DD New

Basics of Stock Market for beginners
Mr. Ganesan Dharanidharan

Research Analyst & Branch Manager,
Alice Blue Financial Services,
Pondicherry.
Market Players
• Initiative Buyer (Banks, Insurance Companies, Mutual Funds, hedge funds, etc.)
• Initiative Seller (Banks, Insurance Companies, Mutual Funds, hedge funds, etc.)
• Responsive Buyer (Retailer - We)
• Responsive Seller (Retailer - We)

Market Players
Initiative Buyer buy @_____ price

Initiative Seller sell @_____ price
Responsive Buyer buy @_____ price

Responsive Seller sell @_____ price
Market Players
Initiative Buyer buy @cheap price

Initiative Seller sell @expensive price
Responsive Buyer buy @expensive price

Responsive Seller sell @cheap price
Initiative Buyer or Seller
• They buy or sell in a price range (say 100 to 102), not at a price
point(100) hence their orders are in huge quantity.
• For re-entry they will wait (Time period) until the price come back
to the same price range where they entered earlier.

Price Range
Price Action Trading
One Strategy
Any Exchange – Any Time Frame
Intraday – Swing – Investing
Stock – Commodity – Forex – Future & Options
---Supply and Demand---

Types of Candle
High High
Close
Close
50% 50%
Open
Low Low Open
Equilibrium Candle Im-Balance Candle

(E-Candle) (IB-Candle)
Terminology
High
Close
Difference between Difference between
Open to Close High to Low
Open
Low
Body Range Candle Range
Equilibrium Candle (E-Candle)
They imply that transactions are happening in a range thus Buyer

and Seller are in balance
E-Candle => Body Range <= 50% of Candle Range
High
Close
50%
Open
Low
Im-Balance Candle (IB-Candle)
They imply imbalance between Buyer and Seller thus price starts
moving either up or down
IB Candle => Body Range > 50% of Candle Range
High
Close
50%
Low Open
Candle Identification
High 120
100 Close Candle Range

Body Range
95 Open
90
Low
Body Range: Open – Close Candle Range: High – Low
95-100 120-90 = 30 points
5 points 50% of Candle Range
30*(50/100)
15 Points
High 120
115 Close
Body Range Candle Range

95 Open
90
Low
Body Range: Open – Close Candle Range: High – Low
95-115 120-90 = 30 points
20 points 50% of Candle Range
30*(50/100)
15 Points
High High High Close

Close
Close
50% 50% 50%
Open
Open Open
Low Low Low

High Close High High
Close
50% 50% 50% Close
Open
Low Open Low Low Open

High High High

Open Open
50% 50% Open 50%

Close
Close Close
Low Low Low

High High High Open

Open
Open
50% 50% 50%
Close Close
Close
Low Low Low

Zone Formation Components
Condition 1:
IB Candle -> E Candle -> IB Candle

Condition 1:
IB Candle -> 2 E Candle -> IB Candle

Condition 1:
IB Candle -> 3 E Candle -> IB Candle

Reversal Buy Zone Formation
1 E Candle 2 E Candle 3 E Candle

Continuation Buy Zone Formation

Reversal Sell Zone Formation

Continuation Sell Zone Formation

Condition 2:
Buy Zone :
The two candles immediately following the IB Candle must each
make a new High. They do not have to make a Higher close, just Higher
high. It can be an E Candle or IB Candle 2nd High
1st High
Condition 2:
Sell Zone :
make a new Low. They do not have to make a lower close, just lower lows.
It can be an E Candle or IB Candle.
E Candle Sell zone
IB Candle
1st Low
2nd Low
Buy Zone Formation
3 3
2
2
1
1 IB Candle
E Candle
IB Candle IB Candle Buy zone
IB Candle
Buy zone
E Candle
Reversal Continuation
Sell Zone Formation
E Candle Sell zone

IB Candle
IB Candle
Sell zone
E Candle
1 IB Candle
2 IB Candle
3 1
2
3
Reversal Buy Zone Action
Buy Zone
Continuation Buy Zone Action
IB Candle
Buy zone E- Candle

Reversal Sell Zone Action
E- Candle
Sell Zone
IB Candle
Continuation Sell Zone Action
Sell E- Candle
IB Candle
Zone Components
Entry Line – Closest line to the Current Market Price
Stop-loss Line – Farthest line from the Current Market Price
Stop-loss Line
Sell Zone
Entry Line
Entry Line
Buy Zone
Stop-loss Line
Line Placement – Method 1
Target Line
Entry Line
E- Candle
Stop-loss Line
Method 1 - Body To Wick

Line Placement – Method 2
Target Line
Entry Line
E- Candle
Stop-loss Line
Method 2 - Wick To Wick
Power Zone Formation
2
IB Candle Sell Zone
1
1
Buy Zone
IB Candle 2
Reversal Buy Power Zone Reversal Sell Power Zone

Reversal Buy Power Zone
Condition 1:
2
IB Candle - > IB Candle
1
Condition 2:
Buy Zone :
The two candles immediately
following the IB Candle must each make
Buy Zone
IB Candle
a new High. They do not have to make a
Higher close, just Higher high. It can be
an E Candle or IB Candle
Reversal Sell Power Zone
Condition 1:
IB Candle Sell Zone
Condition 2:
Sell Zone :
1
2 a new Low. They do not have to make a
lower close, just lower lows. It can be an
E Candle or IB Candle.
Time Frame
Purpose Time Frame
Investment (Monthly & Yearly Income Trade) Monthly, Weekly, Daily
Swing Trading (Weekly Income Trade) 15 M & 60M
Intraday Trading (Daily Income Trade) 5M or 15M
Scalping (Hourly Income Trade) 1M or 3M or 5M
4 types of Reversal Zones
2
1 E Candle Sell zone
IB Candle
IB Candle
IB Candle IB Candle
1
Buy zone
2
E Candle
2
IB Candle Sell Zone
1
1
Buy Zone
IB Candle 2
2 types of Continuation Zones
2
1
IB Candle
IB Candle
Sell zone
E Candle
E Candle
Buy zone
IB Candle
IB Candle
1
2
Reversal Buy Zone
2
Condition 1:
1
IB Candle - > E Candle - >IB Candle
Condition 2:
IB Candle
Buy Zone :
IB Candle
following the IB Candle must each make a new
High. They do not have to make a Higher Buy zone
close, just Higher high. It can be an E Candle

E Candle
or IB Candle
Zone Marking – Reversal Buy Zone
Zone Marking – Reversal Buy Zone
Method 1
Zone Marking - Reversal Buy Zone
Method 2
Reversal Sell Zone
Condition 1:
E Candle Sell zone
Condition 2: IB Candle
Sell Zone :
The two candles immediately following the IB IB Candle
Candle must each make a new Low. They do not have
1
to make a lower close, just lower lows. It can be an E
2
Candle or IB Candle.
Zone Marking – Reversal Sell Zone
Zone Marking – Reversal Sell Zone
Method 1
Zone Marking - Reversal Sell Zone
Method 2
Continuation Buy Zone
2
Condition 1:
1
IB Candle
Condition 2:
Buy Zone :
The two candles immediately E Candle
Buy zone
following the IB Candle must each make a new
IB Candle
High. They do not have to make a Higher
close, just Higher high. It can be an E Candle
or IB Candle
Zone Marking – Continuation Buy Zone
Zone Marking – Continuation Buy Zone
Method 1
Zone Marking - Continuation Buy Zone
Method 2
Continuation Sell Zone
Condition 1:
IB Candle
Condition 2: Sell zone

