PROFITABLE OPTION SELLING SETUP | MONTHLY + WEEKLY | ULTRA WIDE PROFIT RANGE | 90% PROFITABILITY

Summary

In this video, Satpal introduces a highly profitable options trading setup with an 85-90% probability of profit. The strategy involves using a combination of bear call spreads, short puts, and delta adjustments to cover a wide market range, offering minimal need for adjustments. With a focus on hedging and risk management, the strategy provides a reliable way to trade with reduced margin requirements and decent profitability. Satpal demonstrates step-by-step how to implement the setup and explains potential adjustments if the market moves beyond the expected range, making it an ideal approach for market volatility.

Takeaways

• 😀 The strategy discussed in the video offers a high probability of profit (85-90%) through a combined Jade Lizard setup.
• 😀 The setup involves a combination of a short call spread and a short put spread to cover a wide market range (2,500 points).
• 😀 The market's 'at-the-money' level is 22,250, and the strategy involves placing options at various strikes around this level.
• 😀 The range covered by this strategy spans from 20,000 to 23,230 points, but this can be expanded depending on market conditions.
• 😀 Minimal adjustments are required in this setup, making it a low-maintenance strategy in most cases.
• 😀 The strategy allows for flexibility and profitability, even if the market moves within a broad range of prices.
• 😀 Maximum profit for this strategy is ₹9,758, with a margin requirement starting at ₹32,000.
• 😀 By using hedging techniques (buying options), the margin requirement can be reduced to ₹16,000, improving ROI.
• 😀 Risk management is crucial, and undefined risks can be mitigated through hedging, offering peace of mind during volatile market conditions.
• 😀 While most trades require minimal adjustment, there is a potential need to adjust if the market moves out of the expected range.
• 😀 This strategy is a combination of two Jade Lizard setups and can be back-tested to ensure profitability in a variety of market conditions.

Q & A

What is the 'Double Jade Lizard' strategy in options trading?

The 'Double Jade Lizard' strategy involves combining two jade lizard setups: one on the call side and one on the put side. It is designed to cover a wide market range with high probability of profit (85-90%).

What are the key elements of the strategy mentioned in the video?

The key elements of the strategy include selling a call option at 22500, buying a call at 22600, selling a put option at 22000, and buying a put at 21900. These positions cover a wide market range and provide a high probability of profit.

What is the probability of profit for this strategy?

The probability of profit for this strategy is typically 85-90%, as it covers a wide market range and requires minimal adjustments.

How wide is the market range covered by the strategy?

The strategy covers a market range of approximately 2500 points. In high-volatility markets, this range can expand to 4000 points.

What are the margin requirements for this strategy?

The margin requirement for the strategy is ₹32,000, which can be reduced by implementing hedging strategies to further minimize risk.

What is the maximum potential profit for this strategy?

The maximum potential profit for the strategy can be up to ₹100,000, depending on the market's movement and how the positions are managed.

How can you reduce the margin requirement for this strategy?

You can reduce the margin requirement by using hedging techniques, such as buying additional options to protect the positions and decrease the capital needed to hold the trades.

What are the risks involved in the 'Double Jade Lizard' strategy?

The risks primarily involve undefined risks if the market moves significantly outside the covered range. However, these risks can be mitigated with proper adjustments and hedging.

What adjustments can be made if the market moves outside the covered range?

If the market moves outside the defined range, adjustments like rolling or repositioning strikes can be made to continue profiting or to manage the risks.

Why is the 'Double Jade Lizard' strategy suitable for volatile markets?

This strategy is suitable for volatile markets because it covers a wide range of market movements, providing flexibility and a high probability of profit even when the market experiences significant fluctuations.