“CONSISTENT PROFITS THROUGH

OPTIONS SELLING”
Make Money Month on Month!
Signature Program by
CA Rudra murthy B.V. – Author, Trader, Trainer
www.rudraology.in
https://twitter.com/iamrudramurthy

CA Rudramurthy @ 9663 258 258 1

 “OPTIONS SELLING”
Make Money Month on Month!

Author of Amazon #1 Seller book,

“MIND MARKETS AND MONEY”.
Managing Director: Vachana Investments Pvt ltd.
Guest Speaker: CNBC TV18, ETNOW, TV9,
PUBLIC TV etc.

CA.RUDRAMURTHY.B.V
ACA, MCOM, MFM, M-PHIL, PGDBA, PGDMM.
Ph:9663 258 258
www.rudraology.in
www.twitter.com/iamrudramurthy
CA Rudramurthy @ 9663 258 258 2
5 Rules for Best Learning!

• I have an Open Mind.

• 1000% Participation.

• I take Responsibility.

• I will be a Continuous

Learner.

• Will Invest on Myself first!

My MISSION STATEMENT in Life!

“To assist All

Committed Traders
to become
Multi Millionaires in
life”
Why Options Selling?

CA Rudramurthy @ 9663 258 258 5

 Why Options Selling?
• 90% of Options held till expiry, expires
worthless. “Wasting Assets”
• No need to predict Market Direction.
• Benefits from Time Decay.
• Consistent Profits month on month.
• Trade Adjustments.
• Suitable for Part time traders.
CA Rudramurthy @ 9663 258 258 6
Options Buying Vs Selling?

CA Rudramurthy @ 9663 258 258 7

 Why Sell Options?
• 90% Probability of Winning.

• Will benefit from being wrong in market

directions too.

• Time Decay always benefits an Options Seller.

• Decrease in Volatility is good for Writer.

CA Rudramurthy @ 9663 258 258 8
 Why Buy Options?
• Limited Losses.

• Unlimited Gains.

• Lesser Capital.

CA Rudramurthy @ 9663 258 258 9

 When to Buy or Sell Options?
• Trending Vs Bracketed Markets.

• Specific Days good for Buying and Selling.

• Capital Size.

• Market Knowledge.

• Time for analysis.

CA Rudramurthy @ 9663 258 258 10
OPTION TRADING STRATEGIES!

CA Rudramurthy @ 9663 258 258 11

OPTION CHAIN

CA Rudramurthy @ 9663 258 258 12

Option Chain?

CA Rudramurthy @ 9663 258 258 13

OPEN INTEREST

CA Rudramurthy @ 9663 258 258 14

 Open Interest?
• Open Interest indicates the number of Open

Contracts or active contracts in markets.

• Open Interest tells what the OTF or Big fish or

Smart money is doing.

CA Rudramurthy @ 9663 258 258 15

Open Interest?

CA Rudramurthy @ 9663 258 258 16

STOCKS VS INDEX SELLING

CA Rudramurthy @ 9663 258 258 17

 Stock Vs Index Selling?
• Stocks are charged higher Margin.

• Stocks can go for Ban Period.

• Stocks are more volatile.

• Too much insider trading in stocks.

• Liquidity, Spread and Volumes.

CA Rudramurthy @ 9663 258 258 18

POSITION SIZING
IN
OPTIONS SELLING

CA Rudramurthy @ 9663 258 258 19

 Position Sizing:
• Use 10%-30% of Margin/Capital on the 1st trade.

• Add another 30% on the next trade only if the

first trade is profitable.

• Use balance 40%-70% of Margin/Capital for

trade adjustments.
CA Rudramurthy @ 9663 258 258 20
 OPTIONS SELLING –
How to Select STRIKES?

CA Rudramurthy @ 9663 258 258 21

Options Selling – Nifty Monthly Expiry
• Select Strikes based on Volatility. 450-500 pts.

• Select Strikes based on Previous Range.

