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In our pursuit to make 1 lakh rupees from options trading per month, this is the third bucket. We have already shown you the first bucket and the second bucket. So, let us see the third bucket for July and I am on the first day of July morning 9:30 and let us take the monthly trades. So, we will be going to 28th July expiry. On 28th July expiry, I will choose a call which is slightly far away from the market and having sufficient premium also. Let's say I'm selling 24,500 call and I am selling almost a similar premium something like 23,500 put. So, this is the trade I have done for the month of July and now I will buy hedges and obviously I will be buying hedges for the month of August. So, 23,500 on put side, 24,500 on call side. We are getting a huge 1,000 points gap also and once we buy a 25th August same strikes, well, this is a double calendar spread strategy. So, break even range will also improve. So, now I will buy 24,500 call of August and similarly 23,500 put of August. So, this is the trade. If I show you again, we have sold 23,500 put of 28th July in 165 rupees. We have purchased 23,500 put of 25th August and that is costing 252 rupees. We have sold 24,500 call of 28th July costing us 153 rupees and we have purchased 24,500 of 25th August at 314 rupees. So, on put side if you see this trade is costing us then almost 85-87 rupees. On call side, yes, definitely it's slightly costlier. So, it must be costing us something close to 160-170 rupees. So, obviously this is not the maximum loss because the software thinks that okay, all the August positions will also become zero on 28th July. That is why this kind of a loss it shows. Definitely we know it will not happen. Now, after taking the hedges, my lower break-even point is 23,287. Market is 23,921. So, I have around 600 650 points on the downside. On upside, 24,983. Compared to 23,921, it is more than 1,000 points, right? So, a very wide range you get whenever you're doing double calendar spread. So, this trade is taking 1.1 lakh rupees. I will deploy around 10 lakh rupees in this. So, it will allow me at least seven, eight, nine trades, right? So, let us let us do eight trades because in case there is a substantial increase in the VIX, it should not be very troublesome as far as margin is concerned. You always need to keep sufficient margin, otherwise your broker can close your positions also, causing you some losses. Welcome to another video by The Options School. This is your friend, Pradeep Singh. You can join our YouTube WhatsApp community. Link is given in the description. We share with you a pre-market report analysis every morning on that WhatsApp community. And there is no cost to it. So, this is the trade. One thing we know that okay, in this kind of a strategy in double calendar spread, these break-even points can change marginally, depending upon how the market moves. But, we will keep a very strong eye on the break-even points. And as and when break-even point gets breached, definitely we will do some adjustments so that ultimately we will see if we can make decent amount of money from this bucket also. Maximum profit it's showing 1.05 lakh. I'm not at all expecting that kind of a profit. Maximum loss 1.72 lakh. That is not possible. This will never happen because this is again a calculation issue in all the softwares. And And people who want to see POP, it is 65.82%. So, we are getting a fairly wide range, 23,287 to 24,983. Around 1,700 points range is there. Let us now run the trade and see. First day, okay, market has gone up by almost 200 points. The trade is giving me 11,000 rupees profit. That's really good. And see the blue line. As the blue line keeps on improving, it is always good for the trader cuz you will be getting a good decay with blue line. Although the red line and the green line might be showing a different range. Let us see next day what happens. Again, market has gone up by another 200 points. So, if you see for 2 days, if I if I go back on 1st July, the market is 23,921. 2nd July, the market is 24,001, almost 200 points. Still the trade is giving me profit. That is the benefit of doing a double calendar spread. You are getting a very expensive range. Again, 2nd day. So, 1st day 200 points, 2nd day again more than 200 points, but the trade is giving me profit because I have a big range of 1,000 points on the upside. So, out of those 1,000 points, now we must be very clear that, okay, market has consumed 400 points, right? And as I said, this range keeps on changing a bit. So, now it has become 24,886 and the lower range has become 23,341. I'm making a good 13,000 rupees in the trade, which is around 1.5% for 8.82 lakhs margin, but it is, you can say, 1.33 for the 10 lakhs margin what we have allocated for the trade. Is it touching any of my break-even points? It's not touching any of the break-even points. So, I do not need to do adjustment. What are the premiums available? Another thing important is your sold put is still 54 rupees. Your sold call is still 244 rupees. So, I need not do any adjustment because in case the sold put or the sold call goes very low in premium, then also it makes sense to do some adjustment. Next day, let us see. Next day again, market has not gone up, it has gone down a bit, but our profit has also reduced by a very small amount. Next day, okay, market again gone up. 456 from 23,930 or something, it is 456 in four five sessions. Means market has gone by more than 500 points in five sessions and still the trade is able to tolerate that kind of move. Not only it is able to tolerate that kind of move, it is still able to give profit. That is a strength of a good wide range strategy. Have we done any changes from where we started the trade? No. Did we had any directional sense that okay, market will go up or go down? No. After that, market has moved by 500 points and still the trade is good. And trade is good without any adjustment. This is the strength of this kind of a strategy. We have done a complete workshop on double calendar spreads and we have recorded that workshop into different modules. In that, we have shown you how to take the trade, how to adjust the trade, how to lock your profits, when to book your profits and all these rules, frameworks, once we have told you, we have again applied those rules and frameworks to 12 months of actual back testing. So, what happens once you see the rules and then you see the application of the rules, things become crystal clear for you. So, if you're interested in buying this course or we have two other courses, Iron Condor and Iron Fly also. If you're interested in buying any of these courses, you can contact us on the numbers given on the screen. I am leaving these numbers in the description