Only 1% traders know about this expiry hero zero strategy |Expiry special strategy with 90% Accuracy

Very good afternoon guys, Pearl in the side! Welcome back to another learning video from Trade Like Pearl. Please ignore the bird sounds in the background, just listen to my voice more. Just because they are a bit close , their sound is coming through, okay? So very good afternoon everyone, Pearl in the side! Welcome back to another learning video from Trade Like B. Today is Nifty and Sensex expiry. We are going to make live Hero Zero trades using the adjustment theory. I have started the video a bit early, 13 minutes early. I generally trade with the adjustment theory around 3:00 PM. Okay? So I started early because I want to try and explain one point of the concept to you. Okay? And since many people on YouTube have already started teaching adjustment theory. So I thought I’d ask you who actually brought the adjustment theory into the market first? Just a question. And let me know in the comment section. Okay? Alright, putting everything else aside, let's begin. I am going to briefly explain to you what is the concept behind adjustment theory. Okay? What is the reason for adjustment theory? Why do we trade adjustment theory? Okay? Let's first ignore this P&L. We are going to trade in MIS intraday P&L. This is for something overnight. And some positions are carried forward. So please ignore this. First, let me take you to a chart and explain a few things to you. Okay? Can you see where Nifty is trading? Where is Nifty trading? Nifty is at 22,500. Okay? Listen carefully to the things I am telling you. Okay? If you watch my live sessions regularly, then you must be used to these things already. Okay? Some people don't know what a straddle is called. Okay? It is called a straddle. Let's assume Bank Nifty, Nifty, Sensex, Midcap Nifty, or FinNifty. Okay? Let's assume where Bank Nifty is trading. Let's assume Bank Nifty is trading at 48,000. When you add the 48,000 call and put, that will be called a straddle. Okay? And when you combine their values, that will be called a straddle value. Okay? Now understand this. Where is Nifty? It is at 22,500. What time is it? 2:50. Okay? Now, what happens on expiries? When the market expires, by 3:15 or 3:20, one thing happens: the out-of-the-money trades, the out-of-the-money strikes— both calls and puts—they go to zero. And the at-the-money strikes also go to zero. Right? At-the-money retains a little bit of value. It comes down to the absolute minimum. For instance, if I ask you now what the current value of the at-the-money is. Tell me, what is the Nifty straddle value running at? Can you see, the market is at 22,500? Exactly at 22,500. And when you combine the call and the put, the call is at 9 rupees, the put is at 11 rupees. When you combine their values, what do you get? 20 rupees. Okay? Now, understand this: if the market stays at the same spot for the next 15-20 minutes, what will it do? Nifty will take those values, the straddle values, down to their absolute minimum. It will zero out the OTMs. Like this trade worth 1 rupee, it will make it zero too. This one at 1 rupee, it will make it zero as well. Right? For the at-the-money, the two of them, their value—like the 20 rupees right now—will settle somewhere around 3.5 to 4 rupees by the end. Right? This is known as adjustment . Now, why does adjustment happen? How does adjustment happen? And why does it happen? Look at this. If the market needs to zero out these premiums, how will it do it? Tell me one thing. I just want to ask you guys. Those who are teaching adjustment theory, those who are charging fees. Okay? And those who are selling courses on adjustment theory. Ask them, "How does this happen , brother?" What is the reason behind this? Okay? I have kept everything simple and free for you all. That doesn't mean anyone can just pick it up and sell it. Okay? You should ask them. Right? Now, look at this. Assume the market is between these two zones. Okay ? What is happening in the market? The market is at 22,500. Now, will the market just stay flat like that? Can the market decay both premiums just by staying flat? It won't. Okay? Not possible. What does the market need to do? First, the call needs to move up within this zone. So, for the put, obviously, let me give you an example. Let's say the call and put are trading at ₹ 10 each. The market went up to here. Okay? How much did the call value reach? It reached ₹ 14. Right? Where did the put value go from ₹ 10? Where did it come to from ₹ 10? After the call moved up, the put's value came down to somewhere around ₹ 6. Okay? Now, what will happen? When the market comes back down, that ₹ 14 will come down to somewhere around ₹ 8.5 or ₹ 9.50. Or it