Zero Hero Trades Explained
45sHigh curiosity hook about turning small premiums into huge gains, appealing to traders seeking quick profits.
▶ Play ClipThis video explains the concept of Gamma Blast in options trading, focusing on how to identify and execute 'Zero Hero' trades on expiry days. The presenter details the role of Theta and Gamma, market conditions like India VIX and major events, and a specific long straddle strategy for capturing explosive premium moves.
Gamma Blast is a term used to understand when Zero Hero trades (premium going from near zero to high) are possible in options trading, especially on expiry day.
A spike in India VIX (5, 7, 10, 20 points intraday) indicates increased volatility and higher chances of Gamma Blast, typically in the second half of the trading session.
Major events like Lok Sabha elections create rumors and volatility, leading to sudden market movements that can trigger Gamma Blast.
Theta (time decay) melts premiums gradually, especially on expiry day. After premiums are low, Gamma takes over and can cause explosive moves due to short covering or long unwinding.
When price crosses a heavily shorted strike, sellers' stop losses trigger, forcing them to buy back, which accelerates the price move. This is the core of Gamma Blast.
On expiry day, around 2 PM, if premiums on both sides have melted and heavy OI is present, buy a long straddle (same strike call and put) to capture the Gamma Blast.
Gamma Blast occurs only 4-6 days out of 20 expiry days. Use only a portion of profits for this strategy, as it is akin to gambling and can lead to significant losses if applied daily.
Gamma Blast is a powerful but rare phenomenon on expiry days, driven by short covering after premium decay. A disciplined long straddle strategy around 2 PM can yield high returns, but it should be used sparingly and only with risk capital.
"Title accurately promises a strategy for Zero Hero trades on expiry, and the video delivers a detailed explanation of Gamma Blast and a specific long straddle approach."
What is Gamma Blast in options trading?
Gamma Blast is a phenomenon where a low-premium option (e.g., ₹1) explodes to high values (e.g., ₹100-200) on expiry day due to short covering or long unwinding.
01:01
What two factors drive Gamma Blast?
India VIX spikes (intraday increase of 5-20 points) and major events (e.g., elections) that create volatility.
02:11
What is the role of Theta on expiry day?
Theta (time decay) melts premiums gradually, bringing them down to low levels (e.g., ₹10-15) by the afternoon.
04:01
What triggers the explosive move in Gamma Blast?
When price crosses a heavily shorted strike, sellers' stop losses trigger, forcing them to buy back (short covering), which accelerates the price move.
06:35
What is the recommended time to execute a long straddle for Gamma Blast?
Around 2 PM on expiry day, after premiums have melted and heavy OI is present on both sides.
14:51
What is a long straddle strategy?
Buying both the call and put options of the same strike price (ATM or near ATM) simultaneously, expecting a large move in either direction.
15:47
How often does Gamma Blast occur in a month?
Approximately 4-6 days out of 20 expiry days.
18:47
What risk management advice is given for Gamma Blast trading?
Use only a portion of profits (e.g., ₹1,000 from ₹1 lakh profit) and do not apply the strategy daily to avoid significant losses.
19:55
Gamma Blast Defined
Core concept of the video: low premium options can explode on expiry day.
01:01India VIX as a Predictor
Practical indicator for identifying potential Gamma Blast days.
02:11Short Covering Mechanism
Explains the market mechanics behind the explosive move.
06:35Long Straddle Strategy
Actionable strategy for capturing Gamma Blast with defined entry conditions.
15:47Frequency and Risk
Emphasizes the rarity and risk, preventing overuse of the strategy.
