[0:07]Hello traders, hope you're doing well. In this video, I'll be discussing with you a very powerful option buying strategy. Now, this strategy requires only 30 minutes of your time. You will execute the trade around 9:30 a.m., maximum by 10:00 o'clock you will be closing the trade. So there are many working professional who do not have time to spend in the market. So at least this 30 minutes if you are able to spend, you can take advantage of this strategy. Now, second interesting thing about this strategy is, you don't have to look at charts at all. Only based on the premium chart, as per the rule, whichever strike price is giving you entry signal, you will be executing the order in that particular strike price. Now, the third advantage of this strategy is risk is less, reward is more. Minimum with this strategy, we will be getting 1:2. So you guys know, if you take 10 trades, even if the success rate is 50%, five trades you make loss, five trades you make profit, but risk reward if it is more, 1:2 or more than that, definitely you will be profitable. If you calculate overall for that 10 trades. So that is one advantage. Now this strategy was taught to me by one of my friend. He, he's having good success rate, 70 to 75%. So 50/50, if you make profit only if risk reward is more, it is good. In this case, he's getting 70, 75% on an average month on month basis. Even I started doing the back test, for me success rate was good. So I thought it would be very interesting if I teach you this strategy, so that you can back test it at least for one month. Once you see the results, if you are happy with the results, then you can start using this strategy so that you spend very less time in the market. So that is the whole idea. I don't want to waste any further time. Let us just start with the rules of this strategy, which is very, very important to get the success rate, you have to follow the rules. Now traders, the first rule of this strategy is morning 9:25 a.m., you need to open Nifty's current expiry option chain data. Option sheet data will look somewhat similar to this. I'm using sensible, whichever broker is providing you this information, you open Nifty option chain data for the current week expiry.
[2:31]Now traders, once you open the option chain data for the current week expiry for Nifty, what you will do, first you will observe Nifty, where is it currently trading at? As of now, I'm recording this video after market closing to explain the rules to you. I will give you one live trade example also, you see that you will get better understanding. First, only rules we are going to follow. So what you will do, morning 9:25 a.m., not at 9:00 o'clock, 9:15, at 9:25 a.m. You will come and see current market price of Nifty and then you will see which strike price is closer to the current market price. In this case, 24,500 is very close to 24,485. So this is our at the money strike price. Now, the goal here is, from 9:25 a.m., if you observe on the call option side, any one of the in the money strike price will be trading very close to 180 rupees. It can be trading at 165, 170, 175, but one premium will be always trading very close to 180 rupees and that strike price will usually be in the money strike price. What you have to do? You have to select that strike price. Now imagine, market is open. You will look at a call option strike price, which is trading very close to 180. Here, if you see 24,350 is very close to 180. So this call option strike price you will choose. Same way what you will do, in put option side, definitely 99% of the time there will be one strike price, which is trading very close to 180 rupees. So you will start seeing which strike price is trading close to 180. Here you can see 24,650 strike price is trading at 172. So this is very close to 180, right? So this strike price you will choose. So basically what we have done, on the call option side, one in the money strike price we have chosen, which is 24,350 because it is trading very close to 180 rupees. And on the put option side, we will be choosing a strike price, in this case 24,650 because this is trading very close to 180 rupees, it's trading at 172. So these two strike price you will add to your watch list. So you will keep observing these two strike prices. And this you have to start looking only at 9:25 a.m., please remember that. So we are getting ready for the strategy. So what will happen is, closer to 9:30 a.m., closer to 9:30 a.m., any one of this in the money strike price, it can be either put option in the money strike price, or call option in the money strike price, any one of it will break and start sustaining above 180 rupees. Either it can be call option or put option, whichever breaks 180 price level first, that strike price, without thinking too much, we will take entry. I hope you have understood this. If you observe, I have not looked at the chart, I have not asked you to look at the chart also. Only premium chart, we will see, whichever is trading close to 180 rupees, we will keep observing, either call option or put option, whichever breaks 180 rupees and starts sustaining, that strike price, we will take entry. Now once we enter the trade at 180 rupees, sometimes it can be 181, 182 also, but very close to 180, we have to take the entry. Now for this