will settle around ₹ 9, and that ₹ 6 put that went down will jump to around ₹ 11. Do you see what is happening here now? Because of the up and down movement, the market is able to create decay. That’s the reason why we trade the adjustment theory. Okay. This is the reason we trade adjustments. Now, how do we trade adjustments? You need to understand this. We know where the market is going to expire. Right? Now, many will ask, how do you know where the market will expire? After 3:00 PM, the market's recent straddle, the one closest to the price. Okay? The market mostly expires right there. In rare cases, there is some volatility, so the market can go anywhere. But in the majority of cases, the market expires near that straddle. For example, where is the market trading right now? At 22,500. So, there is a higher probability that the market will expire at 22,500. Okay? Now, how do we trade adjustments here? We have these two trades. There are two strikes , call and put. Call and put. Right? The market has gone up. The call has increased. We know that for sure. And we know that there is a rare chance the market will go even higher. If the call comes back down, for sure, the put price will increase. We bought the put at ₹ 6 and sold it at ₹ 10. What is the ROI on that? You calculate it. This is the reason why we trade up, down, up , down, up, down. Do you understand? Now, if this is even a little bit clear to you, then go and watch all my live sessions. Then you will realize what this thing actually is. Do you understand, man? If someone just comes live and says if the call goes up, buy a put, or if the put goes up, buy a call. That doesn't really work. Alright ? You need to know what the reason is. Alright? Okay, let's see. People will do adjustments after 2:50. Alright? Tell me one thing. Can you apply the adjustment theory at 2:00 or at 1:00? Until they know the reason, until they know about the value, they won't be able to do it. And today, I even showed this live to people that a put side was running undervalued at around ₹ 10. Okay? And I alerted them 15 minutes before that as per the adjustment theory, this put price is undervalued. You can go for it. Okay? It was a ₹ 58 put. My expected value was ₹ 70; due to premium pressure, it went from ₹ 58 to ₹ 90. Okay? This is how things work when you trade adjustments. Did you understand? So please trade only after understanding the whole concept carefully. Everything is logical. Okay? Now, many of you will also ask why the market will expire exactly at 22,500. Okay? I know the reason behind this as well. I will tell you. This happens just because of the people who sell options during expiries . Alright? How do they sell their options? They have sold whatever call is at 22,500. They have sold puts. Alright? They have also sold the 22,050 call. And 22,450. They have sold that put as well. Okay? This is the reason why the market moves less. Do you understand? After 3:00, after 3:00, the OI increases a lot. To a very great extent. Do you understand? Because of this, the premiums are not able to move that quickly. Okay? And assume you are creating a "Hero" trade. Like I will show you now, it is 2:56. Let's trade live right now. Alright? Wait a second. Let's see what is happening in the market. Then after that, we will perform whatever live executions are needed. Okay? I hope I have given you such a long intro. Now you must have understood something. If you still don't understand, then you need to think that yes, maybe we can't go ahead with this theory right now. Do you get it? Keep things clear. I just want to say that not everyone can teach you adjustment theory. You know that's a reality. I have uploaded all these live sessions just so you can understand what adjustment theory is. Okay? The live adjustment theory sessions are revision sessions for those already trading with adjustment theory. Alright ? Now let’s set everything aside. We’ve completed the intro. Now I start my live sessions at exactly 2:57. And after turning it on, I start speaking. Good afternoon, guys. Parnal on this side. Welcome back to another learning video from Trade Like Parnal. Basically, we are going to make some adjustment trades with quite good risk, you know, with quite strict risk. I hope you get to learn a lot from these sessions. Alright? Can you see where the market is trading? It is at 22,500. Okay? Now, the 22,500 call is at 5 rupees, and the put is at 13 rupees. I can go with the call side. I can execute some quantities. Let me take some quantities; I got a bit late because I was making the video. I need 4.8, 4.8, come on, come on, give it to me, I got it. Okay. So, I have got some quantities. Now, why did I do this? Why ? I picked up the call at 4.8 rupees. Alright? Look