Sunday, 14 August 2016

Make 30% In A Day, Every Day

Make 30% or more in a day by trading Index Options
or let me say,
Grow the trading capital by 4 times in a month

Is it really possible?

Yes, very much.  It is 100% possible and we can trade to make this much money in a day if we are sure about the direction of prices and momentum.  Options are highly leveraged instruments to trade and we can benefit from this leverage keeping the risk at tolerable level. In Gujarati it is said, 5 ka 50000 and lakh ka 12000.  Both are possible in trading options.  5000 can become 50000 and 1 lakh can become 12000.  But our aim here is towards 5 ka 50000.

Now, how to trade Nifty Options and earn 30% or more return in a day?

Okay.  Let me answer this.  As I said, we will achieve this goal by trying to predict the directional move with momentum, which is about to happen.  Type 1 trend days or other days where we can have a sizable move in one direction in a very short period of time are the prefect days to trade with the Nifty Options and use the leverage.  There are certain tools that we can use to predict this kind of momentous directional move with some sort of certainty.  At the end of the day or before the market open, we just to need to use these tools or pointers and see whether there is likelihood of the current day being the Type 1 day or not.  If not Type 1 day then at least a sizable move of around 40 Nifty points in one direction.

I have made a video tutorial demonstrating how to predict successfully this kind of day well in advance and benefit from it.  Even if we are proven correct 50% of the time (in worst case), we will achieve the goal. My experience suggests that with this set of tools, we will be proven correct at least 80% of the time.

Now let me quote 3 recent examples from last week where we could have traded with Nifty Options using this knowledge and made lot of money.  These are from 5th, 9th, and 12th August 2016.  These days one could have made killing into the markets trading Options, and I am sure if you had this knowledge, you would have done the same.

For 5th August, click here

On 9th August we knew with some sort of certainly that prices were likely to go down and with that information one could have bought in-the-money put option.  Same way, on 12th August prices were going to go up and buying in-the-money call option was the right choice to make. In both cases, we are able to book out at around 30% of profit.




Now, lets say you have around 50K in your trading account and you try to trade with Nifty & Bank Nifty Options only on these selective days.  Nowadays brokers allow to buy Options at half a cost under MIS option.  So with 50K you can buy around 12 lots.  The risk is limited to maximum 5 points per lot. So with 12 lots, your risk is 60 points in total and profit potential is 350 to 400 points per trade.  The profits are really very huge.

Last week, we were lucky and we had 3 such days, but usually we will have this kind of days at least 4 to 5 in a month and if we use Nifty and Bank Nifty options both we can get around 10 such trading opportunities in a month.  So if we are able to utilize these trading opportunities we will be able to grow our account 3 to 4 times in a month.  Isn't it amazing?

This option trading strategy on only selective days like this will benefit not only the day traders, but all those who are working full time but still want to trade and make money.  All those need to spend just 10 minutes in the evening at EOD or early morning and if the odds are high for trading options, they can call their broker, place the order and cover it off around 3 to 3:15 pm. No need to track the markets or watch charts.  As I discussed in my last post, we just need to stick to the favorites in order to be successful.  We don't need to be jack of all trades and master of none.

As a bonus I have also included in this video tutorial a specially designed strategy to trade options on expiry days.  There are total 5 expiry days in a month, 1 for Nifty and 4 for Bank Nifty.  So by combing these both strategies, we will have trading opportunities almost every day of the month (5 + 10).

Subscribe to this fantastic Nifty & Bank Nifty Option Trading Video Tutorial.

Mail me at charttechnicals@gmail.com with the subject line of Nifty & Bank Nifty Option Trading Video Tutorial mentioning your preferred way of payment (credit card, debit card or net banking) and get immediate access.

Happy Trading Options!

9 comments:

  1. Gr8. Hoping to get access and learn this whole new strategy. Happy Independence to you and all.

    ReplyDelete
  2. URD,

    Can i trade options with 10 lakh capital?

    I am not sure if above strategy works when we trade hundreds of lots ..if capital is big..considering trade management and emotional burden.. i used to trade options big time during 2009-10, couldnt manage well because of slippage and wrong way of trading them.

    ReplyDelete
    Replies
    1. Rose

      If capital is big, risk will also be big but if you have proper way to manage that risk, after initial hiccups you can comfortably trade with big capital. Why not? I see no other reason.

      If you are worried about the volume on Index options, please be assured that nowadays there is more volume on ITM or ATM Nifty option strikes than Nifty Future. Just to give you an example of last Friday, number of total nifty future contracts traded were around 1.5 lacs whereas ITM nifty option strike volume was around 3 lacs. So liquidity is not an issue. Because of trading cost and other advantages most of algo trades, machine trades, HNI trades, Institutional trades are done on options. To trade option it costs me around Rs. 40 whereas future costs me around Rs. 150. I can scratch the option at 1 point and come out as winner. In future trading, is it possible? No. Brokerage cost nowadays is negligible. Most of the cost involves government taxes. Why to pay those taxes?

      I feel trading options only when we can expect sizable move is right way to go. It is the action time. It is when there is disequilibrium between demand and supply. We need to take part in it and option trading gives more advantage. There are lot of myths going around regarding option trading. What we need to do is just focus on right strategy which has an edge. That is it.
      URD

      Delete
    2. Thanks URD for detail explanation..
      My understanding on options are very poor..thats why asked vague question

      Delete
  3. URD, Which broker offers the facility of trading options intraday (MIS) at half a cost of the original value.

    Zerodha does not have this facility. You have to have the full amount in your trading account while trading options even if it is intraday. No MIS facility for options.

    Sourish

    ReplyDelete
    Replies
    1. Sourish

      I trade with SAS Online. They provide such facility if trade through Bracket Order.
      Here are the details copy pasted from broker website,
      Bracket orders are available in NSE Futures (5 Times limits), Options Buying (2 Times limits) and Options Selling (5 Times limits) as of now.

      URD

      Delete
  4. Sir,

    Kindly check ur mail I have sent request for this course

    ReplyDelete
  5. thanks for the update URD.
    I have subscribed to both your tutorials and can confidently say that these are the 2 training sessions that anyone can build a very soloid foundation to trade any security. I appreciate the fact that you have given me free access to your wonderful options trading tutorial. Next you must open a live chat room. It will be the icing on the cake....looking forward to it.
    rgds
    Yashraj

    ReplyDelete
    Replies
    1. Yashraj

      Thanks. Unfortunately, most of other aspiring traders do not believe in properly going through the learning process. What matters them the most is finding a holy grail, making quick money, and becoming overnight rich.

      I believe live chat rooms, Twitter, Whatsapp all are obstacles and a recipe of disaster in trading. For trading, you require only your mind and the chart. That is it.
      URD

      Delete