Can You Really Set a Trade & Relax? | High-Probability Monthly Setup! | Let's Find Out!

Let's try to create a very interesting trade in the month of June. I am on June 1st morning 9:30. Market is at around 23 593 roughly around 23600. We are again talking about a very good monthly trade and as a trader I need to identify these kind of opportunities. So what I will do I will just go 400 points above market and I will buy one call of 24,000. If you see I am giving a payment of 244 rupees. I am taking a debit of 244 rupees when I am buying this call. So what I need to do I need to somehow get this 244 rupees back from the market because I really do not know whether market will go up or market will go down. So I'll try to find out a call which is sufficiently away and at least 50% of this price. So roughly around 122 rupees that should be the price. So 24,400 is 119.8. So I will sell this call. So I will not sell one lot of this. I will sell two lots of this. Right? So I have almost completed all my debit. There is a hardly you can say 286 rupees net debit. Similarly I will go on the put side also and I will buy something very similar to what I have done on the call side. So if you see 23 300 is around 248 rupees. I will buy this one lot and I will again try to go 400 points below this because on call side also I've done it at a 400 points gap. So just to make the trade very balanced I will sell two lots of 22900 and if I show you here I need to sell two lots of this right this is the trade a broad trade which has a break even point for 22466 market is at right now 23600 so almost 1150 to 1200 points on the downside are available to us and there is an adjustment possibility which I will show you and on upside it is 24834 which is again another 1200 points So a decent trade and in case market stays within this range we are still going to make around 1%. So generally it is always better that the middle horizontal line we we take a credit of around 1% in case market is very dull we can do few adjustments which I'm going to show you which can increase this 1% very easily to 1.5 to 2% also but initially we would not try to take huge credit in the horizontal portion of this payoff diagram. So let me explain you the trade once again. What we have done? We have purchased a 23,300 put. We have given 248 rupees in that. We have sold two 22,900 puts which are 400 points away from our purchase and we have taken 143 143. So on put side we have taken a credit. We have even 248 but we have taken 143 + 143 286 rupees from the market. On call side we have purchased 24,000 which is 244 rupees and we have sold two lots of 24,400 which is 120 rupees each. So 120 + 120 we have collected 240 we are given 244. So there is hardly a debit of 3 to4 rupees in call side which we will see how the market behaves and accordingly we will adjust our trades also. Now this total trade is taking 2.38 lakhs and if I do it let us say in two sets it is requiring 4.75 lakhs. Now how to reduce this? How to reduce this 4.75 lakhs? Once I finish this trade I will show you we can reduce this margin considerably by doing small small things. So if you see lot of things are good in this trade. You have a 75.36% probability of profit. This is something like set and forget kind of a trade. But only thing is that yes this requires some adjustment. So what is your adjustment point? I will say I am very fixed in that I'm not at all much dynamic. If I'm doing adjustment to protect loss, there can be two adjustments. One adjustment is to protect loss. One adjustment is to increase profit. So if I am doing an adjustment to protect losses because trade is giving me losses. Then these two peaks are my adjustment points. This which is around 22,900 is my lower adjustment point and this which is 24,400 is my upper adjustment point. If these two points are not touched then I am not required to do any adjustment for saving my capital but to increase profits we can definitely see how market behaves and if these two points are not touched in the initial 78 days of the trade then you can very well assume that okay this trade is going to be pretty successful for us. Welcome to another video by the options school. This is your friend Praep Singla. You can join our YouTube WhatsApp community. Link is given in the description. We provide you a pre-market analysis every morning. Right. Let us see now how this trade pans out and whenever there's a requirement of adjustment we will definitely see the adjustment also and we will also see how to reduce the margin requirement which as of now in two sets is 4.75 lakhs you all know the name of the strategy please write the name in the comment section let us see now day one market has gone down not much damage but our adjustment point is still not touched my adjustment point is 22 466 on the downside and market is still 23 to81 so I have almost 800 900 points. No issues. Next day not much of the movement which is okay for us. Next day again market is slightly recovering. So no adjustment point is touched. No loss no profit in the trade almost right. Next day market again started moving up. We are not very happy that okay if the trade remains within the horishmental line but at least that is safe. At least that is not giving me any stress. As of now the trade is giving me 2691 which is okay. Next day. Okay. Now the market has really tanked down and it has touched 2315. My break even is 22466 but my adjustment for the lower is this level which is around 22907 20 to900 let us say 20 to 900 is still away. I still have around 250 points before I start thinking of adjustment on the lower side. Let us see if that gets touched. Okay not much change