"Option Buying Setup: पैसा ही पैसा होगा | High-Return Strategy for Beginners!"

Brief Summary

This video presents a trading setup designed for option buyers in the crude oil market. It focuses on achieving a high probability of profitable trades with a target of 1:2 or more risk-reward ratio. The setup involves using RSI, DMI, and moving averages to identify potential buying opportunities. The video emphasizes the importance of following the setup rules closely and provides examples of successful trades using this strategy.

  • The setup is designed for option buyers with small capital.
  • It aims for a high probability of profitable trades (7 out of 10).
  • It uses RSI, DMI, and moving averages to identify buying opportunities.

Introduction

The video introduces a setup beneficial for option buyers, particularly those with small capital. The presenter claims that following this setup can lead to a high probability of profitable trades, with the potential to achieve 1:2 or greater risk-reward ratios. He mentions that he uses the same setup in his live streams for crude oil trading. He encourages viewers to keep a notebook and pen handy to note down the details of the setup.

Setting Up Indicators

To set up the strategy, the presenter opens a call option chart for crude oil (CL 6300) and adds three indicators: RSI (Relative Strength Index), DMI (Directional Movement Index), and a Moving Average. The moving average is configured with a period of 30. The RSI settings are adjusted to highlight the 60 level in green and the 40 level in black, with the middle level set to white. In the DMI settings, DI+ is set to green, DI- to red, and ADX to white, while ADX-R is turned off.

Understanding the Setup

The presenter explains the rules of the setup. A long trade is considered when the 30-period moving average is trending upwards. RSI levels above 60 are considered a buy signal, while levels below 40 are considered a sell signal. The DMI's white line indicates the strength of the trend, with green DI+ representing buyer strength and red DI- representing seller strength.

Call Option Buying Examples

The presenter provides examples of how to identify buying opportunities using the setup. When RSI crosses 60 and the price is above the 30-period moving average, a buy signal is generated. The DMI should show a positive buyer stance (green DI+). Entry is made immediately after the candle closes, with a stop loss placed below the candle. The target is set at a 1:2 risk-reward ratio. He also notes that it's important for the price not to be too far from the moving average when the setup is triggered.

Put Option Buying Example

The presenter switches to a put option chart (crude oil 6300 put) and demonstrates how the same setup can be used for put options. The rules remain the same, but now the focus is on identifying selling opportunities. When RSI crosses below 40 and the price is below the 30-period moving average, a sell signal is generated. The DMI should show a positive seller stance (red DI-). Entry is made immediately after the candle closes, with a stop loss placed above the candle. The target is set at a 1:2 risk-reward ratio.

Important Considerations and Conclusion

The presenter emphasizes that this setup is designed for option buying only and not for short selling. He reiterates the importance of sticking to the 1:2 risk-reward ratio and trailing the stop loss using the moving average as support. He advises viewers to abandon the strategy if it does not yield positive results in 7 out of 10 trades. The presenter concludes by encouraging viewers to like the video, subscribe to the channel, and join the live streams for Bank Nifty and Crude Oil trading.

Summarize any YouTube video in seconds

Get summaries like this one for any video, in your language, with the free Summ app.

Download on the Apple Store
Get it on Google Play

Transcript

Full transcript of “"Option Buying Setup: पैसा ही पैसा होगा | High-Return Strategy for Beginners!"”. Click a timestamp to open the video at that moment. Need another video? Use the YouTube transcript generator.

0:01 As friends, I told you last time that I will give you such a setup in which there will be a boon for option buyers, right, you know that whenever I live stream, I work on the same setup, if you have not joined the crude oil live stream till now, then you will not know, but whoever is joining, they definitely know which setup I work on and how I get the targets of 1:1 1:2 1:3 1:4 here, okay, how to get a small or a big target is very difficult in the market, okay, but I will tell you such a setup within the next two minutes, which setup is good for that particular option buyer, not a seller, okay, if you are a seller, then let it be, okay, but if you are a buyer, option buyer, okay, there is small money,

0:46 small capital, a dozen matters, okay, but I will tell you the setup with which seven out of your 10 will go in profit, plus you take your group of 1:2 1:3 1 4. You can, okay, if you talk in a simple way, if seven trades are profitable in 1:2, even if five are profitable, you will still be profitable, right, so friends, let's not delay much, let's go straight to the video and go there and see what is the setup, keep a quick notebook and pen with me because it is possible that you may forget, okay, if you understand, then revise the video and see, I am keeping a target of 300 likes on this video, okay, if I get the target of 300 likes, then I have another set even better than this, okay, I will give that to you too, so friends, let's go to the video quickly and yes friends, there is no

