Everything to know about this strategy I'm posting in this thread.
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Step 1: Stock Selection
1. For this strategy you're going to have to choose some stocks that you think will be doing well in the future/long term.
2. Stock must be in an uptrend.
3. Stock options should be liquid enough to trade in.
4. List of stocks attached
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Step 2: Which option to sell?
1. Sell put at a support according to charts.
2. Sell put at a strike far away from the spot where you think the probability of the stock falling will be very very low.
3. Sell put at a price where you're willing to buy the stock at.
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Step 3: What to do when in profit/loss?
1. If in profit you can just roll up the puts thereby increasing the ROI or shift to other stocks to make more profit.
2. If in loss take delivery of the shares equivalent to the lot size in cash market.
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Step 4: What to do after taking the delivery?
1. Sell calls to lower your cost price of the stock. For eg, you took delivery of Reliance at 1900, sell 2100 CE which is about 10% away.
2. Keep doing this till your CE expires ITM and then give delivery of your stock away
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Step 5: Repeat the process across multiple stocks
1. The probability of all stocks giving you loss will be very very low. So the more stocks you do this in the higher chances of profit.
This whole process functions just like a wheel.
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Step 6: Best person to follow?
The best person to follow in my opinion is Ranjit Sir for this strategy. He regularly shares his positions on telegram and YouTube for everyone to see and makes very good ROI per month doing only this strategy.
Been getting lot of dm's from people telling me they want to learn option trading and need some recommendations.
Here I'm listing the resources every beginner should go through to shorten their learning curve.
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1st Course - TASTYTRADE
This channel on YouTube is a goldmine for people wanting to learn about options both basics and advanced. By far the best and the most popular channel out there amongst option traders.
Appreciation Thread on @jitendrajain Sir & What you can learn from him
He's done such a big service for our trading industry in terms of bringing new ideas & supporting the right handles, it's time someone appreciated his genius.
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Here is the link to his Moneycontrol article where you can know more about him. Adding the tweet where he's thanked everyone who helped him in his journey as well.
Here is one system of his which he makes money on. This is a theta eating system of his. Everything is based on some kind of logic, usually found through data analysis. He tries to go by logic than by gut whenever he encounters any problem.
Most deluded people I've ever met in my life, all are from stock market.
I love the confidence of some stock market traders. Usually the most confident and the ones who pass the most derogatory remarks are the biggest nuisance. 😂
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I spoke to one trader who had huge ego regarding selling high premiums. I asked him how much money he's made. He replied "25 lakh loss". 😂
Soon will recover in 6 months.
What does he think his skill is as a trader? 20 out of 10. 😂
Guy has room temperature IQ.
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Another guy was mocking me for selling low premiums. He was a big fan of finding resistance and selling 300-400 rs options and holding them till expiry. No stop loss.
That guy has disappeared now. 😂
The fastest rise and fastest fall I've seen in my life.