OPTIONS SCALPING

OFFLINE WEBINAR
REFRESHER DOCUMENT
Compiled Notes of Mr. Sivakumar Jayachandran's
Training Sessions
DISCLAIMER

Mr. Sivakumar Jayachandran (Siva) is not a SEBI Registered Advisor. This document,
WhatsApp groups and the Telegram channel is purely for educational purpose only. No
claims are being made on the document content or images or quotes for copyrights.
This document is a refresher document for the benefit of the traders who are learning
to improve their trading methodology.

No claims or guarantees of returns of investment in the equity markets or derivatives

are made in this document. This document will be helpful for learning concepts. Please
practice risk management and capital protection as per advice of your financial advisor.

Siva is not responsible for your decisions and investments, profit and loss in equity and
derivatives markets. Please consult and confirm with your investment and
financial advisor for all trades and investments.
 I. INTRODUCTION 1
TABLE OF CONTENTS Trading Framework 3

PREPARE FOR TRADING

Global Indices 3
Crude 3
USD:INR 3
Charts Analysis 3
Buy/Sell Analysis 4
NSE Website OI Spurts 4
VIX 4
Individual stocks 4

II. PLAN WITH INDICATORS 6

RSI 6
Open Interest 7
SuperTrend 7
VWAP 7
Volume 7
Parabolic SAR (PSAR) 7
Candle Stick Patterns 8
How to select Strike Price? 10
Implied Volatility (IVs) 10
OI Spurts 11

III. EXECUTE THE PLAN 12

Gap-Up 12
Gap-Down 12
Trend Day (Up or Down) 12
Sideways Day 12

WHAT IS A GOOD PRICE FOR AN OPTION? 10

IV. PLAN FOR WEEKLY EXPIRY

Example: February 24th 13
Example: February 25th 14
Example: February 26th 15

V. ANNEXURE
About Siva 17
About Training 17
About Trading 20
About Psychology of Trader 22

OPTIONS SCALPING REFRESHER DOCUMENT

OPTIONS SCALPING REFRESHER

Introduction
Options originated as a hedging mechanism. Hedging is protection against any
unexpected event or outcome. Large institutional traders have to hedge their
positions in equity with options, so if there is an anticipation that stocks could fall (due
to external events or company specific reason), institutions buy put options to protect
their capital and equity positions when their stops are hit, in a falling market. Likewise,
in a market which is going up, and stock price is expected to go up, call options are
bought to take advantage of the rise.

Options can also be shorted and squared off like any other equities. This options and
futures segment is called equity derivatives (F&O). In addition, there are several
advanced option strategies like Iron Condor, Butterfly, Bull Call Spread, Put Call
Spread etc. which are employed by advanced traders. The advanced strategies are
outside the scope of this refresher document.

Options can be bought or sold. Option Sellers are called writers (Call writers or Put
writers). Option buyers buy options(Calls (CE) or Puts(PE)) when writers offer them the
option contracts. When premiums are low or IVs are low, writers may not choose to
write options (call or puts). Buyers can square off intra-day, or carry positions until
expiry (weekly or monthly).

Options are of three types: a) In the Money, b) At the Money c) Out of the Money. If
the underlying price is above the strike price, then the CALL option is said to be In
the Money.

If the underlying price is below the strike price, then the PUT option is said to be In the
Money. ITM and ATM are suited for option buying. Siva opines that OTM are Out of
the Market! and not to be traded regularly.

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In the above option chain table, yellow marked ones / highlighted ones are in the money
(ITM).

Learn options trading at the following links:

https://www.investopedia.com/options-trading-strategy-and-education-4689661
https://zerodha.com/varsity/module/option-theory/

The core of Siva’s trading approach is to execute quick trades within a span of few
minutes to enter and exit in the strike price option through buying(entry) and
selling(exit). Siva doesn’t encourage carrying positions especially in markets where
unforeseen events increase volatility beyond anticipation. It is recommended to read the
chart well with the indicators and form a view based on macros (global indices, news, FII
and DII buy/sell behavior) and then execute the plan.

Simply put, it is to Prepare, Plan and Execute.

In addition this scalping approach could be utilized not just for BankNifty, but to Nifty,
and other stocks which are liquid (such as of Nifty 50) and have volumes with
movements which can help take trades.

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Trading Framework
Let us briefly discuss each element in the framework.

PREPARE
1. Global Indices such as S&P 500, DJIA (DOW 30, like our Sensex), CAC, DAX,
HANGSENG, SHANGAI and SGX Nifty are important ones to track. Around 130PM
India time, its important to track Europe markets for trends and macro indications.
Around 3PM, its important to check movements in DOW Futures for possible 3PM
moves or closing moves.

