Adjustment Secrets For Trending (RELIANCE)

ADJUSTMENT Secrets for GAP UP (INFY)
• ADJUSTMENT Secrets for...
This session explains how we can handle big trending and adjustment of two CEs with future. Example taken is RELIANCE
1) RELIANCE Covered Call
Holding RELIANCE Shares in Cash Market
Sold 1700 & 1800 CE in July on June 12nd 2020
Big gap up above 930 on June 15th 2020
Did not want to give RELIANCE shares as delivery
Will explain how I managed this trade till now
2) Trades Done
Time Symbol Trade Qty Price Order ID RIL Rate Profit Cumulative Profit Reason for this trade or Adjustments
6/12/2020 11:57 RELIANCE20JUL1700CE SELL 505 26 1500000020287406 1523 0 0 Covered Call
6/12/2020 12:30 RELIANCE20JUL1800CE SELL 505 12 1500000020501405 1518 0 0 Covered Call
6/15/2020 9:26 RELIANCE20JUN1500PE SELL 505 16.2 1500000002465710 1600 0 0 To defend 1700 & 1800 CEs
6/16/2020 9:15 RELIANCE20JULFUT BUY 505 1639.45 1500000000152698 1639 0 0 Future long to save 1700 CE
6/16/2020 9:25 RELIANCE20JUN1500PE BUY 505 9.8 1500000002071728 1627 6.4 6.4 Booked Profit = 16.2 - 9.8
6/22/2020 9:24 RELIANCE20JUL1700PE SELL 505 58 1500000001909573 1800 0 6.4 To defend 1700 CE. 1700 SS = 84
6/26/2020 9:38 RELIANCE20JUL1800CE BUY 505 59.2 1500000003377481 1740 -47.2 -40.8 Book Loss in 1800 CE = 59.2-12 = 47.2
6/26/2020 9:42 RELIANCE20JUL2000CE SELL 1010 16 1500000003413790 1740 0 -40.8 Double Volume at 2000
7/10/2020 11:58 RELIANCE20JUL1800PE SELL 505 48.75 1500000024689650 1840 0 -40.8 To defend 2000 Ces
7/13/2020 9:25 RELIANCE20JULFUT BUY 505 1913.4 1500000001973115 1913 0 -40.8 Future long to save 2 2000 CEs
7/14/2020 9:24 RELIANCE20JUL1700PE BUY 505 12.1 1500000001656573 1926 45.9 5.1 Booked Profit (1700 PE) = 58-12.1
7/14/2020 9:39 RELIANCE20JUL1700CE BUY 505 239 1500000003997021 1926 -213 -207.9 Book Loss (1700 CE) = 26-239
7/14/2020 9:39 RELIANCE20JUL1800PE BUY 505 31.85 1500000004073748 1926 16.9 -191 Book Profit(1800 PE) = 48.75-31.85
7/14/2020 9:40 RELIANCE20JUL2000CE BUY 505 55.05 1500000004097177 1926 -39.05 -230.05 Book loss in 2000 CE = 16-55.05
7/14/2020 9:40 RELIANCE20JUL2000CE BUY 505 55.05 1500000004097177 1926 -39.05 -269.1 Book loss in 2000 CE = 16-55.05
7/14/2020 9:40 RELIANCE20JULFUT SELL 505 1926.1 1500000004038802 1926 286.75 17.65 Book Profit (Future1) = 1926-1639.45
7/14/2020 9:40 RELIANCE20JULFUT SELL 505 1926.25 1500000004038802 1926 12.85 30.5 Book Profit (Future2) = 1926-1913.4
Total Profit 30.5 30.5 * 550 = 16775
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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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/

[@Balaji.Rajakumar]

No one talks about adjustments. Great knowledge sharing sir 🤑

[@krishnashukla1036]

Almost 99.99% videos are fake on FnO. Jegan videos are rally awesome and helpful for FnO traders. The way he explains really nobody does. Thanks Jegan keep making such videos so that we all gets benefited.

[@dhirajsinha2001]

Mr Jegan, you took 13 additional trades ( total 17 trades - 4 required, 13 extra as adjustments) to defend losing position in two trades. At the end of 4th trade (rel future) and 6th trade (shorting 1700 put) you blocked 6 lacs margin. After 9th trade (1800 put) you were using approx 9 lacs margin. So, after taking 17 trades and blocking 9 lacs at peak you exited at 16k profit. I really liked this video because it teaches important lessons to a novice option trader on what not to do: 1. Don't get obsessed above making profit on every trade. Additional 5 lacs margin (initial 4 lacs, peak 9 lacs) could have been deployed in other trades to make bigger profit. 2. Determine if you are selling covered call or naked call. Don't fool yourself by saying you're selling covered call, but acting as a naked call seller. 3. Have stop loss in place even for option trades. 4. Option selling doesn't give you a right to not follow the basics of technical analysis. A stock showing multi year breakout is not a candidate to hold short call options. 5. Don't brand yourself as an option seller. Use option buying judiciously even if you're an option seller.

