Hero Trade?
40sDefines a high-risk, high-reward trading concept that intrigues viewers seeking quick profits.
▶ Play ClipThis video explains the concept of 'Zero Hero' trading in the Indian stock market, focusing on buying deep out-of-the-money options on expiry day with small premiums that can either expire worthless or yield massive returns. The speaker outlines specific rules, risk management strategies, and a step-by-step plan for executing such trades, particularly on monthly expiry days.
A Zero Hero trade is where the capital deployed either becomes zero or doubles, triples, or even increases 10-20 times. It involves buying options with very low premiums (₹6-10) on expiry day.
The trader becomes alert around 2:30 PM and executes the trade between 3:00 PM and 3:15 PM, as the entire game happens in the last 15 minutes of expiry.
Premium should not exceed ₹10-12. Choose at-the-money or slightly out-of-the-money strikes to keep premium low and allow buying more lots.
Around 3:00 PM on expiry day, if the market becomes volatile, a gamma spike can push the premium from ₹10 to ₹50, multiplying capital 10 times. Without the spike, the premium goes to zero.
Plan the trade on the opposite side of the day's trend. If the market has fallen, plan for a upside reversal; if it has risen, plan for a downside reversal.
Never risk entire capital. The winning probability of such trades is only 12-20%. Risk only 1% of capital per trade. For a ₹1 lakh capital, risk ₹1000.
On monthly expiry days, the speaker increases risk to 2% of capital because monthly expiries are more volatile and offer better opportunities. Weekly expiries stay at 1%.
On a monthly expiry, the speaker bought a 46000 put at ₹1.25 around 2:43 PM. The premium later spiked to ₹12, then to ₹31-43, and eventually to ₹60. The trade yielded significant profit.
Monthly expiry days see higher volatility due to rollovers and position closures, making them ideal for Zero Hero trades. A gamma spike around 3:00 PM is common.
If not planning a directional Zero Hero trade, one can create an at-the-money straddle when both call and put premiums are around ₹10. Maximum loss is limited to the premium paid, and a spike can yield profits.
Zero Hero trading is a high-risk, high-reward strategy that requires strict risk management and precise timing. By risking only 1-2% of capital on monthly expiry days and selecting low-premium options, traders can potentially achieve outsized returns while limiting losses.
"The title accurately reflects the content, which is a beginner-friendly guide to Zero Hero trading with clear rules and risk management."
What is a Zero Hero trade?
A trade where the capital deployed either becomes zero or doubles, triples, or increases 10-20 times.
00:02
What is the ideal premium range for a Zero Hero trade?
Between ₹6 and ₹10, not more than ₹12.
01:34
At what time should a trader become alert for a Zero Hero trade?
Around 2:30 PM.
01:06
What is the execution window for a Zero Hero trade?
Between 3:00 PM and 3:15 PM.
01:21
What strike price should be chosen for a Zero Hero trade?
At-the-money or slightly out-of-the-money.
02:08
What is the winning probability of an at-the-money or out-of-the-money option on expiry day?
Only 12-20%.
04:17
What percentage of capital should be risked per Zero Hero trade?
1% of capital.
04:44
How many lots of Nifty should be bought if capital is ₹1 lakh and premium is ₹5?
4 lots (200 quantity).
04:59
On which expiry does the speaker increase risk to 2%?
Monthly expiry.
05:39
What alternative strategy is suggested if not doing a directional Zero Hero trade?
Create an at-the-money straddle by buying both call and put when premiums are around ₹10.
09:24
Zero Hero Definition
Clearly defines the high-risk, high-reward nature of the strategy.
00:02Premium Limit
Emphasizes the importance of low premium to maximize lot size and potential returns.
01:341% Risk Rule
Critical risk management principle that prevents catastrophic losses.
04:03Monthly Expiry Advantage
Highlights the increased volatility and opportunity on monthly expiry days.
05:39Straddle Alternative
Provides a non-directional alternative for capturing gamma spikes.
