&

Presents

Session 09: Option Volatility Strategies for Retail Traders

28 th August 2021, Saturday, 8pm ~ 10pm

Mr. Santosh Pasi
Pasi Technologies (Founder) and SonicAlpha (Co -Founder)
 Presents

Option Volatility Strategies for Retail Traders

Mr. Santosh Pasi
Option Trader and Trainer
Pasi Technologies (Founder)
SonicAlpha (Co-Founder)
 Event Sponsor - upstox
Our Broker Partner

Upstox: one of India’s fastest-growing trading platforms trusted by 40 lakh+ customers.

• Upstox has a powerful mobile app and desktop platform which can help traders to trade in Equities, F&O, commodities and currencies at minimal brokerage charges
from anywhere, at any time and also diversify and invest in Mutual Funds, IPOs, and NFOs at ZERO commissions.

• Features:
• Trader tools basket:
100+ charts with 250+ indicators: To analyze Equity trades
• TradingView and ChartsIQ: To analyze F&O trades
• Option chain with strategy mode: To build your own options strategy
• Option greeks: To measure the risk of an options
• Fist in-industry chart-sharing: To set-up, save and share your charting analysis with others on your social media
• Cover Orders - CO: To place an order using margins and protect yourself from downside risks

• Transparent and trader-friendly charges:

• FREE & Digital account opening
• Up to ₹20 brokerage per order on Equity Intraday, F&O, Commodity and Currency
• ₹0 brokerage on Equity Delivery, Mutual Funds, IPOs, and NFOs.

• Content curated just for you

• Beginner, intermediate and advanced level videos on investing and trading.
• Detailed blogs on IPOs, NFOs, Top Gainers and Top Losers of the day and the week

• Customer support
• Updated help center along with how to videos
• WhatsApp bot, Email support and customer helpline
Stay Tuned – Special Announcement about Upstox at the end of the Webinar
 Speaker Introduction
Know your mentor

 Mr. Santosh Pasi is an option trader and trainer.

 He is founder of Pasi Technologies (www.pasitechnologies.com)
 He is co-founder of SonicAlpha (www.sonicalpha.com)

 He has been a trader in the Indian stock markets with an overall

experience of 15 years, specializing in Options Trading while focusing on
volatility.
 He is a non-directional option strategy trader, considering volatility as an
edge using both system (algo trading) and discretionary.
 He manages the tool OptionsOracle, an options strategy analysis tool,
widely used by most options traders in India.
 He has been conducting Option Trading workshops all pan India.
Mr. Santosh Pasi  He has been conducting Live Trading Sessions on various platforms.
 He has also trained over 1000+ participants across India and other parts
of the world.
 He has worked in India, UK, and the USA.
Disclosure and Disclaimer
Let’s follow rules and safeguards …
 Agenda for today
We will try our best to cover below, provided volatility remains very high or high

 Understanding volatility
 Historical volatility
 Implied volatility
 INDIAVIX
 Ways to measure volatility
 Strategies for different volatility levels
 Happy to answer your queries
 Volatility
Let’s understand sentiment …

 Volatility is a statistical measure of the dispersion of returns for a given

security or market index. Volatility can either be measured by using the
standard deviation or variance between returns from that same security or
market index. Commonly, the higher the volatility, the riskier the security.

 Volatility refers to the amount of uncertainty or risk related to the size

of changes in a security's value. A higher volatility means that a
security's value can potentially be spread out over a larger range of
values. This means that the price of the security can change dramatically
over a short time period in either direction. A lower volatility means that a
security's value does not fluctuate dramatically, and tends to be more
steady.
 Why Volatility?
Once again Greek, but its different!!!

Θ
 Process
Ah, so volatility is driving factor …
 Historical Volatility
What had happened earlier …

A measure of the price fluctuation of an asset averaged out over a period of time.
Historical volatility is the measure of a stock’s price movement based on historical
prices.

It measures how active a stock price typically is over a certain period of time.

Historical volatility is measured by taking the daily (close-to-close) percentage price

changes in a stock and calculating the average over a given time period.
 Implied Volatility
What’s situation now ...

 Implied volatility is the current volatility of a stock, as estimated by its

option price.
 An option’s value consists of several components:
• The current stock price
• The implied volatility of the stock
• Expiration date
• The strike price
• Interest rates
• Dividends paid by the stock (if any)
 INDIAVIX
Ah!!! This shows volatility for NIFTY50 …

https://www1.nseindia.com/live_market/dynaContent/live_watch/vix_home_page.htm
 INDIAVIX
That’s just last year’s high and low

 52 w High : 29.64 (~30)

 52 w Low : 9.98 (~10)

https://www1.nseindia.com/live_market/dynaContent/live_watch/vix_home_page.htm
 INDIAVIX
It’s hot or cold, nothing in between!!!
 INDIAVIX
Why did you added in between now? So that you can stay calm for sometime …
 INDIAVIX
You are making it to complex now, will next slide shows 7 zones or 9 zones or more?
 INDIAVIX
This is much easier to understand 

www.sonicalpha.com
www.pasitechnologies.
com

10 to 14 14 to 18 18 to 22 22 to 26 26 to 30
 INDIAVIX
This tool makes it much simpler…