again market has started moving up. So already I'm making 9% even in this margin. So which is good again downward move. So it seems market is slightly volatile also moving up moving down. Next day again it has come into the center and the trade is now making a very neat and clean 8450 which is around 1.8% of our margin use. This is the first point which gives me an opportunity to book this trade also. And see the blue line it's very very good. And if I see in the center I I would have made only 4,400 rupees. Right now the trade is giving 8,400 rupees. This is because of blue line. So first exit definitely can happen here. But let us see as we want to see what happens to the trade in case market moves here and there. Okay. Now suddenly market has gone in other direction which is okay for us because it's again a very very wide range trade. Let's see if we are required to do any adjustment. Next not much change and we are already making 12,740 in the trade. Very neat and clean profit. But still it is only 16th June and it's a very long month till 30th June. So as of now I can do that I can bring my sold put up to increase my profit but as of now I would not like to do because still lot of time is available and markets can really suddenly go up and down max okay 15,000 rupees 16,000 we are making now if you see my purchased put is 22 rupees my sold put is 9 rupees so even if I add 9 + 9 it become 1819 rupees so on put side I started with a credit but now it is not in a credit so if market stays above this will give me a small loss only. So what first adjustment I would like to do this is not to protect capital but to increase a little bit of profit. So I can just close this 22,900 put all the lots. It will give me a very little advantage not much but still it it's better to do that. So this is 22 rupees and I have scared off 22,900 and I will bring it to 23,100. So I will sell four lots of this. Right? If you see the payoff diagram becomes like this. My lower break even point is 22857. Market is 24,89. So that means I have more than 1,200 points of safety on downside also. And already I'm making a decent 16,000 rupees profit. Let us see what happens. Let us see what other things we can do in this trade. Next. Okay, profit has reduced a bit which is okay. Next. Now again if you see there's hardly anything left in this 7 rupees, 11 rupees. It has played out right. The put side has totally played out. No fun in keeping this because if there is some big crack in the market even now it can be dangerous. So I will just remove this put side scared of the selling and scared of the buying also. Now I am left with only all side of the trade already I am making 20,000 rupees profit in the trade and what are the things I can do on the call trade also because obviously now we are entering last 7 8 days of the market. we cannot take any risk either one choice is that okay I book all these 20,000 I'm very happy even if I have spent let us say 5 lakh rupees margin in this trade that means I'm still making 4% but that may not be the case every time right let us say as of now I'm not making much of the profit and I want to keep this call ratio spread in my trade what are the adjustments I should be doing see it very very carefully now from here if market goes down I am left with only 5,000 profit right now I am having 20,000 so this is one thing I I need to ensure that okay market goes down I am not losing lot of money. So what I will do for that I will scare off this 24,000 purchase call two lots I go back and I will buy let us say 24,1002 calls. So once I do this you see on the downside now at least there is 12,000 rupees available to me. Now here I'm going to show you a very good trick. You must see it very slowly. Now I have scared off the 24,000 call at around 254 rupees and I have purchased new in 194 rupees. So straight away I have saved 60 rupees plus 60 rupees in two lots. Now I can bring it further up. Let us say I bring it to 24,200. If I bring it to 24,200 instead of 194 now it is 142. I'm saving another 50 rupees. 50 + 50 I'm saving another 100 rupees. And if you see now downside I am I'm sure that okay 19,000 rupees I will definitely make. I am trying that okay I can make more also here maximum property is 45,000 but on downside I'm making 19,000 so that 19,000 roughly gets locked but what about the upside risk obviously something must be going in your mind that what about the upside risk upside risk is undefined and when I'm doing this this break even is coming down if I again make it 24,200 if I make it to 24,100 see what happens to that break even point so if I bring it down to 24,100 that break even point becomes 24,800. It has gone up. But if I bring my purchase call up, my upper break even point gets reduced, right? It has reduced by almost 50 points. So I need to ensure that okay, chances are market can go up also or market can go down also. I need to take care of the trade on both the sides especially in the end of the series. Now here since I have increased my profit for the fall of the market I will ensure that okay market moves up then also I am very safe. So I'll go back again to month end option chain only and I will try to buy some calls which are not very costly. Let us say I buy 24,9002 calls which is 9.3 rupees. If I do this see what happens to the trade. Now my maximum risk is definitely defined but it is still not good. In case market crosses this level although my first adjustment point is this. I can do a lot of adjustments but as of now because I'm already having a profit I do not like to reduce my profit. So I can again do a little bit of trial here. So instead of 24,900 see what happens. If I do 