09:24[00:02] or how to plan a Zero Hero trade. Before planning a Zero Hero trade, let's understand what a Zero Hero trade actually is. A capital you deploy will either become zero or double,
[00:17] triple, or even 10 times, or even 20 times. If we talk about Nifty calls, premiums of ₹1000 have reached 0 ... On the premiums of ₹1000 have reached 0 ... On the
[00:52] mean, usually I always plan for the trade on the opposite side. The second thing is that it is for the trade on the opposite side. The second thing is that it is you can plan a Zero Hero trade at any time. The point is that for a Zero Hero trade, you
[01:06] become alert approximately around 2:30. You are ready for that Ro-Ro trade. The for planning a Ro-Hero trade. That is, the
[01:21] entire game happens in the last 15 minutes. So, firstly, we are that now we have to look at ourselves and remain alert. And between 8 PM to 3:15 PM, there is the perfect timing for planning a road. Now the third biggest question that is coming up is that
[01:34] whenever we plan a road, if we talk about Bank Nifty or We can also talk about Nifty. If we look at both, the premium should not be more than ₹ ₹ 10 ₹ 1. Let us understand once again. Here we can take a premium of ₹, ₹ 6, ₹ 10, ₹
[01:54] not make any sense to take more than that. A premium of 50 is going on. We do not want to do the Zero Hero Trade Plan of ₹ 1000000. That is stupid. Now question, which strike price do we have to choose. Let us understand this also
[02:08] first, then after that it will be relatable for you. Understanding the above point, if we talk about strike price, then we always choose at the money or we can go out of the money. Okay, now out of the money means suppose Bank Nifty is trading at
[02:20] 47500. If you feel that the market is going to go up from here, then Take 47600 instead of 47500. Now this is so that you get a little less premium so that you can buy more lots. Let's talk about why it is so that you always have to choose premiums of ₹ 8 ₹ 10 ₹ 1.
[02:37] First thing, when you go to At the Money or Slight Out the Money, then usually around 3:00 pm on the Money, then usually around 3:00 pm on the day of expiry, the premium is
[02:54] market becomes volatile, then this premium of ₹ can also be 50, so your capital becomes 10 times in that case, but if there is no Gamma spike, then this capital will also become zero. So I hope everyone has understood the points till here well. Now after this, let's
[03:09] reversal means if the market has fallen, for example, then we will always plan for the opposite side around 3:00 pm, if the market has fallen It is seen that it has gone up first, so we will plan for the downside.
[03:21] point. Our second point is that we are alert for it around 230 and will execute it properly only between 3 to 315. Third, the alert for it around 230 and will execute it properly only between 3 to 315. Third, the maximum and the fourth is by going at the money or slightly outside the money. These are the
[03:37] four rules for doing a zero to hero plan, which are actually important rules. Now the biggest question arises as to how to do it in planning. Now see, we are doing zero hero, but your risk management should always be in check.
[03:51] After this, I will share my risk management strategy with you, how do I manage my risk and that is the biggest factor. So now we have to do this under zero hero risk management. It is not that we put our entire capital in one go, do
[04:03] to zero or your capital will be lost. Four will become cubed and the chances of it becoming zero are very high because according to technical terms, if you are taking an at the money or out the money option on the day of its expiry, then its winning probability is only
[04:17] 12 or 20, it is not more than that. Understand this way that if the winning probability of something is only 20, then risking the entire capital there is a big foolishness and no one does it. If you ever see that
[04:30] someone made 5 lakhs or 10 lakhs in a zero to trade, then if he is making 5 lakhs and if the premium of five is 50, then he has also taken a risk of 50,000, then there are chances of it becoming zero management can be different for everyone, different means the usual percentage is
[04:44] 1, but now how can it be 1? Suppose I have a capital of ₹1 lakh, then current premium is ₹ So how many lots should I buy? I have to buy only that many lots
[04:59] in which even if it becomes zero, my loss will be 1000 or around that. Now how will we do this, we will divide 1000 by five. Okay, if you divide then your answer will be 200. So now this means that we have to buy 200 quantity. Whether it is Nifty
[05:12] or Bank Nifty, if we go to Nifty then one lot is 50, so there are four lots. If it is 15 on Bank Nifty then there will be around 12 lots. I hope you got this thing now. Now what will happen with this, when we have taken it as per risk management, then even if in
