ADJUSTMENT Secrets for GAP UP (INFY)

This session explains how we can handle gap up and adjust ITM CE. Example taken is INFY
1) INFY Covered Call
Holding INFY Shares in Cash Market
Sold 900 CE in Aug on July 14th 2020
Big gap up above 930 on July 15th 2020
Did not want to give INFY shares as delivery
Will explain how I managed this trade till now
2) Trades Done
Tradebook for NSE-FO from 2020-07-15 to 2020-08-17

Trade Date Symbol Trade Type Qty Price Order ID Time INFY Rate Profit Cumlative Profit Reason
2020-07-15 INFY20AUG900CE sell 1200 12 1300000002396812 2020-07-15T10:08:46 820 0 0 Covered Call
2020-07-16 INFY20AUG900PE sell 1200 39 1300000004358706 2020-07-16T09:34:45 930 0 0 To defend 900 CE
2020-07-16 INFY20AUG850PE sell 1200 22.1 1300000004709249 2020-07-16T09:35:35 930 0 0 Additional PE
2020-07-17 INFY20AUG850PE buy 1200 21.75 1300000006971002 2020-07-17T09:52:23 896 0.35 0.35 Market reversed
7/20/2020 INFY20AUG800PE sell 1200 7.95 1300000007879620 2020-07-20T09:57:19 915 0 0.35 Additional PE
2020-07-21 INFY20AUGFUT buy 1200 950.15 1300000000167665 2020-07-21T09:15:30 950 0 0.35 Future Long at BE
2020-07-21 INFY20AUG800PE buy 1200 5.95 1300000000336093 2020-07-21T09:16:20 940 2 2.35 Exited PE
2020-07-21 INFY20AUG1000CE sell 1200 21.05 1300000000775507 2020-07-21T09:19:38 940 0 2.35 Hedge to Future
7/27/2020 INFY20AUG1000CE sell 1200 18 1300000044454481 2020-07-27T13:18:30 935 0 2.35 Covered Call
12.5 14.85
Total Profit 14.85 1200 17820
Break-even case1 case2 case3 case4
950 972 958 1020
900
850 850 850 860
3) Benefits of covered call
Rental income
Wealth from investment
By Shorting Future - Exit your position in FNO for short term
Psychology to hold your investment
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[@CapitalZone]

DESCRIPTION Mr. Jegathesan Durairaj (itjegan) is a professional Option trader, strategist, Expiry trader, Trainer, and Investor. He is a mathematician by qualification, an Ex-software professional, and now a full-time Risk Defined Option Writer. With his Open Book Strategies, he is the most known identity on Twitter as IT Jegan, with huge followers. He has won 12 times on the Zerodha platform. He founded his own firm CapitalZone in the year 2018. For Live Trades & Market, analysis Join my Telegram channel for Free Search ITJegan in the Telegram app & follow @ITJegan on Twitter t.me/itjegan --------------------------------------------------------------------------------------- Discount Offer for Sensibull & tradetron Subscription, click here. Tradetron subscription link: www.tradetron.tech/?ref=capitalzoney Sensibull Subscription link: pages.razorpay.com/itjegan --------------------------------------------------------------------------------------- To Open a Trading and Demat Account, you can use the below link, ZebueTrade: zebuetrade.com/itjegan/ Zerodha: zerodha.com/open-account?c=ZM... Motilal Oswal: www.motilaloswal.com/open-dem... Alice Blue: abopening.online/CAPITALZONE/ ---------------------------------------------------------------------------------------- Subscribe to CapitalZone : kzbin.info Subscribe to our தமிழ் Channel CapitalZone: kzbin.info/door/ke6ygIkcouKm7R3nLSyalA ---------------------------------------------------------------------------------------- WORKSHOP DETAILS: Conducting workshops in all Metro Cities (Delhi, Mumbai, Bangalore, Hyderabad, Chennai, Kerala, and Coimbatore) is often based on queries from Traders. 👉Topics: capitalzone.in/topics/ 👉Enroll Here: rzp.io/l/G1rrn8POy 👉Schedules: capitalzone.in/schedules/ ---------------------------------------------------------------------------------------- For Trading Account Opening and Other financial services, can reach us at: Phone\Whatsapp\Telegram: [phone] Free Telegram Channel: t.me/itjegan Twitter: twitter.com/itjegan/ Facebook:facebook.com/capitalzoneitjegan LinkedIn:www.linkedin.com/company/capi... Instagram: instagram.com/capitalzone_itjegan/ Website: www.capitalzone.in/

