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सीएससीसीएसएस रणनीति 2025 अंग्रेजी संस्करण | Ranjit's Helpful Videos | YouTubeToText
YouTube Transcript: सीएससीसीएसएस रणनीति 2025 अंग्रेजी संस्करण
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Summary
Core Theme
This content introduces an advanced options trading strategy called "Cash Secured Call Short Strangle" (CSCCSS), designed to enhance premium collection and manage risk by combining elements of the option wheel strategy with a bull put spread and covered call.
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[Music]
Hello, namaste.
And uh today I'm going to present the CC
code cover called short strangle my own strategy.
strategy.
uh that this will be in English uh for
the English speaking audience because I
have received many uh request for those
people those who are from south normally
or others those who do not understand
English for them uh this is the video
for them but at the same time there are
certain small tips also I have given
this video which will be beneficial to
the existing people those who are
understanding sasic you could cover
called S triangle to whom uh I call this
CS CCSS.
So they may also watch and they may find
out the benefit which I have discussed
already. So let's go to the first slide.
It is slide by slide. You can note down
the slides and you can hold the slides
and you can take a screenshot of it for
future use. And if you are interested
you can also request the PowerPoint
uh which I have made prepared in my
telegram channel and uh you are free to
ask for that. So what is cast cover call
short strangle my own strategy. It is an
advanced option strategy combining
elements of the option wheel strategy
for enhanced premium collection and risk
management. So first let us understand
what is this.
I began my trading after my retirement
from 2020 using option wheel strategy.
Option H strategy is a strategy where
one person sells a call. Sorry, one
person sells a put. It is a naked put
which below about 10% of the spot price
and it is called cash secured put. Why?
Because if the share price goes down by 10%
10%
I'm ready with my cash to buy the
shares. That's why it is secured with
cash. So even if it is falling, I'm
ready to buy.
Now during those periods after the COVID
period, the market was going in one
direction. So it was giving profit. I
was selling several uh cash secured
puts. Uh I remember up to 60 62 cash
secured puts and uh I was making decent
money. It's a very good return on the
small capital that I having that time.
That time I was having about 25 to 26
lakhs capital. So I was selling cash
puts. Now after a year or so the market
started behaving normal. Normal means
erratically you will think why it is
going up and why it is going down. There
are various reason why the share price
goes up and down. What happened when I
was doing option strategy? I started
incurring losses in some of the trades.
As the share price in those uh shares uh
the sale the the cash secured put that I
have sold it become in the money and I
was compelled to buy the shares that
time I have to buy the full lot so that
I can sell a call and make some money.
So I could find that that due to the
inherent weakness in that system that
the whole lot buying is blocking my
capital and number two is that uh the
cash secured put it the there may be
drastic fall in that particular share
where I'll be incurring big loss in
derivative position.
So to avoid this I started experimenting
then came out with this CSCC strategy
strategy where
where
I can reduce my risk. So how I am doing
it that I'm going to explain in this video
why CSCC ass what is the benefit
advantage before uh over the option
wheel strategy. Number one, dual premium
benefit. Collect the premium from both
cash secured put and cover sales. As you
are selling two options, so you collect
a bigger amount or larger amount of
premiums and this strategy is normally
we do to eat the premium. So more the
premium we collect we can make more profit.
profit.
Number two, margin efficiency.
If you sell a put or if you sell only a
call, you are required to pay more
margin. But with some additional margin,
you can sell both call and put. So you
save on margin and your percentage of
return goes up. I hope you understood this.
this.
Then number three is gap downtrend loss.
I told you the risk involved with cash
secured puts. Now I remember that and I
come out with a bull put spread. In
bullput spreads are very safe because
here your loss is always capped.
So you know how much loss you are going
to make maximum loss you are going to
make from the day one itself and say the
loss is going to be about 5,000 or 10,000
10,000
you are also reducing this loss as you
are selling a call also now let's go to
I told you this strategy is called cash
secured cobalt called short strangle
So as the word strangle is there so let
us compare what is a short strangle and
what is CSCCSS.
