Options Calendar Trading करने का अनोखा तरीका
Hello hello, friends. I am your friend Vivek Bajaj, co-founder of elearnmarkets and stockedge Joh Jeeta Wahi Sikandar was such as amazing movie. It taught us such as important lesson that if you have the motivation then you can do anything in life. this is really related to share bazaar. I have seen many people taking a lot from the share market.
they were in minus but they recovered from there and now they are working with full zeal in the share market so today I have guest who really comes close to joh jeeta wahi sikandar let's welcome this amazing guest, who has also written a book. He has a degree and living his life..let's welcome Rohit Katwal Hi Vivek ji! I am good how are you? Very good thank you so much for inviting me. My pleasure. Wanted to know about options because it is trending. So I thought why not call you and teach people who need to know you have a very interesting story, so I want everyone to know. Then we will also know your strategy, which is helping you earn so much money.
I graduated in computer science, I am a Btech. And that was when the market fell in 2009 that time my father also retired, and the share market was such that whenever you bought anything it used to go up he only thought me how to use brokerage, so on he got me a nifty at 2:45 in the afternoon on one lot. Wow, that is great! If I can make so much money then why am I thinking about other things I love computers but I don't like computer science. This is what I wanted to do
we both used to do our trading side by side, and I was doing my MBA. My dad was studying from a book in 2012 my father expired. And I needed to look after all the mess and it took me 3-4 years to get out of it I read the book that my father gave me and I backtested it. I realized it was important to manage the risk management That is so good. Fantastic! Due to the hysteria in the market, all the engineers are tired of their qualification and they want to join the market
They used to always see me working on charts you can't lose money in that situation 60% of my trades were in loss and I only made money through 40% so I will make you the presenter to do some conceptual discussions with you Do you want me to minimize the screen or keep the full screen? I think this will be better so I will share about how I go with option trading for example, if we see someone buying an option for 35600 when the bank nifty is 35100 for example, I will show you an image, the market was bullish last week and this is an hourly chart of bank nifty at the most it is sideways, it is in money by 400 points when you reach near the expiry, the explosiveness of expiry will increase the fourth option is that as an option seller I can hedge my options I assume that the seller has some information that the buyer does not have I always identify the market through technical and quantitative analysis when the options are cheap then the theta decay is very less in the end, I let the theta decay play out in my favor 70% of the time the market is sideways and 30% of the time it is trending that was a different structure and what you have now is a different structure I will show the technical setup, so I follow this technical setup for the weekly charts these white lines are 11 ATR bands that is based upon hourly, if we talk about bank nifty the range is 150 points per candle if bank nifty still goes beyond it then it means that the trend is going on if you don't mind I will go a little slow here, will do a conceptual discussion also, what is the software? I use amibroker I want my learners to learn from the basic level this ATR is 156 on an hourly basis and on the last 14 days, I am taking the average of bank nifty in an hourly candle, you will understand how above you can go on day if Macd will inform me that I can go further then that is an added confirmation you can see in the Heiken Ashi candle that it is trending right now you can see a gap here where you can see the green candle closing is the average of the current bar, so basically you cannot see in the high and low vix it helps to find a direction where they find it difficult in candlesticks I'll show you for a minute, let me just close this thing so if this is continuously green then it means it is in the uptrend? you can see that the decisive and indecisive candles help in the adjustments before big candles were being made, now for the follow up small candles will be made and thus giving time for adjustments and initiating change I will start making my position from this particular point you can see that the buildup that is happening here is genuine what are the index heavyweights doing? how are the calls and puts changing, what is the buildup and how is the cover-up my next step is to understand what strategy I need to make and what is my position sizing for example, if I have 10 lacs, I will utilize 2.5 lacs from that and my expectation will be to get 1-1.5% from that 10 lac for adjustments we needed to manage the options and for that we used to sell the counter options somebody with a lot of funds can manage this position easily I still have 50% of the capital to make a profit if you manage to keep this strategy then you will have to keep 50% of the profit? I never do naked options selling, I am always hedged I used to do intraday trading when there used to be expiry trading, and in 2018 I needed to take a drawdown of 10% with experimentation, I got few losses but I also recovered I sold 6-10 rupees options, and you won't believe that how those options took a bump for 4 months I was scared of taking a trade I do it according to my needs but in this presentation, I will choose my favorite ratio calendars If we need to manage then with 60-70k it is manageable we try to create net credit ratios if I take out 10 rupees from 61 then it comes to 51 and if I divide 51 by 105 what is this strategy? so if it gets bullish sideways then how can you earn? I will show you this through the payoff sheet I am into net credit, which means I will get some profit this is the strategy I use, nifty 22nd July I sold a put for 15900 I received a premium of 61 into 2 as a seller there are some slippages here due to brokerages this will go to rupees 1 and rupees 2 if I need to manually square off on a position of 85k I am getting an ROI of 4.5% my problem starts when the market goes down to 59 the intrinsic value will start showing up, and it will also hedge I will close it till 6 or 7 rupees this becomes a full ATM calendar, what happens is that my full view is changed It will retain the intrinsic value of 60 so you are not considering anything? Yes because I am seeing it as an expiry you said the current impact will be faster? That will be gamma hedge even if there is little bounce, it gets managed basically, it is all about what you can think from your creativity you have also made a view in the calendar, which is very interesting. People usually keep delta neutral I have another example here, which I forgot to tell you sometimes the market becomes a highly bullish market so that my profitability is not hurt when my trend is confirmed then I will not hold positions, I will take rest for sometime at a time I start with iron flies, then I mix it with calendars if it reaches 25, then I will convert it to bull put spread if it converts from bullish, then I will add some fresh positions also when it is bullish I sold a put of 550 in 1125 quantity in 7 rupees. I also bought a put of 15200 in July in 3 rupees I was thinking that the market will go up from this particular point after that suddenly, the market going up so my new quantity turned out to be like this the first should always be to stop the bleeding of your account you can always change the strategy of options you close your position and go to the next position third is the breakeven trade, small loss, and a big loss I sold the naked call of Indian bank talking about the last week of expiry in monthly options the process you have given is really good, you make a broader market and then you make calendars according to the strategy it is a capability that you can change your views and still make a strategy when someone asks us what is options then we tell them about the calls and put, and how we make a profit it was a fantastic session with you. Rohit you gave us a great learning experience. Everyone gives a lesson on options trading, but you gave the basics
if my learners will ask you then I hope you will answer them on twitter. Sure I will so my best