How to Make Money Trading Options Buying || Options Selling || FnO Hedging || Anish Singh Thakur
Hello everyone my name is Anish Singh Thakur and welcome back to a very very important video there are Lots of comments And basically, there are comments But I know there is only one question in your mind Every time To make a video on option trading How to make money by option trading? what is option trading what are the genuine ways of option buying and option selling? To make Option Strategies so today I am making this video from my heart for you guys because I know there are lots of talk in the market like Option buyers can't make money or there is unlimited risk in option selling mean doing that is a total waste of money then the strategies of option buying and option selling…. To trade that you need a huge capital Like... if I have 1 crore then only I can trade so multiple kinds of rumors are there in the market they are floating in the market nobody knows the actual real concept only a limited number of people know and this is my job my work to provide you the right knowledge, right information so this is a very important video Have to watch it very carefully and I will clear your whole concept I promise In this short video, I promise, if you give me your full attention now in this video, I expect that you are not a very beginner level person or advanced level person You are somewhere in between by that I mean to say that you know what is at the money, out of the money, in the money what is the strike price? you should know about the basic stuff like What is short selling? What is theta decay? Theta decay is nothing...I mean you don't need to know the Greeks in detail you should know about the basics I made two videos before on Option Series I put the link of that at the end of this video then you should watch that first And if you know about the basics and all then you can continue watching This is not very technical it is basically for your information so that you can make your planning and strategies so let's start There are three ways through which we can make money in Options The first simple option buying In option buying, you just pay the premium of any strike price And to pay that premium you directly buy And if the market moves in your direction then you earn money ok so this is directional trade of option buying The second trade is option selling In option selling You shot option, write option write and shot is the same thing… to sell After selling the option whenever we sell anything its value decreased So we earn the money so when it's a decrease So option value is decreased in two ways Either market moves in your direction…. like if you are bullish, so either you will do Call Buy or Put Shot So in Put Shot market will go down or the market will go sideways If the market goes sideways so option seller will earn the money not the option buyer Option seller has two chances to earn the money and option buyer has only one chance to earn the money if the market Go in his direction, only then he can earn But options seller will earn the money if it's going in his direction or even if it goes sideways Two ways done The third way is making strategies by mix of both buying and selling Nowadays People popularly called its hedging Basically, it's not the meaning of hedging, what people say Hedging means for example I buy HDFC Bank I Have Buy Equity in long cash position Or I am long on futures So to avoid the risk of downside to my position I buy Put or do Call Shot I gave an example, it was a very raw example That’s called hedging To Safeguarding your Position But nowadays people call these strategies Hedging as well So let’s we call it hedging too So come on, the third way The third way is To buy some Put and Call both To Shot Some Put and Call both Or to make some strategies in which all Put Buy Put Sell, Call Buy Call Sell To make some strategy of some different different of the strike price To create something new We’ll talk about it So I gave you a little overview Earn by Option Buying Earn by Option Selling Earn by making Option strategy Ok, now we'll go to the details of these So we will go too in-depth And study those three ways The first method, which is earned by Option Buying Now what happens in Option Buying, if I take you to the screen Guys, for example I am showing you by making baskets In the basket…. You can also create a new basket like this
And show you this because it will show you how much money it takes To do anything For example, if I feel like that market will give the bullish momentum from here Market… like in this situation We all know this is a very… extremely Bullish candle which one?.... this one Like a pin bar By giving a lower price rejection, it goes upward If my direction is clear I’ll make my own small target So I buy So for example, now we’ll take an example of present tense 14836 is a Strike price So if I buy 14800 CE Of current expiry and buy 1 lot So I have to pay 11000 rupees so I am paying Rs 11000 Putting on risk of ₹ 159 * 75 So much of the movement will come in my direction in there I will get that much growth here I can earn 2000,3000,4000,5000 and even 6000 from this 11000 If there is any movements come in my direction But if this direction/ movement Not in my direction but if it goes to the opposite, then my stop loss will