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

Option Sailor
4 Mar 202509:57

Summary

TLDRIn 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.

Outlines

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Keywords

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Transcripts

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Связанные теги
Option SellingTrading StrategyDouble Jade LizardProfitabilityLow AdjustmentsMarket RangeRisk ManagementHedgingProbability of ProfitOptions TradingFinancial Strategy
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