So in the last video our talk remained a little incomplete because the concept has to be cleared completely. It is taking a lot of time, but let me tell you one thing that if it takes more time, then I told you earlier also that it is okay. Maybe you must have thought that it is available for free, you will watch the video for free and I said that many people tell me that people do not value free things, but you know what I think from inside.
I think if I am training you, then I am taking so much responsibility that maybe you have given me lakhs of rupees. You have not given me any money. I am teaching you for free, but I think if you had given lakhs of rupees, then what value would I give you and secondly your time is more valuable than lakhs of rupees. So if you are giving me your time, then you should get full value of it. This is in my mind. Now what is in your mind, you think that the videos can be long for you. You are thinking that some videos are very long. If the videos are getting long for you then you can listen to them at 1.5x, but when I am recording for you I am not even sitting, I am standing and making the video for you. See if I am making a video for you and it is not getting long for me then it should not be long for you. You should get value. Now in the last video we said that the talk remained incomplete. We will continue the talk from the previous video that we have to use delta and theta in our favor and we have to make as much money as possible. So for this the first thing that comes is your strike selection and now I come to the second thing on strike selection which people talk less about. We talked about some strategies by which you will use delta and theta in your favor.
Will it be fun? Today will be fun, definitely fun. Now we are going to talk about strike selection. What are strikes? You just understood in the last video. One is for us.
It is At the Money, Out of the Money, In the Money. So now if you want to buy, what do you want to buy? I will give you a very simple answer. If you want to buy, you buy the strike in the money. Now what is this? Now I have answered in a very short time, but after this I will tell you the strategy and talk in detail. So come here, let’s come to the laptop. So I will open the option chain for you.
Just look at this. So look at this. If I am saying for example, you see At the Money, it is at 18250. So if you see At the Money at 250, what you will do is just buy one in the money. So if you want to trade on the call side, let’s say 18200, which you see at Rs 151, you buy it. So you will get more profit in it. How will it be more profitable?
You yourself, I will give you such homework on this that you will enjoy. You will sit, you will calculate the money, you will enjoy. It is clear. Now I am telling you that after watching this video you will definitely make money in future. You will enjoy understanding the concept. So I told you to buy only in the money. If you are buying then buy in the money here also. So if you will see at the money then you can buy in the money. So what will happen with this? First of all see the delta. I will come here so that I can show you. So you can see a little difference at 1822. I have opened the option chain on Opster and it is also open on NSE. So you know it gets updated after few minutes. So here the market closed at 270, so close to both 250 and 300, it is close to 270. So you can consider at the money. If we talk about one in the money, here one in the money if you were looking at 250 and the delta was 54 so here you are getting a delta of 60. So you are getting more delta and if you go to In the Money here, then what will happen to you in the one in the money, here also there is a delta of 61, so you are getting a delta of 60 in your favor. You definitely give a little extra money, your LTP is definitely a little more but if the movement comes in your favor then you will also get more money. This is one thing, the simple logic of buying. Now let’s move forward. What are we moving forward? We are moving forward that we have to use theta in our favor. Now let’s understand the concept from here. What is the concept? You have seen the chart. Now we will definitely see the concept. From here the price starts. The price increases you get profit, you bought but what happens after this, the market starts passing time, so what do you see, you have bought, you have bought at this point, although there is a difference of some points, there is a difference of some points, it went up, it went down, it went up, it went down, the market moved, there was a difference of some points, but no money was made. No money was made. Let’s say you entered at 9:30 AM, at 9:30 AM, but now you come to 2:30 PM and see that the market has moved a few points, a few points ahead of where I bought, but still no money made.