The Options Trading Setup That Could Make You Crores! | Verified P&L with Sourav Mazumder

In this Face2Face session, Vivek Bajaj with Sourav Mazumder breaks down the real power of long-term compounding and why most investors underestimate it. He explains that compounding looks slow in the beginning, but over ten years the curve accelerates sharply—steady returns can even create tenfold growth. The biggest edge isn’t timing, but patience.

He emphasises that the number of years invested matters just as much as the rate of return. Staying invested for five to ten-plus years transforms growth from simple addition into true multiplication.

Sourav also stresses the importance of realistic targets. Instead of chasing unpredictable alpha, aiming for consistent Nifty-like returns of 12–15 percent helps avoid emotional decisions and premature exits.

On the trading side, he highlights that options must be used systematically. Writing at-the-money straddles, watching VWAP, and using a 20 percent premium stop-loss rule bring structure and repeatability. VWAP acts as a volume-weighted signal: below VWAP favours option writing, while above VWAP supports buying dips.

Risk control remains central. Traders must hedge positions, manage margins smartly, and avoid excessive leverage—especially on expiry days when SEBI rules tighten.

For long-term investing, Sourav recommends a core-satellite portfolio with higher large-cap weight, selective mid-cap exposure, and limited small-cap allocation. Focus should be on companies with strong free cash flow, ROE, and resilience in past crisis periods.

Finally, he advises treating trading like a business—with defined processes, clear risk rules, and preparation for extreme scenarios. Planning for margin spikes, slippage, and black-swan events ensures survival and long-term success.