E Candle
Sell Zone :
following the IB Candle must each make a new IB Candle
Low. They do not have to make a lower close,
just lower lows. It can be an E Candle or IB 1
2
Candle.
Zone Marking – Continuation Sell Zone
Zone Marking – Continuation Sell Zone
Method 1
Zone Marking - Continuation Sell Zone
Method 2
Condition 1:
2
1
Condition 2:
Buy Zone :
Buy Zone
IB Candle
Zone Marking – Reversal Buy Power Zone
Zone Marking – Reversal Buy Power Zone
Condition 1:
IB Candle Sell Zone
Condition 2:
Sell Zone :
1
Zone Marking – Reversal Sell Power Zone
Zone Marking – Reversal Sell Power Zone
Stock Screener – UP TREND
Stock selection parameters – UP TREND:
 FNO Stocks
 15M Close >= 15M 12EMA
15M 12EMA > 15M 26EMA
 1H Close >= 1H 12EMA
1H 12EMA > 1H 26EMA
 2H Close >= 2H 12EMA
2H 12EMA > 2H 26EMA
 1D Close >= 1D 12EMA
1D 12EMA > 1D 26EMA
 Daily Volume > 1000000
 Daily Close > 100
Stock Screener – DOWN TREND
Stock selection parameters – Down Trend:
 FNO Stocks
 15M Close <= 15M 12EMA
15M 12EMA < 15M 26EMA
 1H Close <= 1H 12EMA
1H 12EMA < 1H 26EMA
 2H Close <= 2H 12EMA
2H 12EMA < 2H 26EMA
 1D Close <= 1D 12EMA
1D 12EMA < 1D 26EMA
 Daily Volume > 1000000
 Daily Close > 100
Refining Time Frame
The zone plotted dose not support R:R. Then we can check for zone in
Lower Time frame.
Eg: Zone plotted in 5 Min candle can be refined by 1 or 3 Min

Zone plotted in 3 Min candle can be refined by 1Min
5 Min Zone 3 Min Zone 1 Min Zone

(12 Tick) (8 Tick) (5 Tick)
Refining Time Frame
5 Min Zone
Refining Time Frame
3 Min Zone
Refining Time Frame
1 Min Zone
Pivot Confluence
MA Confluence
HTF Zone Confluence
HTF Zone Confluence
Types of Gaps
 Inside Gap (Reacts at Close)
 Outside Gap (Reacts at High or Low)
 Initiative Gap (Reversal Pattern)
 Responsive Gap (Continuous Pattern)

Inside Gap
Outside Gap
Initiative Gap
Responsive Gap
CPR Indicator
TC = (Pivot –BC) + Pivot

Pivot = (High + Low + Close)/3
BC = (High + Low)/2
Note :
• CPR indicator is an analysis tool and not designed for Trade entries.
• Kindly use it for odd enhancement.
What is a
Standard Floor Pivot ?
Standard Floor Pivots
R3 = R1+ (High – Low)
R2 = Pivot + (High – Low)
R1 = 2*Pivot - Low
S1 = 2*Pivot – High
S2 = Pivot - (High – Low)
S3 = S1 - (High - Low)
VS
Expanded Floor Pivots

+
R4 = R3+ (R2 – R1)
BC = (High + Low)/2
S4 = S3 - (S1 – S2)
R4 = R3+ (R2 – R1)
R3 = R1+ (High – Low)
R2 = Pivot + (High – Low)
R1 = 2*Pivot - Low
BC = (High + Low)/2
S1 = 2*Pivot – High
S2 = Pivot - (High – Low)
S3 = S1 - (High - Low)
S4 = S3 - (S1 – S2)
Central Pivot Range (CPR)

BC = (High + Low)/2
Secret characteristics of CPR:

 Trend Analysis
 CPR Width Forecasting
 Two days pivot range relationships
Trend Analysis
Trend Analysis
Higher Value Bullish (Up Trend)
Lower Value Bearish (Down Trend)

UP Trend Analysis
Step Up Ascending Pivot

Higher Value
Up Trend Analysis
Down Trend Analysis
Step Down Descending Pivot

Lower Value
Down Trend Analysis
CPR Width Forecasting
CPR Width Forecasting
Narrow CPR Breakout

Wide CPR Sideways
Narrow CPR
APOLLOTYRE – Narrow CPR
HDFCBANK– Narrow CPR
Wide CPR
Amarajabat – Wide CPR
Maruti – Wide CPR
What if “U” know this before
HINDALCO- Breakouts
NAUKRI- Breakouts
INFY– Breakouts
Just 1 click to scan the script using
Chart ink
Two-day Pivot Range Relationship
Two-Day Pivot Relationships

Unchanged Value Sideways
Inside Value Breakout
Outside Value Sideways
Overlapping Higher Value Moderately Bullish
Overlapping Lower Value Moderately Bearish
Unchanged Value
Unchanged Value (Sideways)
Yesterday’s CPR Today’s CPR

Unchanged Value (Sideways)

Inside Value
Inside Value (Trending or Breakout)


Outside Value
Outside Value (Sideways)


Overlapping Higher Value
Today’s CPR
Yesterday’s CPR

Overlapping Lower Value
Yesterday’s CPR
Today’s CPR
Yesterday’s CPR
Today’s CPR
CPR Indicator Scanner
Narrow CPR
Narrow Range CPR
TC
Difference between TC to BC < 0.1 of previous Close
BC
Yesterday’s CPR
H4 Breakout Trade Setup
H5 – Target
Reward
H4 – Buy Entry
Risk
H3 – Stop Loss
Risk Reward Ratio - 1 : 1.66

L4 Breakout Trade Setup
L3 – Stop Loss
Risk
L4 – Sell Entry
Reward
L5 – Target

Wide CPR
Maruti – Wide CPR
Wide Range CPR
TC
Difference between TC to BC > 1% of previous Close
BC
Yesterday’s CPR
H3 Reversal Trade Setup
H4 – Stop Loss
Risk
H3 – Sell Entry
Reward
L3 – Target
Risk Reward Ratio - 1 : 2

L3 Reversal Trade Setup
H3 – Target
Reward
L3 – Buy Entry
Risk
L4 – Stop Loss

Inside Value


Inside Value CPR
TC
TC
BC
BC
Inside Value CPR
TC
BC
TC
BC
Inside Value CPR
BC
TC
BC
TC
Inside Value CPR
BC
BC
TC
TC
Inside Value CPR
Y TC > Y BC
Y TC > T TC
Y TC > T BC
Y BC < T TC
Y BC < T BC
H5 – Target
Reward
H4 – Buy Entry
Risk
H3 – Stop Loss

L3 – Stop Loss
Risk
L4 – Sell Entry
Reward
L5 – Target

Outside Value


TC
TC
BC BC
BC
TC
BC TC
TC
BC
TC BC
BC
BC
TC TC
H4 – Stop Loss
Risk
H3 – Sell Entry
Reward
L3 – Target