2. Crude is important for India and its economy as 80% approx.. is imported. Hence,
any increase in price, leads to inflation and can cause rate increases and
increased cost of business which is negative for businesses and banks. Crude
price should be low but there are some instances where crude prices become low
due to less demand due to trade war, disease outbreaks, natural calamities. This
reduction in oil demand is again negative as reduced consumption of resources,
leads to reduced business growth.

3. USD:INR The rate should be stable without any wild movements. More rupees for
each dollar, IT stocks would be earnings positive, but for imports of crude and any
other raw materials and / or semi-finished goods, businesses would need more rupees
per dollar to get the same material. Hence, the inverse relation of Bank stocks with IT
stocks. If IT is up, Banks go down and vice versa.

A strong rupee is a good sign of a strong economy, in general. When FIIs sell, they
encash dollars, When FIIs buy, they spend dollars. More dollars in supply, less its
value, less dollars in supply, more its value.

4. Charts Analysis of previous day is useful for patterns, volumes, open interest,
momentum etc. at 3 minute, 15minute, 1hr, 4hr and 1 day time frames.

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5. Derivative Buy/Sell Analysis in ICICI Direct site. In this site, a 15minute/30minute

wise analysis is given of buy/sell behavior such as Short Covering, Short Buildup, Long
Unwinding, Long Buildup etc. It also shows the OI and change in OI (as in contracts).

6. NSE Website OI Spurts shows the same information at an aggregate level:

Rise in OI-Rise in Price (Long Buildup)

Rise in OI-Slide in Price (Short Build Up)
Slide in OI-Rise in Price (Short Covering)
Slide in OI-Slide in Price (Long Liquidation)

7. VIX – This is the volatility index. For the US markets, it is the S&P 500 VIX, which is
traded as well. For India market, it is India VIX, this index is not traded. India VIX has
ranged 10+ to about 45+. As of Feb 26th, it is 18.26 which is a 8% increase over
previous day. As of March 9th, India VIX is 30.8 which is a 21% increase over previous
day.

Growing VIX indicates bearishness and high volatility. There could be violent moves
either side, but a higher VIX keeps index spot price rise in check. It's rise is helpful for
bears and fall for bulls in general.

8. Individual stocks behavior in Indices. Its important to understand individual stocks

price movement within the indices. Lets examine for NIFTY and BANKNIFTY.

a) NIFTY: This is a collection of 50 stocks across major business sectors.

Please note the key stocks Reliance, HDFC Bank, HDFC, ICICI Bank, TCS, ITC, L&T etc.,
price movements define the movement of NIFTY. Typically a change of 2% to 5% in a
major stock will be a big move.

Markets are not casino, have the discipline and knowledge to enter. Do not believe in
stock and levels tips services. They give entry levels to retail so that they or their
clients can exit. Do not take personal loans for funding capital. Do not develop a bias
for the market or trend. Respond to market moves, but do not predict, trade and pray.

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Let's calculate: Lets say, HDFC Bank moves up by 2% on a good day. That itself can
push NIFTY up by 25 points. Assuming 1 lot 75 Qty, that translates to 75*25 =
Rs. 1875 which is more than the CMP of HDFC Bank of Rs. 1193.

That is the power of options and heavy weight stocks like HDFC, Reliance etc. Also to be
noted is that due to sectoral rotation, there will be some sectors which rise in prices,
and some which fall, some day. So it’s the overall blended effect that matters.

Following is the movement of NIFTY over the years:

b) NIFTY BANK: The NIFTY Bank Index comprises of the most liquid and large Indian
Banking stocks. The Index comprises of maximum 12 bank companies listed on the
NSE.

A similar 2% increase in price of HDFC Bank can lead to a 165 point increase in NIFTY
BANK at CMP of 30500. Of all the sectoral indices, NIFTYBANK has given better returns
since inception and is highly liquid and indicative of Indian economy, hence Siva’s
preference to NIFTYBANK for trading options.

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The below chart shows the movement of BANKNIFTY over the years.

So the best way to analyze indices is through its constituent companies and their
growth or fall in % terms and their impact on the index. Quarterly results, positive or
negative news , of economy or government decisions, RBI rate changes etc., can
trigger rallies or risk offs or breakdowns.

This analysis completes the step 1 of the trading preparation. Next step is to PLAN for
the trading session.

