Options Trading Myths & Gap Strategies — Full Breakdown & Transcript

[00:00] When you asked me if I have any questions related to trading, I also picked conceptual questions. The number of shares increases, stock price decreases.

[00:17] At the same time, the future and options we hold will have a different impact. And particularly, when giving dividend. A stock in 500.

[00:29] Then, the put option, call option, future price, what is the situation? Because, I have been thinking of making a dedicated video for a long time. Along with this, the gap is increasing, the gap is decreasing.

[00:41] Or, what will you suggest to us? And friends, before going into the video, if you find our efforts valuable,

[00:55] try to encourage the efforts we are making by liking our video. But, I have picked questions related to F&O as well. there is a gap in the market.

[01:10] I will discuss the topics in the thumbnail first. So, first, in recent times, I think, in the last 9 months, a person who earned Rs. 1.40 crore with Rs. 40,000,

[01:26] Those who are advertising, We should also observe what kind of advantages the people promoting that person have. Rs. 40,000 with Rs. 1.40 crore within 9 months.

[01:42] Friends, that is to say whether it is real or fake. Again, people have tried to prove it as real by making another video. we should see the account details live.

[01:56] Whether it is real or fake, it is not correct. If it is fake, we do not have to think about it. with Rs. 40,000, we can buy options.

[02:09] We also get comments like that. So, I will address this first. If we see a successful story,

[02:26] or about Rakesh Jhunjhunwala, if we see a successful story, Like, Rakesh Jhunjhunwala,

[02:39] earned in lakhs or crores, But, it does not happen like that. may be the rest are also profitable.

[02:52] But, the big variation of Rs. 40,000 to Rs. 1.40 crore, Or, it may be an example in 10,000, if we see a story in 1 or 2 people in 10,000,

[03:07] rest of the 9,998 or 9,995 people, he earned 1.40 lakhs from Rs. 40,000, He used our software,

[03:20] so, if you also motivate him to earn, Did that person come out? The person who is selling his software,

[03:32] So, what did that person earn? It is to influence people to say that you can also do this. You also showed the yearly profit, right?

[03:47] I have to say just a few things about us. They are showing it like that. Because they are promoting option buying.

[04:00] If beginners think that option buying is real, But in option buying, If you go down thinking that it is real,

[04:13] There is a chance of losing all your capital. Let us think logically about our scenario too. That is the first time we came publicly.

[04:26] P&L has shown this. We were profitable for most of the months. how many comments did you get?

[04:40] for YouTube income. When you say that, This is this month.

[04:53] We never tried to show it like that. It is not right to say that trading is great by showing profit. I have already given you the justification for this.

[05:07] Our intention is not to show that Fake trades or fake stop loss will trigger. I have not mentioned 2nd video in trading.

[05:20] Leave the job. I have not mentioned such things in any video. We want to reach every retailer with option selling videos.

[05:34] I have mentioned profit in many places. I have mentioned profit. People who think it is necessary,

[05:47] Everyone in trading should watch it. instead of buying a stock, a person should understand to sell put option.

[06:00] How is time decay? How to understand all these? We thought everyone should watch that series.

[06:12] we should tell how we are gaining through it. Everyone will be in option buying and equity. people who are already trading,

[06:25] Option selling is the best option. we have displayed 77 lakhs profit for the first time. I thought that video would have a good response,

[06:41] They are saying that it is the first time that they are seeing us in that angle. From there, we have started to keep monthly. We started to say that how much profit we have got.

[06:57] if you watch every profitable video that we have done recently, We don't get money easily. we earn only this much.

[07:11] or if you want to come to the market, Trading is like this at one time and like that at another time. I am telling all this because,

[07:24] mostly the people who sell software, trainers, or paid calls, P&L, mostly they will provide. Because, if they show like that,

[07:38] But, the reason for showing is that. when we are doing monthly profitable videos, are we giving knowledge to the person who is watching it?

[07:51] Let's say, I am making a video that I got 10 lakhs profit this month. Will they learn anything? They will put like this.