18:47[00:01] premium on one side can explode in this way and as soon as it exits, as the what will people like us do, we will buy here, those who are shorting and interested here, the buyers who are buyers are also buying, so at
[00:16] what speed will the market go up, it will go up at 2x the speed, Jai Hind friends, how are you all, I hope you are doing quite well, friends, everyone has to do Zero Hero, everyone has to trade on expiry, Hero, everyone has to trade on expiry,
[00:30] want to catch such trades, then you will have to Gamma Blast, which is the second most important factor of Option Greeks, because if you understand Gamma Blast, if you work in it, then you yourself will learn to catch
[00:45] Zero Hero trades in Option Trading, I will
[01:01] okay, so today's The video is going to be completely about Gamma Blast because Gamma Blast is a term based on which you can understand in the market when, in real life, we will get to do Zero Hero in options trading today or not,
[01:14] or today's market is not for Zero Hero. Okay, so without wasting your time, let's start this Before starting the video, let me tell you, brother, 70 people have not subscribed to my channel. You guys are watching videos on the channel, okay, you are learning things. If
[01:28] you click on the subscribe button once, it will give me some more motivation. which is not available in big courses. I bring it to you here for free. Because here
[01:42] also share my experience here. Okay, so without wasting your time, let's start the video. Well, friends, there are many things to drive Gamma Blast, market Let me tell you according to the current market conditions, as
[01:55] you definitely get to see that the premium of ₹1 goes up to 100-200, okay, now I want to tell you one or two important factors important one is India VIX, okay, if India VIX is intraday, I am
[02:11] okay, if intra VIX increases then the market volatility increases, panic increases, but if you see a spike in it at 5, 7, 10, 20 in intraday,
[02:24] VIX, it means there are high chances here that you can get an opportunity to trade zero row or you can see a gamma blast, that too in the second half, mostly, if you people trade then you will know one thing
[02:37] When do you capture Hero Trades? When the market 's premium melts first. broken. After the premiums are broken, when the premiums are moving at a specific price, there are high chances that you may see a gamma-force move from there.
[02:50] mostly seen in the second half. Okay, second, big events. Now, as we are going through the current time, going to happen in our market, which can impact the market in a very heavy way, is the Lok Sabha elections. Lok Sabha elections are because there are a lot of
[03:06] rumors right now. At this time, a lot of positive and negative news comes on the ruling government. To create a negative image for this,
[03:18] this kind of up and down volatility is being seen in the market right now. Okay, recovers suddenly and closes in the positive. Then the next day it opens with a slight gap down and then the market crashes for the entire day, so why is all this
[03:33] and on the basis of that event, small events are taking place in the daily market due to which the wax itself is becoming volatile and there are big events in the market too due to which we get to see big movements in the market sometimes, okay, so
[03:48] these are two factors, first big events, second India VIX which drives our Gamma Blast, okay, so I just told you how Gamma makes its impact in the market, if you want to zero hero in the market, now I will
[04:01] tell you that exactly, now you should understand this thing, what is the role of Gamma, I have Gamma Blast, but what is its role, suppose see, the first factor is Theta, how long does Theta work, when on Friday, if I take an example that here I On
[04:15] Friday I have to trade Nifty's expiry or on Friday I have shorted some Nifty's expiry around ₹1 and from below let's say someone has shorted a put on Friday same day what has he done, he shorted the put around ₹1
[04:27] okay the first factor which will take it to expiry or we have to carry it to expiry the first factor which will impact this premium is our theta now what will theta do it will bring this premium down it will take it down
[04:39] and this premium will also take it down okay now why am I saying on the day of expiry because on the day of expiry in the last hour let's say after 1 o'clock okay after 1 o'clock after 2 o'clock between 1.30 and 2 o'clock by then
[04:51] both these premiums have melted now when there is time left for their expiry how much is left hardly 2 hours they will expire in the next two hours okay so now you see what is the role of gamma here how gamma
[05:03] what is the role of gamma here how gamma of 100, let me say, has reached ₹ here and this premium has also reached around ₹10. Okay, now the first factor which
[05:16] played a role in this was Theta. Theta has played its role, Theta has played its role, play, the premiums have already melted and the one who shorted from here also made money, the sellers
[05:29] Theta has played its role, time has also played a role, now there is less time left. Now the most important role here will be Gamma because we have less time left, so the most important factor is Gamma
[05:43] because now you have to observe this thing that brother, on that day of expiry, if the premiums of both the sides are equal to the premiums of both the sides The price is running very low at the time of means expiry, when the expiry is near, in other words, the expiry has come, it will