H3 – Target
Reward
L3 – Buy Entry
Risk
L4 – Stop Loss

Camarilla Levels
Camarilla Strategy
* Defined Entry
* Defined Stop Loss
* Defined Target
* Beginners only.
Standard Camarilla Levels
H4 =Close + Range*1.1/2
L1 =Close - Range*1.1/12
Expanded Camarilla Levels
H5 = Close * (High/Low)
L5 = Close – (H5 – Close)
H5 = Close * (High/Low)
L5 = Close – (H5 – Close)
H5 – Breakout Target
H4 – Bullish Breakout
H3 - Reversal
L3 – Reversal
L4 – Bearish Breakout
L5 – Breakout Target
H4 – Stop Loss
Risk
H3 – Sell Entry
Reward
L3 – Target

H3 – Target
Reward
L3 – Buy Entry
Risk
L4 – Stop Loss

H5 – Target
Reward
H4 – Buy Entry
Risk
H3 – Stop Loss

L3 – Stop Loss
Risk
L4 – Sell Entry
Reward
L5 – Target

Narrow CPR
Wide CPR
Maruti – Wide CPR
CPR + Camarilla Trade Setup
CPR/CAMARILLA H4 Breakout L4 Breakout H3 Reversal L3 Reversal

Inside value CPR High POP High POP Low POP Low POP
Outside value CPR Low POP Low POP High POP High POP
CPR/CAMARILLA H4 Breakout L4 Breakout H3 Reversal L3 Reversal

Narrow CPR High POP High POP Low POP Low POP
Wide CPR Low POP Low POP High POP High POP
H4 Breakout + Narrow CPR – High POP

L3 Breakout + Narrow CPR – High POP

H3 Reversal + Wide CPR – High POP

L3 Reversal + Wide CPR – High POP

OPTIONS BASICS
BANK NIFTY Chart
CMP @
33905
CALL Options
Right to buy 25 shares of Bank Nifty at agreed Premium and agreed Strike
Price
CMP 33905 34500 CE

259.75
Stocks vs. CALL Options
• Stocks – Unlimited Profitability + Unlimited Time
• Call Options – Unlimited Profitability + Limited Time (Expiry Date)

CALL Options Premium Reaction
Stock Price Movement CALL Options Price Movement

CALL Options Premium Reaction
Stock Price Movement CALL Options Price Movement

Profitability
CALL Options
BUY SELL
Up Trend Profit Loss
Sideways Loss Profit
Down Trend Loss Profit
Put Options
Right to Sell 25 shares of Bank Nifty at agreed Premium and agreed Strike
Price
33500 PE CMP 33905

254
Stocks vs. PUT Options
• Stock – Unlimited Profitability + Unlimited Time
• Put Option – Unlimited Profitability + Limited Time (Expiry Date)

PUT Options Premium Reaction
Stock Price Movement PUT Options Price Movement

PUT Options Premium Reaction
Stock Price Movement PUT Options Price Movement

Strike Price
CMP 33905
33600 33700 33800 33900 34000 34100 34200
Key words:
• Contract (CE & PE)
• Strike difference
• Different expiry (Weekly & Monthly)
Strike Price - Contract
CMP 33905
33600 CE 33700 CE 33800 CE 33900 CE 34000 CE 34100 CE 34200 CE
33600 PE 33700 PE 33800 PE 33900 PE 34000 PE 34100 PE 34200 PE

Strike Price – Strike Difference
CMP 33905 100 Points 100 Points 100 Points
33600 CE 33700 CE 33800 CE 33900 CE 34000 CE 34100 CE 34200 CE
33600 PE 33700 PE 33800 PE 33900 PE 34000 PE 34100 PE 34200 PE
100 Points 100 Points 100 Points
* Bank Nifty – 100 Points * Nifty – 50 Points

Strike Price - Expiry
CMP 33905
33600 CE 33700 CE 33800 CE 33900 CE 34000 CE 34100 CE 34200 CE
33600 PE 33700 PE 33800 PE 33900 PE 34000 PE 34100 PE 34200 PE
• Weekly Expiry – Every week Thursday
• Monthly Expiry – Every Month Last Thursday

ATM – At The Money
• The strike price which are at or very near the CMP
• CMP = 33905
33600 CE 33700 CE 33800 CE 33900 CE 34000 CE 34100 CE 34200 CE
33600 PE 33700 PE 33800 PE 33900 PE 34000 PE 34100 PE 34200 PE

OTM – Out of The Money
• The strike price which are yet to be attained
• CMP = 33905
33600 CE 33700 CE 33800 CE 33900 CE 34000 CE 34100 CE 34200 CE
33600 PE 33700 PE 33800 PE 33900 PE 34000 PE 34100 PE 34200 PE

ITM – In The Money
• The strike price which are attained
• CMP = 33905
33600 CE 33700 CE 33800 CE 33900 CE 34000 CE 34100 CE 34200 CE
33600 PE 33700 PE 33800 PE 33900 PE 34000 PE 34100 PE 34200 PE

Options Chain
Options Premium
Premium – Intrinsic Value + Extrinsic Value (Time Value + IV)
• ATM – At The Money
• OTM – Out of The Money
• ITM – In The Money
Call Option:
Intrinsic Value – ITM Strike Price + Stock Price
Extrinsic Value – Time + IV - Premium – Intrinsic Value
Options Premium
Last Close - CMP - 33905
• ATM – 33900 CE
• ITM – 33800 CE
• ITM – 33700 CE
• ITM – 33600 CE
• ITM – 33500 CE
Options Premium
Next Thursday Close - CMP - 33900
• ATM – 33900 CE -0
• ITM – 33800 CE - 100
• ITM – 33700 CE - 200
• ITM – 33600 CE - 300
• ITM – 33500 CE - 400

Options Premium
Call Options:
Intrinsic Value : CMP - ITM Strike Price
Extrinsic Value : Premium – Intrinsic Value
CMP : 33905
Strike Price : 33700 CE
Premium : 655
Intrinsic Value : CMP - ITM Strike Price
33905 -33700
205
655 – 205 = 450
Options Premium
Put Options:
Intrinsic Value : ITM Strike Price - CMP
CMP : 33905
Strike Price : 34300 PE
Premium : 595
Intrinsic Value : ITM Strike Price - CMP
34300 -33905
395
595 – 395 = 200
Breakeven Calculation
Buy Call Options
Right to buy 25 shares of Bank Nifty at agreed Premium and agreed Strike
Price
CMP 33905 34500 CE 08 April 2021

260 Points
Breakeven – Strike Price + Premium Paid – 34500+260 = 34760

Buy Call Options
Call Options – Payoff Chart
Note:
Dotted blue lines indicate t+0.
Solid lines indicate the P&L at expiry.
T+0.. value at Breakeven
Day P&L
T+0 Friday 6400
T+1 Monday 6300
T+2 Tuesday 6300
T+3 Wednesday 6500
T+4 (Expiry day) Thusday 0
Put Options
Right to Sell 25 shares of Bank Nifty at agreed Premium and agreed Strike
Price
33500 PE 08 April 2021 CMP 33905