[@prasadpatil5029]

Missing this genuine man from many days here🔥

[@aeyvasanth]

Wonderful to see this type of person in the world.. Always shares core knowledge to others free of cost. Thanks THALA!!!

[@ronitdeep]

I am doing only covered call. Your adjustments in INFY looks more logical and I learned a lot.

[@hocuspocus32]

Awesome mind set and determination to make sure the trade is adjusted in whichever way the market goes . Great Jegan!

[@monunagar4474]

The best video I have ever seen on you tube or on any social media. Thanks a lot jegan bhai

[@anand3681]

You're really one of a character sir your speed and command over knowledge is just awesome. Keep continuing these kind of strategy videos.

[@22Kumaresh]

Thanks for the video. I was searching adjustment trades for covered call and after long time now only got the result.👍👍

[@MrSudeepantony]

Dear Jegan, I just watched this video now. Simply superb. Your psychology in doing these adjustments needs a Hats off. Great.....

[@prakashpk877]

Mindblowing strategy on adjustments. Your guru's video on INFY and RELIANCE is confusing.. You provided a clear cut video.. Thank you sir.

[@ringingthebells307]

Jagan, u r one of the best teachers on youtube along with the trader

[@mukulteotia]

back with a bang . extremely appreciated full of knowledge video thnx sir

[@premakumarkootagal773]

Sir, Invaluable information. Mostly shared by many youtubers for a cost. Kneeling down I would like to thank you for your generosity and humbleness. Kindly keep sharing the knowledge. Many retailers would be benefited. I will watch this video for atleast 10 times sir. Regards.

[@EaswarRaj]

When i attended ur sensibull Webinar, did not understand much abt ur open Infy positions, while u opened ur account for showing Nifty position, I took a screenshot and tried to figure it out and was not able to findout the actual adjustment made. Cant even imagine how much others would have charged to teach these adjustment, and here u are giving it for free. I can feel you as person went from Zero to Hero, and trying ur level best to educate retail trader to become a profession. Plz dont pause these work.

[@karthickkumar9758]

Thanks Jegan . This is wonderful piece of information and its very kind of you to let us know. Loads of love for your genunity and being a great human. .thanks again

[@rijojose360]

Really glad to see you back.... Wonderful and informative video

[@asirwath]

Welcome back! It is mind blowing explanation! Couldn’t understand any thing!

[@optionhedger4843]

Wow...No one can explain like you sir...Hats off to you...Upload more adjustments videos we are eagerly waiting for that. Thanks a lot...

[@vivekk8157]

Jegan, thanks very much for this post. With your kind of portfolio, if you were in panic, consider what will happen to others with a small portfolio. Surely small portfolio holders need to develop a lot of patience, knowledge in options and courage before entering such trades.

[@kamleshbavrva2968]

Superb Sir....I will not miss your any video

[@prakashradhakrishnan4842]

Thanks Jagan for this video. To do videos like this you must have big heart. I kindly request you to do more videos like this for small retail people like me learn from it and educate ourselves. At least do 1 video like this MoM.

[@NeerajGupta-tq6od]

Excellent stuff Jegan and very well explained. Everything was explained slowly and clearly.

[@sudheerkumargoli2440]

Finally good required information and power of adjustmentments

[@pbose698]

WOW MR JAGAN you are VERY GOOD AT EXPLAINING complex subjects VERY SIMPLY. YOU MUST have your own COMMUNITY.