24,850 and if I do 24,800 my upside loss gets reduced to 7995 and my downside profit is still 18,000 which is really good right but I don't want to take even this risk. So I can bring it down to 24,750 also. Now I know that okay even if there is a sharp up move I'm not going to lose much and obviously my adjustment is still there as soon as my adjustment point of the peak of the triangle comes I will definitely do adjustment right is my downside reduced drastically no it is still having 17,000 rupees which is perfect right so these are the decisions you need to take when your trade has taken some shape it can be a a positive shape or a negative shape but then ultimately you need to recalibrate your trade This is known as locking the profits. So this is the framework which is telling you how to adjust and what to do in adjust. All these frameworks when to enter the trade, when to adjust the trade, when to lock the profit, when to exit the trades, we have explained it very well in our workshops which are on ironfly, iron condor and double. And once we have explained you this kind of a framework a rule based framework then we have applied it to 12 continuous months not on selective months but we have applied it to all the months so that that framework becomes 100% clear to you. How does that help? So when you are into real market situations obviously if you are wellversed with this framework you will make much much better decisions for your trades. A trader who is well trained can do all these things in his strategy. If you want to enroll for any of our recorded courses, you can contact us on the numbers given on the screen. A small investment in your learning can make a very very big difference in your trading journey. Let us now move ahead and see already we are 20,000. So on downside we have already locked 17 18,000 rupees. On upside we will see that if our break even point is touched what adjustment we will do and I will also show you how you can reduce the requirement in the trade. Next day again very similar profit 20,891. This can be my point where I can book the profit also next day. Okay, the profit has reduced to 19,000 which is perfectly okay. Now the profit is 22,000. I should definitely definitely book it. Although there is a chance that okay, it can become 43,000 also. So whether I want to take a chance of 23,000 rupees because on downside it is 17 18,000 right now it is 22,000 rupees. It can become 43,000 also. But I think this is a fairly good point where I should definitely definitely book this profit. And if we see next okay again 2787 I think we should book this profit. No need to continue this trade till end. And as promised let me show you how to reduce the margin. So I will again go back to first June. This is the trade and if I'm doing it in two lots you see I am requiring around 4.75 lakhs. Can we reduce it? So these kinds of tips and tricks we definitely keep on sharing with our members. There are three different memberships on our YouTube channel. Small small things we keep on discussing in these memberships and lot of finer details with our toss insights and even toss premium members so that our trading journey keeps on getting much more sharpened. If required you can join this membership also. Now definitely 4.75 is is a margin which I want to reduce. So what I will do now I am on 1st June. If I go back here 2nd June is expiry. I will not do anything on second June because very next day it will be over and it will be useless for me. Now I will go to ninth job. Now again I'm saying this I am doing only to reduce margin. I'm not doing this to make my trade more safe or something. So there are two different I'm not buying an insurance but I'm trying to reduce the margin. So I will just go up. I know my upper break even point is 24834 but I will not buy something like 24,800. I might go and buy something like 25. I buy two lots of this and on downside again I will buy something worth 23 rupees which is let's say 21900 and I'll show you how it changes the payoff diagram. So 9th June I have purchased 25,000 call and 9th June I have purchased 21,900 put also. Now if you see the margin requirement has gone down to 3.94. If I want to decrease the margin further maybe I can increase this put strike price to 22,000. Now it has become 3.83. So by buying two extra calls and two extra puts in the next week expiry I'm not buying it for 2nd June I'm buying it for 9th June and you will say what has happened to pay off diagram so let me uh show you which is very valid thing you see don't worry about this from 9th my major trade is what my major trade is for 30th June but the software shows that okay whichever is the earliest expiry in your trade it will start showing payoff diagram for that so again I'm saying my buying is not to reduce the risk in the trade my buying is to reduce the margin in the trade. So what I will do I will make it 30th June and this becomes my payoff diagram which is the actual payoff diagram and my margin also gets reduced to 3.283 from 4.75. So that is almost roughly around 90,000 rupees saving. This 90,000 rupees saving is not coming free of cost. Obviously we are giving 55 rupees on call and put side which is the cost of this 90,000 rupees you can and again once you reach 9th June you need to take a conscious call whether I want to buy this or whether that time margin requirement has already changed leaving you with another very interesting video you will definitely like it please do not forget to like this video and share this video to someone whom you think it will be useful and do subscribe to channel to get more exclusive content on options trading. See you in the next video.