255
Breakeven – Strike Price - Premium Paid – 33500-255 = 33245

Buy Put Options
Put Options – Payoff Charts
Note:
Dotted blue lines indicate t+0.
Solid lines indicate the P&L at expiry.
T+0 value at Entry
Day P&L
T+0 Friday 410
T+1 Monday 340
T+2 Tuesday 310
T+3 Wednesday 400
T+4 (Expiry day) Thusday -6375
*Note : 11.03.2021 is a trading Holiday on account of Mahashivratri

Bank Nifty Chart
Bank Nifty Chart
Bank Nifty Chart
Bank Nifty Chart
Options Greeks
Options Greeks - Delta
Rate of Change of Option Premium based on 1 point move in the stock or Index
Delta ranges from (-1 to +1)
PUT Option (-1 to 0) CALL Option (0 to +1)
-1 0 +1
Call Options - Delta
Rate of Change of CALL Option Premium based on 1 point move in the
stock or Index
CALL Options Delta ranges from (0 to +1)
CALL Option (0 to +1)
+1 + 0.85 + 0.65 + 0.5 + 0.45 + 0.25 0
ITM ATM OTM

Call Options - Delta
+1 + 0.85 + 0.65 + 0.5 + 0.45 + 0.25 0
ITM ATM OTM
33000 CE 33800 CE 33800 CE 33900 CE 34000 CE 34100 CE 35000 CE
1.0…………0.7 0.6 0.5 0.4 0.3 0.2…

Put Options - Delta
Rate of Change of PUT Option Premium based on 1 point move in the
stock or Index
Put Options Delta ranges from (-1 to 0)
Put Option (-1 to 0)
0 - 0.15 -0.25 -0.5 -0.4 -0.75 -1
OTM ATM ITM

Put Options - Delta
0 - 0.15 -0.25 -0.5 -0.60 -0.75 -1
OTM ATM ITM

33000 PE 33800 PE 33800 PE 33900 PE 34000 PE 34100 PE 35000 PE
-0.1…… -0.3 -0.4 -0.5 -0.6 -0.7 -1

Options Greeks – Delta
Rate of Change of Option Premium based on 1 point move in the stock or future
50 points increase in Bank Nifty 50 points decrease in Bank Nifty
Call Option Put Option
0.5 = 0.5 * 50 points - 0.25 = -0.25 * -50 points

= 25 increase in option premium = 12.5 increase in option premium
Options Greeks – Delta
Rate of Change of Option Premium based on 1 point move in the stock or future
50 points decrease in Bank Nifty 50 points increase in Bank Nifty
Call Option Put Option
1 = 1 * -50 points - 0.25 = -0.25 * +50 points

= -50 in option premium = -12.5 in option premium
Bank Nifty Chart
Bank Nifty Chart
Time OHLC Value

10:05 High 35830
10.45 Low 35090
13.50 Low 35090
14.25 High 35540
35000 PE – 10th March (Weekly)
35000 PE – 10th March (Weekly)
Time OHLC Value

10:05 Low 177.65
10.45 High 434
13.50 High 419
14.25 Low 215.15
35000 PE – March (Monthly)
35000 PE – March (Monthly)
Time OHLC Value

10:05 Low 651.60
10.45 High 965
13.50 High 976.45
14.25 Low 752.90
35100 CE – 10th March (Weekly)
35100 CE – 10th March (Weekly)
Time OHLC Value

13.50 Low 459.1
14.25 High 705
Premium Movement
Let we find the increase in premium of 35100 CE 10th March between 10.45 to 13.50
Bank Nifty – 450 Points gain
Time OHLC Value
13.50 Low 35090
14.25 High 35540
Bank Nifty 35100 CE 10th March (Weekly Expiry)
Time OHLC Value
13.50 Low 459.1
14.25 High 705
Difference in Premium 245.9
Premium Movement
Let we find the increase in premium of 34000 CE 10th March between 13.50 to 14.25
Bank Nifty – 450 Points gain
Time OHLC Value
13.50 Low 35090
14.25 High 35540
Bank Nifty 34000 CE 10th March (Weekly Expiry)
Time OHLC Value
13.50 Low 1210
14.25 High 1595
Difference in Premium 385
Option Greeks – Theta
Daily decay of Option Premium
Time Decay – Theta
Let we find the theta decay from 10.45 to 13.50 on 35000 PE 10th March
Bank Nifty
Time OHLC Value
10.45 Low 35090
13.50 Low 35090
Bank Nifty 35000 PE 10th March (Weekly Expiry)
Time OHLC Value
10.45 High 434
13.50 High 419
Difference in Premium (-) 15 Points
Option Greeks – Gamma
The Rate of Change of Delta
Gamma Impact
Let we find the theta decay from 10.45 AM to 13.50 PM on 35000 PE 10th March
Bank Nifty
Time OHLC Value
10:05 High 35830
10.45 Low 35090
Down Move of 840 Points
Bank Nifty 35000 PE 10th March (Weekly Expiry)
Time OHLC Value
10:05 Low 177.65
10.45 High 434
Difference in Premium 256.35 Points (149 %)
Gamma Impact
Let we find the theta decay from 10.45 AM to 13.50 PM on 35000 PE March
Bank Nifty
Time OHLC Value
10:05 High 35830
10.45 Low 35090
Down Move of 840 Points
Bank Nifty 35000 PE March (Monthly Expiry)
Time OHLC Value
10:05 Low 651.60
10.45 High 965
Difference in Premium 313.4 Points (48%)
Implied Volatility – IV
Let we understand how the premium increases in with respect to increase in IV.
Bank Nifty
Time OHLC Value
10.45 Low 35090
13.50 Low 35090
Bank Nifty 35000 PE March (Monthly Expiry)
Time OHLC Value
10.45 High 965
13.50 High 976.45
Difference in Premium (+) 11.45 Points
Option Strategies
Naked Options Strategies
CALL PUT
Bullish Bearish
BUY
Bearish Bullish
SELL
NIFTY Chart
NIFTY Chart
Long Call Option Strategy
(Intraday)
Trade Plan
At 13.35 there was a

demand zone formation
in NIFTY.
Zone range was 15

Points in Spot (15*75 =
1225)
Plan to go long on Call

options.
S.E.T
Strike Selection based on RR
SL Points Loss Delta Strike Price

Case 1 19 Points 1425 1 (Deep ITM) Futures
Case 2 10 Points 750 0.52 (ATM) 14950 CE
Case 3 5 Points 375 0.26 (OTM) 15150 CE
Delta = SL / Zone Range

Call Options Delta Value
+1 + 0.85 + 0.65 + 0.5 + 0.45 + 0.25 0
ITM ATM OTM

Factors to be considered
• Time Decay : Negative
• IV Increases – Good , Decreases – Bad

Price
IV Increase Increases
IV Decrease Reduces
Long Put Option Strategy
(Intraday)
Trade Plan

Supply zone formation
in NIFTY.
Zone range was 27.95

Points in Spot (27.95*75
= 2096.25)
Plan to go Long on Put

options.
S.E.T

Case 1 27.95 Points 2096.25 -1 (Deep ITM) Future
Case 2 20 Points 1500 -0.71 (ITM) 15250
Case 3 5 Points 375 -0.17 (OTM) 14800

