Live Market Mentorship: Decoding Sensex Expiry Trades & Option Buying Reality

[00:00:01]Hello guys, this is Sensex expiry day 18th of June. So, I'll be showing you couple of trades that we have taken along with the live market mentoring participants. It's It's a trade that we have taken during the mentoring session.

[00:00:12]So, if you see here, I've already shown these trades. Okay? So, at that point of time, I've already shown you this trade how we captured 100 points in this.

[00:00:21]That's the previous video. And I've also shown this trade that we have taken.

[00:00:25]That's a small trade. And then I've I've told you that I'll also be showing you the trade that we have taken from here and the trade after this breakdown that we have taken and the trade that we have taken at this 20 EMA. And this trade also that we have taken and this top also that we have captured. So, in this video, I'll be showing you the trade that we have taken from here, which we got almost 40 points. But actually, we entered a couple of times here by expecting this rejection. It gave a small rejection, but it did not work out. But being a Sensex expiry day, when you get a small reversal itself, though we planned our stop loss above R1, it did not come above that. It did not break that. But the premium was decaying much. So, we cannot hold it. So, I have taken the stop loss. With the mentees, they have also taken the stop loss. And then we saw this and we re-entered this and we got 40 points in this trade. And then we even tried a small call trade.

[00:01:18]That also we got some small profit. But then it broke. Okay? So, what I'll show you is I've taken a trade here. Even this small call trade that we exited at cost also, I'll show you after booking some profit. And then it came down, breakdown. And then we entered the breakdown trade. In fact, initially we entered a small trade. That also took a stop loss. I'll also show you that. And then we got a beautiful trade. And then we entered again at 20 EMA. That also I'll show you. And this call trade that I've captured, that I'll be showing you in a different video. And in that I'll also attach this put trade that we have captured. But I have missed this towards the end short covering which have happened. I have missed this trade.

[00:01:56]Because I am at 2:30, actually, I close the session. So, I missed that. Anyway, this was the biggest of the move, actually. But, we'll show you this trade. We'll show you this trade. We'll show you this trade, also. And even there is no candle, actually, but I've taken a small sensex trade here, also.

[00:02:14]Here, a call trade, also. Okay. So, you'll be watching all that. In fact, this is uh you know you know why I'm showing this is for learning purpose.

[00:02:22]You'll get a lot of learning. And uh if you are interested, you can also join us for the community. In the community where we teach in the live market. We have the live market mentoring program.

[00:02:33]Where it's not a trading call or anything. I'm not a person like that to give you a trade call or I don't want to do that. So, it's a training program.

[00:02:42]It's a learning program where I trade and based on that I teach you. Okay. My knowledge is what I'm sharing. So, if you are interested to be part of the community, if you are interested for that real, you know, live market learning, get in touch with my team and they'll connect you to the community. So, see you there.

[00:02:59]Thank you.

[00:03:01]You can just set 153.

[00:03:10]Rejection again from there.

[00:03:24]Stop loss will be around this. So, we won't find much decay compared to the previous strike price here.

[00:03:51]Yeah, HDFC ADR was 2% down.

[00:05:56]>> I would I strongly feel they'll prevent the breakout above this for sure somehow.

[00:06:02]But when HDFC is like 2% up, then that will decide everything.

[00:06:29]I'll place stop loss in the system.

[00:06:33]Not chasing on the upside. I'll just try this and then I'm done.

[00:06:39]The upside I won't get much opportunities after breakout.

[00:06:47]Ah, it's only HDFC, otherwise Okay.

[00:07:03]Entry price is Entry price is 153.

[00:07:28]Change the strike price because see this came to 290. 290 means the best is 300 strike price. That is at least at the money. 200 It became out of the money.

[00:07:42]Yeah, we're getting 20 points almost.

[00:07:44]Maybe Maybe can reduce some That's a mistake I did before.

[00:07:58]I'll reduce some here at 180. Got 30 points.

[00:08:02]But only quantity is 400 I've taken.

[00:08:18]When the market can come Yeah, even that also look at this 130 now just went to take our stop loss.

[00:08:28]Okay.

[00:08:31]That's the tough situation.

[00:08:34]And it just went to take our stop loss.

[00:08:37]190 That is VWAP 192.

[00:08:49]Do one thing I'll give VWAP as an order.

[00:08:53]I get 192 I've given which is VWAP of the strike price.

[00:09:16]180 I've exited half.

[00:09:30]Now this is at VWAP Nifty at VWAP.

[00:09:33]Can it bounce?