trade, the risk is already decided, okay? Imagine, you're taking a call option, it was trading at 180, as soon as you saw that, around 9:30 a.m., you executed the call option trade. So this strike price, as soon as you enter, immediately you will place the stop loss. Now the stop loss for the trade will be 20 points, okay? So if market is trading at 180, if you keep stop loss of 20 points, then what time you have to exit? If market goes to 160. After you take entry at 180 rupees, immediately you have to keep 20 points stop loss. So by chance this 24,350 strike price, from 180, if it goes to 160, without thinking too much you have to close the trade. Now traders, you might have a question, you might ask me, sir, why are we choosing a strike price, which is very close to 180? The first reason is almost all the time, whichever strike price is trading near 180 price level, this will be an in the money strike price itself. So in this case, 24,350, it is an in the money strike price on the call option side, right? We will be choosing an in the money strike price, which is very close to 180. One advantage we have by choosing in the money strike price instead of at the money strike price is the delta value. You can see the delta value of this particular strike price will be more than at the money strike price. As per my observation, my back test, as per the data what I've got my from my friend, when we choose a strike price, which is trading near 180, and we take entry, as soon as it breaks 180, that is giving us very good success rate.
[8:04]Because delta is kind of more than at the money strike price, so by chance if market quickly starts moving, let's say Nifty moved up by 10 points. Since it is in the money strike price and delta value is more, this strike price will at least move by 7 to 8 points. Okay? So our goal is to capture quick momentum in the market 15 to 30 minutes maximum. We are going to enter a strike price, which delta value is kind of high. Usually we will choose a strike price, which is currently trading at 180. We will be executing the order at 9:30 a.m. Now once we execute this order, our entry is at 180, stop loss will be 160, and target will be 220. This will be the minimum target for the trade. So if you calculate as per the risk reward ratio, stop loss is 20 points, target will be 40 points. This is the maximum risk, but this is the minimum profit. Now sometimes after you enter the trade, I have noticed, six to seven times, I would have kept minimum target as 220, but market will be very quick and it can reach 260, 270, 280 also. So that additional move, whatever you get, that is your bonus. If you are able to capture it, you can capture. If not, at 220 price level, you can exit from the trade. As a beginner, when you're doing the back test, your risk reward should always be the same. Risk is around 160 price level, entry is around 180, target is 220. So after you do the back test, keep observing, how many times market has gone above 220? It is sustaining above 220. Then you will get better idea as to, if you hold on to the trade, you will have a chance of making 1:3, 1:4, 1:5 also. Many times this has happened. Now traders, by now you know, we are going to execute the trade at 9:30 a.m. whichever strike price, on the call option side or put option side, whichever is breaking 180 level first, we will be entering a trade in that particular strike price. Stop loss is 20 points. So stop loss will be around 160. Target will be when that particular strike price goes to 220. 1:2 is the risk reward. Now, in this particular trade, to get good success rate, you don't have to wait too long. If the market needs to give you profit, by 9:45 a.m. itself, most of the time it will give you profit. Okay? So basically 15 minutes, within that 15 minutes, either we are aiming for 220, or we will be taking a stop loss near 160. Entry is near 180 level. Either we stick to 40 points target or we exit at 20 points stop loss. Most of the time, as a beginner, I would suggest you to close the trade at this time. Now by chance at 9:45 a.m., let's say market did not reach 220 also, it did not go and hit your stop loss at 160 also. That time, as a beginner, what you need to do is, without thinking too much, either you will be 1,500, 2,000 like that profit, at 9:45 you have to exit from the trade. Or maybe you will be seeing a loss of 1,000, 1,500, whatever it is, that stop loss you have to take and close the trade. For majority of you, at the beginning stage, at least, do not hold on to the trade for more than 15 minutes. Entry is at 9:30 a.m., exit at 9:45 a.m. But once you gain experience what you will understand is, you have a chance of waiting until 10:00 a.m. also. But you will be doing that only if your position is in profitable situation. For example, you entered at 180. At 9:40 a.m., let's say market is trading somewhere near 190 or 200 level. Only 20 points profit you got. That time what you will do, you will trail the stop loss. Where is your stop loss? Stop loss is at 160 rupees premium, right? So you will bring your stop loss to 180, which is cost to cost, and then you will hold on to this trade. So either market will hit 180 level or it will hit your target of 220. Until then you have to wait. So by doing this, what, what you have done, after 9:45 a.m. if