What is the difference? Okay short
strangle is a naked strategy with
unlimited risk. Here you sell a call,
you sell a put but if the sale price
goes up very quickly then you make a big
loss there. And if the share price falls
also you make a big loss there. These
are all naked call and naked put. Whereas
Whereas
there is second thing is that there is
no obligation to buy shares. Even if
your put becomes in the money you close
the put in loss and there is no need for
you to buy the shares.
Understood? Now let us go to what is CS? CCS
CCS here
your boot is cash secured. You are ready
to buy shares if needed. So that is the
big difference there. You do not have to
buy shares here. We'll be buying shares.
I'll be telling you how and when we will
be buying the shares. Number two is that
it involves three legs. In a strangle
there are two legs. One call sale, one
put sale. Whereas in this strategy
you do a CSP or a BPS at one hand you
sell a call that is the second leg and
the third leg is the equity
and here as I said three legs the share
buying is not at a time but it will be a
staggered buying. for capital
preservation. So let's go to the
and what are the key components of CS CCSS?
CCSS?
First is sell cash secured put or a spread.
spread.
You can now also you can sell a naked
put which we call cash secured put 10%
below the spot price if you believe that
now market is in a uptrend but if you
have got any doubt on the share price
movement suddenly falling or going up in
that case if the chance of fall is there
in your mind to safeguard that to have a
good night's Sleep use enter into a BPS
bull put spread. What is bull put
spread? Sell a put at a strike price and
buy a put below
one strike price or two strike price or
whatever you feel you are comfortable
with. That is called bull put spread.
And the advantage is that you reduce
your margin. If you sell a cash secured
put only your margin requirement is say
if you one lakh then if you do enter
into a bull put spread your margin will
be about 40 to 50,000 not more than that
and it will further reduce
if your broker also gives you 50%
additional margin against your pledged
shares normally whatever shares I am
buying time for this strategy. I bleach
them for pledging. Jerroha takes 20
rupees for unpleasing.
There is no money and you can sell your
share even if they are not unpleased. So
that is a very good benefit Jerroa
provided. Recently proed more than one
year they are providing this facility
and it is always recommended that if
whenever you are buying uh your share
equity you place them with your broker.
Normally I'm I will be I will be
speaking my experience with Jeroda
though I don't recommend any particular brokers.
brokers. Now
in case of CSP I told it should be below
10% of the spot. In case of bullput
spread, what you will be doing? You
should you can sell a put
just at the ATM or little above ATM
and buy a call one step or two step or
as much step as you want because the
more the steps are in between your loss
percentage also goes up loss about goes
up. So I normally
buy a put one step below or maximum two
step below. Okay. So now let us go to
the next point that is sell covered
call. Now that you have got a CSP or a
BPS now what you have to do you have to
sell a call. As I said three leg I said
the second leg is selling a call and
where you will sell a call it should be
6 to 10% above the spot price.
So this is where you have to use your
discretion. If the share price is 400,
you will sell at 430 or 440 or 450 where
you are comfortable because by the time
you reach the call strike price you have
to buy the full lot. If you do not want
to burden yourself with your capital
then in that case you sell your call bit
higher at 8% or 10%. Otherwise
Otherwise
to be aggressive to be an assertive
aggressive stand you can sell above 6%.
But in this 6 to 10 again you can if you
want you can change a little bit selling
at 5% or selling at 11%.
That is up to you.
Now the third point is standard share buy.
buy. Initially
Initially
we buy 20 to 40% shares depend on market
movement. This I will explain of the lot
at current price. Then we do a staggered
buying only during uptrend in such a
manner that we have full lot when our
call becomes in the money.
Please note is most important no share
to be bought if the share price is
falling during the same series and you
do whatever strategy you have to always
maintain certain precautions and what
are the essential precautions in this
cash cover strike number one is
sufficient capital
please do not do This strategy if you do
not have at least 25 lakhs as your capital
capital
you cannot do with six lakhs, 7 lakh, 10
lakhs. People are doing it with futures
and they they're burnt their fingers. If
you will be com you are
if you are going to do it the risk is
yours. Let me tell you very clearly do
not do this strategy if you do not have
enough capital.