[05:57] expire in the next two hours, there is a buzzer, the expiry is on Thursday and you are seeing low premiums on both sides, it means there are high chances that gamma can play a role there because theta has already played its role, time decay has already happened
[06:09] and here there are chances that the premium of any one side can blast in this way, okay, so this is what happens, here if there is a premium of ₹10 or ₹1, you may not find someone trading ₹1, this is called gamma blast, whether it is of this side or
[06:22] rule of gamma plast will be at this place, okay, but that is why I am saying because you will get to see all these rules only and only in expiry, now I will tell you how this type of movement of gamma comes here,
[06:35] now you A curiosity might be arising in you that brother, okay, we have understood till here but how does such a movement happen, then the most important factor here is short me explain to you about short covering, as it is long unwinding also happens,
[06:48] gives a good bull run or a good rally, in long unwinding a good amount of panic selling is shown, now how does it happen, suppose a contract opens on Friday at the rate of 100, let me consider it as ATM,
[07:02] okay, ATM or any other, you can keep ATM or OTM also, I am giving an example, okay and from 100, now its expiry is on Thursday, okay, which is our coming Thursday, so the price came from 100 to 80, okay, here someone
[07:15] shorted it, he minus, I am putting a minus here, then it comes from 80 to 50, here he shorted this 50 becomes 30, here someone shorted it, okay, it becomes expiry, suppose today is Thursday, so on Thursday it was around ₹ and from ₹10
[07:32] because on the day of expiry the premium melts a lot and who is most active are the sellers, okay, so on the day of expiry most of the sellers to see the premium melting, they will get to make a lot of money, people have already been
[07:44] making money from here and already they have been seeing that brother this premium is melting by being suppressed, so you are buyers, you are waiting for zero row, okay, now from here 20, now what happens is that this strike
[07:58] price, let's assume the strike price is 22000, so the strike price of 22000 Yes, okay, it opened in the morning, so the premium was 200, it expires from 30, that means by the evening, it came down to ₹12, by 12:30, 1 pm, okay, and our price is also
[08:12] running a little below 22000 near by, okay, the level is 23000, its price is hovering somewhere around here and now what will happen here is that look, the premium of ₹10 has come down from ₹10 to ₹15, as if I understood here that it has come to ₹1,
[08:26] but it must have been heavily shorted, it is around ₹, people must have shorted it by pressing it at this place, okay, so how, somehow, if near the expiry, the price comes here and starts sustaining above it, by the time the market closes
[08:39] or suppose from around 1 pm, the spike price starts closing above this 22000, then a who have shorted it price is trending, right now it will start increasing from 15 for ₹1 at 20,
[08:53] who has placed stop losses first, who has placed them around ₹22,000, right, the sellers, and how will it increase because our price has started rising above 22,000 and what have they shorted, they shorted 22,000 by holding it, right, because they believed that it would
[09:07] remain below 22,000, and as soon as a spike is seen at 22,000, whose stop loss will be triggered first, those who had shorted at ₹20, because they have invested a lot of money, they keep short in large quantities, and what they have to do there itself, they have to
[09:19] cover their shorted position, that is what we call short covering, and as soon as this short covering happens, what will they do, they will exit, what will the one who sold do, they will buy the position, and as soon as it exits, as the price starts rising
[09:32] what will people like us do here We will buy here, okay, so we will buy, those who are shorting and who are interested here, the buyers are also buying, so at what speed will the market go up, it will go up at 2x the speed and as the premium of ₹1 increases, it will withdraw 20,
[09:49] 30, 40, 50, 60, 80, and this one premium of ₹1, you will get to see ₹10 at each point of the time,
[10:01] who drove theta, the entire value of theta was eaten up in it, it got eaten up in time, but who triggered the stop loss of those who were sitting here to eat theta, Gamma here, so this is
[10:15] called Gamma Blast, when you see short covering or long unwinding here, there is a possibility and it is seen happening at that time, you have to enter This is because you know that sellers have made a lot of money here. Sellers have
[10:27] stop losses, they have shorted at their level level here. As soon as their level is crossed, a huge boom is seen before expiry. And when long under winding or short covering happens, you must have seen that on that day, by the time of expiry, that is, by the time of
[10:39] expiry or within the next two hours, You will see a moo movement of 100-150 points coming in the second half. Why did it come? Because there was a gamma blast here. Okay, guy. By now you must have understood the potential of gamma blast