you're not reaching 220 target, you are bringing your stop loss to cost to cost. So this trade becomes a risk-free trade for you. By following these rules, we have seen 70 to 75% success rate in this trade. If our trend is correct, if market also wants to move that way, since we have taken 180 strike price, which is usually or always will be in the money strike price, we might be able to achieve our target very quickly. At the same time, we will be able to get more targets also. I hope you're getting the point as to why we are using 180. As per the back test, that particular strike price, compared to other strike prices, is reasonably priced, at the same time delta value also is reasonable. That is why we are choosing this strike price, when we tested the strategy based on 180 premium, that is working out well. That's why I'm suggesting the same premium levels for you, whichever strike price is trading at 180 rupees, at 9:30 a.m., we need to execute the order and take the trade. Now you will be seeing a live trade which I took today itself, 12th of August. Look at that live trade, you will get better understanding. But please, after looking at the strategy, quickly don't put your hard earned money in the market immediately and start trading from the next day. Please don't do that. Back test for 30 days. Only if you're getting the result as per what I have told in this video, then you take the trade. Okay? From many days I wanted to give this strategy, it was pending, I have given now. Now you know the strategy. If you see the live market example, you will get better clarity. If you have any further doubt related to this strategy, please mention that in the comment section, we'll look into it and we will try our best to answer. Not just this live trade, at least four to five more live trade examples I'll be sharing, so that you will come across all kind of situation using this strategy. All right? For me it's worked out, I've shared with you. You can now see the live trade which I took and then decide if you are ready to back test this strategy for the next 30 days. Okay? Now traders, before you see the live trade example, you can see 8th of August in the group I had discussed saying that these two are the strike prices I'm looking at, based on 9:30 a.m. strategy. On Friday, we got very good profit in the strategy. But on Monday, my stop loss got hit. Okay? As per the strategy. Tuesday trade is what you will be seeing right now. Only because that is the one which I have recorded. So whenever you are having confusion about which strike price to choose and things like that, whenever I'm looking at the strategy, definitely I will share. So if you're interested, you can join the group. Now let's look into the live trade example. Traders, date today is 12th of August. As of now, time is around 9:26. Now at this point of time, market is trading somewhere near 24,600 range. At the money strike price is 24,650. When I notice, there are two strike prices. One is 24,500, which is trading very close to 175 range. And I have a put option, which is 24,750, which is trading near 166 range. So my idea as of now is to add these two strike prices to my watch list. Why I do this? Because they are very close to 180. So I'll go here. Simply what I will do, I will add this position, 24,500 call option. I'll add this to my watch list. And then which strike price we had? 24,750. So 24,750 put option, I will add. Both are for the current expiry itself. Now once I add these two strike prices, I will observe these charts. Time as of now is 9:28. Now whichever strike price close above 180, I'll be looking for an entry in that particular strike price. 24,750 put option is currently trading at 168, and 24,500 call option is trading at 172, 173. So whichever strike price sustains above 180, then I'll be taking trade in that particular strike price. Now as of now, both are trading at somewhat similar range itself. Basically we need to execute this order by 9:30. So by 9:30, 9:35 maximum, whichever strike price sustains above 180 zone, we'll be taking that particular strike price. I think put option is kind of spiking up a bit. So little bit I'll be ready to place an order. Usually people will set trigger orders for the trade, but I'm not doing that right now. I'm just going to place market order itself. So I'll just observe. 180 if this breaks, I'll enter. 180 if this one breaks, again I will enter. So call option has broken 180 zone. So I'll be taking some positions there. So somewhere near 180, I have got the trade and my stop loss will be just 20 points, somewhere near 160 zone. And target maybe we can try minimum, as per the rule, 40 points is the target. So our idea is to hold on to this trade until 9:45, and by that time if market achieves our target, without thinking too much, we will be closing. Okay? That's the plan. As of now there is indecision between the buyers and sellers. Call option 24,500 is still holding on, sustaining at the same price level. So quickly another 40 points from the current zone, if we get, we will try to capture that and close the trade. Just for the reference point, very less quantity only I have taken around 300. But the initial stage, I will suggest people to trade with very, very less quantity. Or please do paper trading, there are many platforms, you can go there, do paper trading, do it for at least one month. Only if you get confidence, you're happy with the setup, then maybe you can take the trades. That too you can you have to start off with very, very less quantity. So real market condition, instead of giving the strategy, how it actually works, that is what I'm trying to demonstrate to you guys here. So basically, the risk reward for this trade, if you have entered at 180 zone, then 220 is 40 points target, 160 zone is 20 points risk. That is what we are currently aiming with the strategy, 1:2. So in this 1:2 risk reward, let's say five days you made profit. 