Put Options Delta Value
0 - 0.15 -0.25 -0.5 -0.4 -0.75 -1
OTM ATM ITM

• Time Decay : Negative
• IV Increases – Good , Decreases – Bad

Price
IV Decrease Reduces
Short Put Option Strategy
(Intraday)
Trade Plan

demand zone formation
in NIFTY.
Zone range was 15

Points in Spot (15*75 =
1225)
Plan to go short on Put

options.
S.E.T

Case 1 19 Points 1425 -1
Case 2 10 Points 750 -0.52 (ATM) 15200
Case 3 5 Points 375 -0.26 (OTM)

Put Options Delta Value
0 - 0.15 -0.25 -0.5 -0.4 -0.75 -1
OTM ATM ITM
Note:
Selling options : -(-0.5) => +0.5
• Time Decay : Positive
• IV Increases – Bad , Decreases – Good

Price
IV Decrease Reduces
Short Call Option Strategy
(Intraday)
Trade Plan

Supply zone formation
in NIFTY.
Zone range was 27.95

Points in Spot (27.95*75
= 2096.25)
Plan to go Short on Call

options.
S.E.T

Case 1 25 Points 2096.25 +0.89
Case 2 20 Points 1500 +0.71
Case 3 5 Points 500 +0.25

Call Options Delta Value
+1 + 0.85 + 0.65 + 0.5 + 0.45 + 0.25 0
ITM ATM OTM
Note:
Selling options : -(+0.5) => -0.5
• Time Decay : Positive
• IV Increases – Bad , Decreases – Good

Price
IV Decrease Reduces
Ratio Spread
(Positional)
Ratio Spread
There are four type of Ratio Spreads:
1. Debit Call Ratio Spread
2. Credit Call Ratio Spread
3. Debit Put Ratio Spread
4. Credit Put Ratio Spread

Debit Call Ratio Spread
1
3
4
Spread
Types of Spread:
1. Vertical Spread (Ratio Spread)
2. Horizontal Spread (Calendar Spread)

Vertical Spread
It involves with the options of same Expiry
Expiry Options Strike Options Expiry

18MAR21 CE 15150 PE 18MAR21
18MAR21 CE 15100 PE 18MAR21
18MAR21 CE 15050 PE 18MAR21
18MAR21 CE 15000 PE 18MAR21
18MAR21 CE 14950 PE 18MAR21
18MAR21 CE 14900 PE 18MAR21
18MAR21 CE 14850 PE 18MAR21
18MAR21 CE 14800 PE 18MAR21
Horizontal Spread
It involves with the options of different Expiry

18MAR21 CE 15150 PE 18MAR21
18MAR21 CE 15100 PE 18MAR21
18MAR21 CE 15050 PE 18MAR21
18MAR21 CE 15000 PE 18MAR21
MAR21 CE 15150 PE MAR21
Ratio Spread
Expiry Options Strike Options Expiry • Ratio Spread involves with
18MAR21 CE 15150 PE 18MAR21 Vertical Spread (It deals with
18MAR21 CE 15100 PE 18MAR21 options of same expiry).
18MAR21 CE 15050 PE 18MAR21 • Deals with either Call(CE)
18MAR21 CE 15000 PE 18MAR21 or Put(PE) options.
18MAR21 CE 14950 PE 18MAR21 • Buy 1 strike price & Sell 1
18MAR21 CE 14900 PE 18MAR21
strike price.
18MAR21 CE 14850 PE 18MAR21
18MAR21 CE 14800 PE 18MAR21
Call (CE) Ratio Spread
18MAR21 CE 15050 PE 18MAR21 • Deals with only Call(CE)
18MAR21 CE 15000 PE 18MAR21 options.
18MAR21 CE 14950 PE 18MAR21 • Buy 1 Call Option & Sell 1
18MAR21 CE 14900 PE 18MAR21
Call Option.
18MAR21 CE 14850 PE 18MAR21
18MAR21 CE 14800 PE 18MAR21
Put (PE) Ratio Spread
18MAR21 CE 15050 PE 18MAR21 • Deals with only Put(PE)
18MAR21 CE 15000 PE 18MAR21 options.
18MAR21 CE 14950 PE 18MAR21 • Buy 1 Put Option & Sell 1
18MAR21 CE 14900 PE 18MAR21
Put Option.
18MAR21 CE 14850 PE 18MAR21
18MAR21 CE 14800 PE 18MAR21
Question
When we buy an option the premium amount will be_______________
a. Credited to our account
b. Debited from our account
When we sell an option the premium amount will be_______________

Answer
When we buy an option the premium amount will be_______________
When we sell an option the premium amount will be_______________

Credit Ratio Spread
18MAR21 145.00 CE 15050 PE 172.50 18MAR21
BUY 18MAR21 171.45 CE 15000 PE 146.00 18MAR21
18MAR21 200.00 CE 14950 PE 125.50 18MAR21
SELL 18MAR21 228.75 CE 14900 PE 107.95 18MAR21
18MAR21 265.00 CE 14850 PE 91.60 18MAR21
• If the sold premium is higher than bought premium then we call it as CREDIT SPREAD
Nifty 15000 CE – BUY -> 171.45

Nifty 14900 CE – SELL -> 228.75
Difference -> (171.45 – 228.75) = (-)57.30 Points (Net Credit received)
Debit Ratio Spread
18MAR21 145.00 CE 15050 PE 172.50 18MAR21
SELL 18MAR21 171.45 CE 15000 PE 146.00 18MAR21
18MAR21 200.00 CE 14950 PE 125.50 18MAR21
BUY 18MAR21 228.75 CE 14900 PE 107.95 18MAR21
18MAR21 265.00 CE 14850 PE 91.60 18MAR21
• If the bought premium is higher than sold premium then we call it as DEBIT SPREAD
Nifty 15000 CE – SELL -> 171.45

Nifty 14900 CE – BUY -> 228.75
Difference -> (228.75 – 171.45) = (+)57.30 Points (Net Debit)
Ratio Spread
There are four type of Ratio Spreads:
1. Debit Call Ratio Spread
2. Credit Call Ratio Spread
3. Debit Put Ratio Spread
4. Credit Put Ratio Spread

Profit Buy 1 High Premium Call
PnL and Sell 1 Low Premium Call
Loss Risk : Limited
Bullish Trade Plan
Reward : Limited
Expiry Options Strike
18MAR21 145.00 CE 15050 Nifty 15000 CE – SELL -> 171.45
SELL 18MAR21 171.45 CE 15000 Nifty 14900 CE – BUY -> 228.75
18MAR21 200.00 CE 14950 Difference -> (228.75 – 171.45)

= (+)57.30 Points (Net Debit)
BUY 18MAR21 228.75 CE 14900
18MAR21 265.00 CE 14850
Credit Call Ratio Spread
Profit Sell 1 High Premium Call
PnL and Buy 1 Low Premium Call
Loss Risk : Limited
Bearish Trade Plan Reward : Limited
18MAR21 145.00 CE 15050 Nifty 15000 CE – BUY -> 171.45
BUY 18MAR21 171.45 CE 15000 Nifty 14900 CE – SELL -> 228.75
18MAR21 200.00 CE 14950 Difference -> (-228.75 + 171.45)