9 to 12 12 to 15 15 to 18 18 to 21 21 to 24
Different ways to measure Volatility
Yes, I have heard this terminologies, how do I make use of it?
Different ways to measure Volatility
Now I understood secret formulas behind the scene
 Basic Option Positions
Back to basics …

Option Premium Strategy Bull Outlook Bear Outlook

Short PUT
Short CALL
Expensive Credit (Sideways to Bullish
(Sideways to Bearish view)
view)

Cheap Debit Long CALL Long PUT

 Option Chain overview
This one page contains too much information to digest…

Deep ITM, Avoid Deep OTM

ITM, Long OTM, Short

ATM, you can go either Long or Short

OTM, Short ITM, Long

Deep ITM,
Deep OTM
Avoid
Let’s plan for strategies
Time for notepad and pen …
 Strategies for zones: 2
This is too simple …

Option Premium Debit/Credit Non-Directional Strategies

Short Strangle
Short Straddle
Expensive Credit
Iron Condor
Iron Butterfly

Calendar Spread
Cheap Debit
Double Calendar Spread
 Strategies for zones: 3
Its your old habit, to make it complex

Option Premium Debit/Credit Non-Directional Strategies

Short Strangle
Expensive Credit Short Straddle
Iron Condor

Credit (Non-Directional)
Neutral Short Iron Butterfly
Debit (Directional)

Calendar Spread
Cheap Debit
Double Calendar Spread
 Strategies for zones: 5
Ah, I was correct, you made it complex now and confused too, Is it 5 or 4?

Option Premium Debit/Credit Non-Directional Strategies

Short Strangle
Very Expensive Credit
Short Straddle

Expensive Credit Iron Condor

Neutral Credit Short Iron Butterfly

Cheap
Calendar Spread
Debit
Double Calendar Spread
Very Cheap
 Using HV-IV
Once again, this tool has made things much simpler…
 Let’s conclude
Loving it, but gonna ask you many questions …

 Follow one system for measuring volatility (Recommended HV/IV or IVP).

 Preferably go for defined risk strategies, unless you are aware of risk.

 Position size should be based on risk appetite.

 Have plans ready for worst case scenarios (Black Swan events).
 Money Control Option Omega Telegram Bot
Dedicated Channel Access for Option Omega
MCOPTIONOMEGA
1. Access the link https://t.me/MCOPTIONOMEGA_bot or Search the following Bot name in Telegram:
MCOPTIONOMEGA
2. Click on Start
3. You will receive the following message: Please click the "Validate" button to validate your mobile
number for Money control Channel
4. Click on Validate
5. You will receive a pop-up to "Share your phone number?"
6. Click on Share Contact
7. You will receive the following message: Please click the "Join" button to join the channel
8. Click on Join
9. You will receive a Pop-up with dedicated private channel name Money control - Option Omega 2.0
10.Click on Join Channel
11.If you have any trouble joining Telegram channel, select the " Delete chat " option in
MCOPTIONOMEGA and follow above steps again.
 5000/- FREE Special Course Coupon Code
Grab it soon ! OOMEGA2021
FREE

ICHIMOKU KINKO HYO & PRICE ACTION TRADING

Intelligent Combo of Ichimoku Cloud & Price action for a reasonable edge in your trading
(7 sessions of intensive learning absolutely FREE)

www.tradersgurukul.com
www.i3t3.in
 3
IT3-PRO MEGA WEBINAR
INDIA’S MOST COMPREHENSIVE & 100% MONEY BACK GUARANTEE
MENTORSHIP PROGRAM FOR STOCK MARKET INVESTING & TRADING

STARTS
PRECISION PRICE ACTION TRADING THE OPTIONS STRATEGIES

20th November 2021 (80 Days to go)

WD GANN TECHNIQUES
VOLUME PROFILE
(50 hours of Learning)
(100 weeks Support)
TECHNO FUNDAMENTAL INVESTING

www.i3t3.in ALGO TRADING

 STRATAZON – The Amazon of Strategies
www.Stratazon.in

Who are we?

Passionate traders & techies building amazing algo strategies for retail
traders
Upcoming Mega Conferences
Always

India’s Largest Intraday Traders Conference

India’s First Bank Nifty Traders Conference

India’s largest online retail stock traders conference

India’s Largest Option Traders Conference

Questions & Answers
Lets clear your confusions?
Credits for the success of Option
Many hidden heroes

Omega
Did u love the conference? Give a
Help us to deliver bigger better and powerful sessions in future

review!
 5000/- Reward for your Review
Grab it soon !
FREE Coupon Code
Collect from Chat support
www.tradersgurukul.com
after google review

TECHNO FUNDAMENTAL INVESTING MODULE

Learn the best in breed Fundamentals & Sharp technicals to find best growth stocks
(6 sessions of intensive learning absolutely FREE)
www.tradersgurukul.com
 Santosh Pai
Founder, Pasi Technologies
Co-Founder, SonicAlpha
www.pasitechnologies.com, www.sonicalpha.com
Mobile: +91.98202.00550
Email: santoshpasi@yahoo.com
Twitter: @santoshpasi