• Select Strikes based on Premium.

• Select Strikes based on highest OI.

CA Rudramurthy @ 9663 258 258 22

Options Selling – Nifty Monthly Expiry
• Select Strikes based on Support & Resistance.

• Select Strikes based on Expected market

Direction. Use Technical analysis.

• Select Strikes based on Delta.

CA Rudramurthy @ 9663 258 258 23

Nifty Monthly Expiry – Net Premium

• Rs.25/1week

• Rs.20/2week

• Rs.15/3week

• Rs.10/4week

• Rs.5/2days before Expiry.

• Rs.2/On Expiry Day.

CA Rudramurthy @ 9663 258 258 24
Bank Nifty Monthly Expiry – Net Premium

• Rs.50/1week

• Rs.40/2week

• Rs.30/3week

• Rs.20/4week

• Rs.10/2days before Expiry.

• Rs.5/On Expiry Day.

CA Rudramurthy @ 9663 258 258 25
Bank Nifty Weekly Expiry – Net Premium

• Rs.25/Monday

• Rs.20/Tuesday

• Rs.15/Wednesday

• Rs.5/Expiry

• FRIDAY AVOID SELLING OPTIONS

CA Rudramurthy @ 9663 258 258 26

What for Nifty Weekly Expiry?

CA Rudramurthy @ 9663 258 258 27

 Nifty Weekly Expiry – Net Premium

• Rs.12.5/Monday

• Rs.10/Tuesday

• Rs.7.5/Wednesday

• Rs.2.5/Expiry

• FRIDAY AVOID SELLING OPTIONS

CA Rudramurthy @ 9663 258 258 28

 OPTIONS SELLING
DIRECTIONAL VS NON DIRECTIONAL
STRATEGIES

CA Rudramurthy @ 9663 258 258 29

 Directional Vs Non Directional?
• Short Strangle.

• Short Straddle.

• Iron Condor.

• Directional Strategy using Support/Resistance.

CA Rudramurthy @ 9663 258 258 30

SHORT STRANGLE

CA Rudramurthy @ 9663 258 258 31

 SHORT STRANGLE:
• What: Sell OTM Calls and Puts.
• When: Markets Sideways and High IV.
• Delta: 20%
• Target: 50% of Premium
• Stoploss: 50% of Premium
• Adjustment: Roll up/down to match premium.
• Duration: 10days or more away from Expiry.
• Premium: As Per table.
• Ex: If Nifty is at 12000, Sell 12500 Call and 11500
Put. CA Rudramurthy @ 9663 258 258 32
SHORT STRADDLE

CA Rudramurthy @ 9663 258 258 33

 SHORT STRADDLE:
• What: Sell ATM Calls and Puts – Same Strike Price.
• When: Markets Sideways and High IV.
• Delta: 50%
• Target: 10% of Premium
• Stoploss: 10% of Premium
• Adjustment: Roll up/down to match premium.
• Duration: 45days or more away from Expiry.
• Premium: Above 350 nifty and 900 Bank nifty.
• Ex: If Nifty is at 12000, Sell 12000 Call and 12000
Put of middle or farCA Rudramurthy
month. @ 9663 258 258 34
 DISCLAIMER
• Straddles and Strangles have undefined risks.

• Loss is Unlimited incase of a Black Swan

Event.

• Iron Condor is a better low risk strategy and

takes care partially for a black swan event.

CA Rudramurthy @ 9663 258 258 35

IRON CONDOR

CA Rudramurthy @ 9663 258 258 36

 IRON CONDOR:
• What: Sell OTM Calls and Puts + Buy Calls & Puts 200
points away for Protection.
• When: Markets Sideways and High IV.
• Delta: 20%
• Target: 50% of Premium
• Stoploss: 50% of Premium
• Adjustment: Roll up/down to match premium.
• Duration: 10days or more away from Expiry.
• Premium: As Per table.
• Ex: If Nifty is at 12000, Sell 12500 Call and Sell 11500 Put
+ Buy 12700 Call and Buy 11300 Put. 37
CA Rudramurthy @ 9663 258 258
DIRECTIONAL STRATEGY USING
SUPPORT AND RESISTANCE!