[@anzm8648]

True. This is a classic case of married to your position. To block 9lacs capital just for fire fighting on a losing trade is not justified. After the first 2 adjustments if it's very clear there is a strong bias against your position either you exit taking a small loss or in this case where you already have the shares in full with you should sell at a profit when clearly there has been such a strong move and wait for next month or two to rebuild your cash position and rebalance your long term portfolio when the stock stabilizes.

[@sajayagopi]

You guys are right. Securities transaction taxes, GST and broker fees would have eaten a lot of his 16K in realized profit in this trade. Also he would have to pay short term cap gain income tax on realized profit. His profit from the Reliance share is unrealized so there is no benefit here. If he was eligible for long term cap gain tax in reliance share he should have let the delivery happen. 9 lacs margin to get 16k return is not justified.

[@dhirajsinha2001]

@@sajayagopi btw, gains on derivative trading aren't treated as capital gains. They are treated as business income and taxed at the tax rate applicable for the respective trader.

[@seemamp4929]

@Dhiraj Sinha how to use option buying judiciously in this case when option buying leads to losses due to decay? Selling covered call does not mean we have to empty our portfolio. This is a process to get additional income and not to forfeit the long term gains in our portfolio. If we sell our portfolio, we have not only lost the long term up move in the portfolio for the stocks we have been holding but it is very difficult to reenter . And also in the long term if we keep churning our portfolio for covered call premuims, we will make nothing much in our long term investment which is the real route of making wealth. Also stop loss would have lead to losses. He has come out in profit. Even if he deployed 9lac, it is not real money, he has just pldged his portfolio, it is margin money. So he got 16k free of cost. ROI is infinity.. I agree with the technical analysis part you said. If the stock was showing breakout by technical analysis, the short should have been avoided. But the short position must have been taken long before for the monthly expiry. So I really appreciate what he has done and his great heart to share it.

[@dhirajsinha2001]

@@seemamp4929 Is the objective making overall higher profit or make profit from every position one has taken? If one has x margin money, one can use that to defend a losing position, or deploy it in creating other positions to make more money. If you're not willing to let go of the stocks when you're writing covered calls, then what's the significance of 'covered'? Then it's as good as writing naked call. Option buying - yes there's time decay, but are you saying that option buying is always a losing proposition? Bear call spread is a time tested option strategy, hope you know that. I reiterate my view - this video sets a very wrong example for a retail trader and encourages them to do all the things they shouldn't be doing. And those things are: 1. Not setting SL 2. Taking a hedged position, but forgetting that it is hedged and treat it like a naked position 3. Try to make money out of your losing position somehow rather than taking a small loss and make bigger returns in other positions. 4. Taking hope trade without looking at technicals

[@human.anytime]

Retail traders: Forget about all these since it requires huge capital for such adjustments , also your adrenaline will raise for each steps 😎😀😂

[@sagay81]

i am doing such adjustments on intraday due to huge quantities :p it raises AD,BP,SUG :p

[@vijayakrishna4632]

99

[@MrSudeepantony]

If u think you can make huge returns with small capital, the market will prove u wrong in long run. What Jegan has shared is practical adjustments and only require capital of less than 10 Lacs.

[@sp-ye7ht]

Will not require huge additional capital..wrt adrenaline spike is true.. but u can overcome it by regular disciplined practice.

[@parimp]

Generally experts are not good teachers, but you have mastered both. Clear and crisp, like your style. Thanks.

[@jkbmob222]

Jagadeeshkumar:Very correct, systematic, step by step, informative & educative video. Thanks a lot.

[@mohankrishnapunugupati6444]

Only one word I can say Mr.Jegan... I LOVE YOU.

[@vinodg3561]

Sir, You are Fantastic, You have this much deep knowledge on options, You can defend any position & make it into small profits, Even If your view goes wrong. This shows your Passion & intensity towards Stock Markets 👌. & also you are helping All Retail ppl by sharing this knowledge freely 🙏🙏. God bless you.

[@narinderkumar8597]

Sir, Your way of explaining the adjustment is mind-blowing. I never forget the knowledge i earned from you via these two adjustment videos of Reliance & Infy. May Many thanks for sharing these videos. I hope it will increase my trading skills and profits.

[@viswanathan9725]

Sir, Thank you very much for your videos on 'adjustments'. Your intention of educating investors is whole heartedly appreciated. Hundreds of thanks to you. We expect many educative videos from great and selfless option traders like you. Thanks to you.

