52 Week High Low and Monthly Trading Levels File - Automated Sheet

Automation:

As we move forward, technology is advancing very fast and everything in the world runs on Automation. Same is applicable for trading as well. Almost 70% of trades in Indian market are done using Bots/Robots. Everything from trade analysis to trade log is done through automation. 

52 Week High Low and Monthly Trading Levels File - Automated Sheet

To help us in reducing the work spent on daily basis, one of the fellow members of our telegram channel (Mithun) had come-up with an excel based automation script which will basically simplify your job when it comes to filtering the stocks for 52 Week High/Low Strategy (or) Utilizing monthly levels file.

You can download Automated 52 Week HL and Monthly Trading Levels using the below link.

Automated Monthly Levels File for March 2018: https://drive.google.com/open?id=1iG1iMQ2Ppoq-8wkx1TgyoElKhVyurosV

Additional Features added from April 2018:

1. Capital management for 52 Week HL Strategy
2. Added buttons for Monthly levels file filtering.

Automated Monthly Levels File for April 2018:: https://drive.google.com/open?id=1Yc2A7vlrEoU2sPyWQf_Xi5tvWpHUCBEZ

Automated Monthly Levels File for May 2018: https://drive.google.com/open?id=1TtR8wyXjxMl5trD8GYJl74ohpL9y5e0S

Automated Monthly Levels File for June 2018: https://drive.google.com/open?id=1EZ1FQmcVgmPfX7JwyZqSjOBbBW8bDvwV

We are discontinuing Automated Monthly Levels File from July 2018, regular monthly levels file will be available for download in the below blog link going forward.
Link: https://marketsecretsrevealedforyou.blogspot.com//2018/04/monthly-levels-file-april-update-1.html

Watch our YouTube videos at https://www.youtube.com/c/MarketSecrets to learn more about trading strategies.

Need help in becoming a professional and an independent trader? Then, Contact us at https://t.me/MarketSecretsTeam through telegram or Email us at marketsecretsrevealed@gmail.com

Bank Nifty Weekly Expiry Option Trading Strategies

Agenda of Live Session on Option Strategies and Bank Nifty Weekly Expiry Trading Trick


Agenda:
1) Key Points
2) Brief overview about previous session
3) PCR – Intraday analysis
4) Max Pain – More info
5) Option Selling – Weekly income – Intra/Positional
6) Option Selling – Monthly income
7) Payoff generator
8) Option buying – BNF Weekly expiry
9) Option Hybrid strategies
10) Assignments

All the links used as part of the session is available in the PPT.
Download the PPT from here: https://drive.google.com/open?id=1W1PVEn5y09hUWBs7p6ySJD-oGULFTbgS

Download sample assignment report:
https://drive.google.com/open?id=1ZBpYCLpr-dbm5EYkkPtLDkc59Jyu65pW

Download options pain calculator:
https://drive.google.com/open?id=1z02Xt8Xq887Ok2CY9RNwgoLw35zBB7ZY

Option Trading Mistakes that you should avoid:

Lack of understanding options: Many traders jump into option trading without really understanding the reasons behind the movement of options or the maths behind it. Little attention is paid to details like how much does an option move with respect to the underlying share or index, the Greeks that are used for calculation of option prices. Generally few traders know which strike price will offer the best risk reward trading opportunity is case of a small move or large ones.

Going for Jackpots: The beauty of trading in options on Expiry is that you enter in a highly leveraged position with a limited downside risk scenario as the premium paid is the maximum loss which is also cheapest due to almost negligible time\other values in option premium. This may look like a jackpot, but it is like a lottery. You will never win at the end.!

Buying out-of-the-money options: Lack of understanding options results in retail traders buying options which are out of the money for the simple reason that they are cheap. An occasional win trade results in the trader getting fixated to buying out of the money options. In most cases even when the trader is right in his trade he loses money in the out-of-the-money trade since it requires a very sharp and fast move for these options to become profitable. It has been found out that trading in out of the money options is one of the biggest reasons for option trader loses.

Not having an exit plan: Traders lose money because they do not know when to exit from an option position even if they are right. The fact that holding on to a position as time passes, erodes the value of the option is rarely understood. Similarly since the amount involved in options is small traders do not trigger the stop losses. They tend to hold to the trade in the hope that a move in their direction will result in a profitable exit. Ones an option goes out of the money as the underlying stock or index moves away from it, it would require a big move for it to come back to its breakeven level. 

