Effective Options Trading Strategy for Retail Traders!
hello friends, how are you doing this is your friend Vivek Bajaj. Co-founder of elearnmarkets and stockedge namaskar, I am your friend trading, investing, market and many other things we have covered in face2face when I started stockedge then I thought I will do really good because I am a real market participant I think something done by a real retailer can add so much to the ecosystem so we will have so much fun learning from him and interacting from him as I said I am a fan of your product even I use your product..I learn so much from it I only have 2 requirements, one is how can my learners earn money and make more in less capital I think retailers will like it because it is a better strategy than other techniques like short straddle right now my main project is to develop opstra, he comes from a trader's perspective I develop different strategies and test them I will do iron condor, this is the disclaimer that there are risks involved so I have made a strangle and hedged it to short money this strategy can make you wide or narrow and can make you in different ways this is a risk-reward game, high probability of profit so in iron condor we have to do adjustments and sometimes we have to not if you don't know about options then you can try delta same way if you have -25 delta then you are 35% short you will not hit this most of the time..90% you won't
this becomes an undefined risk, so we buy an option and with that, the risk is defined the width should be equidistance, you have to maintain 300 both sides this is a strategy builder, anyone can do it..now we will go in options when the liquidity is more then we should avoid it if we do 200 points then you have to give more money the range is between 60-70, 000, so if you do any strangle, it can go up to 1.7 lac but it is a risk defined strategy, so retail investors should always try to do with this strategy and if you take out the net credit then there is a max loss this is very simple, so when does iron condor work? so you benefit when the short option prices are less so this is gamma risk, it is in gree. It says how fast your option changes expiry is increased by money, so should not keep more than that if you have got options at the same price, then the width will also be the same then the premium will not be much if you do it from near so what are exit rules? you have to avail 50% max profit you can't lose more than 50% of your profit 5,800, which is almost 8% and in the other place you said 4% in this one, the mark-to-mark requirement will also come up ever? my suggestion is to keep it for some time, and if your loss is 60-70%, then it should go up and the capital deployment will be the same? yes it will be the same I will take the put of 14,800 and below I will solve the delta I get 5000, so I will take the 10% out of it? So I will take half my profit, it is perfect when you go here you will see that the delta is 0, which is delta neutral so I will ask you a question. I understood delta..in 0.008 8% is the impact on the option..am I correct?
this is the correct way of looking at delta, it says if you are not able to do much on this then every month you will get 70 when you are away from expiry, then you have to see what vega is saying this is your positional delta, that gives up or below 50% when you roll up or roll down then the criteria is the same at that time to make this 0, we have to make a long option , and this depends on where the market is going then you don't need to make adjustments. We will take an example from the back data you can come and adjust it at that time now see your iron condor is made, vivek ji here it shows around 7000 till the time it doesn't go up we can't go take it back, or when the stop loss is not there this is 15,291, how much this is after adjustment, you can see so when you roll up, you get extra credit, you can see it is 9,000 something you will make this neutral by buying 10 delta call you can see the market is going, and if it is then we have to be careful so when we have started, on 23 April, and it looks like another loss can happen if you don't do adjustments then you have to give more money? all the credit has been received whatever he needed the logic is that if we are doing 20, then the adjustments will be late because the market has already we will show you where we took the adjustments so the delta is less, so it won't be able t protect. and the above delta is higher so it will keep going up sometimes even I think that I need the whole we can also take the tender call, it is not necessary to take the long call option we did not book the expiry, so if this occurs in another situation, what will we do? some people become too exact when it comes to this, which is not necessary you can lose more after the adjustment so even after moving 900 from this points, we can take some profit to observe weekdays, then it can have a lot of volatility this happens when the market goes up and when it goes down you will do the opposite thank you for attending this session..so this is my account. You can follow him on twitter and ask him questions, he is a very generous person how can you repair options, if we go in trouble we hope so. So thank you and bye bye