[08:03] What will the person who is watching get, Andhwara? I will tell them that I got this much written. if we don't have any advantage in that,

[08:15] I am not showing the monthly P&L from there. When we don't have intention, it is not correct to show the profits in the thumbnail.

[08:27] We got the profit after a year and a half. This time, we posted the profit around 1.6 crore. I will highlight the trades that I got loss.

[08:42] I said that I will show the trades that got loss. or if I get loss in the year, I will highlight the video and explain why we got loss.

[08:57] the subscribers will not get the value. Compared to option buying and equity buying, For those who are already trading,

[09:11] you can trade, earn money, We have never used such fluke words. The intention of our channel is to make people who are trading in stock market,

[09:23] we don't even have the thought to make beginners invest. even if they buy small penny stocks, We have a channel to provide knowledge to people who are interested and are learning.

[09:39] But, we never said that stock market is the best trading in any video. We didn't disclose that you can invest with savings in stock market. We stopped the monthly videos because we thought that you are getting influenced by the profits.

[09:53] we decided to do this Q&A because we thought that you will get influenced by that. We have made videos related to P&L. We are thinking that we should not do that if we get a profit.

[10:07] We are thinking that we should not keep crores or lakhs profit from now. We didn't tell you to open the links below. We are earning our calls perfectly.

[10:20] We never disclosed the profits to tell you that our caliber is to join the course. But, we are getting influenced by you even if we see it. From now, if I get fixed in my mind,

[10:35] I will bring you a great learning if there is a profit in the videos related to equity. Even if we get profit in the past time, I tried to buy an option in those trades for 5 days.

[10:52] I tried to buy an option and I thought it was profitable. I bought an option and I sold it there also. I am telling those who want to be option buyers.

[11:04] Even if we have equity, technical analysis, support and resistance, we will sell put instead of buying call. But, we will not buy those.

[11:16] We want to go in that and option selling. As I said before, you will get extraordinary learning from it.

[11:28] First thing, it will not come in the thumbnail. we are not thinking of making a profit video. It is like we are saying about ourselves.

[11:40] When you ask us, it is generating a greed. But,

[11:52] we are not getting the logic. My decision is, Because, the rest of the world, trading world,

[12:04] Since the last 2 years, we have shown P&L. If you are also accepting this, We are thinking that,

[12:16] That is our individual performance. Tell your opinion in the comment section. we will try to do what you think.

[12:28] align with our thought process. Or, when there is a loss, How should we be protective?

[12:40] we will try to be in that angle in the upcoming times. I am telling everyone who is getting influenced by the 40,000 to 1.4 crore. There are thousands of failures stories.

[12:54] There are many delisted stocks in investment. getting delisted. you will come out of it and invest in good quality stocks.

[13:08] and wait for the delisted stock. when there is no logic, So, personally,

[13:20] They are also trying to do the same. and if you do not like the process, You should not ask me to do it.

[13:32] I have not said that you can do it. You can do paper trades in any video. Practice it in the market.

[13:44] We have given you the same suggestion. If you think it is good, If you think it is good, come to the market.

[13:56] You are showing it everywhere. You will be in thousands. You will be in thousands.

[14:08] If you trade with that in mind, You will be wrong to exit the market. I felt uncomfortable when I saw the question.

[14:20] it will be wrongly conveyed. If you turn into option buying, Those who have opened a brokerage account

[14:32] If you give one share of your capital, If you do not do option buying, Those who are in the brokerage level

[14:44] They will not give option selling. Even fake calls will be option buying. Option buying is bad.

[14:56] But if a beginner goes into option buying, there is a chance of complete capital being locked.

[15:08] with percentages. it will be 30, 40, 50. Beginners should not go into option buying.

[15:20] try option selling first. Next, if the gap is going up or down, that we have been holding since the previous day.

[15:32] strangle or any other option selling, we will definitely be in loss. After knowing that we are in loss,

[15:44] to take in the opening time. Let's say, the overall trend is bullish. I have sold the put with the previous day's opinion

[15:56] If the opening gap is down, If my view is like that, I have to wait for the support to break.