Now the second one is liquidity and the fundamentals.
fundamentals.
Here I am speaking about the
why which stock you should do. Ensure
that the stock naturally it is in a
segment. It has good liquidity at option
strike prices
and has a strong fundamental also. That
means that s
in the past the the company s in the
past it has been shown very good result
year after year quarter after quarter
and maybe there may be some aberression
one quarter probably it did not do well
or one year it did not do well if the
caggr of that company is quite good only
select that kind of sales
number three in this c point is that
high IV for better premium. Normally I
select my IVs in the Jerodha sensible
sensible sorry not it is not Jerodha
sensible it is sensible. So if I see
that the it is there are certain shares
which are at 40 45 or 36 above 35
normally 35 and above then then I prefer
to do trade in those shares because by
selling call and by entering into a
bullput spread I get better premium.
Number three is optimal timing.
When you should enter into SCSTCSS,
normally you should enter into it from
45 to 30 days before expiry for higher
premium. If you are close to the expiry,
your premium are already decayed. So
normally say November
say November 25th is the expiry for the
November series. You should have started
entering into cash equal cover called
short strangle from 10th to 15th of October.
October.
You always remember this. If you do not
find liquidity between 10th and 15th
October, then you have got no choice but
to wait. You can do cash secured cover
call just before 30 days. By that time
normally I believe most of the good
shares and popular shares are liquid
their options are liquid. Here let
example I have given the that of bale
and this will give you a fair idea how
you will proceed do this strategy is a
good sale bale is a good sale bale I'm
doing trades for 2 3 years continuously
every month it has got a great future it
has got a great order book and the
results are also expected this month in
30th and I expect it to be very good
order a very good uh profitability in
this share and uh being a PSU the
question of management that ethical
issue doesn't come here so that is why I
go on doing trades month after month in
bat electronics and I have taken that s
as an example in this presentation
so an example in this year what I have
done whatever data I'm showing and you
can see the screenshot also that it is
on as on 24th October yesterday today
I'm recording on 25th of October so on
24th of October whatever the call put
prices are there whatever is the price
of the spot price was there so on that
basis I have made this example here you
can see for bull put spread I have sold
Batantage limited 410 put at 7 rupees 70
pesa just bought Bat Electronics Limited
November 400 put at 4 rupees 80 pesa and
I have sold a call
at 450 which is more than 6%. Now the
share price is about 422. It is more
than 6%. It is uh so it is I have sold
it for 5 rupees 50. Now again I'm giving
you the bell positions and returns. You
can I am repeating that my BPS and see
here in this slide also the total
premium collected is 22,943
that this is my maximum profit. This may
happen. Number two is the actual margin
paid in Jeroda using placed margin. How
much margin I have paid
to sell the call and entering into a
BPS? It is about 60,000 rupees.
Why it is actually actually if you do
not have a place share then you need 1
lakh 20,000 premium but here because I
have got placed margin so 60,000 from my
pocket and 60,000 comes from broker
that way my maximum return from BPS and
C call is 38% return this return is
achievable able if the spot price remain
between 410 and 450
until November expiry date.
In this strategy, riskreward is also
excellent. The maximum derivative loss
is 5,558.
You can go back to the previous slide
again, watch the screenshot if required.
So the maximum loss is 5,558
and the maximum profit is 22,943.
So riskreward is very good. Now bail
share acquisition we have discussed
about the BPS and call two legs are
over. Now the third leg how how much we
buy shares and where we buy those shares.
shares.
Lot size of B is 2,850.
Generally shares are bought 20 to 40%
initially at the spot price and 30 to
35% at bot at call strike price that is
450 in this case in this example and
rest in between at various interval.
So in October 24th we bought 900 shares
at 422
when CSCC was initiated. The day it is initiated
initiated
immediately you have to buy the shares
in the spot. How much we have bought 900
is about around 30 32% something like that.
that.