[00:09:39]More I think it is better we get we get a 20 MA.

[00:09:45]Yeah, we can try a small call.

[00:09:46]Looking at the way HDFC and uh you know, Bank Nifty is moving. If it comes to 20 MA, we'll try.

[00:10:00]Then we can exit that.

[00:10:25]Uh this trade is good. See, actually the trade was good. We were looking We were very clear about this.

[00:10:31]And from here, I'm looking for a move to 20 MA. But now it's So, it is highly likely that it will get it.

[00:10:37]But the issue is that the premium decay.

[00:10:41]We are not able to hold it. Look at this now. 120 It went back to 120. It came to 135.

[00:10:48]This one didn't decay much. It came to 185.

[00:10:52]And still it's 175, which is okay.

[00:11:16]We are flat, Vinod, because that trade and all with higher quantity.

[00:11:21]We are almost Yeah, it's flat.

[00:13:30]>> And here again I did some at 169.

[00:14:38]Now, this is surprising HDFC.

[00:14:42]I don't know.

[00:14:46]So, from ADR of 2% negative it has turned 2% positive means there is something big.

[00:14:58]And pre-market what I told is if Nifty is coming down, it will be HDFC which is going to drag.

[00:15:04]But HDFC is the one which took.

[00:15:07]Okay, okay. News is that they are appointing chairman. I think that is RBI's previous deputy governor is going to be the new chairman or something.

[00:15:18]That news I read last day.

[00:15:52]>> Who knows staying in the range it looks like.

[00:16:01]DMA need to be broken on the downside to get a down move.

[00:16:05]I'll reduce some here.

[00:16:07]180 See if it comes to that 20 MA.

[00:16:17]If it comes to 20 MA we'll get this 192.

[00:16:28]Uh we'll try some calls at uh See just by looking at there is no other reason for me. Just by looking at the way HDFC is holding and IT also recovered. If you see at one point it was 1.6 If you see IT IT also recovered.

[00:16:43]So we can look at the way IT recovered.

[00:16:50]At 20 MA we can just try small quantity.

[00:16:55]Not before.

[00:16:57]Not anywhere else. 20 MA because if it is breaking then we will immediately exit on sell. Okay?

[00:17:04]So far calls was not there in the picture for me but now I'm thinking about call.

[00:17:12]Yeah, at 20 MA.

[00:17:21]>> Let's call this one we can 77 77 100 or 200 What is also breaking me up?

[00:17:54]94 You do 192 that is we got So it's close to 20 MA.

[00:18:04]I think it's better we can exit this.

[00:18:18]Should have exited 185 before itself, right?

[00:18:22]So 20 MA can bounce.

[00:18:55]I have exited.

[00:19:02]Okay, let's see if we get 195 once again.

[00:19:19]>> But guys, again, as an option buyer, see, look at your disadvantage.

[00:19:24]We entered here at R3. Our entry was correct only because we know above, if not here, we get rejection here. We got it.

[00:19:31]So, when we entered here, you know, the price was 140. I added also.

[00:19:38]Right?

[00:19:39]Right at this level.

[00:19:41]Now, see, the price is trading way below that. Even our It's a 20 MA, which is our target also.

[00:19:48]But at that time, 20 MA was here, but 20 MA.

[00:19:51]And see where the price is, 125.

[00:19:58]So, inherently, as an option buyer, you are in a disadvantageous position if you hold the trade. Unless you get the sharp move.

[00:20:05]Okay, I got that 185 exit. This trade came out to be good, right? This was a beautiful trade.

[00:20:12]But what is the difference between this trade and this trade? No difference.

[00:20:15]Just that we reentered on a different strike price.

[00:20:18]And this one I had 600 quantity. I could take only 400 here.

[00:20:23]Uh we are slightly positive because of this trade.

[00:20:31]Should we try at 20 MA?

[00:20:33]I'll try a small quantity at 184.

[00:20:37]184 I've taken. Small quantity only, 200.

[00:20:51]20 MA I've taken. Small quantity.

[00:20:53]If it's breaking, we'll exit.

[00:21:13]>> 194 Reduce up to 200. I did.

[00:22:33]Yeah, 198.

[00:22:43]Have you tried that at 20 MA?

[00:22:58]Yeah, I've entered at 184.

[00:23:03]Half I reduced.

[00:23:08]positive Back to 200.

[00:25:14]>> Look at that. 200 678 came back to 196.

[00:25:29]Okay, I need 210 if they give, it's fine.

[00:25:36]I'll close it. No point in holding. If it is going below 180 also, I will exit.