[10:54] that this is very easy, I will catch it here in the market or I have Now let me tell you a little more strategy which can help you in studying gamma blast. Zero hero in catching gamma blast,
[11:08] in understanding it yourself because understanding it yourself is very important, it is Monday and tomorrow will be Monday, expiry is on Monday, so when I have my Dhan chart here, link in the description box, you can open your account and trade in Dhan, it is
[11:21] chart you get to trade here, you I have placed a mid cap option here,
[11:33] premium of mid cap or the strike price which I want to I have a chart of the option, that has come to me, okay now what I am seeing here is that the mid cap is moving around 1150, okay now
[11:46] if I look down, on the C side, the highest on the C side is 11000 075 11000 100 11125 What is visible in this, the OI sitting on the C side is sitting at its highest, look 111 11 11100, the sellers are sitting here 11150 11200, okay, they are
[12:03] sitting heavily shorted here and if I look below on the put side, the means I am getting support of 11000 right now and I have a lot of resistance because the market was negative, okay, like if you look at the market, it is
[12:16] negative and the second thing is a PCR, PCR 0 p 0.72, if you want a complete video on PCR, you can comment on me, PCR, I will tell you how to understand PCR for you, PCR is 0.72, it means now we are heavy here, now we cannot short here,
[12:31] here we will have to look for a reversal, creating a position on the sell side can be risky for us, so there are high chances If the price goes up tomorrow, then we can see a big rally or a big premium blast, Gamma Blast. Now
[12:45] told you an example, because I did PCR study, because when the market came down, it made everyone sit on the top, and below on the put side there is an important level 11400, if it goes down now, then a premium will move well throughout the day, otherwise
[13:00] goes down now, then a premium will move well throughout the day, otherwise here if the price moves upwards, then we can see Gamma Blast here. strategy, if you are a beginner, if you are working in the market, then how should you
[13:13] strategize here, what strategy can be for you so that you can catch a zero, the first point is okay, you just have to work on the expiry because if you want to catch all these Gamma Blasts, you need expiry, when will be your expiry time,
[13:26] okay, I will tell you this. 12 or 1 PM is fine, not before 12 or 1 PM because what happens in the first half is if any premium is opened at ₹, our add the money, let me assume the premium of ATM, ₹ opened from 0, it will
[13:42] also come to around ₹1 here, if it melts, it will come to 15 and here let me talk about C and if I talk about P here, then if it has opened around 30, then it should also melt and
[13:58] melt, what will be our time, which will be around 1 PM, you can say 1 PM or the time after 1 PM, okay, so the first step is that your expiry time will be after 12 PM only, you will catch it in the second half and
[14:12] most probably you will work only after 1:00 PM, between 2:00 PM and 2:00 PM Then you will see a great deal because the premiums melt very quickly between 1 pm and 2 pm. So, for me, because the premiums melt very quickly between 1 pm and 2 pm. So, for me,
[14:24] if you have a little risk in the market, right? If you want to invest a part of the profit you made during the day or the profit you made during the week, then there is a specific time, 2 pm. I am telling you a specific time around 2 pm,
[14:38] if you see the premiums melting on both sides and see the premiums melting on both sides and both sides are heavy, okay, what are the both sides are heavy, okay, what are the
[14:51] suppose our premium here is running around 000, a running around 000, a put option of 10000 050 or a put option of 11000 50, shorted and sellers are sitting on both sides and the premiums on both sides have melted,
[15:05] this is the time, there are chances that you can take the risk. Some money because you have to make a zero hero. What does zero hero mean? Your money will either become mean? Your money will either become zero. This means your money
[15:18] can give you 5x or 10x returns. So basically, what you are doing is you are betting here. way, you are gambling or betting on your view somewhere somewhere. So, you are betting on your view that here there are chances that
[15:34] we might get to see a gamma blast and Meaning, you will have to gamble a little there, that is why I am calling it gamma blast instead of zero. Now, if you understand zero hero, then your time can be made here
[15:47] that when around 2 o'clock your premium on both sides has melted sellers sitting near the strike okay, so now
[16:00] strategy you have to work with here is called long steddle long steddle. Meaning, what you do is your option is the same, okay, your time is also the same, your price is also near by the same, it will
[16:17] move up or down by a point or two, means if you are buying any strike price, which strike price, I said that if I go here, then I am seeing here that I have to buy C of 11000
[16:30] seeing here that I have to buy C of 11000 here, okay, I have to buy both C and P here, okay, because I am seeing that there are high chances on both the sides that it can burst from here, so this 15 can go to 150,
[16:43] if it comes down then this premium of ₹10 can go to 100, so it means what is one side, even if I put 55000 on both the sides, I can buy this from 5000. I bought it for Rs 5000, how much loss will it give me, it will be Rs 5000, but