[@IndianBouyz]

Sir your knowledge is like diamond . And you are pure gold ... God bless you sir ...Thanks

[@PraveenKumar-dl3tu]

Thank u so much Jegan for sharing ur experiences … my biggest understandings of options r from u. My best wishes for ur continued success!

[@willnaz1]

Very nice narrative. Thank you, it will give us training and confidence.

[@rohitghatage3584]

Excellent video jegan sir.. it will be in my library for future..

[@narinderkumar8597]

Thanks for explaining the concept of Adjustment in such a simple way. Nice mind opening video sir

[@prasadg1939]

11:32 This happens to me almost every time. I feel, it's me only. Now I know many have this experience. :D You are a fighter bro. Wish you all the best.

[@naushadcs25]

Much needed learning lesson I was looking for, that too from Jagan Sir..thank you sir...

[@jsriharikumar4139]

Excellent way of explaining the things.

[@eshKTv]

Wonderfull genuine person in market

[@rohitbajaj4940]

This knowledge is priceless ❤️👍🙏

[@ansm20786]

"I don't mix my covered calls with investment at all. I don't give delivery at all." THEN why you call it covered call at all. It effectively becomes a naked call sold.

[@utubemanan]

sirji .. he is not naked as he don't have to buy shares to give delivery, in which he losses intrinsic value.he is trying his best to protect investment , so that to give only 10% tax as LTCG.

[@KT-rx5nk]

Abhinandan is correct. You cannot call this a covered call. It's a naked put to start with. It has no semblance of a covered call because the idea of a covered call is to give delivery if the price moves above your sold call. Anything else, whatever may be the reason, cannot be termed as a covered call in any circumstance. Being a teacher he cannot make such basic mistakes. This is elementary.

[@vijayjan8608]

@@KT-rx5nk I see your point, but it is still a form of a psychological covered call. When you hold the underlying stock, you get to lean on the upside in case things go very wrong.

[@MdAsif-ti5bo]

@@vijayjan8608 yaaa... Psychology play a big role in the market

[@awadheshsingh1724]

@@KT-rx5nk agree

[@mallikarjunyadav621]

wonderful explanation sir thanks for shareing ur valuable knowledje

[@SanjayJain-me5fn]

Dear Jagan Nice to see you on youtube after long time.

[@ranjancom2000]

Sir this is best video i every seen on adjustment

[@eshKTv]

What a explanation.... superb

[@manojkumardasari2740]

Really feel good to watch ur strategy, tq for sharing sirrr

[@awadheshsingh1724]

u being experienced did it effortlessly but not everyone's cup of tea. however learning was wortrhwhile. thanks

[@mohanarunshankar1874]

SIR, SUPERB EXPLANATION. FEARFUL WORDS LIKE SCARED, AFRAID ARE NOT FROM YOUR STATURE AS YOU CAN HANDLE ANY RISKY SITUATION. THANK U VERY MUCH SIR.THE DAYS SEEM TO BE NOT 14 & 15 JULY, IT WAS 15 & 16 JULY (AS GAP UP WAS ON 16 JULY(OFCOURSE STRATEGIES AND ADJUSTMENTS ARE IMPORTANT- NOT DATES.

[@RameshP-ds4xt]

Thank You So much for the Info and Wisdom. Great !!!

[@kanniyappanasokan9214]

great explanation, thank you for the knowledge.

[@dipanjan2k]

Great video @CapitalZone Jegan ! Thanks.....Could you please do a series on Index trades and some interesting adjustments

[@tarak806]

Thanks sir, welcome back 🙏

[@vinodg3561]

Fabulous & Fantastic Sir 👌

[@vishnusekhar7]

Really good work you done.

