1/ Trading journey of Mr. Pani • He has an experience of 7 years. • He has made a profit of Rs. 20 cr. over these years with a capital of Rs. 2 cr. • However, it's not easy to make such profits. • More difficult, is to retain those profits and build more on it.

2/ How he ventured to options selling • He started with futures and option buying however after a certain point when his capital grew, he faced scalability issues and hence he resorted to options selling.

3/ Investing becomes imp once the capital grows: • Since his trading profits have grown well, he has started investing (investing is always for LT). • For folks who dnt have much info regarding investing can simply buy Nifty 50 stocks & keep rebalancing as Nifty 50 does.

4/ Covered calls strategy for the portfolio: • Pledge the portfolio and receive margin ~80% which he would then use to sell OTM CEs of the stocks which are in his portfolio. • This helps in generating fixed income from the portfolio.

5/ For folks who wish to learn trading, check this: • Need to have a firm commitment. • In terms of money and in terms of how much time you would give yourself in market.

6/ Start with a small capital: • Lets say you start with Rs. 10k. • Buy everyday one single stock exit with Rs. 300 loss and profit of Rs. 600 with position sizing. • Do this exercise for 30 days. • This is to understand the process.

7/ Stick to your set up • Be disciplined • Don't do system hopping • Try to take atleast 100 trades to understand the nuances of the system, as develop discipline over the period.

8/ What is Call option (CE) & Put Option (PE) • If your view is that market will go up, an option buyer will buy a CE and if the view is that market will go downside then an option buyer will buy a PE. • Every option has a premium.

9/ Intervals in NF & BNF: • Nifty option strikes has an interval of 50 points and Banknifty has 100 points. • Check Option chain for more details: - Nifty : https://bit.ly/3do62tW - Banknifty: https://bit.ly/3RUpGN9

10/ When does an option buyer or a seller makes money? • Buyer makes money if the market moves in his favor. • Option sellers make money if the market remains sideways or moves in his favour.

11/ Basic set up for option sellers: Short Straddle • Wherever the spot is sell both CE & PE of the same strike. • Currently NF spot is at 17530, so to short a straddle one has to sell both 17550 CE & PE together.

12/ How to initiate a trade: • Net premium collected is Rs. ~330 •Premium decay happens the most on Tuesday Wednesday and Thursday • Trade this in intraday and avoid overnight risk while learning. • Probability of this set up is 70% • The R/R should be 1:2

13/ When to exit: • Capital required for 2 lot of strangle is aprrox. 3 lacs • Book out based on target or SL: - SL: if the losses amount to Rs. 5,000 or - Target: it if the strangle is in profit of Rs. 10,000.

14/ Don't go into adjustments: • Especially when you are in learning phase. • Also Subasish doesn't believe in adjusting the legs, its usually SL or target for him.

15/Don't get sad when you SL is taken out • Take that as a learning, as you will exactly know how much point SL you need to keep. • How does the option premium behaves towards the expiry etc.

16/ Option buying requires more discipline • Although any trader requires discipline while entering and exiting trades however option buyers requires this virtue a lot more. • An option buyer can make money only if he can time the momentum properly.

17/ Option buying Timing: • Usually momentum is better from 9.15- 10.30am. • 5min TF will have more trades than 15min. • Select the TF as per your temperament. • If one has slightly more capital then look for trades between 1.30-3.30pm. • 10.30-12.30pm: No trading zone.

18/ Trading psychology & discipline in option buying: • If you have booked losses in 3-4 trades in the morning hour then just close for the day. • If you are in profit in the morning trade , then you can risk that profit and trade in the closing hour.

19/ When to buy? • E.g. you are using 5min TF. • If any candle breaks the first 5min high or low buy CE or PE accordingly. • Eg: Market gives a BO of the first 5min candle basis which you buy a CE option, but thereafter before reaching your 1:2 target it makes a downmove.

20/ When to exit? • Now exit the CE buy and buy a PE. • If the market is in momentum then you'll be in profit. • If your SL gets hit, then that's an indication that market is consolidating. • If both the sides SL gets hits then better to close trading for the day.

21/ Best time for option buyers having small capital: • Focus only on 9.15-10.30am everyday. • Thursdays when there is weekly expiry focus on 1.30-3.30 pm as well, as a strong move towards the end of expiry can fetch handsome returns.

22/ Take inspiration rather than getting influenced: • Performance comparison should be with oneself rather than comparing with profits of others on the SM.

We have an upcoming two day workshop on October 15th and 16th, 2022. Venue: Andheri East. Go through these links and sign up for the workshop. - FAQ here: https://bit.ly/3wRBirR - Registration form: https://bit.ly/3ezh4Nk

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