# How to Make Money Trading Options Buying || Options Selling || FnO Hedging || Anish Singh Thakur

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That it will remain above 4800 If I Shot the Put of 14800 here, it takes Rs70000. now you will say from where should i get the 1,40,000 why should l get it so let me Add once See what happens Did anybody you notice what happened? Now There is only an increase of 2000 on 72000 and you make a strategy of 74000. why? because of hedge. you did Hedging whenever talk about the margin which we have to pay to the broker. There are two types Span and Exposure margin Span and Exposure exposure we paid to our broker and span margin we pay to our exchange. Span means stock portfolio analysis. There is a way in which we find out to whom and how much margin has to be given.

So whenever you is a hedge position, you'll get the margin. With an extra Rs2000, you create a position. Now the maximum money that can be collected, suppose the expiry happens within this range, the maximum amount collected will be let’s add 103+ 110 = Rs 213 multiply by 75. If we multiply 213 by 75 then we will get Rs15975. 15000 is the rupee that you can make.

Right So how? That's a thing, there is a website by the name of Opstra I will make a separate video for this Opstra website in detail analysis but now, let’s click on get started. The same thing I did If I click on Options here Or I choose my expiry. The amount required... can be seen here, it 74000 Call of Rs 14900 and Put of 14800 Call of Rs 14900 and Put of Rs 14800 is I am selling see Call of 14900 have to Sell. and if i do add position. It will show below what's going to happen. And a Put of 14800 , we have to sell. It’s already clicked on sell. we add a position. have to Sell. and if i do add position. It will show below what's going to happen.

And a Put of 14800 , we have to sell. It’s already clicked on sell. we add a position. Now let’s see on the left, leave the graph, for the time being You will not understand it right now. It will tell that the maximum profit is this and the amount required is this. But actually, in Zerodha the amount we need is this.

So we can able to earn Rs15000 ok? and the maximum loss is undefined Why? Because this See why we build this strategy. This strategy is called strangle Because we sell some of our far away options. we are expecting that ADX is low and the market will remain in that range only.

So if the market will remain in this range from 14600 to 15100. See the strike rate below, from 14600 to 15000 Implies that there is a minimum 300-400 points range. This means you will not suffer loss You will definitely earn something You will earn maximum when expiry happens nearer to your strike price Means if it expires within this area Within 800-900 If it gives closing within this range of 100 points. It will get maximum profit. Even it rises above a little or falls below this a little You will not suffer immediate loss. You will remain at break-even till here But when a larger movement will come.

And if nifty falls below 14500. Then your loss will increase and will become unlimited The loss will continue to increase. So obviously we will use Stop-loss but i want to show one more thing Now if I told you that in strategy let’s suppose the risk is high Now assume what if Anish it breaks from here. If it breaks from here Now you tell me what will happen Now if you want to do more hedging Or we want to make our strategy more successful than what should you do If the market falls below this What we can do? Should we buy 750 of Put? Yes, let’s try this. What we said let's Buy Rs 14750 of Put Let’s buy it. when the market goes below this If the market goes below this, it will provide me profit. Let’s add it. Now it is showing 80000 Rs.

And if you want to hedge then you have to it at the upper level too If above 14900… Let’s buy Call of Rs 950 . If it goes above this, and breakout then a 14950 call will save you If I add Call of 14950 here Please check. Please pay attention to the screen Let’s see how much margin is needed. Currently, 80000 margins are needed. People will get Astonished now only 22000 is required Exactly This way, by doing this kind of hedging you You can take so many benefits from the fund.

Now tell People must be thinking that 1.5 lakh - 2 lakh is required to consider this big strategy 1.5- 2 lakh will be required to trade these many number of options. You can do it in only 22000 in intraday. Or if I do NRML then 40000-44000 will be It’s a simple So guys did you notice what happened by doing this. Whatever thing we did here, 22000 is required how much we will earn Now if only 22000 is needed we can increase the quantity. Till now you had 1 lakh with now. So now you can buy 5 lot of this You can have 5 lots of each of them or 4 lot of each in total 5 or 4 lot in 1 lakh Means 50 lots in 10 lakhs.

And this a very safe strategy. If the market remains at this range, you will a lot of money And it breakouts then now what will happen We have added to buy… ok see Now see to make this type of strategy, you will buy first. Now if you buy first then the required margin has also reduce The required margin means it should be there in the account. So every time while making a strategy buy first and then shot. And at the time of exit, short will leave first, and long/ buys will leave later. The experienced person must have understood this.

Young people have to back test this. Don’t apply directly First, back test this Now what we have done we buy 950 CE and750 PE Now add this also here 14950 CE Add this We buy it not sell. Buy it Add position And what else we buy 14750 PE 14750 PE we come here and do Add position Now let’s at the graph How it’s going Your loss …. 500 loss 600 loss Now see earlier loss was undefined Now see a loss here If we make this strategy then there is only 735 loss And profit is 3000 that time profit was 12000 Earlier the amount we required was 80000-90000 Now the amount required is only 22000. Then also we are able to earn 3000 return on investment of 22000 Rs It is over 10% according to me And what more is needed above 10% And the market is telling us that if the market remains within 750- 978. Then you are able to earn maximum profit.