[@venkateswararaodevisetti8684]

King is back

[@amnsbharath]

Our boss is back 🔙

[@parmeshwar5]

nicely explained sir hats off to you thanks for sharing your knowledge with us

[@Ravikumar-wm1zw]

excellent sir simply super explanation is marvellous

[@Prakash-jb8ev]

excellent explanation sir!!!!

[@laxsri]

Wonderful approach

[@lalitachaudhari7273]

Thanks sir Iwe miss ur video Happy to see u

[@sanganibr]

wow, what an explanation dear......

[@rushikeshk25]

Really great video sir

[@vmmmuthukrishnan]

Welcome back sir.

[@shivamrajgrihar]

Superb and big fan of u

[@silambarasanmohan4749]

Jegan - very nice explanation. Looking for more video.. Still I was waiting for how much margin need on this whole adjustment.. suggestion- it will be good to explain with opstra definedge site for more clarity..

[@Shivaa_s]

Super strategy Sir.

[@statusmart1934]

I was waiting for your videos sir

[@ronitdeep]

Jegan eagerly expecting a covered call and adjustments video from you.

[@saravanajun4]

Well explained Jegan !

[@SUPERHAKE369]

very helpful, thanks!!

[@shilpapatil8705]

Very nicely explained sir.

[@ravikumar55555]

Great of you to explain the strategy.. How much should we have capital to manage these adjustments?

[@avishekroy9182]

Awesome Sir.. 👌👌

[@vikasbhagasra2257]

Impressed..👍👍👍

[@harshitbadoni2023]

So honest and genuine

[@jiteshmohanty269]

excellent teaching

[@thirupathisalveru5411]

mindblowing sir

[@VijayKumar-qp5sj]

Excellent 👌👍 Sir

[@Bolshevikrussia]

For Selling Put, did you need to Put down collateral for the stock? Since you already had tied the stock by Selling 900 call?

[@jatinmalik9370]

Big respect for u 🙏

[@softashutube]

great job

[@nk-in4oe]

Sir, huge difference between new and old option chain data..new option chain data data doesn't match at all..have you noticed or am i incorrect ?

[@StraddleRaja]

Great video brother. Such a wonderful learning. That too absolutely of no cost. Thank you so much

[@CapitalZone]

DESCRIPTION Mr. Jegathesan Durairaj (itjegan) is a professional Option trader, strategist, Expiry trader, Trainer, and Investor. He is a mathematician by qualification, an Ex-software professional, and now a full-time Risk Defined Option Writer. With his Open Book Strategies, he is the most known identity on twitter as IT Jegan, with huge followers. He has won 12 times on the Zerodha platform. He founded his own firm CapitalZone at the year of 2018. For Live Trades & Market, analysis Join my Telegram channel for Free Search ITJegan in the Telegram app & follow @ITJegan on Twitter t.me/itjegan Discount Offer for Sensibull Subscription, click here. Link: pages.razorpay.com/itjegan To Open a Trading and Demat Account, click the below link, ZebueTrade:zebuetrade.com/itjegan/ Zerodha: zerodha.com/open-account?c=ZMPSLL Motilal E-KYC Acct Opening Link : mosl.co/AkSo6eS2b2 Alice Blue Acct Opening Link : aliceblueindia.in/Capital_Zone Subscribe to our Channel CapitalZone: kzbin.info WORKSHOP DETAILS: Conducting workshops in all Metro Cities (Delhi, Mumbai, Pune, Bangalore, Hyderabad, Chennai, Kolkata, and Coimbatore) often based on queries from Traders. Schedules: www.capitalzone.in/schedules/ Enrollment: www.capitalzone.in/how-to-enroll/ Topics: www.capitalzone.in/topics/#.XEWDxVwzaM8 For Trading Account Opening and Other financial services, can reach us at: Phone\Whatsapp\Telegram: [phone] Free Telegram Channel: t.me/itjegan E-Mail: [e-mail] Website: www.capitalzone.in/ Twitter: twitter.com/itjegan/ Facebook:facebook.com/pages/category/Financial-Service/CapitalZone-105618477801678/ LinkedIn:www.linkedin.com/company/capitalzone-in/ Instagram: instagram.com/capitalzone.in

[@Z-SERIES365]

Sir, 1. You have not mentioned how much you spent for these Transaction for getting this 18k profit. 2. You can do this Strategy because you have crores of Rupee in your pockets. How can the people who watch the people can do????