It's a Myth that only Option Sellers make money. Option Buyers have limited risk. In
Scalping, Enter and Exit in few minutes or max 10 minutes. Do more trades depending
on your setup and entry/exit criteria. Leverage is not important. Platform and
Techniques are important.Take test trades (with less quantity - 1 lot) to check whether
your understanding is correct.

PLAN
Once we are prepared, now let’s plan for the trading session. We need to have a setup
with the right tool, trading platform and chart setup. Siva recommends TradeSmart
3999 Plan with NEST desktop version for trading (details in Annexure). It is also
strongly suggested to use Siva’s Option Scalping tool with its dashboard and OI
analysis sheets which shows cross overs and change in OI/Price movements of Call and
Put options.

For charting of BankNifty futures or Nifty futures, any tool with the below settings is
recommended, explained individually, item wise.

a) RSI (Relative Strength Index, 14): Setting: 20 to 80. RSI indicates the strength for an
up move or downmove. RSI indicates the momentum and is an oscillator.

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b) Open Interest: OI indicates the interest among buyers or sellers on either side. The
important metric is change in OI which is useful for determining the movement of the
underlying price (futures or spot). Open Interest could include OI of weekly expiry /
monthly expiry etc. The important numbers to track are around 500k+ to 1.5mn+ OI
and changes to OI.

Kite by Zerodha or Chartink or Tradingview are some good options for charting.

c) SuperTrend: Setting 10,2 for 3 min time frame. SuperTrend is a trend-following

indicator . On the chart, its easy to identify as a vertical multiple green arrows up or
vertical multiple red arrows down. Its important not to blindly follow SuperTrend as it
needs to be correlated with RSI, Volume and Followup candles. There could be false
breakouts and false breakdowns.

Tip:
In a trending or sideways move, the first time price candle wick hits
SuperTrend line, it takes support ( while falling) / resistance (while going up)
accordingly.

d) VWAP: Volume Weighted Average Price is the ratio of the value traded to total
volume traded over a particular time horizon (usually one day). VWAP is similar to a
moving average in that when price is above VWAP, prices are rising and when price is
below VWAP, prices are falling.

Tip:
VWAP is a lagging indicator. For charting at 915am or in the first few hours, analyze
using previous day’s VWAP and not the current days VWAP. This is required to
eliminate any bias due to current days VWAP line.

e) Volume: For NiftyBank a volume of 50k and for Nifty, a volume of 100k is decisive
per candle. Also important is the 2nd followup candle to indicate trend and direction
confirmation. Without followup candles, there could be false breakouts. Advanced
technical analysis on candles is out of scope for this document.

f) Parabolic SAR: (PSAR) Setting 0.02, 0.2 The parabolic stop and reverse (PSAR)
indicator Is a tool to find price reversals which can be utilized as stop-loss levels as well
as trade triggers. The indicator is composed of a series of dots, either above or below
the price. When dots move from below to above the price bars, it is time to get out of
longs or get short.

Tip:
The more gap between the PSAR dots and the price, the more is the scope for making
money, upside and downside. Consider this gap with the SuperTrend and VWAP lines.

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Candle Stick Patterns

Candlestick patterns are beyond the scope of this document but a collection of candle
stick patterns for general idea is given below.

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Tip:
OI data is GOD, learn the interpretation well and use the Option Scalping tool.
See the levels where writers are busy. Check levels ITM or ATM for entry.
Sideways market is good for trading as you can understand the levels better
with support and resistance, levels between VWAP-SuperTrend etc.

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How to select strike for trading ?

In the option chain, select strike prices near the max pain area (where the spot price is
hovering). Range will be 3 strikes above and below. Keep a 500 point broad range to
analyse OI and IVs. On expiry days, it is suggested to trade in ITMs. On other days, can
take OTM (only with conviction) or ATM, depending on anticipation of events or trends.
Usually trades between VWAP and SuperTrend range can be executed but this cannot
be taken in isolation.
What is a good price for an option ?
For CALL: Spot – Strike
Let’s assume, BankNifty Spot is 30080 and 30000 CE price is at 150. Actually the price
of the call option should be 80, but as it is at 150, it is overvalued (Premium is high). If
we buy the call option at 150, then we would need more than 100 point bounce to
Break even Point (BEP). Writers like these over-valued strikes for premium erosion.

For PUT: Strike – Spot

Let’s assume, BankNifty Spot is 30080 and 30100PE price is at 20. This option price is
priced just about right and there is no premium left for writers to write or for premium
erosion. Hence, writers may not be interested for adding volumes in this strike price,
BUT dependent on Spot price movements.

