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    Consistent Profits Through Option Selling 28 12 19 Webinar

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    Rahul
    This document provides information about options selling strategies presented by CA Rudramurthy. It discusses the benefits of options selling such as high probability of profits and benefiting from time decay. Various strategies are presented such as short strangle, short straddle, and iron condor. Guidelines are provided for selecting appropriate strikes and position sizing. A directional strategy using support and resistance is also described. Trade adjustments and risk management are emphasized as key to success in options trading.

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    Consistent Profits Through Option Selling 28 12 19 Webinar

    Uploaded by

    Rahul
    996 views50 pages
    This document provides information about options selling strategies presented by CA Rudramurthy. It discusses the benefits of options selling such as high probability of profits and benefiting from time decay. Various strategies are presented such as short strangle, short straddle, and iron condor. Guidelines are provided for selecting appropriate strikes and position sizing. A directional strategy using support and resistance is also described. Trade adjustments and risk management are emphasized as key to success in options trading.

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    This document provides information about options selling strategies presented by CA Rudramurthy. It discusses the benefits of options selling such as high probability of profits and benefiting from time decay. Various strategies are presented such as short strangle, short straddle, and iron condor. Guidelines are provided for selecting appropriate strikes and position sizing. A directional strategy using support and resistance is also described. Trade adjustments and risk management are emphasized as key to success in options trading.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    996 views50 pages

    Consistent Profits Through Option Selling 28 12 19 Webinar

    Uploaded by

    Rahul
    This document provides information about options selling strategies presented by CA Rudramurthy. It discusses the benefits of options selling such as high probability of profits and benefiting from time decay. Various strategies are presented such as short strangle, short straddle, and iron condor. Guidelines are provided for selecting appropriate strikes and position sizing. A directional strategy using support and resistance is also described. Trade adjustments and risk management are emphasized as key to success in options trading.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
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    At a glance
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    The document discusses various strategies for options selling to generate consistent profits monthly, including identifying support and resistance levels in indexes and adjusting positions based on market movements.

    Strategies discussed include selling options based on support and resistance levels in indexes like Bank Nifty on a weekly expiry, with guidelines provided on position sizing, targets, stoplosses and adjustments.

    Factors discussed for determining whether to buy or sell options include market direction, volatility, time decay, capital size and market knowledge. Specific days may be better for buying vs selling based on these factors.

    “CONSISTENT PROFITS THROUGH

    OPTIONS SELLING”
    Make Money Month on Month!
    Signature Program by
    CA Rudra murthy B.V. – Author, Trader, Trainer
    www.rudraology.in
    https://twitter.com/iamrudramurthy

    CA Rudramurthy @ 9663 258 258 1


    “OPTIONS SELLING”
    Make Money Month on Month!

    Author of Amazon #1 Seller book,


    “MIND MARKETS AND MONEY”.
    Managing Director: Vachana Investments Pvt ltd.
    Guest Speaker: CNBC TV18, ETNOW, TV9,
    PUBLIC TV etc.

    CA.RUDRAMURTHY.B.V
    ACA, MCOM, MFM, M-PHIL, PGDBA, PGDMM.
    Ph:9663 258 258
    www.rudraology.in
    www.twitter.com/iamrudramurthy
    CA Rudramurthy @ 9663 258 258 2
    5 Rules for Best Learning!

    • I have an Open Mind.

    • 1000% Participation.

    • I take Responsibility.

    • I will be a Continuous

    Learner.

    • Will Invest on Myself first!


    My MISSION STATEMENT in Life!

    “To assist All


    Committed Traders
    to become
    Multi Millionaires in
    life”
    Why Options Selling?

    CA Rudramurthy @ 9663 258 258 5


    Why Options Selling?
    • 90% of Options held till expiry, expires
    worthless. “Wasting Assets”
    • No need to predict Market Direction.
    • Benefits from Time Decay.
    • Consistent Profits month on month.
    • Trade Adjustments.
    • Suitable for Part time traders.
    CA Rudramurthy @ 9663 258 258 6
    Options Buying Vs Selling?

    CA Rudramurthy @ 9663 258 258 7


    Why Sell Options?
    • 90% Probability of Winning.

    • Will benefit from being wrong in market

    directions too.

    • Time Decay always benefits an Options Seller.

    • Decrease in Volatility is good for Writer.


    CA Rudramurthy @ 9663 258 258 8
    Why Buy Options?
    • Limited Losses.

    • Unlimited Gains.

    • Lesser Capital.

    CA Rudramurthy @ 9663 258 258 9


    When to Buy or Sell Options?
    • Trending Vs Bracketed Markets.

    • Specific Days good for Buying and Selling.

    • Capital Size.

    • Market Knowledge.

    • Time for analysis.


    CA Rudramurthy @ 9663 258 258 10
    OPTION TRADING STRATEGIES!

    CA Rudramurthy @ 9663 258 258 11


    OPTION CHAIN

    CA Rudramurthy @ 9663 258 258 12


    Option Chain?