CA Rudramurthy @ 9663 258 258 38

 BANK NIFTY – WEEKLY EXPIRY:
• Strategy: Identify strong Support and Resistance, using OI
or Technicals and closely observe INTRADAY
MOVEMENTS.
• What: If market moves Higher after testing support, Sell
Put Options and If market moves Lower after testing
Resistance, then Sell Call Options.
• When: Directional to Sideways and High IV.
• How to Select Strike: 300 Points or 1% away from S/R
• Target: 80% of Premium & exit by Tuesday 80% at Rs.5-10
• Stoploss: Break of Support/Resistance.

39
CA Rudramurthy @ 9663 258 258
 BANK NIFTY – WEEKLY EXPIRY:
• Position Sizing: 10% Start and add upto 30% day1, Add
another 30% only if Day 1 is in profits, use 40% for
contingency and adjustment.
• Adjustment: Exit on Break of Support or Resistance and
take Opposite position using the balance margin and
contingency fund.
• Duration: Friday to Tuesday. Generally Exit 80% qty on
Tuesday and hold rest 20% if required.
• Premium: About Rs.50-60 entry and Exit at about Rs.5-10
• Ex: If Bank Nifty takes support at 32000 and moves higher,
Sell 31700 PUTS.
40
CA Rudramurthy @ 9663 258 258
If it resists at 32500 and moves
lower?

CA Rudramurthy @ 9663 258 258 41

 FIRE FIGHTING!

Sell 32800 CALL.

CA Rudramurthy @ 9663 258 258 42

 TRADE ADJUSTMENT
OR
FIRE FIGHTING
FREE DISCUSSION!
BY CA RUDRA MURTHY

CA Rudramurthy @ 9663 258 258 43

ADJUSTMENT OR FIRE FIGHTING!
• Sell Puts if markets goes up.
• Sell Calls if markets come down.
• Ex: If Nifty is at 12000, Sell 12500 Call and
11500 Put. Premium Collected Call 20 and Put
20.
• Market went up and now Premium Call 40
(1lot) and Put 10 (1lot).
• Firefighting: Sell PUT of Premium Rs.30 (1lot)

CA Rudramurthy @ 9663 258 258 44

What if markets went down?

CA Rudramurthy @ 9663 258 258 45

 FIRE FIGHTING!

Sell CALL of
Premium Rs.30 (1lot)

CA Rudramurthy @ 9663 258 258 46

KEY TO OPTIONS TRADING SUCCESS!

CA Rudramurthy @ 9663 258 258 47

 Key to Options Trading Success?
• Knowing the market direction.

• When to Buy and When to Sell Options.

• Risk Management.

• Trade Adjustments.

• Knowledge of Overall markets & Right Mentor.

CA Rudramurthy @ 9663 258 258 48
CA.RUDRAMURTHY B.V.
ACA, M.COM, MFM, M-PHIL, PGDBA.
www.rudraology.in
For live market updates:
https://twitter.com/iamrudramurthy
9663 258 258
www.rudraology.in
CA Rudramurthy @ 9663 258 258 49
MASTER TRADER CERTIFICATION
Learning for Practical Trading & Unlimited Money..

1. ZERO TO MILLIONAIRE.
2. TECHNICAL ANALYSIS MADE EASY.
3. OPTION TRADING MADE EASY.
4. RUDRAOLOGY.
5. ORDER FLOW ANALYSIS. CA.RUDRAMURTHY.B.V
ACA, MCOM, MFM, M-PHIL, PGDBA, PGDMM.

6. MARKET PROFILE MADE EASY - ONLINE.

www.rudraology.in
CA Rudramurthy @ 9663 258 258 50