get hit ok.. I‘ll be at a loss Or if goes up and comes down, goes up and comes down, goes up comes down And stays there Even Then my option will be This Theta decay means it is a negative factor of Options There are so many things in the formula theta, delta Don't need to go a deep detail Just keep theta in mind That it's negative Option as it comes closer to expiry The value of this get decrease itself So Even if it goes sideways, still a loss So there is the loss in both cases and profit in only one So to earn by buying Option only, when you are very sure about direction that market will to your direction So see, it takes 11000-12000 roughly Where you get one In The Money option So came to know the investment Actually, option Buying more popular Because it takes less money So people mostly want to do the Option Buying because they think Their work will be done in 12000 and they can earn 3000-4000 ok.... so this Its advantage is it takes less investment And if your direction is…. Your Analysis is correct If you do the right way, psychologically If you have the capacity to hold the winning the trade Cut a losing trade fast and hold the winning trade for a long time So it’s very good for you But the problem is whenever the market will go sideways you will lose money Whenever the market will go against to your direction,You will hit stop loss , well that happens in all But if it goes sideways even then you will be at a loss So this is a very big disadvantage in Option Buying The second is that everybody doesn't have this much patience That the guy is take right and good setups Good setups mean when should buy an Option So this the problem If you are experienced And your is directions are clear Only then you go to Option Buying So this the problem If you are experienced And your is directions are clear Only then you go to Option Buying So you can earn by this Alright guys So I told you how much it takes in Option Buying…. Takes 12000 But when to do I made a video on indicator… ADX ADX is such a Indicator So please watch the ADX video if haven't seen it yet It doesn’t tell you direction Whenever the value of ADX is increase… increase …. Increase
A good momentum comes in the market Means … it's Buy-side or Sell-side that you have to found out with another strategy Whenever you see the value increase of ADX Then you have to Buy Option See when ADX value increase here if I draw exactly from there Look how big Momentum come If you buy Put in the market So if you buy Put in the market. So here its move to140 points You'll earn the Good money In the case of ADX increase So whenever ADX increase that option is advantageous for the Buyer So I told you what is Option Buying When to do it Direction should be right Should have patience Can’t deploy large capital If you have one 1 lakhs in your account, then trade 25000 from 2 lots Or 3 lot and keep the rest of the money to yourself in case for the entry of Pull Back, for Pyramiding Or 3 lot and keep the rest of the money to yourself in case for the entry of Pull Back, for Pyramiding But never buy Option from whole money Advantages are many, the disadvantage is if it goes sideways…. Still So never buy in the falling value of ADX So let's start with this second topic When to do Option Selling If I can see that the market is from here.... Option..... this ADX value is decreasing.... decreasing There have been a lot of drops and comes here So I mean if come here then my strike price is somewhere around 14800 And I think the market can be bearish from here Or can go sideways I don’t think the market Because can see the market in Lower High That it has given a very big fall, this will Pull Back And then the market will go down But I am not sure whether it will go down or not So I will…. the strike price of 14800 for example, I sell it 14800.... what i sell?
Now you tell me if your view is bearish at this time And ADX is starting dropping Then you have two options To buy Put In which it takes 12000…... ₹ 11000-!2000 Or to do a Call Shot So if come to do Call Shot If we go to sell CE of 14800 then how much of my money is spending See 70000 in MIS See if I do it NRML… do normal Ok, I delete it .. I edit it… if I overwrite it So it will go So I modify it to 1,46,000 For one thing, I have to pay only 12000 And for another thing I bought on delivery, I have to pay 146000 Come on if I do it on Intraday then its value is still being 70000, 82000 is required margin But final margin, meaning this much is necessary it will consume this much margin of your value 70000…... Somewhere around 70000 What does it mean? Means it takes more money See in Option Buy takes less money than sell…, So this blocking mentality people have about it In the all people's mind In the mind of retailers that it takes so much money… like crores I I’ll tell you I will show you today something like Which will make you mentally free That you can also you do something in this Just stay with me Let’s go, so it will take 70000 and how much you can earn from this maximum? ₹ 159 is the maximum that you can collect…. 