    CA Rudramurthy @ 9663 258 258 13


    OPEN INTEREST

    CA Rudramurthy @ 9663 258 258 14


    Open Interest?
    • Open Interest indicates the number of Open

    Contracts or active contracts in markets.

    • Open Interest tells what the OTF or Big fish or

    Smart money is doing.

    CA Rudramurthy @ 9663 258 258 15


    Open Interest?

    CA Rudramurthy @ 9663 258 258 16


    STOCKS VS INDEX SELLING

    CA Rudramurthy @ 9663 258 258 17


    Stock Vs Index Selling?
    • Stocks are charged higher Margin.

    • Stocks can go for Ban Period.

    • Stocks are more volatile.

    • Too much insider trading in stocks.

    • Liquidity, Spread and Volumes.

    CA Rudramurthy @ 9663 258 258 18


    POSITION SIZING
    IN
    OPTIONS SELLING

    CA Rudramurthy @ 9663 258 258 19


    Position Sizing:
    • Use 10%-30% of Margin/Capital on the 1st trade.

    • Add another 30% on the next trade only if the

    first trade is profitable.

    • Use balance 40%-70% of Margin/Capital for

    trade adjustments.
    CA Rudramurthy @ 9663 258 258 20
    OPTIONS SELLING –
    How to Select STRIKES?

    CA Rudramurthy @ 9663 258 258 21


    Options Selling – Nifty Monthly Expiry
    • Select Strikes based on Volatility. 450-500 pts.

    • Select Strikes based on Previous Range.

    • Select Strikes based on Premium.

    • Select Strikes based on highest OI.

    CA Rudramurthy @ 9663 258 258 22


    Options Selling – Nifty Monthly Expiry
    • Select Strikes based on Support & Resistance.

    • Select Strikes based on Expected market

    Direction. Use Technical analysis.

    • Select Strikes based on Delta.

    CA Rudramurthy @ 9663 258 258 23


    Nifty Monthly Expiry – Net Premium

    • Rs.25/1week

    • Rs.20/2week

    • Rs.15/3week

    • Rs.10/4week

    • Rs.5/2days before Expiry.

    • Rs.2/On Expiry Day.


    CA Rudramurthy @ 9663 258 258 24
    Bank Nifty Monthly Expiry – Net Premium

    • Rs.50/1week

    • Rs.40/2week

    • Rs.30/3week

    • Rs.20/4week

    • Rs.10/2days before Expiry.

    • Rs.5/On Expiry Day.


    CA Rudramurthy @ 9663 258 258 25
    Bank Nifty Weekly Expiry – Net Premium

    • Rs.25/Monday

    • Rs.20/Tuesday

    • Rs.15/Wednesday

    • Rs.5/Expiry

    • FRIDAY AVOID SELLING OPTIONS

    CA Rudramurthy @ 9663 258 258 26


    What for Nifty Weekly Expiry?

    CA Rudramurthy @ 9663 258 258 27


    Nifty Weekly Expiry – Net Premium

    • Rs.12.5/Monday

    • Rs.10/Tuesday

    • Rs.7.5/Wednesday

    • Rs.2.5/Expiry

    • FRIDAY AVOID SELLING OPTIONS

    CA Rudramurthy @ 9663 258 258 28


    OPTIONS SELLING
    DIRECTIONAL VS NON DIRECTIONAL
    STRATEGIES

    CA Rudramurthy @ 9663 258 258 29


    Directional Vs Non Directional?
    • Short Strangle.

    • Short Straddle.

    • Iron Condor.

    • Directional Strategy using Support/Resistance.

    CA Rudramurthy @ 9663 258 258 30


    SHORT STRANGLE

    CA Rudramurthy @ 9663 258 258 31


    SHORT STRANGLE:
    • What: Sell OTM Calls and Puts.
    • When: Markets Sideways and High IV.
    • Delta: 20%
    • Target: 50% of Premium
    • Stoploss: 50% of Premium
    • Adjustment: Roll up/down to match premium.
    • Duration: 10days or more away from Expiry.
    • Premium: As Per table.
    • Ex: If Nifty is at 12000, Sell 12500 Call and 11500
    Put. CA Rudramurthy @ 9663 258 258 32
    SHORT STRADDLE

    CA Rudramurthy @ 9663 258 258 33


    SHORT STRADDLE:
    • What: Sell ATM Calls and Puts – Same Strike Price.
    • When: Markets Sideways and High IV.
    • Delta: 50%
    • Target: 10% of Premium
    • Stoploss: 10% of Premium
    • Adjustment: Roll up/down to match premium.
    • Duration: 45days or more away from Expiry.
    • Premium: Above 350 nifty and 900 Bank nifty.
    • Ex: If Nifty is at 12000, Sell 12000 Call and 12000
    Put of middle or farCA Rudramurthy
    month. @ 9663 258 258 34
    DISCLAIMER
    • Straddles and Strangles have undefined risks.