[@sunnyabdi8729]

Loved it thanks a lot

[@gunalansanthi7080]

since you have infy in cash you sold naked call and put options without protection am I right sir?

[@indirakumarz]

மிக்க நன்றி நண்பரே..

[@zak4u836]

welcome back

[@ron2fnady623]

Jagan u great bro...

[@sumanchakraborty8685]

Wlcm back after a long time

[@ravibhushan17]

Sir, Excellent explanation, but at last you must tell about margin required for such firefighting adjustments.

[@alokshaktisharma461]

Sir your call option in ITM then what happen to delivery. I'm not able to understand. Can you clearify it

[@BandiShreyas]

Why buy the future to protect straddle, you can unwind the call which will achieve the same result, will reduce youe margin needed and give charges will also be less. Buying future with an ITM call sold is basically shutting off all upside risk and all downside profit, which is same as unwinding the call

[@manojmishra9377]

He was in loss in the call option, that's why he is doing these adjustments. So he can't unwind the position at loss

[@BandiShreyas]

@@manojmishra9377 buying a future does the same thing mate, assuming you buy infy future at 960 when your call is in loss of 60rs, you will always have loss of 60rs because profit made in future will always be equal to additional loss in call or loss made in future and also the other way around. Want to understand if there is any reason to buy future and increase margin needed + incur additional charges over unwinding the call

[@manojmishra9377]

@@BandiShreyas my understanding is basically his profitable range was 850-950 and his upper breakeven was challenged with infy at 951, hence he wanted to neutralize the upside risk, until he is sure that the upside is safe. This gave him time to think about upside challenge and maybe gain more premium in coming days by selling more calls. I usually do a ratio debit spread on the challenged side too, but of course because i don't have unlimited capital :)

[@rudys3649]

Maybe to keep the time value in sold option

[@BandiShreyas]

@@rudys3649 the future will also be at a premium, if not then selling an ITM call and buying a future at spot price will be an arbitrage opportunity

[@AbhishekSharma-zl7kr]

Amazing

[@venkatdasam4442]

Super explanation,

[@sp-ye7ht]

Awesome.. in how many days after Entry the trade was closed..

[@karthikeyanram9265]

What is the total amount pumped in for this trade along with adjustment

[@ksivvel]

Is it possible to hedge the covered call by buying a call

[@mgeorgemall506]

Nicely explained

[@Nandha.R]

Hello Jegan sir, i found this video very useful. Could you please tell us what is the minimum capital required to attend your class? If there any requirement like that.

[@investingpearl6440]

After a long time sir

[@ansm20786]

Do you realize that after adjustments on 21st till 27, your downside breakeven was around 888 (not below 850 as you said)? Check out your PL diagrams after each adjustment. It was god's grace, infy stayed above 900 in this week, and you got to make this video.

[@SanjayPrasad-el2vw]

Yeh Banda retail traders ko nanga karwayega aise adjustment karwake.

[@vishwajeetkundu864]

can you explain how you got breakeven 888, i think it is 850

[@raghavendrakumar8077]

Thanks for sharing your trading idea. But, please let me know if you really made profits as your brokerage+taxes for selling so many call & put options and buying in future also should have costed you more.

[@mayankadhaduk051]

Very informative video. Sir I have one doubt. Why didn't you did martingale if INFY triple in first week ? You would have sold double quantity in upper side. Please guide.

[@StocksIndia]

What a adjustments sir.. most of us square off their positions

[@cakaranarora9685]

How to do adjustment when Stock comes in f&o ban.