[00:25:40]183 is the buy price. 180 I can keep as a stop loss.

[00:25:45]It goes below that, I'll exit.

[00:26:13]Um, this is coming to 192.

[00:26:16]VWAP.

[00:26:38]Okay.

[00:27:00]>> If it goes below 180, I will list.

[00:27:28]No, that put entry was right only. The levels were also right.

[00:27:33]Just that it took time.

[00:27:35]So, then you get trapped.

[00:27:38]Otherwise, the entry was correct.

[00:27:44]It's coming to 20 MA.

[00:28:03]Exit this 175.

[00:28:22]20 MA gave one bounce, but then it's like it is breaking.

[00:28:29]That put is 200 now.

[00:28:36]So, yeah, whenever Vix is actually negative, you know, it is How many of you have observed this? It's very difficult to trade, right? To get the points. Look at boot.

[00:28:48]Crazy.

[00:28:52]We were We were holding the trade for almost time, but now they are giving it.

[00:29:04]Oh, look at that. This is the move that we were looking for. If we If we get this move here, Look at that one candle.

[00:29:18]Everything they consolidated here, you got in one candle.

[00:29:24]How can we hold that?

[00:29:40]This is 200, guys.

[00:29:42]Where did we exit this? 100.

[00:29:56]That's why call See, you see the call trade I have taken. I was very strong and strict with the stop loss. We never made a loss in the call, right? It's just flat I closed.

[00:30:08]But put I was holding because I had that confidence on the downside.

[00:30:17]Look at this 240 311.

[00:30:20]My god.

[00:30:29]Crazy.

[00:30:32]Where to enter now?

[00:30:40]What a bounce from the pivot.

[00:30:44]Look at this bounce.

[00:30:45]Crazy.

[00:31:08]And some here up to 84.

[00:31:16]Price is high. What we need to do?

[00:31:20]Look at the reversal.

[00:31:23]It's in touch at 71 to 72.

[00:31:32]>> [snorts] >> 20 Let's see 77,000 put.

[00:31:44]Or 77,100 put.

[00:31:57]Yeah, I was in the right trade.

[00:32:00]Entire No, call trade did not harm us.

[00:32:03]We just tried a 20 MA. The moment it broke 20 MA. See, look at the call trade. It It never made any issue.

[00:32:10]We were very clear. The put side is where the bias is. That is why despite going against us, I'm just holding holding.

[00:32:17]But when we gave up, gave them off.

[00:32:30]Look at the strike price now.

[00:35:25]>> I respect the 119.

[00:35:39]119 is the strike price V web.

[00:35:43]Actually 115 and then at 119.

[00:36:05]I think that that once you miss the trade then you get entry at higher price and uh you know, reversals can also be faster.

[00:36:20]We picked that put trade right at the top, right at the level.

[00:36:39]>> One time will be my stopwatch.

[00:38:33]>> I reduce some quantity at 133.

[00:39:16]So yeah, if we waited for exact V up to enter it again, then the entry was good.

[00:39:21]The entry right at V up, it worked very well.

[00:39:24]140, I'll reduce some more at 143.

[00:39:31]150, I'll reduce some at 150.

[00:39:38]So finally See guys, if you look at all the trades we have taken, don't you think all the trades were right?

[00:39:47]Our disadvantage was the option buyer.

[00:39:50]I've taken a trade at 20 MA.

[00:39:52]It gave a profit of if you see, what is that call trade that we took? 184. It went to 206, 22 point it gave. But 197 I exited and then I took cost to cost stop loss.

[00:40:07]Because I never want to take risk on the call side. Because my view is absolutely on the put side. So I have exited here.

[00:40:12]I think this trade also we can close.

[00:40:15]I'll exit this at 154.

[00:40:18]So we have closed this trade.

[00:40:20]Now this trade where I have taken the entry 190 119 which is our important most important level. What is that Vwap?

[00:40:31]Right, so you do you can't even imagine if I tell you the profit that I have made by selling calls here. The same view but here what I was doing I was I was buying put option, right? Because this is option buying mentoring program.

[00:40:46]But I'm selling calls. You can't imagine the kind of profit I've made.

[00:40:50]And selling call I don't want to exit also. Even now the entire position is on.

[00:40:57]I told you in the opening also this is where I'm selling. Opening also I sold again I sold it's a big profit.

[00:41:04]Because there is no no constraint to exit the trade.

[00:41:08]I'm okay to hold till 320.

[00:41:14]That's how even if it comes here I will add extra call only you know 24,000 or even 23,900 extra put only rather than exiting the existing one. That will just move it.

