&

Presents

Session 10 - Implementation of "Predictable -

Consistency" Model with Option selling
29th July 2022, Friday, 8pm - 10pm
Mr. Pranav VK
CEO – The Intraday Expert, Anyone Can Trade!
 Presents

Implementation of "Predictable -
Consistency" Model with Option selling
Mr. Pranav VK
CEO – The Intraday Expert,
Anyone Can Trade!
Thanks to Our Title Sponsor
Thanks to Our Platform Sponsor
 Speaker Introduction
Pranav VK is the CEO of Theintradayexpert.com
He is a certified trader from NISM on Equity Derivatives, NSE
Academy on Online Management Development Program on Intraday
Trading , NSE Academy on winning option strategies for volatile
markets & has won the Zerodha consistency challenge twice doing
intraday trading. He is an engineer turned trader, who is now a trainer
as well. He has guided 100+ working professionals & business owners
to become independent profitable traders in the Indian Stock
Market.
PRANAV VK
Proof of the model
 Expected Risk & Returns
Max drawdown = 6%*

Loss per day = 1%*

Probability of profit = 88% (Out of 100 weeks, 88 weeks will be profitable!)*

Average returns per year = 40 to 48%*

Time investment as a trader = 4 days per month – traded on every Thursday of the month only
(Biggest challenge for many Business owners & working professionals)

*These numbers will vary based on your skill and effort

 Capital Required
Min capital required – ₹1.5L (Adjustments will be limited)

Good capital to execute efficiently with adjustments for learning - ₹5L

Recommended capital - ₹20L (Where you can consistently make 1L – 1.5L per month)

RETAIL TRADERS DON’T IGNORE THIS!!

Let me share a story
 By the end of this session
You will be able to :

• Understand who should trade & who should not

• Understand why option selling is my preferred style of trading & why you can do it too

• Understand the steps involved in creating a system for yourself which can give you consistent results

• Learn the system that myself & my students use till today
Understand who should trade & who should not

S  Skills: High Income Skills should be specializes and you must be capable of solving complex
problems that are not easy to replace.
I Income: You must be capable of saving 15-50% of your income. If not upskill yourself for 6
months.
S  Savings: You must save 6 months worth of expenses if you are in a stable industry and 12
months if you are in a volatile industry.
P  Protection: Protection plans like term insurance, health insurance.
I  Investment: Risk takers can do aggressive investments while Risk averse can opt for less
aggressive options.
P  Preserve: Once you have a built up your wealth, its at most important to preserve the same
within the family, by having power of attorneys and other protection plans.
 Why I prefer option selling?

• I love ‘high probability of profit’ trading

• Peace of mind while trading and after trading

• Scalability is amazing for a retail trader looking for secondary income

• Well defined risk to reward – (practically implementable)

• Time is our best friend - Theta decay

Most importantly you can create systems which are PREDICTABLE and CONSISTENT!
 Roadmap to consistency
Decision-making Exit
Analysis &
& execution mechanisms
Prediction
1 3
2

You have to
execute!
Only then

4
6

Strategy formation
5

with risk Trade management Journaling

analysis &
reflection
 SYSTEM
Strategy formation
with risk
Analysis & Prediction analysis

Journaling Decision-making
& & execution
reflection

Exit Trade management

mechanisms
 INPUTS & OUTPUTS
• Ultimate goal – Net profitability
• Net profitability – Calculated using concept of edge

Winning Losing
percentage percentage
% %
EDGE
x x
Reward Risk
 Concept of EDGE
Here’s an example :
 1. Analysis & Prediction
• Global Markets sentiment

• Pre-open market

• Market structure – 1 Day time frame

• Open Interest data

• India vix – Volatility Index

• Observations of premiums compared to previous weeks

 2. Strategy formation with risk
analysis
• Now all of us know that 85% of premiums will fall to 0, but one thing we notice
is that all contracts don’t fall to 0 at once.

Ex - Nifty SPOT - 16000

17000 CE might expire at 2pm,

Whereas 16500 CE might expire at 3pm

Even though the 17,000 CE contract expires earlier it moves slowly as it is OTM contract this slow
movement gives us (option seller) a great opportunity to trade in peace
 2. Strategy formation with risk
analysis
• With this observation, you can do a short sell of both a call option and a put option that is out of
the money to maintain high probability of profit.

• You can either chose to short sell both CE and PE at once or start with one of them and eventually
add the other

• The quantities/position sizing have to be maintained to manage the risks.

 2. Strategy formation with risk
analysis
• We use GTT orders as well as managing the positions on both PE and CE to neutralize the delta

• Apart from being profitable, how we become profitable is very important not just in the financial
perspective but also in the health perspective.

• On one hand, When you're trading in option buying or if you're a scalper the anxiety levels are
naturally high which is against human nature this increases the amount of stress which eventually
affects your heart in the long run.

• On the other hand, option selling of OTM contracts not only is peaceful but also healthier both
financially and mentally.
 2. Strategy formation with risk
analysis
• The most important aspect in trading or investment in any asset is to be clear about our downside
than increasing the probability of our upside- similarly, when you start implementing this strategy it
is imperative for you to start with smaller capital and move your way up based on your results.