No clue of an event calendar: Option prices tend to over-react when an event is approaching. Investors read the rising value in options as a sign of a big move in its direction.

Writing options without proper risk management: Many times novice trader tries to behave like a professional trader and gets in the act of writing option where returns are limited while risk is unlimited. But he imitates the pro only partially. While a professional trader is either properly hedged in his position or keeps an iron tight risk management system of stop losses in case of a move against his position, a retail trader leaves his option writing position open. It just takes one wrong trade in this direction to wipe out months of gains for the trader. 

Lack of understanding of time decay: Another big factor that plays against a retail trader is lack of understanding of time decay on option prices. For as option price to rise the underlying stock or index needs a move in line with the option bet and fast. A grinding move plays against the buyer of an option. As time passes options lose value faster. Many retail traders hold on to their trade or take new bets close to the expiry of the market, because option prices are cheaper during this period. But most trades close to the expiry period turn out to be losing ones, unfortunately a novice trader holds on to his position since the amount involved is small. It’s these seemingly small loses are what cause the most damage to a novice trader.

Need more information on option trading? Watch our YouTube videos at https://www.youtube.com/c/MarketSecrets to learn how to trade options & how to use Max Pain data to take positions.

Need help in becoming a professional and an independent trader? Want to trade options like a Pro? Then, Contact us at https://t.me/MarketSecretsTeam through telegram or Email us at marketsecretsrevealed@gmail.com

Option Max Pain Theory - How to use it for maximum gains?

What is “max pain” in options trading?

Options Max Pain Theory suggests, “On option expiration day, the underlying stock price often moves toward a point that brings maximum loss to option buyers.”

It’s a well-known fact that most options trading volume is made up of hedged positions from large institutions. Hedge funds, prop funds, FII’s, DII’s, pension funds - they all hedge their large positions using options and make up most options trading volume.

Since these institutions have so much money on the line, it makes sense for them to try to manipulate (move) markets to their advantage - if they can.

How would they do this?

Well, what if it turns out that if the Index closed at a certain price on expiry day, hedge funds/institutions would stand to benefit tremendously - doesn’t it make sense that hedge funds will try to move the Index in order to maximize their gain (and maximize your loss/pain)?

Understanding Max Pain

So we know that the theory stems from the idea that large institutions will attempt to move the Underlying to a certain price in order to maximize their profits.

The natural next question, is, what price do they move it to, and why? In order to get to that, you need to understand an important fact.

Most Options Buyers Lose Money

Mostly due to a concept known as time decay, most options buyers lose money. It doesn’t matter whether you’re buying a call option or a put option - due to time decay, you’re probably going to lose money. In India, around 90% of Options buyers don’t make money.

Since we have established that institutions are writing (selling) options, they’re profiting - but in order to maximize your pain, they want you to lose the maximum amount of money.

In the Money, At the Money, and Out of the Money Options

In order for an Option buyer to profit, the option needs to expire ITM (in the money). If the option expires At the Money or Out of the Money, the Options buyer will not profit.

Since institutions want you (the Options buyer) to lose money, they want to minimize the number of options contracts that are In the Money.

Therefore, they are looking to maximize the number of contracts that are ATM and OTM.

So, order to get to Max Pain, institutions will move the underlying towards a strike price wherein they can get the maximum number of contracts (measured through Open Interest) that do not expire ITM.

How to use Options Max Pain Calculator Excel Sheet:

1) Download and save the file in your machine.

2) Open the Excel file, if there is any request for "Enable Editing" or "Enable Content", Click that and provide access as described in the video.

3) To calculate max pain, move to Data tab at the top and click refresh.

4) Whenever you need current data, click refresh.

5) Refresh needs to be done separately for Nifty & BankNifty Data by keeping that particular sheet opened.

Link to Download MaxPain Calculator: 

https://drive.google.com/open?id=1z02Xt8Xq887Ok2CY9RNwgoLw35zBB7ZY

Watch our YouTube videos at https://www.youtube.com/c/MarketSecrets to learn how to trade options & how to use Max Pain data to take positions.

Need help in becoming a professional and an independent trader? Want to trade options like a Pro? Then, Contact us at https://t.me/MarketSecretsTeam through telegram or Email us at marketsecretsrevealed@gmail.com