at this. The put side is around 13 rupees. We know where the market is trading, right? It is already trading around 22,500. So, its value should increase somewhere. Its value could at least go up to around 8 rupees . Where is it right now? Around 6 rupees. Alright? I could have gotten a lower value. I missed it because I was talking in the video. No worries, it happens. Let’s see how far this premium goes. Hmm. Let’s see, guys. Sorry, please ignore the sound of the dogs. Our buying price is at 4 rupees 70 paise. Okay. 6.45, 6.6. Good, good, good. Okay, so it has gone up to around 7 rupees. I will try to exit some quantity here. I don't think it will exit here. If it does, that's a good thing. Alright, the first trade is done . What was the ROI on the first trade? You calculate it a bit. It was bought at 4.70. It was sold at ₹ 7. If you ignore the decimals, we bought something for ₹ 470. And sold it for ₹ 700. The ROI is the same for everything. Okay? Now explain to me why this happened? You already know why it happened, right? Okay? You already know why I did this? Why I did it? You understand, right? Now, whether it goes to ₹ 8 or ₹ 9, it doesn't matter. Because you have to play it safe when booking profits. So, I don't get too greedy. Okay? So, now wherever this premium goes, it's irrelevant to me. Okay? It reached ₹ 9. It went from ₹ 4 to ₹ 9. That means more than 100%ROI. Now can you tell me what the reason was? What was the logic? Okay? Man, that's the reason I say that adjustments are the easiest thing I can provide. Okay? The thing is, you have to practice. Practice, relentless practice. I mean, I haven't been trading adjustments just since today. I have been trading adjustments for a long time now. Okay? So I can tell you that yes, if you put in the work and have the will, you will surely learn. Okay? Alright, there are many opportunities yet to come. The premiums are trading at ₹ 7. Brother, what does the market need to do with them? It has to make them zero. Okay? Now how will the market make them zero? Up and down. Up and down. Okay? These momentums will remain. In an extraordinary case. Suppose, there comes a case where the market shows extreme momentum and hits 550. In that case, it is possible that the premium might go up to ₹ 120. Like on the call side, I believe in making wise decisions. Okay, it went to 112, let it be, it doesn't matter to me. Now people might be buying around 450, but my buying isn't there at all. Buying shouldn't happen around 450. It should be for 18,000 quantity, how much? 10 lots, buying should be around ₹ 3. Since the front-side premium has shot up so brutally, right, then buying around ₹ 3, that will be a better option. We will wait for our opportunity and see, if there is a trade, we will execute it. Right, Good, good, good, call side is coming down, the market isn't going anywhere, okay. Hm, hm. Okay. There is a panic. Let's execute some quantities here. But it's not quite on the safer side here. Okay, so I will have to be careful. Okay, let's take it. At what price did we buy ? Buying is around ₹ 2.10. Okay. Buying is around ₹ 2.10. We will also do a bit of pyramiding in this. Okay. 18,000 quantities we at ₹ .50 Let's add at ₹ .50 paise. What happened, brother? The maximum O 10, right. If we get it, that's a good thing. Okay, ignore the P&L. The trade that was in profit for me is now in loss. For that reason, you might not be able to see it . But yes, I am still profitable in this trade. Okay, quantities have been received. Pyramiding orders have been triggered. Let's see. Let's see. Hm, right. Took out half the orders. Took out all the orders. Right? Now tell me one thing, what happened here? What did we do? Look, it's very easy to talk. But I can tell you one thing. Unless your risk is strict, nothing can happen . Right? I know where I am going to add orders. Now, why did I add orders here? Tell me one thing. At what price did I buy something? Bought it at ₹ 2. I could have exited at ₹ 3.50 paise. What would be the ROI? A ₹ 200 item would go to ₹ 350. How much? Around ₹ 4. Meaning, you understand, it would have been around 70%ROI. Okay? I could have exited, right? But no, why did I add there? Just because you have the knowledge of the particular concept . Okay? You know what is going to happen. You understand? That we bought at ₹ 2, pyramided at ₹ 3.50, and exited at ₹ 5. And it even went up to ₹ 7. That's a good thing. That's a good thing. Let it go. Okay. What I know is that I have my fixed targets. Right? Now it's fine. Forget everything , who should I tell what? But all I can say is that, guys, know the reason behind trades. Know the reason behind executions. Okay? I hope you understood why we trade, the adjustment theory is making sense.