[16:08] my view will be wrong. The view I took from the trade So, if I don't exit from the loss

[16:20] then you have no connection with the gap downs. 17,200 to 17,700, If you think of a range like this,

[16:32] we can see without making adjustments You can trade with a range But what happens with this is,

[16:44] we make adjustments till the range closes. when the range breaks, We should be able to take positions

[16:56] If we trade like this, If the range breaks, We follow the straddle adjustments.

[17:08] then you will understand If you make an adjustment, Or you can come out in the adjustment.

[17:20] Beginners should come out. This is not for beginners. I am telling you how I will do it.

[17:32] But I am telling you my thinking process. If I have a strong view, If I sell the put,

[17:44] Let's say I sell the put in call 200. call goes to 100 and put goes to 500. I know that the put is opening in the put.

[17:56] If the put is opening in the put, I will come out. Why do I do this?

[18:08] the gap up opened. The gap goes down. In such cases,

[18:20] If we leave the adjustment, We don't know that. I will take a 10% risk.

[18:32] What do I expect for 10%? If recovery comes, good profit. I will follow the risk to reward.

[18:44] If the market is strong negative, and the put is in the range, and if the put is in 500,

[18:56] and if the put is in 100, and if the put is in 300, This is only in the gap down and gap up scenarios.

[19:08] The rules mentioned there are the best ones. what is our view? then keep a stop loss of 20%.

[19:20] I suggest you to go beyond 10%. If you keep 10, 20, 30 from there, Don't go beyond 5%.

[19:32] I think it is better. Don't go beyond 5-2%. Keep a minimum of 10% range.

[19:44] it will go below that range, It will come then. if we think it is balanced,

[19:56] if we think it is not, if we think it is a trade, Many have asked how to adjust in gap ups and downs.

[20:08] We should remember that. if you want to get 80% premium, if you think it is balanced,

[20:20] if you think it is not, it is okay to apply the golden rules. In most of the cases, it will be valid.

[20:32] Sudden reversal, sudden fall, It will be very quick in recent times. when the market is quick,

[20:44] you can follow the process I just said. if you want to play with premium, Let the market move as far as possible,

[20:56] Like, in 15 minutes, Even if Nifty moves 300, 400, It should move slowly.

[21:08] will work out well. and suddenly falls, when the gap is up and gap down,

[21:20] This is important. giving bonus, giving dividends, Okay?

[21:32] do not think about it. Even if you bought a future in 4000, stock price comes to 400,

[21:44] and trades at 400, There will be no impact on net to net. So, remove the stock split bonus from your mind.

[21:56] Actually, with examples, dividend and bonus. So, remember it.

[22:08] It will show the impact. stock price and future price will fall. All these will happen.

[22:20] There is no big impact. Recently, SEBI took an excellent decision June 28, 2022, I think.

[22:32] The way it was before, will get adjusted. 5 rupees or more than 5 rupees,

[22:44] There is an adjustment only if you give that much dividend. If you give less than that, That is the impact.

[22:56] But what SEBI did is, Not every company gives 5%. Those who give less dividends,

[23:08] will face difficulties. SEBI took a positive decision related to F&O. 2% or more than 2%.

[23:20] What is this adjustment? Let's say, a company in 100 gave 2 rupees dividend. Previously, they should have given 5 or more than 5.

[23:32] What happens then is, will go back to the dividend amount. If you gave 3 rupees dividend,

[23:44] Strike price will adjust. It will match the strike price. Because, sometimes,

[23:56] There will be strike prices like this. It will go round off. there will be no net impact.

[24:08] In options, So, the impact will be How does it happen in futures?

[24:20] if the stock opens in negative, If it goes down by 3% in future, You will calculate the previous day closing price

[24:32] You will compare the opening with that In simple terms, to the traders in futures,

[24:44] because of dividend. and now it is 2% or more than 2%. there will be no impact on all the corporate actions.

[24:56] NSE will do it. it will be when dividend is less than 2%. We can say that they give less than 2%.

[25:08] in the market that they will give dividends. on the put side and less on the call side. we will have a fall.

[25:20] and some futures will trade at a discount. The futures will wait for dividends. If you give dividends

[25:32] if we buy a put option the big buyers will participate we will be trapped.