also. All right, my breakeven point is not touched as yet, which is 24817. Market is 24456. So, I need not do any adjustment as of now. Let us move ahead and see what happens next day. Okay, market came back, it is giving me now 14664, which is a decent return. But again, I need not do any adjustment. So far, it is that okay, just create the strategy and just sit tight and see what happens. Next day, okay, market has gone down now. Now, you see, from July 1st to July 9th, market has gone up by 500 points and then it has gone down by 400 points. In a way, we can say that market has made a move of 900 points, 500 points plus 400 points and that is the strength of the strategy that okay in spite of market making such a big move we are still in a decent profit of 14,000 rupees and big thing I am not required to do any adjustment so far. Next day okay again market has gone up a bit next day let's see. Okay now we are making 16,000 rupees so if I have a bucket of 10 lakh rupees it is 1.6%. Let's see still I am not required to do any adjustments. Now I am making 26,000. This is a very critical point in this trade where I need to decide what I want to do. Do I want to book the profit? Do I want to continue with the trade and what is the third choice? Third choice is can I book partial profit? So three choices are there and why I am hopping on this because as a trader whenever there is a profit I should not be leaving all the profit and all the risk on the table. As of now this trade can still give me a loss of not 1.77 but it can give me a substantial loss. It can give me a loss of let us say 30-40,000 rupees. As of now it is already giving me a profit of 26,000 rupees. So this 26,000 can also go plus another 20,000 or 30,000 can go. So that would mean from profit levels I can still lose 50-60,000 rupees. So that is not a very wise thing to do at all. I must do something to lock this profit. I must do something to reduce my possible loss in case I do not want to book the trade. So why I will not book the trade because of this? It is showing me a greed that okay maximum profit is 99,000 rupees and why should I quit at 26,000 rupees? Right? So definitely there is a a small hope also that okay let me make more money let me make more money nothing wrong in that. One of the methods to reduce the risk I am telling you here and there are multiple ways of doing that. I would request all of you to write in the comment section what can be other ways of reducing the risk in the trade. One of the ways is yes, we have shown you earlier also. Let me reduce the position size. So, from eight lots, I will book four lots. So, for booking four lots, I need to select four lots here. Four lots in all the strikes, all the four strikes. And when I will press this red button, that means four lots will remain open, four will get squared off at the current price. So, I'm clicking on this. I'm clicking on this. I'm clicking on this. And I am clicking on the last, right? Now, you see what happens. My max profit, which in any case was not a practical profit, has got slightly reduced. My max loss got hugely reduced, which will not happen. We know this maximum loss will not happen because purchased positions will not become zero, right? So, I have in a way reduced the potential loss. And in a way, out of 26,000 rupees by booking 50% of trade, I have booked at least 13,000 rupees. Hope I'm clear, right? Now, my POP 84.81%. My estimated margin has also reduced. So, this is one of a very simple way, right? Let us see, let us now go ahead and see what else can be done in this trade next day. Okay, the trade is now making 27,000 rupees for me. That's really good. Next day, again 27,000. Market is almost at the same levels, same profit. Now, the trade is making 34,000 rupees. I should not think twice to completely square off this trade. 34,000 rupees in this bucket we have got. In the previous bucket also we got. So, ultimately, we have seen that okay, there is definitely a possibility that if you trade wisely with good hedged defined risk strategies, chances of making decent returns from the market are always there. So, it is showing me booked this 13,000 rupees. P&L as of now is 34,000 rupees. This 34,000 includes this booked off, right? At this stage, there is no need to continue in the trade. It is 20th July expiry is 28th July. So, we just want to continue till expiry so I have to see that okay, what happens to the trade. So, what I will do here I will book another two lots, right? This is my payoff diagram. Now, whatever happens I'm not going to lose anything and on the downside also whatever it is showing that okay, lower break-even point is 22862. There is no upper break-even point. If market falls below 22862, after that the loss will start but already there is a book profit of 23,738. It is taking care that on the upside wherever the market was there is not going to be any loss at all. So, it's a huge wide range payoff diagram. If I show you, see this. See the range up to which there is no loss. And now I can with free mind go to expiry without much stress unless and until there is a huge huge 13-1400 points fall in the market, there should not be an issue. 34,000 already profit. Next, it has become 30,000. Slight reduction in profit. Next, 31,000. And profit has fallen. Again, 34,671. 29,000 it has reduced now. 96,000. This is 28th July. This is the expiry day. And if I see on EOD, we are making no profit. So, out of eight lots we have squared off six lots at a point when we were making 34,000 rupees. But after that also you see the balance two lots has reduced our profit by 19,000 rupees. So, obviously if we have kept all the eight lots, we might not have bought the same profit. So, booking profit is one of the biggest thing we should definitely definitely adapt. Whenever we are able to book profit, book profit or lock profit. We have three memberships also on this YouTube channel. Silver member, toss insights, toss premium. You get more detailed video in our silver membership. In toss insights, we show you backtesting of many strategies for each and every month. I think we have started doing that from at least January onwards. So, all the backtestings are available for insights. Premium can see insights as well as silver member videos. So, premium we have another thing which is very good. Whatever is the kind of market which is toss well cycle, that is available for our premium member. And this membership is totally different from our video courses. Leaving you with another very interesting video on strategies and adjustments. Hope you will definitely like it. Do subscribe to the channel so that you do not miss any new uploads. Do share this video to somebody whom you think it will be useful. Thanks for watching. See you in the next video.