[00:41:25]Because I have you see if it comes here suppose if it is taking a support.

[00:41:29]If you think that I'm going to lose on this I will add a put here if this is bouncing more than that I'll be gaining from this the extra one I'm adding.

[00:41:39]That's what I need to do.

[00:41:42]So I never exit the trade in selling.

[00:41:44]You can't imagine the profit. But here what happened? Look at the entry it's the best entry you can get today.

[00:41:50]And we waited also till R3. Here is where I've entered and I know stop loss above this. It never went above that.

[00:41:57]But we are constrained to take the stop loss because your entry is at 140 and how long I can hold it man.

[00:42:04]Right, 141.

[00:42:08]It came to 130 also and I could have exited at least this in a profit.

[00:42:13]And then I took stop loss. Added again at 114, it took the stop loss. But remember even then it took the stop loss, why it took the stop loss? Because I cannot afford to have more loss beyond that. Still, did it ever crossed my level?

[00:42:28]No.

[00:42:34]Never.

[00:42:35]And so that's the the And then what I did, I reentered on the put side.

[00:42:39]So that thought That trade gave me good profit 153.

[00:42:43]Uh 185 it gave at least some points we covered.

[00:42:47]And then we entered the call trade at 20 MA. It also gave a bound some profit, but I exited cost to cost.

[00:42:53]And then again we reentered the put at higher level. I took the stop loss.

[00:42:59]And reentered now. Got a beautiful trade.

[00:43:04]>> [snorts] >> Whatever opening trade gave us profit, even now we are not able to get that despite doing all these.

[00:43:11]Pawan, uh selling I do on Nifty. Yet still I'm not comfortable in selling Sensex. Scalping selling I can do on Sensex, but regular selling I'm still doing small quantity only Sensex.

[00:43:26]I I need to, you know, get some more experience from Sensex.

[00:43:43]So as if you don't want to hedge. If you are in the system, okay, if you need a margin benefit, you need to hedge. But still the profit will be same. Because hedging it is just like you'll be spending three four rupee premium.

[00:43:54]And that you can keep throughout. You don't want to exit. You can keep that throughout.

[00:43:59]So opening itself if I if I want that I buy far of the out of the money hedge already, call and put. And if if I'm scalping, that hedge will be there.

[00:44:08]In between I keep scalping.

[00:44:13]Yeah, but see, the view is correct, everything is correct. This is a trap move. Even opening also I told you there's a trap move.

[00:44:19]But then again, it never crossed R1.

[00:44:24]But premium.

[00:44:27]So we are not mostly losing not because of our understanding, not because of our view, not because you know, your entry is not correct.

[00:44:37]Because your entry I see this after we getting the profit, our re-entry also gave us profit. Do you see this?

[00:44:45]If you look at the orders, everything was perfect today. First entry is correct. Our re-entry also gave us profit. And then this entry came 9:45 where this is a candle.

[00:44:57]Here is where I'm entering. My entry is the right entry.

[00:45:03]You cannot get better entry. Because I know about this is my stop loss. I will add here.

[00:45:08]I did the same.

[00:45:11]It never crossed also.

[00:45:14]But still that is the trade which gave me almost 20,000 loss because we were in 11,000 12,000 profit, no?

[00:45:21]Opening.

[00:45:23]And that came to 10,000 loss means it's a 22,000 loss which this trade gave.

[00:45:29]And then from there we covered again.

[00:45:31]And that was became flat. This gave us some small profit. Now this one gave us some profit.

[00:45:36]See, this one again reversed at 120. We exited where?

[00:45:40]We exited 150 154. Now look at it. It is 170.

[00:45:45]Crazy.

[00:45:46]Moving to 20 MA. Let's try at 20 MA.

[00:46:15]>> Yeah, they will not look at 50 to 50 again, then we'll get stuck in trade.

[00:46:33]When the MA position Yeah, from 107 it came to 19120.

[00:46:51]So, see, we got a put trade this one.

[00:46:54]Yes, yes.

[00:47:11]Okay, what am I talking about? So, opening we took a put trade.

[00:47:15]Then we never even thought of a call trade because everything was negative for me in the opening.

[00:47:20]Surprising element was HDFC.

[00:47:24]That single-handedly took Nifty to this.

[00:47:27]But right here, right trade, right here, right again, took stop loss, right again, took stop loss, right again.

[00:47:37]Call trade we tried.

[00:47:40]Then put we again tried after breaking this. That's what I told you, 20 MA broken, then I tried a put trade that is better.