159*75 If I open calculator here 159 In maximum I take 159*75, mean my maximum profit is 11925 Pretty good profit 11925 My profit is around 12000 By investing 70000, my profit is around is12000 It’s very good profit If this will become zero, it will not become zero until the expiry day That's Why the profit wouldn't be this much, if we do Intraday But if it will go sideways still according to me If we collect the premium of 100… ₹70-80 still, we earn somewhere around in 6000 -7000 So that was the second way So It is understandable that Option Buying is so good far Takes less money, getting work done Waste in sideways and it will the Stop Loss in Opposite direction What will be in it? If we assume after giving 70000 And the market will go up and then down, again goes up and comes down and goes up again Still I will earn the money Still that premium of 159, will give me 100 Theta decay will be done by itself and I still earn something Look its neither mine nor goes upward or downward Just hang in there So Option Seller earn the money If the market goes down, then Option seller will earn more money But if the market goes upward then Risk is unlimited, why its unlimited? See how much the maximum collection can be this can be zero This can be 0 of 159 But if it starts to increase then 1 to 200,250,300,350,400,450 Like this, it will be an unlimited loss if we see in theory That’s why, obviously you will put a Stop Loss Obviously, ou have to put a Stop Loss and Stop loss will work Come on man, I think everyone will know the story I have told so far Everyone will know such basic things as I told you so far Now the interesting part, Now let’s starts interesting stuff Now interesting we start is this That now third thing is Now you have to…. See ADX I have given you a very good tool, reminding you again to use ADX
So when the value of ADX is falling, then sell it on that day When the value is ADX is increasing, you can also earn money by buying the option And if you want to do anything more special Meaning At The most… Like I have given you the strategy on that budget day Ok, That strategy That strategy called Straddle Gave you Straddle on At The Money To buy or put the call That thing is called longs straddle So what happens in longs Straddle? And another strategy is short Straddle So what happens in Short Straddle? Then another strategy, will not complicate this video I came here to help you so I will help you Now will tell people to do Straddle and Strangle So now two problems come here First people think that they will not be able to learn it… psychologically And second people think that it will take huge capital and I have less of it That it takes huge capital in Option Selling No, today I’ll show you something Today I am going to show something like you after which you Maybe you already know this information but don’t know how to use it exactly See I will not go to the deep details and of strategy but I'll explain one thing to For example, if I feel like that the market will move in a range That market will now go down to below 14800 Cannot go below 14800 Has taken support, I think If I say Because the market is support here, The market's zone and has support Will not go And I think the market cannot even the 14900 If the market expires here I think that the market Can go upward and downward But will take support or else can take resistance and move in this range in the market This range is not any tiny/small range this range is around It is a small range, 100 points range By the way, I should increase the range But to teach you something, I am telling you few things If I take this 100-point range So what can I do? I can make a strategy … which one?... that The market will not go beyond the 14900 range won't go So I can Shot The Call of 900 Why 900?... Call of 4900 I Shot The Call on above of 4900 Its means I did shot So I am against the market I am looking at the market at below 4900 So I come here and Shot The Call of 4900 So you know They say don’t have this much money … Rs 70000 One minute, we’ll see now Let’s look forward Now I am saying I Have made one and now it will not go beyond it If it will not go beyond it What will happen? Its value... which is Rs 103 It will slowly zero till expiry Or it will not become zero till expiry, it will at least 30, 40, 50, still i will get some premium Even If It's not an expiry day Second thing, I made a plan that the market will not go beyond this line. It will take support. So I will Shot the Put of 4800 See what Put will do is in the lower range and do Shot is means I am bullish.
That it will remain above 4800 If I Shot the Put of 14800 here, it takes Rs70000. now you will say from where should i get the 1,40,000 why should l get it so let me Add once See what happens Did anybody you notice what happened? Now There is only an increase of 2000 on 72000 and you make a strategy of 74000. why? because of hedge. you did Hedging whenever talk about the margin which we have to pay to the broker. There are two types Span and Exposure margin Span and Exposure exposure we paid to our broker and span margin we pay to our exchange. Span means stock portfolio analysis. There is a way in which we find out to whom and how much margin has to be given.
So whenever you is a hedge position, you'll get the margin. With an extra Rs2000, you create a position. Now the maximum money that can be collected, suppose the expiry happens within this range, the maximum amount collected will be let’s add 103+ 110 = Rs 213 multiply by 75. If we multiply 213 by 75 then we will get Rs15975. 15000 is the rupee that you can make.
