Gamma Blast | 10x profit on option expiry ! - Learn to capture

Summary

The video script, presumably in Hindi, discusses strategies for capturing 'gamma blasts' in the stock market, which are sudden increases in the value of options premiums. The speaker, Praveen Khetan, explains the concept of delta and gamma in options trading and how they change with the price of the underlying asset. He introduces a simple indicator, the 'William's Percent Range,' to predict and capitalize on these market movements. The script also promotes a brokerage platform, M Stock, for its zero brokerage offers and features, encouraging viewers to open an account for better trading experience.

Takeaways

• 😀 The speaker, Praveen Khetan, is discussing the concept of 'Gamma Blast' in the context of stock market trading, specifically options trading.
• 📈 The script talks about a personal experience where an investment of ₹1 grew to around 50, indicating a significant profit from a 'Gamma Blast'.
• 📊 'Gamma' is explained as the rate of change of the option's delta with respect to changes in the price of the underlying asset.
• 💡 The importance of understanding 'Delta' and 'Gamma' is emphasized for capturing profits during a 'Gamma Blast'.
• 📚 'Delta' is described as the change in the option's premium relative to a change in the price of the underlying asset.
• 🔍 The script explains that as the price of the underlying asset changes, both 'Delta' and 'Gamma' will also change, affecting the option's premium.
• 📉 'Gamma' is said to decrease as the price of the underlying asset moves away from the strike price, whether it increases or decreases.
• 🚀 The concept of 'Gamma Blast' is related to the exponential relationship between 'Gamma' and time, especially as expiration approaches.
• 👀 The speaker suggests using a technical indicator, possibly the 'William's %R', to capture 'Gamma Blast' opportunities in the market.
• 💻 The use of a fast, leading indicator is recommended for timely entry into trades during a 'Gamma Blast'.
• 📝 The script mentions a broker named 'M Stock India' that offers zero brokerage on all segments, which can be beneficial for traders to save costs.

Q & A

What is the main topic discussed in the video script?

The main topic discussed in the video script is the concept of 'Gamma Blast' in the context of options trading, and how to capture profits from it using a simple indicator.

What is a 'Gamma Blast' in trading?

A 'Gamma Blast' refers to a rapid increase in the price of an option due to a significant movement in the underlying asset's price, leading to a surge in the option's delta and premium.

What is the role of 'Delta' in options trading as explained in the script?

In options trading, 'Delta' represents the rate of change of the option's premium with respect to changes in the underlying asset's price. It indicates how much the option's premium will change for a given change in the underlying asset's price.

What is 'Gamma' and how does it affect options trading?

'Gamma' is a second-order derivative that measures the rate of change of 'Delta' with respect to changes in the underlying asset's price. It affects options trading by indicating how much 'Delta' will change as the price of the underlying asset changes.

How does 'Gamma' behave as the price of the underlying asset changes?

As the price of the underlying asset increases or decreases, 'Gamma' typically decreases, meaning that the rate of change of 'Delta' with respect to the price of the underlying asset slows down.

What is the significance of the 'zero brokerage' concept mentioned in the script?

The 'zero brokerage' concept refers to a brokerage model where traders are not charged any commission for trading activities. This can help traders save on costs and potentially increase their profits.

What is the importance of using a fast leading indicator in trading as suggested in the script?

A fast leading indicator can provide early signals of potential market movements, allowing traders to make quick decisions and potentially capture profits before the market moves in a particular direction.

What is the 'William's %R' indicator and how is it used in the script?

The 'William's %R' indicator is a momentum indicator that measures overbought and oversold conditions in the market. In the script, it is used as a fast leading indicator to provide entry signals for trading.

What is the strategy for capturing profits from a 'Gamma Blast' as described in the script?

The strategy involves using a fast leading indicator like 'William's %R' to identify entry points during a 'Gamma Blast'. The script suggests waiting for the indicator to break above 80 to exit a trade, and using the next candle for the trade entry.

What is the role of 'MSI' in the context of the script?

In the script, 'MSI' likely refers to 'Money Supply Index' or a similar financial tool that investors can use to gauge the potential for market movements and make informed trading decisions.

How does the script suggest traders can improve their chances of successful trades during 'Gamma Blasts'?

The script suggests using a combination of understanding 'Gamma Blasts', using a fast leading indicator for entry signals, and adjusting the probability of trades to increase the chances of successful trades during 'Gamma Blasts'.