[05:25] fine and if that thing becomes hero then if the premium of five lots becomes 50 or even the premium of five becomes 20, then your risk was 000, you will make a profit of 4000. What many people do, or what I personally do, is that I have a monthly
[05:39] expiry. Because there is only one expiry in a month, and I only get to trade 12 expiries in the entire year, I increase my risk a little on the monthly expiry. If, for example, I have to trade at 1, my capital is allowing me to trade at 1, so I increase
[05:53] it to 2 on the monthly expiry. If it goes to 2, let's say, I have a Now, instead of 1, we are keeping it at 1 on intraday and scalping, but only on the day of the monthly expiry, if we set it to 2, if there is a loss in this case, then let's say, I will
[06:06] lose 2000, it will go to 2, but I can balance out this 2 from my intraday radius call. But if it plays out, I can get 6000 or even 8000. You can also get 10,000, okay, and if this happens,
[06:20] 50% of 5%, then you can also get 20,000 on a single trade, and that would be a big thing. If this happens, then my capital will go up to 20% in a single day, which is a very good number. This is how the Zero Hero trade plan is actually done. If you are planning for a four-week
[06:34] expiry, then my suggestion is that you should not increase the risk management, keep it at 1 or 1.5%. If you want to push it in the monthly expiry, then you can do it, that is, see according to yourself, whatever your capital is, I don't know what it is. Someone may be at 1 lakh,
[06:47] lakh, or even 20 lakh. Personally, if mine is at 1, then I make it 12% on the day of monthly expiry. All the other weekly expiries, I usually do it in Nifty and Bank Nifty. I
[06:59] just do that, if the expiry is normal then my position remains at 1 in it, if I get a zero hero, if I don't see it then I don't take it, this is a monthly expiry, I even skip the weekly expiry many times but I never miss my monthly expiry, it is
[07:12] 29th February, this Thursday right, so if you see, it is written here that guys, there will be no class today, I have to trade, focus on monthly expiry, which means live trade, which means I do not do live trade, okay,
[07:24] I also have to join your premium group and all, there is nothing like that, live trade trade, they sit and observe how things happen, how I am doing said that today I am not going to do that thing because I have to focus completely, I have to
[07:38] not divert, that thing cannot be done in life class, after that thing happens Look, you can see 243 PM. I took a screenshot of 46000 put at 243 PM. If you completely bullish, so I was taking the opposite trade. The premium of 46000 put was
[07:53] ₹1.25 at that time. What has been written below is this, this is how zero is the plan. Currently it is at 12. Now only that amount which will go which has to be equivalent to our loss and risk management on edge. Okay, so either it will be zero or if it goes up to 50-60, then
[08:09] This is what I mentioned is correct and we have to suddenly, I mean, this premium decreased after 12, it went to ₹, so some people had taken the
[08:21] premium even at ₹ and after that, see the next screenshot, it has gone to 3:1, that is see the next screenshot, it has gone to 3:1, that is But it went between 43 and 31 and the premium had reached a high of ₹1, but I was able to take a screenshot of ₹1 and I
[08:35] n't hold that much. My entry was although it went up to 60. Later, some students also exited at 60. I think I couldn't exit around 60 or 58, but this is how it went. Finally, after the whole day, my
[08:47] a very good experience. It was the monthly expiry that day, so it was a very good experience. You understood how to plan and this is how it is planned. Apart from this, there is no magical strategy, no secret, nothing like that.
[08:59] Zero to Hero is very close to zero. You can just understand that you can expect that the market will gain momentum today. What happens on the monthly expiry day is that it is the last trading day. There are monthly rollovers, future rollovers,
[09:11] many positions close, many open, due to which the market becomes volatile, so a spike automatically occurs around 3:00 pm. Okay, one so that it helps you out a little more. You can also do this, on the
[09:24] day of monthly expiry, if you do not want to plan a RO Hero, you can create a Stradder, open an ATM, when both the premiums are seen around ₹10, buy both, now your maximum loss is only ₹ and if a spike comes, which usually happens on the
[09:36] Share the video because those who are trading should plan like this, it is not that we invest the entire capital in vain and this is how it is done, this is how basically I plan, calculate my risk and
[09:49] process is like this, I share just Think, be sure to subscribe because you'll get a notification. See you in the next one See you in the next one [Music]
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