Right So how? That's a thing, there is a website by the name of Opstra I will make a separate video for this Opstra website in detail analysis but now, let’s click on get started. The same thing I did If I click on Options here Or I choose my expiry. The amount required... can be seen here, it 74000 Call of Rs 14900 and Put of 14800 Call of Rs 14900 and Put of Rs 14800 is I am selling see Call of 14900 have to Sell. and if i do add position. It will show below what's going to happen. And a Put of 14800 , we have to sell. It’s already clicked on sell. we add a position. have to Sell. and if i do add position. It will show below what's going to happen.
And a Put of 14800 , we have to sell. It’s already clicked on sell. we add a position. Now let’s see on the left, leave the graph, for the time being You will not understand it right now. It will tell that the maximum profit is this and the amount required is this. But actually, in Zerodha the amount we need is this.
So we can able to earn Rs15000 ok? and the maximum loss is undefined Why? Because this See why we build this strategy. This strategy is called strangle Because we sell some of our far away options. we are expecting that ADX is low and the market will remain in that range only.
So if the market will remain in this range from 14600 to 15100. See the strike rate below, from 14600 to 15000 Implies that there is a minimum 300-400 points range. This means you will not suffer loss You will definitely earn something You will earn maximum when expiry happens nearer to your strike price Means if it expires within this area Within 800-900 If it gives closing within this range of 100 points. It will get maximum profit. Even it rises above a little or falls below this a little You will not suffer immediate loss. You will remain at break-even till here But when a larger movement will come.
And if nifty falls below 14500. Then your loss will increase and will become unlimited The loss will continue to increase. So obviously we will use Stop-loss but i want to show one more thing Now if I told you that in strategy let’s suppose the risk is high Now assume what if Anish it breaks from here. If it breaks from here Now you tell me what will happen Now if you want to do more hedging Or we want to make our strategy more successful than what should you do If the market falls below this What we can do? Should we buy 750 of Put? Yes, let’s try this. What we said let's Buy Rs 14750 of Put Let’s buy it. when the market goes below this If the market goes below this, it will provide me profit. Let’s add it. Now it is showing 80000 Rs.
And if you want to hedge then you have to it at the upper level too If above 14900… Let’s buy Call of Rs 950 . If it goes above this, and breakout then a 14950 call will save you If I add Call of 14950 here Please check. Please pay attention to the screen Let’s see how much margin is needed. Currently, 80000 margins are needed. People will get Astonished now only 22000 is required Exactly This way, by doing this kind of hedging you You can take so many benefits from the fund.
Now tell People must be thinking that 1.5 lakh - 2 lakh is required to consider this big strategy 1.5- 2 lakh will be required to trade these many number of options. You can do it in only 22000 in intraday. Or if I do NRML then 40000-44000 will be It’s a simple So guys did you notice what happened by doing this. Whatever thing we did here, 22000 is required how much we will earn Now if only 22000 is needed we can increase the quantity. Till now you had 1 lakh with now. So now you can buy 5 lot of this You can have 5 lots of each of them or 4 lot of each in total 5 or 4 lot in 1 lakh Means 50 lots in 10 lakhs.
And this a very safe strategy. If the market remains at this range, you will a lot of money And it breakouts then now what will happen We have added to buy… ok see Now see to make this type of strategy, you will buy first. Now if you buy first then the required margin has also reduce The required margin means it should be there in the account. So every time while making a strategy buy first and then shot. And at the time of exit, short will leave first, and long/ buys will leave later. The experienced person must have understood this.
Young people have to back test this. Don’t apply directly First, back test this Now what we have done we buy 950 CE and750 PE Now add this also here 14950 CE Add this We buy it not sell. Buy it Add position And what else we buy 14750 PE 14750 PE we come here and do Add position Now let’s at the graph How it’s going Your loss …. 500 loss 600 loss Now see earlier loss was undefined Now see a loss here If we make this strategy then there is only 735 loss And profit is 3000 that time profit was 12000 Earlier the amount we required was 80000-90000 Now the amount required is only 22000. Then also we are able to earn 3000 return on investment of 22000 Rs It is over 10% according to me And what more is needed above 10% And the market is telling us that if the market remains within 750- 978. Then you are able to earn maximum profit.