[@Authenticwrite]

Most humble and honest person in the trade.

[@hariprasadaraodevabathini3549]

We are learning a lot about adjustments from you sir. Thank you very much for sharing

[@kartikgee]

Amazing video. Jagan is a genius and is so humble. Thank you so much.

[@hareshkhubnani4335]

Hi Jagan Good to see you back after nearly 4 month. Very nice video with step by step explanation which is easy to understand and digest. Thank you and much appreciate.

[@pradeepsarangadharan9991]

Thanks a lot for sharing the adjustments trade!! A great learning👍

[@malligc856]

It give a good understanding of adjustment topic, which I was looking and wandering from some time, thanks “Guru” 🙏 really appreciate, and all the best.😊

[@rahulvyas1759]

Thank you sir, this was really crisp and helpful. I guess it requires years of practice to master such adjustments.

[@rohitjain0403]

Thanks to PR sundar n his student Mr jegan nowadays I sell put n relax as I m prepared to take delivery

[@nanda6085]

Thanks Jagan sir for sharing great knowledge on option strategies adjustments with proof.

[@alishaik8941]

SUPER!!!! NICELY EXPLAINED! :) GOD BLESS YOU AND YOUR FAMILY !

[@arunkrishna210]

thank you jagan its use full ,now i a m fighting with Bhartforge....

[@bhaskarsetty9175]

far far better than that story teller, we get to learn a lot here, thanks mr,jegan

[@karthickkumar9758]

Just superb ! Thanks so much jegan .very helpful !!

[@rohitghatage3584]

Excellent explanation and adjustment.. hattsoff jegan sir.

[@premakumarkootagal773]

Respected Sir, Hats off to you sir for sharing such information generously. One thing I am not able to digest is that why viewers are not subscribing in large number. People usually fall prey for colourful videos but not to this type of videos with wealth of information. Sir, kindly continue to share your valuable knowledge so thar we small traders are benefited and you are always blessed by almighty. Kindly make a video on settlement process and assignment issues when trading stock options. We small traders may get caught with assignment problems and may have to quit trading permanently. Warm regards. Infy and reliance adjustment videos are your gems and our wealth.

[@MsJimmyG1]

This is really a great knowledge. Thank you sir sharing this with us. Looking forward to more of these.

[@amitmandal8603]

Superb sir, it provides great knowledge and technique. Thank you so much for what you're giving to people.

[@amitnkrock]

Thanks for your tricks and tips on options adjustments.

[@huzefakudrati9836]

Excellent video Mr.Jegan!!

[@vibinkingofpop]

Thanks a lot sir for such a transparent vid.. other traders charge 10-25k to reveal such adjustments.. With a lot of respect to Mr jegan.. I would say its better if retailers give up the delivery in reliance instead of making such complex adjust.. Reason.. it will need hell lot of capital along with precise calculation and exp.. if a single leg goes wrong u may get a mini attack.. and even if ur doing entire process correctly need not say u'l loose ur sleep and fluctuating bp because ull be managing position more than ur limit

[@MrSudeepantony]

This is a super Case study on adjustments. Outstanding defensive techniques....... Your Psychology is not much disturbed and way of thinking is superb.... I only follow you and P.R Sundar in KZbin.....

[@laxmipathiraojarajana9260]

Please do more videos !! Great content !! 💯💯💯!! Out of the box ideas!!

[@muktisamal7028]

nice way of explaining adjustments.. thanks for spending your valuable time..

[@prasanthareddy5587]

Great insights Jegan, keep rocking and keep inspiring us

[@silambarasanmohan4749]

Thanks.. it’s very useful jegan..

[@vivekanand1432]

Amazing.....I am super impressed.

[@koushikkumar1646]

Keep doing adjustment videos sir.. u r really great that you are sharing your experience

[@arijithalder5278]

Bravo .. We need more of videos like this .. Hats off ! Jegan brother .. Mr. Sundar will be envy with you for such videos. Every day one video ..

[@nagmmt9694]

U , correct

[@rajnandan8776]

What will be left for Mr PS's webinars:-) But only if traders knew the choices available..

[@arijithalder5278]

@@rajnandan8776 din't get your point in last line ..

[@rajnandan8776]

@@arijithalder5278 I meant to point out that he is giving such good content for free that may close webinar shops of others who charge huge sums... But not all are aware of Mr Jegan.

[@arijithalder5278]

@@rajnandan8776 True. That's right.

[@karthiksubramanian6056]

Thanks for sharing jegan... keep doing videos

[@ravi79337]

Real trader real explanation

[@mukulteotia]

eagerly waiting for more videos.

