Profit का ख़ज़ाना - Option Chain
We Will Learn
1. Why Maximum Option Buyers are in loss
2. How To come into 10% Who are 60% to 70% Profitable
3. How Find Upper Limit(Resistance) & lower limit(support)
4. Identify Trend in Less than 2 Min.
5. Identify whether we have to buy put or call
6. Save Brokerage 21,600 Annually.
7. Opposite Of Supply Concept
8. Profit in Sideways market
9. Too Many Important Pointers
When Market Bullish
Seller (Writer) Buyer
Sells Put (PE) Buy Calls (CE)
When Market Bearish
Seller (Writer) Buyer
Sells Call (CE) Buy Put (PE)
Lets check Nifty Option Chain &
Live chart of today
How To Choose Right Premium
● You Must Learn about Risk Management
How To Choose Right Price
● ITM
○ For Call - Wo Sare premium price jo Spot Price se kam hain.
○ For Put - Wo Sare premium price jo Spot Price se jyada hain.
● OTM - ITM ke thik ulta.
● ATM - Sirf wo Premium price jo Spot Price ke sath dikhta hai.
SAGAR SINHA
Premium Price
● Premium price = IV(Intrinsic Value)+TV(Time Value)
*** Intrinsic Value = Internal Value
*** Time Value = Value of Time
OTM = NO IV + TV
ITM = IV+TV
ATM = IV+TV
Intrinsic value & time value
● OTM Premium has no intrinsic value, but it has only time value
● ATM & ITM Premium has both time value & intrinsic value.
● ITM is preferred price.
● Time Value Keeps Decreasing but intrinsic value always remain
same.
● Formula For Call
○ IV = Current Market price - Strike Price
● Formula for Put
○ IV = Strike Price - Current Market Price
Put Call Ratio - PCR
● PCR = Put OI / Call OI
○ Koi kahega 0.5 to 1 hoga ye
○ koi kahega 0.5 se kam hoga to ye
■ JUST UNDERSTAND Simple Calculation
■
If Call OI is around double of Put OI means buy Put of that strike price.
If Put OI is around double of Call OI means buy Call of that strike price.
Important Point In Option Buying
● Avoid buying OTM Premium due to not having intrinsic value.
● Never buy such option premium which is OUT OF RANGE or too
far from spot price.
● High Call OI = Strong Resistance
● High Put OI = Strong Support
● Call Side me Jyada OI badh raha hai means Girane ki taiyari hai -
Use Change in OI
● Put Side me jyada OI badh raha hai means Uthane ki taiyari hai -
use change in oi
● Some time dono side badh rahe hote hai means ladai joro ki hai
market confusing hai. Don't Trade.
How To Save Brokerage
● If You Trade 3 Times Day & Trade 20 Days in a month.
○ 20*3 = 60 Daily
○ 60 * 20 = 1800 Rs Monthly.
○ 1800 *12 = 21600 Annually.
Opposite Of Supply Concept
- OI Me supply jidhar jyada ho, Uske opposite wala buy karo
Always Remember
● High Call OI = Bearish
● High Put OI = Bullish
How To Make Profit In Sideways
● Buyer make profit at only 1 time.
○ when market goes in favour of buyer
● But Sellers Makes profit 2 time
○ when market in favour of seller
○ when market goes sideways
Change In OI - For Intraday Trader