4 5s 200. So 200 points you will be able to capture. Five days you lose also, you will be losing 100 points. 100 points net to net, how much is 100 points for one lot? 75 into 100. So close to 7,500 rupees per lot, is the minimum expectation that we have with the strategy. Okay? If you increase the lot size, your profit also will increase. That is a different story. Basically, every time you target 40 points, this is the minimum profit that you can make. Sometimes what happens is, instead of giving 40 points, it will give you 60 points, 80 points, 100 points movement. Because in this we are not looking at charts or anything, we're just executing the trade based on the strategy. And we'll be closing the trade also by 9:45. That is how the strategy works. Sometimes me holding on to the trade post 9:45, it has given good profits also. At the same time, there are some losses also. So net to net, at the initial stage, for the strategy, the idea is to close the trade by 9:45. At 9:30, we need to execute, 9:45, we need to exit. So the trade timeline is just going to be 15 minutes. So working professionals, if you look at the strategy, back test for one or two months, and if it's working good for you, simply you can implement this in your daily trades. But whatever it is, risk is involved. Without doing back test, without you getting confidence, never ever jump into any trades, which anyone suggests, because there might be some discontinuous four days, five days, you will get loss. So to get a proper feeling, definitely back testing the strategy for at least one month is important so that you will come across all kind of situation. Time as of now is 9:39, there's market has not given us any kind of movement. So based on the strategy at 9:45, wherever market is, okay, you ideally have to close the trade. It might be at 1,000 rupees profit, 2,000 rupees loss, without hitting the stop loss, market can just be sideways. That time you might have to close the trade. Okay? That is the basic rule. Another five more minutes we will wait and observe if market is either giving us the target, stop loss, or it is just trading within the range. Based on that situation, we will decide what to do next. As of now, we are just at cost to cost, okay? No big changes in the setup. Already time is 9:42. So as of now, slowly we are getting the spike. Usually what happens, by 9:35 only you'll get profit, or 9:40 you will get profit. So by then, if it reaches 120 zone, whatsoever, you might have to close the trade. Now, though it is 9:43, still market only now it has come to the profit situation. Now, how would the market sustain all of those things? Post 9:45 you should not think. As per the rule, at 9:45 you have to exit. But sometimes, let's say you're in profit situation, and you're okay to take the risk. Then from 160 level, you can get down your stop loss to as much as possible. Let's say you, in this case, I get it to the previous candle, 175. Okay? So from here if trend continues, I will capture good movement. In case not, I will exit the trade without thinking too much. Okay? I hope you're getting the clarity. We have not got very big premium movement, just as of now, if you have entered at 180, 190. 10 points profit you have got. Now simply what you will do, you will trail your stop loss to the maximum at whatever price you want you can exit. Since target is 220, market is going as per the view, you want to hold means you can hold. In this case, maximum from 20 points risk, we have reduced it to 5 points. At any time we want, we can book. But those who wants to stick to the target, I'm just saying this is one of the situation which you can follow. If you have entered at 180, market has reached close to 200. So 20 points profit already you have got. You want to trail the stop loss to cost to cost or you leave it as it is, is entirely up to you. When you're seeing market at 9:45, market is not showing any positiveness. Or 50%, 60% of your stop loss already the market has taken. That time maybe you can decide not to hold on to the trade and things like that. So profit had gone close to 5,000 rupees also. Basically we should have at least closed the trade when around 9:45. But just holding on to the trade, what happens by reducing the risk. That is what I'm trying to demonstrate to you guys here. Time as of now is almost 9:50 a.m. As of now net to net, this strategy has just given us today 1:1 profit itself. By this time, you should have trailed the stop loss to cost to cost, so that today it just becomes a risk-free trade for you. So what I would suggest you to do is, trail the stop loss, okay, to 180 zone. So this becomes completely a risk-free trade.