And if it goes against you then the loss will be what Limit loss will be there like 400-500 Rs loss So guys it is an example of limited loss and maximum profit Here I have shown you that 22000 is required And if I exit shot here See this is the way I will exit the market. This called bracket order After coming to bracket order You can make your new basket Without a basket also you can execute But it’s better to execute in the basket. first you buy than do shot so I hope I must have given you people a perspective about what is this all and Now I close this video here. Let me talk to you know about what I have showed you? I show you that people will say anything as its there job to speak they will say anything like they cant earn, this is not like this because for them they don’t know maximum people doesn't know things that is why out of there lack of knowledge they are only floating rumors so look you can earn money in option buying but which day when your analysis is perfect, value of ADX is increasing, coming volume is good when there is morning star market , you buy the call, you made a target than you exited okay but you didn't do over trading and you didn't behave like a mad people sometimes between optional and buy they become extra greedy they started buying 10-10 rupees options 20 rupees they think they will make 40 of 20, 20 of 10 and there then they face loss in flexing So by doing these type of things people actually damaged the reputation of option buying but if genuinely you do option buying you can make some money and if you do Option selling, ADX is getting low, you shot the option, then you have 3 opportunities, if it goes as per your direction you will earn, goes sideways than also you will earn if its goes against than you will not earn in any of the 2 options. Here are 2 opportunities
optional selling definitely has an edge but that require lots of money. Now the Third thing, As I told you there are lot of types of strategy in world like iron condo and iron fly, crowd Call, Bull call, spread there are really a lot of them if you just do google you will find a long list, also get it for study, you will find something sensible too, also for studying you will get a lot of websites for studying and may be in future I will also get some video in which I will tell you some strategies like which day you need to apply what type of strategy, maybe I will tell you. We will also do that slowly-slowly. I usually till now use to buy calls and sometime use to sell but now I have started doing these things also like how we can get the maximum out of situation in which we have limited risk and a better profit, not like unlimited profit and unlimited risk because taking unlimited risk is not good so whenever I get clear signal only than I go for option buying and when I don’t get any signal than I make a strategy and...
Now the biggest people in their mind that I can't learn first fear factor and second that I don’t have money so see even in Rs 22000 you can can design very nice strategy So if you try little bit to learn own your own, use your own mind and try to learn than may be with your limited capital you will do something with these strategies was really important topic People use to say make a video on option, make it, make it And I already have made 2 videos in which I have taught basic-basic strike, price, this and that what they mean Please go and check because today I don’t used all of that things because this was important to tell the public that what is actual market status? How Buying’s, Selling’s and buying selling mix these are 3 ways in the market Today though this video you all people get the full information in the simplest way That now I want that this information I don’t think so that anybody ever explained all of these things in so much simple words about Options in just one video because I also use to find like what are the options, what is all of this , I also used to find But still I made this video now It's your work to make it reach to the maximum people via Whats App, via Facebook I don’t know, by which method but you need to share this with people Share it with all that people who are doing option buying those who are only doing option selling Those who are taking so much risk may be by using the 3rd method I told you, person will reduce their risk will earn better or may be the mental stress about like I have one more chance to learn from this and do it than may be something better will happen I want you to share it with maximum people for their own benefit By looking at likes I will understand that how much you liked this video and how much more videos like this you would like you see. In which we talk about these all things, show some live practical examples about market See that in the market I have done this and this much For all these things I welcome you once again that you talk to me in the comments as I read the comments and you all know that I even reply on the maximum comment, I left only some comments without reply on which reply is not really required Maximum of the time when somebody appreciate I always reply And If there is any question I try to understand that So please guys make sure that you have subscribed this channel If you are new at this channel so you can see the growth of this channel It has astonishing growth of this channel Only in 7-8 months see where have we reached We have around 315K subscribes right now and we are going to the moon We are going to million and lots of things we are going to cover not just stocks, options stock options, crypto also, forex also, we will work out on all these things So it’s not simple one channel on which you get only 1 things I am going to get a series of Psychological videos I have one really great book which I liked to read It has 39 habits; in every 1 video I will teach you about 3 habits so 13 videos So I will make 10 to 13 videos Very small small videos, and I will be posting them in every 2-3 days So I will make this and soon will be posting for you people I got so much request regarding psychological series So that series also about to come Make sure you subscribe this channel and like the video And comment about how you like it And also share this so it gets lots of reach Okay guys Thank you so much and I hope I made a video as according to your expectation in which you got the information about Options Thank you so much guys Bye bye and I'll see you soon in the next video
2021-04-15 11:02