[@pazhanikrishnan9375]

Thank you so much for your sharing adjustment trading and knowledge 🙏👍

[@rijojose360]

excellent explanation ... Thank you for the sessions

[@kanakarao1368]

Amazing sir …. you are simply awesome...

[@youngbrains7628]

i want more of there ... thanks a lot..... very good work

[@naveenkumarganesan5353]

Excellent sir... Appreciate all your efforts...

[@vaibhavpratap8034]

Sir , Thanks for sharing such a knowledge . Great fan of yours...

[@kankanalakartheeksai4915]

Very exllent vedios for adjustment

[@captveeresh]

Fantastic learning thanks for sharing.

[@mukulteotia]

thnx a lot for sharing a priceless knowledge .

[@donraj99]

Thankyou ! To educate so wonderfully !

[@respect9477]

Sir everyday u teach someone something For free God will help u sir 🙏

[@jagmopuri07]

Informative and thanks for your knowledge. 🙏

[@investingpearl6440]

Very very very much helpful topic sir.

[@mukundphadke1286]

Excellent explanation skills !! Bhari (very nice) !!

[@TEJASWE1]

Thanks for the video really helpful keep up the good work and keep posting more similar knowledgeable videos

[@venkateshkumar1141]

Awesome, thankyou very much jagen

[@shubhamkankani2306]

Amazing sir.. got to learn a lot!

[@addskosame265]

Wow really amazing. Thank you very much for sharing! Happy Vinayaka Chaviti

[@NagarjunaAtukuri]

U r ambassador for Covered call 😊😊

[@sandeeptripurana4496]

Thank you for explaining in details sir

[@002prakhar]

Great peice of knowledge

[@sourabhsaryal6032]

Great video sir. Respect you alot .. thanks 👍

[@ravibabusarikonda2167]

Nice vedio Jegan sir, keep rocking 👍🙏

[@RaviShankerk]

excellent sir, even though u got trainign from sunder, u are sharing adjustments

[@tradingbrainstamil2820]

Great sir.... thanks for sharing so much information.. very very helpful for us

[@ArunKumar-ni5ue]

U r a Great personality sir.. nobody talks about adjustments in public platform.. also pls do a short video about Ur training course.. would like to take up Ur course.

[@manoj00231]

Very good overview sir, thank you

[@paagalhidaan6401]

Hi Jagan. Thanks for this video. The knowledge you share is invaluable. Currently outside India. If I ever come back, I would definitely love to be mentored by you.

[@chahatchaudhari1432]

Fantastic video, maja aa gaya sir

[@mastermindnaveen]

awesome... show us more like this video...

[@eliyasthomas]

Thanks for the insights

[@manishpandit364]

Liked it sir. Very knowledgeable content.

[@nagmmt9694]

Than k u brother ,, for adjustment trades

[@kvram25]

Clearly explained...thanks

[@ganeshc5245]

Very nice and very useful sir

[@sanngram96]

Good Knowledge sharing

[@BHUPINDERSINGH-wo6nx]

Super sir God bless you 🙏

[@chendils2000]

Awesome

[@kaviarasu7233]

Thanks for making this video sir

[@rijojose360]

Soon this channel will hit 100k sub

[@jvr1727]

excellent sir

[@AbhishekSharma-zl7kr]

Thank you Sir ❤️

[@santhoshhr1965]

Wonderful sir

[@optionsunleashed905]

Thanks for the nice video Jagan. It would be nice if you could answer my query. What if when you bought futures, it would have come down and given you loss ? You would have made loss trying to save the sold 1700 CE ? Till what levels would you wait before you close the futures?

[@drjems]

Good content

[@rameshotturu434]

Jegan sir please tell me how do you hedge your long term holdings against over night risk?

[@aravindsubramaniam7930]

your awesome sir

[@tharmiakuppusamysubramania7890]

Please talk about margin requirements also.

[@vikasratanetah]

Sir, great adjustments but only a expert aswell full time trader can handle this type of adjustments. 🙏

[@swatianil1]

Hi Sir, Reliance IVP was and is high still, why you choose credit spreads rather than strangle or condors? Even straddle also good in this month. Please also share at which stage , which strikes were closed and bought back, thinking of what ?

[@kumarlakshmanan1937]

excellent

[@girishcs8900]

ty for sharing sir

[@chanchaldas3970]

Thankyou sir

[@summers2291]

Great sir

[@silambarasanmohan4749]

I have question .. why we didn’t do cash secured put.. instead of cash secured call. ..?

[@JayantaRoop]

Need more adjustment videos...

[@kaushikkumbhani7097]

You're proo sirr

[@eshKTv]

Superb vedio