Then the day the spot prices reaches
call strike price we will buy 950 shares
at around rupees 450 not exactly 450
around 450 by placing a GTT order in the system
system
GTT had been placed for 500 shares each
because we have got another 1,000 share
we have to buy 1,000 share between 420
to to 450 what I will be doing I'll be
buy 500 share at around 430 and another
500 at 440.
You did not follow this strictly. Little
bit of experiment you can do. Instead of
two trench of buying in between you can
do it three, you can do four. So there
is no problem. Go on experimenting that
way you will become a good trader. GTDT
GTDT
you have understood GTD is good till
date that moment the price comes your
broker system will automatically buy
that share.
So this demonstrate the staggered buying
technique adapting to market movements.
Now profit booking and a risk
management. This is the last part. You
have bought the share you have sold the
call. You have done a BPS. Now when you
will be booking profit book profit early
do not wait for maximum profit close
positions when a reasonable profit I
consider for me it is 50% to 70% of the
premium collected but it may be much
less if things doesn't go in my way if
there is a big fall in the share price
probably I will be happy with booking
profit small book cooking profit booking
small profit rather than waiting for 50
to 70%. It is not always possible. It is
possible only when the share price is
gradually increasing.
If there is something bad news come or
something wrong has comes then it may
fall. So instead of profit there may be
a little loss also that I have told you
the maximum loss will be 5,558.
So that may happen. So never wait for
till 25th November if you see by 15th
you have already made a decent profit
even 50% profit is good by 60,000 rupees
spending if you're getting 11,000 or
12,000 it is already 20%.
Why should you wait your waste your
time? Rather you use that time after
booking profit to December series.
I hope you understood this.
Now coming
manage down trades. I told you what to
do in uptrend. Uptrend there is GT order
is there you will be get executed. What
happens if there is a downtrend? In
downtrend what you'll do if the price
falls below 422 avoid averaging equity
not avoid immediately only partial
buying may be done to reduce the average
cost of holding so that a call can be
sold at a decent premium for the next
series for a December series
don't buy minute if the sell price is
falling falling west just wait cooly
wait and Watch don't buy anything
because you do not know how much fall is there.
there.
If you know that okay if your chart says
something that something you have got
some idea you may buy some share to
reduce the average cost of holding but
normally I tell you don't do it. Now a
word of precursor that if you have
already due to sub region you have
already holding the full lot of shares
for the next series you only sell a call
don't further do a BPS for that series
nor you sell a CSP unless you are a big
risk taker
okay normally avoid that but if you feel
that no the S price is not going much
below So this is enough. It has come
down. You may sell a call.
Sorry, you may sell a put. That is what
I call CSP. But you may not be having
that much capital to buy a second lot.
So for that reason, if you avoid it is
good. But if you have got
that I want to take some risk so that I
can earn some more premium. Choice is up
to you.
Now continue to hold strong stocks.
There are
quite a few stocks I have already stock.
I have already discussed that in my
previous videos. I have not most of them
I have not sold even though they are for
2 years 3 years I'm holding like one is
uh IRCTC recently this month only I have
sold it in a loss and that's why when
everybody is making profit in October I
will be reporting probably a negative
result for month of October
so but otherwise I would prefer to I
hold my shares if I see that there is a
possibility ility of share price going
up. It may take time. It may may take 3
months, 6 month, even a year. But if the
prospect is good, I don't sell it my
equity even if they are in loss
loss paper losses there. Like I do not
sell my mutual funds. These are for a
very long period. Similar similar
thinking goes for this equity also. I'll
be holding that unless the share is a
bad share like Delta Corporation you
know why it has got done so drastically
because of the tax issue and all those
things and some other companies share
also on ethic issue so I've heard them
and if you are doing this if you have
done a trade on that and price has come
down you do not have any choice but to
liquidate that you have to sell those
shares and book loss in equity you don't
have choice because you have taken a
wrong step from the beginning itself okay
okay
so with this I concluded my presentation
I believe that uh you have understood
the concept of cash secret called s
strangle if you have got any query
please ask me on my telegram channel.
You can DM me also directly also you can
send me a message and and you also tell
me if you have got any suggestion for
improving to this strategy with this.
Namaste and wish you all the best for
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