[16:58] if the premium goes up even 10 times, then it is giving me a profit of Rs 50000, 50000 - 5000, so I can get a profit of at least Rs 40-45000, so what do we call this strategy, the name of this strategy is long straddle, it means what do you do,
[17:11] here you buy the C option of the same strike price or the strike price at which the price is running, which option of yours is the
[17:23] same, the first thing is okay, suppose you bought the option of strike price of Rs 11000, you bought the C and P option of Rs 11000, you bought both at the same time, that means you bought the same stock price, you bought it at the same time, I said which time, 2 PM,
[17:37] okay End price, you assume the same price, you bought both of them between 12 to 15, you bought one 123, you bought one around 14, so at the price of 1214, you bought that strike price which is 11000 call option, you have
[17:53] which is 11000 call option, you have cable here, when you have to catch, you have to catch your Gamma Blast and I have told you the situation of catching Gamma Blast, on the day of expiry, the premium on both the sides should
[18:07] melt, heavy sellers should be sitting on both the sides, okay, there should not be heavy OI build up on both the sides, the near buy strike price is 11, so the strike price above 11, the strike price below should be pressed and
[18:19] sit there, okay, your time will be 2 PM, which means you will be in the second half, strike price you have to choose at The money that is running, you have to buy both the call and put options, you have to buy them at the same time, okay, the same stack
[18:33] price will remain, you have to invest the same capital, it is not necessary that the fund that you invest there, your fund should not fluctuate, you have bought it above 5000, your buy will be from 5000 only, means you have bought the call from 5000, then your put will also be from 5000,
[18:47] now I will tell you a few things here which I am going to pay attention to, that this Gamma Blast, if you have an expiry of 20 days in a month, let me and the expiry is 20 days out of 20, then out of 20, you may get to see 6 days, you may get
[19:03] to see 4 days, otherwise, you will not get to see these things in the remaining 15, 16, 18 days, so you do not need to apply this thing regularly at all, apply it regularly. You may face significant losses. However, if all of these
[19:15] conditions match what I've told you about the expiry date, and all the points I've mentioned so far, watch the video again. If all of these things match, then what you should do is take some of your profit there.
[19:30] Because everyone needs to grow their account a little bit, make a little bit of money. When you hit jackpots like this, boosted, knowing that money is made in this way in the market. And if you hit such large
[19:43] jackpots, it's possible that some portion of your overall losses may also be reduced. So, you have to invest a portion of your profit in this. If you have a profit of ₹1 lakh, then you can bet ₹1,000,000 here or
[19:55] apply this thing here with ₹1,000,000. And secondly, these two things. You don't have to do this every day. you see all the conditions apply it in every expiry, you can lose a lot of money here. Third, if you
[20:10] work in the market. Otherwise, if you have come with the mindset of doing Zero Hero or have come with the mindset of gambling in the market, then do but on the day it works, it gives you a very good return. So, on
[20:24] this basis, you should do Zero Hero in the stock market. Zero Hero in the stock market. that someone will make you a profit. If you have gained knowledge of this thing by now,
[20:37] if you have watched this entire video till the end, it means that now you understand when we can get Roro trades. Now you are capable of finding out your own Zero Hero trades. That's why, capable of finding out your own Zero Hero trades. That's why,
[20:49] financial advice in the market, you should definitely consult your financial advisor. how you can capture zero row in the market with the help of Gamma Blast. How did you like the Gamma Blast video? Please let me know by commenting. Otherwise,
[21:03] if you want a video on PCR, in which I told you that after looking at PCR here, I told you that I do n't see any more selling here, or I wo small scale reversals from here. Otherwise, I'll
[21:15] look at how I understood it. If you want to know how, comment on PCR. I'll bring you a video. I hope you'll like the video. Those who want to learn these deep stock markets can do what they want. The
[21:29] link is in the description box below. You can go to my website and which include a main course, the basic one, and the big B strategy. Sculpting. He seen me doing scalping, I have been doing scalping for a long time, so I am
[21:42] going to have a pro master class based on scalping where I will tell you how to scalping, in what manner, how many ways, how many types of scalping are there, how to scalp on each candlestick, each chart pattern, each indicator, I will teach you that if you want to learn it
[21:55] brother, you can comment on scalping and I will get more motivation that we have to subscribe to the channel, press the bell notification, we will meet in the next video till done, bye bye see in the next video till done, bye bye see you Jai Hind
[22:07] you Jai Hind [Music]
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