[00:47:46]And that also worked out.

[00:47:49]Again getting rejection from 20.

[00:48:38]>> I take the session as learning purpose guys. You will get a lot of knowledge from the session rather than you know trading calls or I don't want to take it as that way.

[00:48:50]That anyway is not going to help you.

[00:48:52]If you're learning and if you are implementing in your own way with the understanding that you develop See you can be here as long as you want, right?

[00:49:02]So that way if you take it, it will be helpful. But your interpretation also what matters.

[00:49:10]So when I say I trade at these levels, then you also need to think should I trade depending upon my risk appetite, my capital and my understanding.

[00:49:19]Because I have to try all the possibilities. I tried this possibility.

[00:49:22]I tried this also. I tried this also. I tried again this. You may not be able to do that. So you will have to make sure that yes, these are resistance possibility, but only if I get a red candle, I will enter.

[00:49:34]Yeah, this 20 MA is a support possibility, but if I'm getting a red candle, I won't enter. I have to get a green candle, then I'll enter.

[00:49:41]So you will also have to make your own rules so that you know, you won't face problem.

[00:49:51]I buy a small quantity at one time.

[00:49:53]quantity at 110.

[00:50:01]Last rate, 110 I've taken.

[00:50:38]Yeah, you might think that uh in that case, we were holding for like 140 to 100 almost, but our stop-loss level is our entry is here means we need to re-enter some more half here.

[00:50:52]So, above that only my stop-loss.

[00:50:55]In between if they are decaying, I have nothing to do. That is my disadvantage as an option buyer.

[00:51:02]120.

[00:51:06]I will sell at 120.

[00:51:13]So, 20 MA rejection.

[00:51:28]See if we get 129.

[00:51:39]Yeah, we are back to 10K.

[00:51:41]10K comfortably we got in 2 minutes. Yes or no?

[00:51:46]We got 10K And the entire day That's the Sensex chart. But, I don't know how many of you traded Nifty at those levels. You never faced any problem.

[00:51:58]Right, guys? Those who have taken trade at Nifty, you never saw that 40 point decay or anything. You might have seen 6 point decay, 6 point dip.

[00:52:07]So, if you have taken Nifty, then that gave a beautiful trade.

[00:52:15]Uh Harsha, crypto mostly I I prefer breakouts and breakdowns.

[00:52:21]Here we rarely go with breakouts. See, breakdown, this one I chased, right?

[00:52:26]This is breakdown. But, breakouts I normally won't. But, crypto I look for because then there the range is like unlimited. Crypto, gold, commodities there breakout breakdown trades is what you need to look. That's the one which help you to make real big money wealth.

[00:52:41]Here index will be just controlled.

[00:52:44]Here we have expirations. Here we have you know, uh even the government won't allow you to come down for beyond a level or go up also beyond a level.

[00:52:57]Circuits are there, right? So, it is always controlled in a range.

[00:53:03]So, we look for a breakout or breakdown, you'll be in trouble.

[00:53:08]My price is here.

[00:53:10]110 can close at 110 itself.

[00:53:14]Cost to cost.

[00:53:18]Uh breakouts of trend line you will see, breakouts of pivots you will see, breakouts of EMIs you will see.

[00:53:35]And if you analyze any of the order we have taken today, any order, any trade that we have taken today, so all right.

[00:53:43]All trades are right.

[00:53:45]First we took a put trade.

[00:53:47]That's this trade.

[00:53:48]Then we took a put trade.

[00:53:50]That is somewhere here. That also gave us profit. Then we took a put trade here.

[00:53:55]I told you we'll add here above this only stop loss, but that case stop loss is not taken.

[00:54:00]But monetary stop loss is taken.

[00:54:02]Technically it is not taken.

[00:54:04]Gave us the best of the move.

[00:54:08]Even call also we trade.

[00:54:11]At 20 MA gave the trade.

[00:54:13]Breakdown trade.

[00:54:15]It gave a beautiful trade.

[00:54:17]Now came to 20 MA. We trade we trade it.

[00:54:21]It also gave right even if it is small.

[00:54:24]You see 110 120. Now where is it trading? 120 itself.

[00:54:29]That call trade we took.

[00:54:31]That also actually gave.

[00:54:38]Yeah, this call trade 184.

[00:54:41]It uh it gave 20 points.

[00:54:43]And it went to 210 very close to 210 also. And then close to close exit.

[00:54:49]That means even this trade also gave us some profits.

[00:54:53]This 20 MA 20 MA support 20 MA resistance.

[00:54:59]Yeah.