1:32 editing in this video, so there is no editing at all, sorry for that, I felt that there is an emergency, so I am posting that video here without adding, so friends, you have to subscribe to the channel and like it, so let's go to the setup there, friends, the screen is open in front of you here and you can see, here the call of CL 6300 is open right now Okay, if the setup of option buying is told, then there is no need to go to the future. Okay, you have to play only on the option. Okay, quickly you have to go to the indicator section. Here you have to write RSI. Okay, quickly apply RSI. Okay, the second one is your DMI. Okay, let me apply direction moving average after that also IM A. Okay, apply moving average. Okay, now let's go to its settings quickly. Here you have to come to the settings. In the input, you have to do the formula of 330 30

2:20 here. Okay, after that you have to go to the style here. In the style, you have to turn on the smoothing line according to your taste. Okay, after that you have to go straight to the settings of RAI. In the input settings of RAI, you have to keep 14 only. There is no change here. Here I will make the upper level green. Okay, and in green I want 60 here. Okay, and here the middle level. I will make it white, okay and here below I will make it black, why did I make it white because my background is black, right, so I made it white because you can change it here according to your background, according to your taste, okay, what color do you like, I don't know, okay, so this is how you have set it, after that you have to go inside the settings of DAI and quickly make the color of DI green, make its DI

3:05 minus red, turn off d one, turn on AD one, I will make it white here, okay and here I will turn off d AD one R, okay, okay, I'm done quickly, our setup is ready, now look, listen to me very carefully, if you skip from the middle, you will not be able to understand at all, you have to watch the video till the end, okay, now look, here I have turned on the 30 moving average, as long as your 30 moving average is moving up here in the option, you have to take a long trade, if it comes below 30, you have to take a short trade The first thing is second RS, if you want to see, you have to buy above RS 60 and sell below 40, but we will not see the selling setup in this, we will only see the buy, if selling is executed here, then you should quickly go to put, check the put scenario, okay and after that DMI, the white line of DMI shows the strength here,

3:53 how strong it is, that is, how fast will it go up, okay, the red D DMI is DI minus, it shows the stance of the seller here, DE G DI plus is your green candle, it shows your stance of the buyer, okay, let's quickly see the setup here, how do you have to do the setup, right, first of all you have to keep an eye on RSI, as soon as RSI crosses 60, it is done here, yes it is above 30, okay candle close, okay, as soon as the candle closes, you have to make an entry immediately, okay, here below you do not have any criteria, the criteria below is that Your buyer should be positive, okay and seller should be negative. This buyer is positive, seller is negative, it is big

4:48 but small, there is no problem of five to seven points. Okay, you have to keep the 1:2 target here. Within a second, you will get the targets. Okay, you will get them within one, two, five minutes, etc. Okay, yes, now if you want to trail, you can trail by taking the support of 30 moving average. Okay, you have to proceed according to the test. Right, next look here, there has been a breakdown here. I will also show you the breakdown setup. There is no problem. First, look at the breakout setup. Okay, let's see next. Look, this candle has turned green here. Okay, RSI is yes, buyer is positive. Okay, you have to buy immediately above the high. As soon as the candle closes, you have to buy immediately. Okay, put the stop loss of 1:2 below the candle. Okay, you have got the target of 16 points here. Look right, the sale was of 8 points. 16 The target of the point

5:37 is Datchi RS is above the moving average here, yes it is okay but it should not be too far from the moving average, okay you have to keep this thing in mind, yes you have got the setup, then you have to keep the stop loss on the same candle, you do not have to go ahead, do you understand that you do not have to go ahead, this candle has taken a breakout here, yes RAI has taken a breakout, you have to enter immediately, the SL of the same candle will be there, okay, look here, the entry was made, the stop loss of the same candle is 1:2, what is the stop loss, take a target of 35 points, seven points and exit, okay, next see where the break out has happened, it has happened here, okay, you have to buy above the high, if the stop loss comes then you have to take it, there is no problem, there is a buy here, okay, your stop loss is going to be six points, okay, no problem, next I will also show you the selling setup, don't worry, okay but selling means to buy, okay,