    • Loss is Unlimited incase of a Black Swan


    Event.

    • Iron Condor is a better low risk strategy and


    takes care partially for a black swan event.

    CA Rudramurthy @ 9663 258 258 35


    IRON CONDOR

    CA Rudramurthy @ 9663 258 258 36


    IRON CONDOR:
    • What: Sell OTM Calls and Puts + Buy Calls & Puts 200
    points away for Protection.
    • When: Markets Sideways and High IV.
    • Delta: 20%
    • Target: 50% of Premium
    • Stoploss: 50% of Premium
    • Adjustment: Roll up/down to match premium.
    • Duration: 10days or more away from Expiry.
    • Premium: As Per table.
    • Ex: If Nifty is at 12000, Sell 12500 Call and Sell 11500 Put
    + Buy 12700 Call and Buy 11300 Put. 37
    CA Rudramurthy @ 9663 258 258
    DIRECTIONAL STRATEGY USING
    SUPPORT AND RESISTANCE!

    CA Rudramurthy @ 9663 258 258 38


    BANK NIFTY – WEEKLY EXPIRY:
    • Strategy: Identify strong Support and Resistance, using OI
    or Technicals and closely observe INTRADAY
    MOVEMENTS.
    • What: If market moves Higher after testing support, Sell
    Put Options and If market moves Lower after testing
    Resistance, then Sell Call Options.
    • When: Directional to Sideways and High IV.
    • How to Select Strike: 300 Points or 1% away from S/R
    • Target: 80% of Premium & exit by Tuesday 80% at Rs.5-10
    • Stoploss: Break of Support/Resistance.

    39
    CA Rudramurthy @ 9663 258 258
    BANK NIFTY – WEEKLY EXPIRY:
    • Position Sizing: 10% Start and add upto 30% day1, Add
    another 30% only if Day 1 is in profits, use 40% for
    contingency and adjustment.
    • Adjustment: Exit on Break of Support or Resistance and
    take Opposite position using the balance margin and
    contingency fund.
    • Duration: Friday to Tuesday. Generally Exit 80% qty on
    Tuesday and hold rest 20% if required.
    • Premium: About Rs.50-60 entry and Exit at about Rs.5-10
    • Ex: If Bank Nifty takes support at 32000 and moves higher,
    Sell 31700 PUTS.
    40
    CA Rudramurthy @ 9663 258 258
    If it resists at 32500 and moves
    lower?

    CA Rudramurthy @ 9663 258 258 41


    FIRE FIGHTING!

    Sell 32800 CALL.

    CA Rudramurthy @ 9663 258 258 42


    TRADE ADJUSTMENT
    OR
    FIRE FIGHTING
    FREE DISCUSSION!
    BY CA RUDRA MURTHY

    CA Rudramurthy @ 9663 258 258 43


    ADJUSTMENT OR FIRE FIGHTING!
    • Sell Puts if markets goes up.
    • Sell Calls if markets come down.
    • Ex: If Nifty is at 12000, Sell 12500 Call and
    11500 Put. Premium Collected Call 20 and Put
    20.
    • Market went up and now Premium Call 40
    (1lot) and Put 10 (1lot).
    • Firefighting: Sell PUT of Premium Rs.30 (1lot)

    CA Rudramurthy @ 9663 258 258 44


    What if markets went down?

    CA Rudramurthy @ 9663 258 258 45


    FIRE FIGHTING!

    Sell CALL of
    Premium Rs.30 (1lot)

    CA Rudramurthy @ 9663 258 258 46


    KEY TO OPTIONS TRADING SUCCESS!

    CA Rudramurthy @ 9663 258 258 47


    Key to Options Trading Success?
    • Knowing the market direction.

    • When to Buy and When to Sell Options.

    • Risk Management.

    • Trade Adjustments.

    • Knowledge of Overall markets & Right Mentor.


    CA Rudramurthy @ 9663 258 258 48
    CA.RUDRAMURTHY B.V.
    ACA, M.COM, MFM, M-PHIL, PGDBA.
    www.rudraology.in
    For live market updates:
    https://twitter.com/iamrudramurthy
    9663 258 258
    www.rudraology.in
    CA Rudramurthy @ 9663 258 258 49
    MASTER TRADER CERTIFICATION
    Learning for Practical Trading & Unlimited Money..

    1. ZERO TO MILLIONAIRE.
    2. TECHNICAL ANALYSIS MADE EASY.
    3. OPTION TRADING MADE EASY.
    4. RUDRAOLOGY.
    5. ORDER FLOW ANALYSIS. CA.RUDRAMURTHY.B.V
    ACA, MCOM, MFM, M-PHIL, PGDBA, PGDMM.

    6. MARKET PROFILE MADE EASY - ONLINE.


    www.rudraology.in
    CA Rudramurthy @ 9663 258 258 50

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