= (-)57.30 Points (Net Credit)
SELL 18MAR21 228.75 CE 14900
18MAR21 265.00 CE 14850
Debit Put Ratio Spread
Profit Buy 1 High Premium Put
PnL and Sell 1 Low Premium Put
Loss Risk : Limited
Strike Options Expiry
15050 PE 172.50 18MAR21 Nifty 15000 PE – BUY -> 146.00
15000 PE 146.00 18MAR21 BUY Nifty 14900 PE – SELL -> 107.95
14950 PE 125.50 18MAR21 Difference -> (146.00-107.95)

14900 PE 107.95 18MAR21 SELL
14850 PE 91.60 18MAR21
Credit Put Ratio Spread
Profit Sell 1 High Premium Put
PnL and Buy 1 Low Premium Put
Loss Risk : Limited
Bullish Trade Plan
Reward : Limited
15050 PE 172.50 18MAR21 Nifty 15000 PE – SELL -> 146.00
15000 PE 146.00 18MAR21 SELL Nifty 14900 PE – BUY -> 107.95
14950 PE 125.50 18MAR21 Difference -> (-146.00 + 107.95)

14900 PE 107.95 18MAR21 BUY
14850 PE 91.60 18MAR21
NIFTY Chart
NIFTY Chart
NIFTY Chart
NIFTY Chart
Bullish Trade Setup
Profit
PnL
Loss
Payoff Chart
Debit Call Ratio Spread Credit Put Ratio Spread
Buy 1 High Premium Call Sell 1 High Premium Put

and Sell 1 Low Premium Call and Buy 1 Low Premium Put
Risk : Limited Risk : Limited
Reward : Limited Reward : Limited
Loss Risk : Limited
Bullish Trade Plan
Reward : Limited
18MAR21 145.00 CE 15050 Nifty 15000 CE – SELL -> 171.45
SELL 18MAR21 171.45 CE 15000 Nifty 14900 CE – BUY -> 228.75
18MAR21 200.00 CE 14950 Difference -> (228.75 – 171.45)

BUY 18MAR21 228.75 CE 14900
18MAR21 265.00 CE 14850
Leg Concept

18MAR21 145.00 CE 15050
Short Leg SELL 18MAR21 171.45 CE 15000
18MAR21 200.00 CE 14950
Long Leg BUY 18MAR21 228.75 CE 14900
18MAR21 265.00 CE 14850
Strike Price Selection
Moneyness Trade Setup

OTM (Theta Negative) Swing and Positional
ATM (Theta Negative) Expiry Special
ITM (Theta Positive) All
Options Premium
• ATM – At The Money
• OTM – Out of The Money
• ITM – In The Money
Call Option:
Intrinsic Value – ITM Strike Price + Stock Price
Extrinsic Value – Time + IV - Premium – Intrinsic Value
Options Premium
Last Friday Close - CMP - 15023
• ATM – 15000 CE
• ITM – 14950 CE
• ITM – 14900 CE
• ITM – 14850 CE
• ITM – 14800 CE
Options Premium
Next Thursday Close - CMP - 15000
• ATM – 15000 CE
• ITM – 14950 CE
• ITM – 14900 CE
• ITM – 14850 CE
• ITM – 14800 CE
OTM - Debit Call Ratio Spread
OTM - Debit Call Ratio Spread
OTM – Payoff Chart
OTM – Greeks
OTM – Payoff Calculations
Buy Leg – 15100 CE – 121.80 Premium
Sell Leg – 15200 CE – 81.90 Premium
(A) Difference between the legs -> 15200-15100 -> 100 Points (7500 Rs)
(B) Difference between the Premium -> 121.80-81.90 -> 39.9 Points (2992.5 Rs)
Max Loss – (B) - 39.9 Points (2992.5 Rs)
Max Profit – (A) – (B) -> 100-39.9 -> 60.1 Points (4507.5 Rs)
Risk : Reward -> 2992.5 : 4507.5 -> 1:1.51

Sell Strike Adjustments
Case 1 : Gap between the Buy and Sell Leg
50 Points
OTM – Greeks
Risk : Reward -> 1481.25 : 2268.75 -> 1:1.53

150 Points
OTM – Greeks
Risk : Reward -> 4076.25 : 7173.75 -> 1:1.76

200 Points
OTM – Greeks
Risk : Reward -> 5133.75 : 9866.25 -> 1:1.92

Debit Call Ratio Spread - Analysis
How payoff chart and our trade setup differ in live market
• Stop Loss
• Target
Debit Call Ratio Spread - Analysis
Strike Price Action POP 9.19 Close 9.21 Close Difference P/L
15100 CE Buy 41.69 99.05 79.30 -19.75 -3.55
15150 CE Sell 80.25 64.05 16.2
15100 CE Buy 39.87 99.05 79.30 -19.75 -6.85
15200 CE Sell 62.7 49.8 12.9
15100 CE Buy 38.52 99.05 79.30 -19.75
15250 CE Sell
15100 CE Buy 37.27 99.05 79.30 -19.75 -11.2
15300 CE Sell 37.2 28.65 8.55
BANK NIFTY Chart
BANK NIFTY Chart
Bullish Trade Setup
Profit
PnL
Loss
Payoff Chart
Debit Call Ratio Spread Credit Put Ratio Spread
Buy 1 High Premium Call Sell 1 High Premium Put

and Sell 1 Low Premium Call and Buy 1 Low Premium Put
Loss Risk : Limited
Bullish Trade Plan
Reward : Limited

14900 PE 107.95 18MAR21 BUY
14850 PE 91.60 18MAR21
Positional Trade Setup
(15 Min Time Frame)
Sell Immediate OTM after the Stop Loss.
Stop Loss – 34559.85
Immediate OTM Put – 34500 PE
Sell Leg – 34500 PE
Buy Leg Selection –> OTM Strike – OTM Premium
-> 34500-202 -> 34298 -> Appx 34300
Buy Leg – 34300 PE

Strike Selection Method
OTM – Greeks
Sell Leg – 34500 PE – 202 Premium
Buy Leg – 34300 PE – 144 Premium
(B) Difference between the Premium -> 202-144 -> 58 Points (1450 Rs)
Max Profit – (B) - 58 Points (1450 Rs)
Max Loss – (A) – (B) -> 200-58 -> 142 Points (3550 Rs)
Risk : Reward -> 1450 : 3550 -> 1:0.41

Credit Put Ratio Spread - Analysis
Strike Price Action POP 9.15 Low 13.50 Low Difference P/L
34500 PE Sell @ SL 284.55 235.15 +49.40 -9.7
34300 PE Buy 217.35 158.25 -59.10
34500 PE Sell @today’s 284.55 105.70 +178.85 +31.2
34300 PE Buy high 217.35 69.70 -147.65
34500 PE Sell @today’s 284.55 451.55 -167.00 -47.35
34300 PE Buy low 217.35 337.00 +119.65
Buy Strike Adjustments
300 Points (Grater than the sell leg premium)
Buy Strike Adjustments
400 Points (Grater than the sell leg premium)
Expiry day Trade Setup
(3 Min Time Frame)
Trade only after 2.30 PM
Sell Immediate OTM or ATM near the zone.
Stop Loss – 14886
Immediate ATM Put – 14900 PE
Buy Leg Selection –> Next OTM Strike
-> 14850 PE

NIFTY Chart
NIFTY Chart
Bearish Trade Setup
Profit
PnL
Loss
Payoff Chart
Debit Put Ratio Spread Credit Call Ratio Spread
Buy 1 High Premium Put Sell 1 High Premium Call
and Sell 1 Low Premium Put and Buy 1 Low Premium Call
Loss Risk : Limited
15050 PE 172.50 18MAR21 Nifty 15000 PE – BUY -> 146.00
15000 PE 146.00 18MAR21 BUY Nifty 14900 PE – SELL -> 107.95
14950 PE 125.50 18MAR21 Difference -> (146.00-107.95)

14900 PE 107.95 18MAR21 SELL
14850 PE 91.60 18MAR21
NIFTY Chart
Debit Put Ratio Spread – Strike Selection
Buy the OTM which is above the Target Line (14745.55).
Sell Immediate OTM to the Buy Leg.