[25:44] based on the corporate action. it is better not to be in options Instead of adjusting and

[25:56] it is better to be away from Because our theme is not corporate action. So, it is better to be away from

[26:08] Next, it is like when you are practicing When you are practicing, everything is fine. There are many questions like this.

[26:20] you buy at the price you want. But in reality, there may be a gap If you put more lots,

[26:32] It may be different from the price It is not reflected in the trading screen. if you have a gap after buying,

[26:44] and it may have gone to the exit. I am asking you to fix strategies. and protect the capital.

[26:56] This is not for learning trading. we can learn capital. you can trade with 1 stock.

[27:08] for 1000 or 2000 rupees. you can do bull call spread You can know whether the theme

[27:20] So, with less capital, for a certain period. Gradually, you can grow your capital.

[27:32] from my brother. what is working in the market. and paper trades related to it.

[27:44] you should trade with as less capital as possible. and understand that the concept in the market.

[27:56] The probability of success will increase. There will be a difference You should balance it emotionally.

[28:08] Don't do it with high capital in the starting. long and short activity in Telegram. Futures and options plus cash

[28:20] There are stocks, futures and options. FIIS, DIIS, institutional players They have more quantities in stocks.

[28:32] or goes down, They don't sell in cash or FII, DII data. They buy security puts in options.

[28:44] they sell puts instead of stocks. with cash, futures and options. end of the day data are important.

[28:56] They are derivatives. They are in buy or sell in options. If we analyze all these data,

[29:08] We can't analyze this data How they were in the past 10 days back,

[29:20] What positions did they maintain in futures? By doing comparative analysis, If they are in cash or buy,

[29:32] and increase long positions in futures. when they sell. they will keep buying in calls.

[29:44] If we understand the direction in the past, the market is bullish.

[29:56] the market is bearish. How is the pre-positioning in the system? 80% of the buyers are in short positions.

[30:08] and they have more short positions. so many short positions? they are already shorting FIIs.

[30:20] first thing If the market is falling, if it fall they book their profits those who sell call options, puts buyers they will get loss They will cover the short positions

[30:36] So, the system has like 85% long positions. Don’t see as a bullish.

[30:48] in stocks. When there are extreme positions, profit booking as a part of trading.

[31:00] it reverses with good volatility. Overall FIIs are positive. That is why I took this trade.

[31:12] We should be cautious when there are If they reverse in intraday, But we will be trapped.

[31:24] Whether it is long or short, we should keep in mind that This is the overall interpretation.

[31:36] If you still don't understand, We will discuss this again. next why didn’t you make video regarding vortex. you did it in the main channel.

[31:48] There is nothing to elevate that concept. I couldn't find a good strategy for it. I couldn't find a good strategy to combine it with other things.

[32:00] There is nothing to say again. I think 3 years back. We will know.

[32:12] It is also one of the indicators.If you want to follow it, next 9:30 advanced strategy you will have a call and put left.

[32:24] You said that you can sell it in the next level. If you have a call and put left, not 20%, it is 30% if you ask me 20 or 30 follow 30%

[32:36] mostly It will not betray you. But there will be conditions to betray. Because trading is not 100%

[32:48] But 30% is suitable. If the call and put is left, the loss will be minimum.

[33:00] When the call and put stop loss when the put stop loss is triggered, If the call and put is left,

[33:12] the put will come down, It will be balanced. When we frame a strategy,

[33:24] if it is positive, We will take the exit call. When we think of telling something more,

[33:36] It is better to follow the rules. But this is an intraday strategy. we will go up and down.

[33:48] we will avoid it. Based on support and resistance, based on OI data, based on market trend,

[34:00] based on any method,in that particular all the traders may be trapped When the market goes up, Then, the market will go up by 300 points.

[34:14] There will be days like that. We will come to that stop loss. We should not leave that day.

[34:26] Because, there will be no decay when the market moves. Who will be the seller when the market moves? When the market moves,

[34:38] There will be buyers. sellers will be active. They seller will sell and sell.

