[LIVE] Selling Options on Expiry Day for Rs 1 Lakh 27 Thousand Profits

So welcome friends. Today was the expiration of futures and

options

for the month of March. And the month of March was really hard for merchants. We have seen a sharp drop in the month of March. And after that, for the last few days the market is in recovery mode. So after every sharp decline there is a strong recovery. So the market is recovering. And we are seeing that the VIX or volatility index is at the highest point. I have never seen VIX at these high levels. I've been in the market for the last 20 years, but I have yet to see the VIX at such a high point in my lifetime.

So, dear friends, when there is high volatility,

options

have a high premium. When there is a high premium for options, there is a high probability that if you sell those options, you can make a good amount of profit by

selling

them. And

selling

options is the game of professionals. So in this video I'm going to show you how I shorted options, how I shorted nifty options at today's expiration and how we made 170 points just by shorting nifty options. Then there is nothing to do, you can only sell 50 options because there are high premiums. And as with options, they have time value along with intrinsic value.

So time slowly decays along with time. As the option approaches expiration, the time value eventually becomes zero. So I will show you how in

live

trading we have made 175

profits

just by selling nifty options. But before that, let me give you a brief introduction of mine. Hello friends, I am Indrajit Mukherjee from StockManiacs.net. If you want to increase your wealth in the stock and commodity markets, hit the subscribe button and hit the bell notification icon. You can also send me your stock market related queries through WhatsApp to my number +91-9674321856. So, dear friends, it is around 11:00 in the morning, 10 minutes later.

And the market is trading around 8550. And we have added 50 point distance calls and 8500 put options and 8600 call options. And you can see that both are trading for around ninety five rupees. Therefore, we will short both these call and put options. 8600 call and 8500 set. Therefore, we will short the 8500 put option. You need to provide your own amount and submit the order to the exchange. Similarly, you need to short sell the 8600 call option. You need to provide your amount and submit the trade to the exchange. Now, dear friends, why have we chosen call option 8600 and put option 8500? Because both are fifty points away from the current market price.

The 88600 call option is simply out of the money at fifty points from the current market price. And the 8500 put is also 50 points out of the money, fifty points off the current market price. So, dear friends, we have actually shorted the out-of-the-money calls and puts on both sides. And we will be waiting for some time and check how much money we can earn. So, friends, we have shorted both the call and the put and ninety five rupees each. So, the total premium we have received by selling the call option and the put option is 95 x 2, which means 190 points.

Now, my dear friends, we will check what is the power of the strategy in which we will break even and how much total profit we can make in this expiration. So we will use an options trading tool called sensibull. So in my last video I have already given you an example of sensibull and how sensibull works. And in this video I will show you how the bulider sensibull options strategy works. So let's go to the Sensibull options strategy builder. So remember this link, the link is bit.ly/sensibull1. So I repeat the link bit.ly/sensibull1 once again.

That's why you should remember this link bit.ly/sensibull1. And I will also give you the link in the video description. Then, from there you can go directly to the Sensibull options strategy builder. So let's click on the link. As you can see, you have reached the options strategy builder. So the options strategy builder page is now open. Now, dear friends, there is the option to log in with your broker. So you can login with zerodha, you can login with 5paisa, you can login with Alice blue or you can login with Motilal Oswal. So here I am already having accounts with zerodha.

So I will log in only with zerodha. But if you don't have accounts with any of these brokers, I will give you the link to join zerodha. And I'll also give you the link to join 5paisa in the video description. Then from there you can join any of the runners. And you can log in to sensibull. And you can also see that sensibull offers a seven-day all-access free trial. So before purchasing any sensibull plan, you can check how sensibull works. So first I will log in with zerodha. So I'm clicking on login with zerodha. As you can see, dear friends, we are in the Sensibull control panel.

And in the sensibull dashboard there is an option called strategy builder. So I will turn to sensibull options strategy builder. So you can see here that the nifty price is being updated

live

. And here you can add legs of options strategies. So you can indicate which option you want to buy or sell, you want to check its strike price. And you can add the call or put option that you want to buy or sell. And it will show you the profit potential or the likely breakeven point of that particular thing. So I'm going to add the call option to the 8600.