Payoff Chart
Greeks
Payoff Calculations
Buy Leg – 14750 PE – 31.75 Premium
Sell Leg – 14700 PE – 23.45 Premium
Risk : Reward -> 622.5 : 3127.5 -> 1 : 5.03

Loss Risk : Limited

SELL 18MAR21 228.75 CE 14900
18MAR21 265.00 CE 14850
NIFTY Chart
Credit Call Ratio Spread – Strike Selection
Sell Immediate OTM or ATM near the zone.
Immediate OTM Call – 14950 CE
Sell Leg – 14950 CE
-> 15000 CE
Buy Leg – 15000 CE

Payoff Chart
Greeks
Payoff Calculations
Max Profit – (B) - 21.75 Points (1631.25 Rs)
Max Loss – (A) – (B) -> 50-21.75 -> 38.25 Points (2118.75 Rs)
Risk : Reward -> 1631.25 : 2118.75 -> 1:0.77

NIFTY Chart
NIFTY Chart
Sideways Trade Setup
Sell Zone
Buy Zone
Profit
Buy Zone Sell Zone
PnL
Loss
Payoff Chart
To be profitable in sideways
We need to use credit spread
Loss Risk : Limited

SELL 18MAR21 228.75 CE 14900
18MAR21 265.00 CE 14850
NIFTY Chart
Loss Risk : Limited
Bullish Trade Plan
Reward : Limited

14900 PE 107.95 18MAR21 BUY
14850 PE 91.60 18MAR21
NIFTY Chart
NIFTY Chart
Sell Immediate OTM in or near the zone.
OTM Call in the zone – 14850 CE
Sell Leg – 14950 CE
-> 14900 CE
Buy Leg – 14900 CE

NIFTY Chart
NIFTY Chart
Credit Put Ratio Spread – Strike Selection
Sell Immediate OTM in or near the zone.
OTM Call in the zone – 14250 PE
-> 14200 PE

Credit Put Ratio Spread – Strike Selection
Iron Condor
+
+
=
Iron Condor
Iron Condor Payoff
Profit
PnL
Loss
Credit Put Ratio Spread Credit Call Ratio Spread
Profit
Buy Zone Sell Zone
PnL
Loss
Payoff Chart
Iron Condor
Inverted Iron Condor
+
+
=
Inverted Iron Condor Payoff
Profit
PnL
Loss
Debit Call Ratio Spread Debit Put Ratio Spread
Profit
Buy Zone Sell Zone
PnL
Loss
Payoff Chart
Most Common
Non Directional Trading strategy
Non Directional Trading Strategy
• Straddle Options Trading Strategy
• Long Straddle
• Short Straddle
• Strangle Options Trading Strategy
• Long Strangle
• Short Strangle
Long Straddle Options Trading Strategy
Profit Buy ATM Call

and Buy ATM Put
Risk : Limited
PnL Reward : Unlimited
Loss
Condition : Inside Value CPR
Strike Options Expiry (Trending Day)
14750 CE 130.90 MAR21 BUY Nifty 14750 CE – BUY -> 130.90
14750 PE 124.25 MAR21 BUY Nifty 14750 PE – BUY -> 124.25
Net Debit = 255.15 Points
Inside Value


Strike Price Action 9.15 Open 15.30 Difference P/L

Close
14750 CE Buy 155 131.2 -23.80 -50.85
14750 PE Buy 151.3 124.25 -27.05 (3813 Rs)
Short Straddle Options Trading Strategy
Profit Sell ATM Call

PnL And Sell ATM Put
Risk : Unlimited
Reward : Limited
Loss
Condition : Outside Value CPR
Strike Options Expiry (Sideways Day)

14750 CE 130.90 MAR21 SELL Nifty 14750 CE – SELL -> 130.90
14750 PE 124.25 MAR21 SELL Nifty 14750 PE – SELL -> 124.25
Net Credit = 255.15 Points
Outside Value


Nifty Chart
Outside Value CPR

Close
14750 CE Sell 155 131.2 +23.80 +50.85
14750 PE Sell 151.3 124.25 +27.05 (3813 Rs)
Long Strangle Options Trading Strategy
Profit Buy OTM Call

and Buy OTM Put
Risk : Limited
PnL Reward : Unlimited
Loss
Condition : Inside Value CPR
Strike Options Expiry (Trending Day)
15000 CE 32.80 MAR21 BUY Nifty 15000 CE – BUY -> 32.80
14500 PE 50.90 MAR21 BUY Nifty 14500 PE – BUY -> 50.90
Net Debit = 83.70 Points
Inside Value



Close
15000 CE Buy 49.70 32.50 -17.20 -47.15
14500 PE Buy 79.95 50.00 -29.95 (3536 Rs)
Short Strangle Options Trading Strategy
Profit Sell OTM Call

PnL And Sell OTM Put
Risk : Unlimited
Reward : Limited
Loss
Condition : Outside Value CPR
Strike Options Expiry (Sideways Day)

15000 CE 32.80 MAR21 SELL Nifty 15000 CE – SELL -> 32.80
14500 PE 50.90 MAR21 SELL Nifty 14500 PE – SELL -> 50.90
Net Credit = 83.70 Points
Outside Value


Nifty Chart
Outside Value CPR

Close
15000 CE Sell 49.70 32.50 17.20 47.15
14500 PE Sell 79.95 50.00 29.95 (3536 Rs)
Graduation
High POP Zone Weightage

Zone marking 20%
Target based on Zone 20%
Stock Zone vs Sectoral index 60%
Zone marking Target based on Zone

• Reversal Buy Zone Formation • Reversal Buy Zone Formation
• Reversal Sell Zone Formation • Reversal Sell Zone Formation
• Continuation Buy Zone Formation • Continuation Buy Zone Formation
• Continuation Sell Zone Formation • Continuation Sell Zone Formation
• Reversal Buy Power Zone • Reversal Buy Power Zone
• Reversal Sell Power Zone • Reversal Sell Power Zone
Stock Zone vs Sectoral index

Reversal Sell Zone Formation

Continuation Sell Zone Formation

Condition 2:
Sell Zone :
make a new Low. They do not have to make a lower close, just lower lows.
It can be an E Candle or IB Candle.
E Candle Sell zone
IB Candle
1st Low
2nd Low
Sell Zone Formation
E Candle Sell zone