6:24 here I am talking about calling buy, okay now look here, next Look here, your setup got activated, as per the setup, I took a buy here. Okay, yes, you don't have to carry overnight. I am already telling you the position. Okay, here you have an eight point ASAL, a 16 point target. Look, here the 16 point target has come. But yes, nothing happened overnight. Okay, I got 16 points. Next look, it's a totally awesome thing. Okay, you will enjoy it a lot. Look, here the buyer setup got activated. Buyers were positive. Okay, you have to buy above the high. Okay, as soon as the candle closes, the high is whatever it is according to your test. Okay, and here you had an ASAL of 4. Okay, and you got a target of 8 points. Okay, brother, the target is great. It's a very interesting strategy for scalping. Okay, you will get money. If you don't print it, it's okay. Look, I will

7:11 also tell you some negative points here. So you should stay tuned. Look, here the break out has been complete. Buyers were positive. Okay, you have to enter. Stop loss is the same candle. Stop loss is four and a half point target. Double. Okay, here it is. Got 1:2 instantly Finished in the second candle. 5 minute time frame has to be used. Do n't go to bigger time frame. Okay, break out has been taken here. Look, break out happened here. Okay, this candle broke out. Buyers were positive. Yes, buyers are positive. Okay, you have to enter here. Right, I entered above this candle. Have to keep a target of 1:1. Stop loss of the same candle is of 6 points. Target of 12 points has been achieved. Okay, let's move ahead. Next, where is the break out giving? Break out was given here. Okay, 1:1. Here the stop loss got hit. Look, how many points' SL was there. Look, negative positive. I will tell you both things. Okay, don't worry. Okay,

7:56 look, the SL of the same candle is of 55 pot. As soon as it gets heated, you have to exit. Brother, go to the fence. Okay, what do you want? I only want 1:1 1:2. Okay, look, the setup got executed here. Buyers were positive. Yes, RSI above. Okay, done. Entry done at this level. Put a stop loss of 9 points. Target of 18 points. Got it brother. Got it brother. Got it brother. Okay, look here, in the same way here. Now look, the chart ahead is not visible. Why? Because the expiry has just begun. Okay, it is the 16th date and the 18th expiry has begun. Okay, now I will show you the scene of put. You have to keep in mind only call and put and nothing else. You have to keep in mind only call and put. Okay, put a call on one side. Put a put on the other side. Right, wherever there is a put, take a put. Where there is a call, take a call. Okay,

8:42 here I will quickly add the symbol of crude oil. Okay, see this, right, a put of crude oil 6300. Okay, now look, I have added the put here. Okay, I have added the hat here. 6300 has become 50. Wait, wait, wait brother. Wait brother, very quick. I have to tell you, so let me take it here. I have added the P of crude oil 6300. Okay, I have added the P and placed it here. Okay, this is the chart of P now. Okay, wherever you see the buy momentum here, you can see where the buy momentum is visible here. Okay, look, this candle has given us a complete candle close above the moving average.

9:30 Okay, and here the buying setup has been executed inside this candle. Okay, nothing needs to be done, simple, just see this, I took the buy entry and put it here. Look at the target of 1:2, brother. Look, the stop loss was of 16 points. 32 points are needed brother. Okay, look at this, I got 32 points. 32, is it too much brother? Look, yes, you have to keep trailing this, brother, I have already told you that you can trail by taking the support of the moving average. All this setup will work under option buying. Okay, not selling. You do not have to short. Okay, you only have to buy, only and only buy. Okay, of 1:2. You will definitely achieve the target, it is very easy brother, it is very easy, if out of 10, your eight setups do not turn out right or seven setups do not turn out right, then keep the strategy aside,

10:16 keep it in the cupboard, it is okay, we are telling you, there is no guaranteed profit here, but you will be profitable with the strategy, okay, see this, I took a breakout here, I bought above this candle, look at the stop loss, brother, the size of the stop loss is okay, I work more on the stop loss, not on the target, okay, because if the stop loss remains, then the target is bound to be achieved by default, did you understand, right? So friends, I end this video here, like the target of 300, if you like the channel's video, then like the video, subscribe to the channel, it will be live every day at 9:00 am for Bank Nifty and it will be live at 4:30 pm and 5:00 pm for Crude, come join quickly, bye everyone, bye

Share

More video summaries