• For every trade that we take, a minimum 1:1 risk to reward is maintained to ensure net profitability
 3. Decision-making and execution
When it comes to decision making it’s a high energy consumption activity for the brain

OR
 3. Decision-making and execution
Due to these above reasons maintaining a high energy regime is of utmost importance- here are a few
things you can follow to maintain high energy.

• Drinking sufficient water at regular intervals whilst trading

• Sufficient sleep
• Eating light
• Not analyzing the markets tick to tick
• Making logical decisions, based on data (PS- if you’re struggling to make logical decisions, it means
you don’t have a system) as opposed to emotional decisions
 3. Decision-making and execution
• While all of the above are important, this is where most traders mess up

• It is crucial to execute as soon as you decide assuming that you have decided based on data

• The data that we refer to here is our risk to reward and our probability of profit-if there’s a
positive edge entering the trade, if not - ignore it because as I have heard from many people and
have experienced firsthand were always posed with two options
 Tools & Preparations
• Demat account with good UI platform & charting
• Sensibull subscription or equivalent
• Laptop with good internet connection with backup phone + power backup
• Additional screen improves the results & makes execution very easy
• Journal
• 1 Litre water bottle
• 0 distractions from calls/tips/random notifications
• Good sleep the previous night
 4. Trade management

planning
Determining Executing Monitoring
set-up out the
allocation size entry & exits
trade
and exits
 5. Exit mechanisms
Most of the traders worry about entry, it’s the exit that determines our ultimate result. Some of the efficient
ways of exit are as follows :

• Exiting the position when the premium reaches 3, as decay from 3 to 0 takes a longer time compared to
decay from 10 to 3

• Exiting using GTT orders by setting up price points to have certainty on the risk to reward

• Exiting or booking a loss if you identify a significant trend change as opposed to the initial view.
Lost opportunity is better than lost money
 6. Journaling and reflection
• The strategy discussed above is mentally exhaustive as the trading is carried out throughout the
day.

• Due to this a lot of thoughts pop up during live trading, hence it’s important to rationalize on the
thought process by putting it out on paper.

• This not only helps you with your thought process but also improves your decision-making for the
next trading session.

• Following this practice is very difficult in terms of discipline but very rewarding as it gradually
eliminates decision-making based on emotions and inculcates decisions based on data
Advertisements
Something very useful for Traders
Our Platform Sponsor
 The Amazon Fund of Trading Strategies

100% Automated Algo strategies for Trade

•SALIENT FEATURES:
• 100% Algorithmic Strategies
• 100% Transparency on Risk & Return
• All Strategies Back Tested and Validated.
• Zero Manual Intervention
• Cloud system with Plug & Play
• Strategy as a Service

https://stratazon.in/contact-
us/
TRADERS CONCLAVE - 2022
 Traders Conclave 2022 –Speakers highlights
1. A 200 crores Quant fund manager.

2. A master market predictor & a GANN Disciple

3. One of the best known Elliot wave technician in India

4. A Million $ Fund manager

5. One of the best known Positional Weekly option Writer.

6. One of the expert Straddle players with 100 lots

 Traders Conclave 2022 –Event Details
1. Stay in a 5 star hotel for 3 days and 2 nights with all 8 meals included valued at 20000/-
(Hilton Garden Inn, Manyata techpark , Bengaluru)
2. VIP Access pass for the conclave with life time education which is Valuable
3. Brokerage credits without expiry date for every one worth 25000/-
4. Life time access to all the Live recorded events in Traders Gurukul worth 10000/-
5. Collaborate with up to 400 Full time stock traders across India which is Priceless
6. Champions of the Conclave award (3 people) with Quiz for prizes worth 100000/-
7. Many goodies, mementos, gifts from our sponsor organizations and carry great memories,
experiences and celebrate which is Happiness

Benefits worth 55000/- + Valuable Knowledge + Best Memories

 Grab the Super Early bird seats NOW!

www.tradersconclave.com

34999/- 24999/- Only for option

Omega Participants

Conclave Manager – Fazil – 6360107848

Telegram : @tradersconclave
 10th Quiz of the Series
If the market price is more than your strike price, your
put option is____________.

A. At the Money
B. In the Money
C. Out the Money
 Winner Reward
1. Daily one winner will be selected.

2. All the 12 winners of each day will have free access to the
Intrazon event of 2022 with life time recording access

3. There is a Man of the Option Omega Series award for 1 winner

who should win at least 3 times in the 12 day series.

4. He will get Educational goodies worth 100000/- from Traders

Gurukul
 Quiz 09 - Winner
VIX is a sentiment analysis indicator that
measures ____________.

A. Volatility
B. Crowd Psychology
C. Trading Ranges

VIX is a measure of crowd psychology. It is a measure of the level

of volatility currently priced into Nifty index options.
Manu Patel

The Answer is 𝐶𝑟𝑜𝑤𝑑 𝑃𝑠𝑦𝑐𝑜𝑙𝑜𝑔𝑦

Questions & Answers
Lets clear your confusions?
 If you feel that in the last 2 hours there was beneficial
content which would help you to better your trading
mindset to approach the market and loved the way the
content was delivered, Let’s take it further by you visiting
the website

Pranav VK
Founder, The Intraday Expert

Twitter: @pranav__vk
www.theintradayexpert.in