In this video, Mr. Ronak Bhalala discusses various trading strategies for the stock market, including options trading and algorithm-based trading. He emphasizes the importance of managing risk in high-risk strategies and highlights the need to adjust trade positions based on market conditions. Mr. Bhalala also discusses the use of software for discretionary trading and the impact of VIX levels on trading strategies. He concludes by encouraging oneself to develop their own trading strategies and to invest in the long term.
Selling options is a positive theta trade, which means that as time decays faster, the position will gain more money.In an option trade, the buyer anticipates a certain direction of movement in the stock and wants to profit from it. To profit from the trade, this person must pay both intrinsic and extrinsic value (time value) and make up the difference.The buyer of the option may lose money if the stock remains unchanged or, even more annoyingly, if the stock moves slowly in the right direction but the movement is countered by time decay since theta is negative.
According to Mr Ronak Bhalala, before entering his options strategy there is no need to check any news, chart, VIX or IV. You can just execute the strategyIf the market remains sideways, you will get profits from all the legs. If the market goes in one direction- suppose bullish then you will profit from selling puts. If the market turns bearish then you will profit from selling calls. In this strategy monthly return on investment is 3-4 % and Yearly Roi is 36-48 %.
According to Mr Ronak Bhalala, traders do mistake by never think ahead after deploying a strategy, lack of patience, overtrading and over diversify. Also he says patience is your weapon. One should use it. Learners do not stop. the path to success is never a straight line and failure is stepping stone to success.