Untitled (r4X5xfh0jrY)

We have seen so many traders taking lot of risk for making very little profit. Remember that hero zero thing? Most often than not that becomes zero. And even if you become a hero in that kind of a trade, the profits are absolutely low. So, if you really want to do a very short-term strategy, I would say that we should be doing a weekly strategy where we know what is our maximum risk. And if my risk reward is great, then I can definitely sit in the trade whatever happens to the market. Option trading is all about how well we manage our risk. In today's video, I'm going to show you a very interesting weekly setup. It's a very normal standard setup. You need to tell me what is the name of the strategy. And I'm 100% sure everybody knows that. And obviously, as soon as I get my profit, I will definitely quit the trade. Let us now come to 1st April, Wednesday. This is the first day of the new weekly series. And at morning 9:30, we'll select our trade for 7th April weekly expiry. Welcome to another by the option school. This is your friend Pradeep Singla. We talk about safest option trading strategies and best possible adjustments in the market. You can join our YouTube WhatsApp community. Link is given in the description. We give you a pre-market report every morning. Let us now move to the trade. And if market is at around 22,929, and I'm choosing 7th April expiry, what I need to do, I need to sell a call and put which are very similar in price. So, I say, "Okay." Since market is around 22,900, I can choose either. So, I'm choosing this 22,900. And I'm choosing this 22,900. So, I have sold a straddle. And definitely, I'll buy hedges. And you know what is the name of the strategy. So, randomly, I'm choosing some strike price. Let us say, I'm buying 22,600. And how you adjust your trade, I will show you. Adjust your setup basically. Now, here if you see what kind of trade is this? In this case, it is not a balanced trade. If in market goes down, it can give me decent profit. In case market goes up, there can be a loss of 7429. 7429 is quite high a loss, so I would like to reduce my risk. Main game is how you reduce your risk. So, if this buying I shift down 23200, see now, my maximum loss now is 3204. Whatever happens to the trade on weekly basis. Even 324 is very high. It is 3% for a weekly trade. Maximum profit is very high, 16,000 rupees. But obviously, we do not want this kind of a risk. Even if risk reward is very good, but then again, this risk is high. What I will do, I will further bring it down. See it very carefully what is happening. I brought down the purchased call, and I am bringing up the purchased put also. So, what I'm doing, I'm reducing my risk. Now, my maximum risk is 1391. I can definitely take this kind of a trade and see that okay, what happens to the trade even if you're a working professional. But only thing you need to see is whenever there is a profit in this trade, you must get out. Otherwise, chances can be quite high that market expires at some level giving you a loss of 1391, right? But then, in case at any point in time I'm making 1,500 to 2,000 rupees profit, either I should lock the profit or I should definitely book the profit. Profit booked is my profit. Profit on screen is not my profit. For better reach and visibility, I request all of you to please like the video and subscribe to the channel. All your likes and subscriptions are very valuable for us. I'm going to show you how this trade pans out during the week and whether it gives us any opportunities to book profits or not. Our maximum risk is very well defined, which is 1,391 rupees. Very similar to this, we have done an iron fly workshop where we are teaching you what is the monthly setup, how to enter the trade, how to do the adjustment, how to exit the trade, how to lock the profits, and we have shown you 12 months of backtesting also. If you're interested in enrolling for Iron Fly course or Iron Condor and calendar spread course, you can contact the numbers given on the screen. Let us now quickly move to the trade what happens to the trade. So, since it's a weekly trade, it is better we move by 2 hours at a time. So, okay. After 1st hours, I'm not making much. It's only 65 rupees. Next hours, it is giving me 150 rupees. Now, you see what has happened. Market has gone down like anything, right? 2 2 2 2. It's It's I don't know what has happened to the market. There's a decent fall. But, see this blue line. This is very important. This blue line is still saying, "I am I will not be losing in the trade." And you can see the result also. 92 rupees profit is still there. But, as I have decided right in the beginning that, "Okay, I am ready to lose this 3,900 rupees." So, next 2 hours, let us see. Okay, I'm losing 410 rupees. Next 2 hours, I'm losing only 51 rupees. Next 2 hours, the trade has come back to this green zone. 254 rupees. So, this is a intrinsically hedged trade. Everything is hedged. And even this loss of 3,901 is going to happen only on expiry. Before that, whatever is the loss, in case there is a loss and market goes here and there from the break-even points, the loss will be very less. You have seen it very clearly, right? Let us see now. Let's see 30 minutes. Okay, I'm making some 364 rupees. Let's go. Now, if I move by 2 hours, the trade is giving me 468 rupees, which is 0.5%. It's not a bad profit, but obviously you're selling four option strikes and buying four option strikes, there can be a good amount of transaction costs also, which can be around 80 rupees each side. So, around 160 rupees. So, 468 is not a very sufficient profit, but in any case it is a