IB Candle
IB Candle
Sell zone
E Candle
1 IB Candle
2 IB Candle
3 1
2
3
E- Candle
Sell Zone
IB Candle
Sell E- Candle
IB Candle
Sell Zone Formation
Example
Reversal Buy Zone Formation

Continuation Buy Zone Formation

Condition 2:
Buy Zone :
make a new High. They do not have to make a Higher close, just Higher
high. It can be an E Candle or IB Candle 2nd High
1st High
Power Zone Formation
2
IB Candle Sell Zone
1
1
Buy Zone
IB Candle 2
Reversal Buy Power Zone Reversal Sell Power Zone

Condition 1:
2
1
Condition 2:
Buy Zone :
Buy Zone
IB Candle
Condition 1:
IB Candle Sell Zone
Condition 2:
Sell Zone :
1
NIFTY
Nifty Chart
Nifty Chart
Nifty Chart
Nifty Chart
2
1 E Candle Sell zone
IB Candle
IB Candle
IB Candle IB Candle
1
Buy zone
2
E Candle
2
IB Candle Sell Zone
1
1
Buy Zone
IB Candle 2
2 types of Continuation Zones
2
1
IB Candle
IB Candle
Sell zone
E Candle
E Candle
Buy zone
IB Candle
IB Candle
1
2
When Not to trade Zones
Trailing Stop Loss
Options Mastery
Basic components to build options strategy
Sl. No. Leg Action

1 Long Call Buy Call Option
2 Short Call Sell Call Option
3 Long Put Buy Put Option
4 Short Put Sell Put Option
Sl. No. Strategy Type Direction

1 Directional Strategy Known
2 Non Directional Strategy Un-known
Basic components to build options strategy
Sl. No. Spread Type Net Premium

1 Credit Spread Receive premium as credit
2 Debit Spread Pay premium as debit
Sl. No. Spread Type Expiry

1 Vertical Spread Same expiry legs
2 Horizontal Spread Different expiry legs
Strategy Cheat Sheet
Single Leg Options Strategy
Strategy Long Call Short Call Long Put Short Put
1 Long Call Options Strategy 1
2 Short Call Options Strategy 1
3 Long Put Options Strategy 1
4 Short Put Options Strategy 1
Long Call Options Strategy
Profit
PnL Buy 1 Call Option
Loss
Bullish Trade Plan
Strategy Type Spread Type

Directional Debit
Short Call Options Strategy
Profit
PnL Sell 1 Call Option
Loss
Bearish Trade Plan

Directional Credit
Long Put Options Strategy
Profit
PnL Buy 1 Put Options
Loss
Bearish Trade Plan

Directional Debit
Short Put Options Strategy
Profit
PnL Sell 1 Put Option
Loss
Bullish Trade Plan

Directional Credit
Double Leg Options Strategy
1 Debit Call Ratio Spread Options Strategy 1 1
2 Credit Call Ratio Spread Options Strategy 1 1
3 Debit Put Ratio Spread Options Strategy 1 1
4 Credit Put Ratio Spread Options Strategy 1 1
5 Long Straddle Options Strategy 1 1
6 Short Straddle Options Strategy 1 1
7 Long Strangle Options Strategy 1 1
8 Short Strangle Options Strategy 1 1
Debit Call Ratio Spread Options Strategy

Loss
Bullish Trade Plan

Directional Debit
Credit Call Ratio Spread Options Strategy

Loss
Bearish Trade Plan

Directional Credit
Debit Put Ratio Spread Options Strategy

Loss
Bearish Trade Plan

Directional Debit
Credit Put Ratio Spread Options Strategy

Loss
Bullish Trade Plan

Directional Credit
Profit Buy ATM Call

and Buy ATM Put
PnL
Loss

Non Directional Debit
Profit Sell ATM Call

PnL And Sell ATM Put
Loss

Non Directional Credit
Profit Buy OTM Call

and Buy OTM Put
PnL
Loss

Profit Sell OTM Call

PnL And Sell OTM Put
Loss

Four Leg Options Strategy
1 Iron Condor Options Strategy 1 1 1 1
2 Inverted Iron Condor Options Strategy 1 1 1 1
Iron Condor Options Strategy
Sell 1 High Premium Call

Profit
Buy Zone Sell Zone Buy 1 Low Premium Call
PnL
Sell 1 High Premium Put
Loss Buy 1 Low Premium Put

Inverted Iron Condor Options Strategy
Buy 1 High Premium Call

Profit
Buy Zone Sell Zone Sell 1 Low Premium Call
PnL
Buy 1 High Premium Put
Loss
Sell 1 Low Premium Put

What u explore?
In
Options Mastery
Review the strategy
With different strike price
Pros and Cons of each strategy in
Different market scenario
How to plan your own trade setup
For next trading day
How to build your own custom strategy
Thank You

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Basics of Stock Market for beginners

Mr. Ganesan Dharanidharan

• Responsive Buyer (Retailer - We)

• Responsive Seller (Retailer - We)

Initiative Buyer buy @_____ price

Responsive Buyer buy @_____ price

Initiative Buyer buy @cheap price

Responsive Buyer buy @expensive price

point(100) hence their orders are in huge quantity.

to the same price range where they entered earlier.

Intraday – Swing – Investing

Stock – Commodity – Forex – Future & Options

---Supply and Demand---

Equilibrium Candle Im-Balance Candle

They imply that transactions are happening in a range thus Buyer

E-Candle => Body Range <= 50% of Candle Range

IB Candle => Body Range > 50% of Candle Range

100 Close Candle Range

Body Range Candle Range

High High High Close

E-Candle => Body Range <= 50% of Candle Range

High Close High High

Low Open Low Low Open

E-Candle => Body Range <= 50% of Candle Range

High High High

50% 50% Open 50%

E-Candle => Body Range <= 50% of Candle Range

High High High Open

E-Candle => Body Range <= 50% of Candle Range

IB Candle -> E Candle -> IB Candle

IB Candle -> 2 E Candle -> IB Candle

IB Candle -> 3 E Candle -> IB Candle

1 E Candle 2 E Candle 3 E Candle

1 E Candle 2 E Candle 3 E Candle

1 E Candle 2 E Candle 3 E Candle

1 E Candle 2 E Candle 3 E Candle

E Candle Sell zone

Buy zone E- Candle

Method 1 - Body To Wick

Reversal Buy Power Zone Reversal Sell Power Zone

1 E Candle Sell zone

close, just Higher high. It can be an E Candle

Condition 2: Sell zone

Eg: Zone plotted in 5 Min candle can be refined by 1 or 3 Min

5 Min Zone 3 Min Zone 1 Min Zone

 Inside Gap (Reacts at Close)

 Outside Gap (Reacts at High or Low)

 Initiative Gap (Reversal Pattern)

 Responsive Gap (Continuous Pattern)

TC = (Pivot –BC) + Pivot

R3 = R1+ (High – Low)

R2 = Pivot + (High – Low)

Pivot = (High + Low + Close)/3

S2 = Pivot - (High – Low)

Standard Floor Pivots

TC = (Pivot –BC) + Pivot

TC = (Pivot –BC) + Pivot

Secret characteristics of CPR:

Higher Value Bullish (Up Trend)

Lower Value Bearish (Down Trend)

Step Up Ascending Pivot

Step Down Descending Pivot

CPR Width Forecasting

Narrow CPR Breakout