[34:50] When the market moves voilently, Next, a question related to Should we sell level based premiums or

[35:02] In the money, at the money, We should see the strike prices. we should select a premium based on return.

[35:14] we should get 80% return. We select based on that. there will be a market in between.

[35:26] We don't base on the money. We base on the return. how much we sell,

[35:38] We base on these calculations. we assume return If we come to this level, If we come to that level,

[35:50] I showed you this in live trades. I explained how to see call and put. Please observe this.

[36:04] It will be easy for you to search in our channel. Next, when VIX is high, what selling strategy should we follow? When VIX is high, or when VIX is increasing,

[36:20] Because when VIX is high, neutral strategies will give us good profit. coming near to expiry premiums should decay, But when VIX is low, it will go in that curve.

[36:34] there are events in next upcoming days. If you think VIX is increasing, I am giving the strategies, in comment section

[36:47] Even after the event, Follow only when VIX is increasing. neutral strategies will give good profit.

[37:00] premium will be high. Next, I’m following calendar spread. Please quit the job.

[37:12] We have talked about this 2-3 times. Simply, don't ask the question regarding It is a big mistake.

[37:24] How much capital do you earn? to handle large capital? How much assets do you have?

[37:36] are you financially stable? To know whether you earn regularly or not, for minimum 1 year.

[37:48] It is a big return. it may be an extreme return. But the problem is how much capital you have earned.

[38:00] But remember that by earning small capital. with the same return.

[38:12] Our psychology won't change. like 8000-9000, the buyer will buy all the values

[38:24] So, we have to go down and execute the trade. Because of the liquidity,

[38:36] the trade. will be impacted in the return calculation. we can't focus on it.

[38:48] like stocks and portfolios. we can't focus on the same strategy. Each strategy gives a low return.

[39:00] So, not 12%. even it come less than that If you are consistent asses your decesion based up on your financial conditions don't ask anyone If you are not confident,

[39:14] Don't even think about quitting. if you are seeing you can grow.

[39:26] friends who know the value of money, particularly earning from trading first they build good capital. if they have a lavish lifestyle.

[39:38] I’m not telling having lavish lifestyle is wrong Don't think about attracting people to trading. by showing in social media Don't think about quitting.

[39:50] It should be in your final decision. Take a decision after assessing all these. Why don't you provide calls?

[40:02] Why don't you take online courses? The answer is the same. We have the best content in our channel compare to online and offline courses.

[40:16] investment related content also will come. from our side our goal is to we need to answer like see this video in this video there is a answer

[40:28] We want to put all the content in the channel. Why don't you provide tips? even those tips won't be successful.

[40:40] They will definitely flop. Let's say I started it from tomorrow. following the risk reward,

[40:52] following the risk reward, You need to understand that You are trading with your capital

[41:04] You can join any tips You can't manage the loss and Trading is not a good call.

[41:16] Even if you are profitable with 4 or 6 trades, The problem is how you manage the loss You need to understand that.

[41:28] if I ask you to sell calls and you will never know anything. you don't need expensive gadgets.

[41:40] You need a basic content. There is a lot of content in YouTube. If you think it is fixed, trade.

[41:52] don't trade if your psychology Don't trade for money. You won't lose because you don't have knowledge.

[42:04] You will fail. Don't invest in buying and selling. Don't do that.

[42:16] that someone is giving you. If you don't believe me, income tax without following tips.

[42:28] You can comment. But genuinely, find the person who filed income tax.

[42:40] They don't have the time to give tips. You already know the logic of the person giving tips. Again, they buy and sell.

[42:52] and ask for a premium subscription. If you think that you can't succeed that's the exit option for you.

[43:04] I think I will end the video here. But the video length is too much. for the remaining questions,

[43:16] Or follow the equity series. If you have any questions, Let's meet again.

[43:28] please like the video. The content I am sharing will be useful. the referral link for our channel

[43:40] If you want to open an account, but also our channel links Try to use our day trade or telugu referral links

[43:52] Finally, this is the end of the video. If you find this video useful, If you haven't subscribed yet,

[44:04] If you find the content useful, I will come back with another interesting video. Jai Hind!