Mastering Market Stability How to Profit from Sideways Trading with Delta Neutral Strategies

Whenever the market is trending and if we are not able to identify the trend correctly, if the market is non-directional, can you make good money in non-directional too? You have to understand one thing that if you want to make money from the stock market, you will not get the trend every day. You have to understand this on the first day itself. Most of the days the market is non-directional or sideways. So if you are not able to make money on most of the days, will you lose money on those days? Is there any way by which we can make money whenever the market is sideways or non-directional? So today in this video Vibhu we are going to learn the sideways strategy, which we call delta neutral in simple language. We have already explained the meaning of delta neutral. If you buy options, you need momentum. You need fast movement. Every time you will not get that momentum or fast movement because people do not get that big momentum. So what are people doing these days? They have started scalping that on small time frames, 30 second time frame, 1 minute time frame, 3 minute time frame, we want to capture the momentum. For example, here is the chart of Bank Nifty, recently a move has come, this is just a 149 point candle, then there is a 150 point candle, now 150 points are a lot for the buyers and today is the expiry of Bank Nifty, so what people want, they are saying that we have to capture this candle, but before that let me tell you that those who are doing scalping, it is possible that they have taken the trade here, it is possible that they have taken the trade here and the market has taken them out by placing a stop loss, so there are many stop losses for one scalp. It is not that we do not make money. It is possible that someone has captured only 120 points out of total 150 points and has covered the previous three-four stop losses in one go. So the issue is not what is right and what is wrong. You have to understand what my psychology is suited to. If you think I like scalping and I can do this much risk management, then you should do it. If you think we talked about this last time, if you need a mathematical statement that the market remains sideways on most days and does not go above 1 point every day, so if the market moves within 1 point, I can make money on that day. What kind of strategy is that? We are going to discuss that strategy. So see here, there are some trades going on here. I will open these trades. Many of these trades are zero and zero. It means that the trades are cut. Like now this is a trade. This trade is cut at a loss of 1600. This is a trade which is cut at a profit of 1 lakh. This is cut at a profit of 67000. This is cut at a profit of 23000. So in this way, there are many trades going on here. If I put net at this point, here you can see we have bought positions. These are our hedges for a period and this is our net position which we have sold. So now you can see on the call side. On the put side, you can see the positions. So if you add 3600 and 2700 to this, how much will it be? This is 6300. Okay, this is 6300 quantity call side short. This is 6300 quantity put side short. So we have shorted it. This is the PNL running right now and whatever profit and loss we have booked before this has already been booked. This is our overall PNL for today. So what is happening and how much can we earn here? So first of all, I will do the analysis and show what is going on. Okay, what is happening in this trade? Okay, so we will click here. So now we will see on the strategy builder what we are doing right now and how much money we can earn. So now it is seen here that if the market closes at 51400 and our trade which is running right now, then we can earn ₹ 1 lakh here. Okay, on expiry, when is the expiry today, so if you see here, there is ₹ 1 lakh to earn here. Okay, to earn, you can still earn ₹ 10 lakh, but you can have a loss because you have a range.