So I'm putting in my amount. And I'll put it here to sell. So the 8600 call option that I have provided here and you can see that it has arrived. Now I'll add the put option for 8500. Same as before, we need to add a link. We need to choose the strike price and we also need to choose whether it is a call or a put. So I'm selecting the put option and now I'm going to select the strike price. The strike price will be 8500. So I have selected the 8500 March 26 put option. You can see here that I will add my lots, here I have 10 lots.

And here, dear friends, I made a small mistake instead of adding a short sale, I added buy. So I needed to sell again and I needed to change the strategy once again. As you can see now, my strategy is set up in the strategy builder. So, dear friends, you can see the profitability index; The pair of graphs is shown here. And we can also see where the breakeven point is or other details of this options selling strategy. Now, dear friends, I will slowly move up the page a little. And, dear friends, you can see that the maximum profit on maturity is one

lakh

forty-seven

thousand

two sixty-three.

That's the total premium we've earned. And we can also see the break-even point at maturity, that is, the break-even levels are at eight

thousand

three hundred four and eight thousand seven hundred ninety-six. So, dear friends, whenever we shorted the options, the price of Nifty was around eight thousand five hundred and fifty. And we can see that the breakeven levels are around eight thousand three hundred four and eight thousand seven hundred ninety six, which is almost 250 points away from my short selling zone. And, dear friends, to short these ten lots of nifty options, the margin required is actually twenty point zero nine

lakh

s.

So that is the total capital required. And if we can capture all the premium, the total intraday return can be seven point two seven percent of the invested capital. That's the power of these options selling strategies. Now friends, we have done our job. We have given the order now it is the job of the moment. It is the task of the moment to reduce the options premium and generate

profits

. Friends, I'm checking back after two and a half hours, there's still not much progress, the real game hasn't started yet, the price drop hasn't started yet. We have shortened both options to ninety points and yet the combined price of these two options is 145 points.

So the real game hasn't started yet. So what I will do, dear friends, I will simply complete my lunch. I'll have my lunch and come back after two or after 2:30. Let's wait for the real game to start and my dear friends don't leave, it's a real game. You will be surprised to see the game. So guys, I came back once again after having lunch around 2:30 and let's see what the scenario is now. Yes, dear friends, now that the game has started, you can see that in the last half hour the premium has decreased by 45 points. So the total premium is now less than 100.

We will wait for more decline. Just watch the game. This is why, dear friends, options selling is done by professionals. No need to judge the market trend, just short the options and eat that time decay, that's all. And we will close our total positions before 3:15. We will not allow the broker to close our operations. Friends, we return to the commercial terminal just before 3:15. Now let's see what the pricing structure of options is. So we can see that the put option has almost become zero and the call option is close to Rs 20. So, the combined premium we have rated both of them at a combined premium of 190.

And currently the combined premium is close to Rs 20. So, dear friends, it is time to buy both the put option and the call option. And in this trade we are actually looking for a profit of 170 points. So we have sold the call option and the put option at a combined premium of 190 points. And now we are buying them back at a combined premium of just 20 points. So, dear friends, I have shown you how you can make money by shorting options in the expiration market. So there is no need to judge the market exchange rate, there is no need to judge the direction of the market where it is going, there is no need to judge anything.

If you only get expensive options, just sell them short. And time will do the rest of the work. Now, dear friends, where to keep the stop-loss. Therefore, I will suggest keeping the stop loss at more than half of the total premium. Let's assume that the total value of our short sold option was 190 points, which means that our combined total premium earned was 190 points. Now we will maintain a stop loss of 190 plus half of 190, that is, 190 plus 95, so that will be our stop loss. That means that 285 points will be our stop loss and our target will be zero.

So this time we couldn't reach zero target, but we have achieved 20. But our target will be zero most of the time. This way, you can make a steady amount of money simply by shorting options on expiration days. Friends, I have completed today's webinar. If you liked today's video, don't forget to hit the Like button. Please also don't forget to share it with your friends. Because if you share it, someone else can also benefit. If you have any questions, ask me in the comments. I will try to answer you as soon as possible. Friends, thank you very much for watching this webinar until the end.

Bye bye!