profit without doing any adjustments. Next, okay, now I'm making 1% profit on whatever is my margin. So, 949 rupees I'm making. No adjustments, nothing I've done in the trade. I can definitely book the trade. If I have multiple trades, then definitely I should book uh few trades. So, let us say if we have done this trade with let's say five lots and we are ready that okay, I can absorb 6 to 7,000 rupees of of a loss and I'm looking for a good 40 50,000 rupees profit and at this point in time I'm making 4745. So, here it is very critical that once you have reached this point and it is on Monday and Tuesday is expiry. So, at this point you must definitely book 50% of trades. Maybe I will book three lots here. This uh really makes sense because never leave any profit on the table. So, after booking this I'm left with only two lots of the trade and my max loss is as good as zero only, right? There is no max loss. Uh my max profit can still be 25,000 rupees already I have booked 4745 in the trade, right? So, let us now move another two hours. What happens? Do we get any better opportunity? Should we square off the whole trade? But I don't think so because my max loss is now nothing. This is a all green diagram. I'm not going to lose anything in this trade now, but can I make some more profit? That's what we need to see. Next two hours. Okay, now I'm making 6747, which is a healthy profit and since there is no risk, I can still continue with the trade or I can square off one more lot, but let us not square off one more lot. Let us go ahead and see what happens in next 30 minutes because it's this is now we are entering the expiry day. A very good profit of 7200 rupees is there. Next, 8489. Definitely luck is favoring me. Market is exactly at 22925, the point where from we started the trade and market has gone there only. So, a good profit of 8489, which is a weekly trade and giving me excellent profit. Let us see whether this profit is sustainable or market on the expiry day makes a move here and there and destroys all this profit. Let's see that. Next 30 minutes 9,000 rupees. Next 30 minutes 9945. So, if I see the strikes, is there any premium left? If I see this selling strike has still 95 rupees, which is which is quite good. And this selling side has still have 65 rupees. So, here what I will do, I will try to lock more profit. So, if I see 23,100 call is 14 rupees and 23,000 call is 33 rupees. So, if I give this 20 rupees uh I think the trade becomes much more safer for me. And similarly on put side, I will reduce the gap. Uh I have purchased 22,700. I will uh square off this and I will buy this. And the original buying of 20 2,700 I am squaring off. And similarly on call side, 23,100 I am squaring off. Right? And this buying I have to make two lots, because we have two lots left with us. And similarly this buying we have to make two lots. Now, what does this move has done? This move has done that at least I'm going to book some profit. 7,000 is now locked. I can still reach 20,000, but 7,000 is definitely locked. Right now I'm making 9945. So, what I have done, I have just shrinked my buying and it has locked a lot of profit for me and I can now easily wait. Market can go here and there, but I'm least bothered about that. So, next 30 minutes if you see, 10,283, which is excellent return. Next 10,400, 10,647. Still some premium is there. 10,933. Okay. Now profit has reduced a bit. So, I I think 10,933 was a good point where I should have closed the whole trade, but let's see. In any case, we are not going to lose anything. 10,400, we again got the opportunity. Now, it has reduced to 8853. Seeing market has moved up, next 7280. And end of day, you see it is 7350. So, we could have made 10,000 rupees, but ultimately you see market has made a big upside move. And because we have locked our trade, that is why we are still making 7,300 rupees in this trade. There was an opportunity that, okay, we could have booked around 10,000 rupees profit in this trade. So, why this trade is better than any other hero zero gambling kind of a trade? Because here your risk is very well defined. Initially, we did with only one lot where only 1,300 rupees loss was there. If I have a capacity to absorb 6,7000 rupees loss in a weekly trade, then we have done five lots. Obviously, we need some margin for that. And after seeing the markets for some time, we are able to lock the profit and we are able to ultimately book the profit also in this trade. A very good weekly strategy, but can we do it every time? So, that you need to see. When you're creating the trade and you're creating it in such a way that you are able to see that, okay, my maximum loss is only 1,200 1,300 rupees. Definitely, you can try. If you want to learn more about these adjustments and locking the profit process, you can contact the numbers given on the screen. We have done three workshops and we have recorded those workshops and created courses out of it. So, on iron fly, on iron condor, and on calendar spread, we have done these workshops. You need to tell me what is the name of this strategy which we have done today, which is very obvious. But again, I would like you to write the name of the strategy. If you're looking for a good transparent broker who provides you a free simulator also, something very similar to what we are seeing on on screen, and very robust platform wherein with one click you can adjust your multiple positions. Then you can definitely click on the link given in the description. Leaving you with another very interesting video. Do not forget to like the video and subscribe to the channel. See you in the next video. Thank you.