More information:
https://www.investopedia.com/articles/active-trading/021014/options-basics-how-
pick-right-strike-price.asp

Implied Volatility (IVs)

Implied volatility is a metric that captures the market's view of the likelihood of changes
in a given option's price. It shows the market's opinion of the option's potential moves,
but it doesn't forecast direction. If the implied volatility is high, the market thinks the
option has potential for large price swings in either direction, just as low IV implies the
option will not move as much by option expiration.

For more information:

https://www.investopedia.com/ask/answers/062415/how-does-implied-volatility-
impact-pricing-options.asp

Tip:
Tuesdays and Wednesdays post 2PM, IVs tend to be higher, so ITMs are better to
trade. IVs play an important role in expiry and writers need premium, if premium is not
interesting, writers will not be interested. Also keep a tab on the adjusted close prices
of the options.

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OI Spurts
Previously we detailed the 4 scenarios of OI spurts. To repeat,

Rise in OI - Rise in Price (Long Buildup),

Rise in OI - Slide in Price (Short Build Up),
Slide in OI - Rise in Price (Short Covering),
Slide in OI - Slide in Price (Long Liquidation).

Source for the below section is from Zerodha Varsity. Thanks to Zerodha.

The following tables summarizes the trader’s perspective with respect to changes in
volume and prices.

Unlike volumes, the change in Open interest does not really convey any directional
view on markets. However, it does give a sense of strength between bullish and
bearish positions. The following tables summarizes the trader’s perspective with
respect to changes in the OI and prices.

Do note, if there is an abnormally high OI backed by a rapid increase or decrease in

prices then be cautious. This situation simply means that there is a lot of euphoria and
leverage being built up in the market. In situations like this, even a small trigger could
lead to a lot of panic in the market.

Source for the above section was from Zerodha Varsity. Thanks to Zerodha.

Tip:
Price increase and Open Interest decrease due to short covering could happen
even during liquidation. Both bears exiting and some of the bulls could be
exiting. This is different from Long Liquidation (Quadrant 4), where Price and
Open Interest both fall.

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Let's summarise the relation between Price, Volume and Open Interest now:

EXECUTE THE PLAN

Once you have formed a market view, index view, constituent stocks view, strike prices
identification and chart setup, its time to execute the plans.The scenarios could be:

1. Gap-Up: Based on a positive news post market, the market could open higher, its
known in the pre-open rates at 9:09AM. Usually, unless the news is strong and RSI and
Volumes are strong, there could be a sell off at the highs, also known as ‘Sell
on Rise’. Please note, intra day high, previous day high, previous day low, and
previous day’s VWAP for the first 2 hours of trading.

2. Gap-Down: Based on a negative news post market, the market could open lower and
unless the news is strong (negative) and RSI is low and volumes are weak, there could
be a pull back. This is also known as 'Buy on Dip'. Watch related indices and
stock prices for correlating the moves.

3. Trend Day: A clear up side or downside move consistently giving new highs or new
lows every 15mins or 30mins is a trend day.

4. Sideways Day: A range bound movement with alternating SuperTrend, VWAP and
PSAR is a rangebound side ways trading day. There could be a zone where there could
be a sell off or a breakout during the day. A perfect day for the well trained option buyer.

Tip:
When in doubt, do not trade. When your profit target is reached, do not trade. Do not
be a compulsive trader. Place limit orders and trail the stop loss for profits. Please do
not carry overnight positions unless you are a positional trader. Option Buying with
overnight positions is injurious to your wealth and stressful to your health.

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PLAN FOR WEEKLY EXPIRY

For Thursday Weekly Expiry, we have to analyze the max pain strikes in the option
chain and prior to that complete all the steps of ‘Prepare’ and ‘Plan’ in the Trading
Framework.

For this exercise, lets analyze the week of February 24th to February 26th for the expiry
of BankNifty February of 27th. Also please note that this week was affected by the
Corona Virus global emergence and Feb 21st was a trading holiday.
Trump visited India, there were many global cues.

First lets identify the BankNifty closing of the days (purple mark), Feb 20th, Feb 24th,
Feb 25th, Feb 26th. At a high level view, if you notice, Feb 20 to 24, Price decreased
and volume decreased, From 24 to 25, price decreased and volume decreased, from
25 to 26, price decreased, volume increased and finally from 26 to 27, price decreased
and volume increased on expiry.

February 24th – 30455, So lets look at 30400CE and 30500PE Strikes

30400CE

24th to 25th – Price decrease, OI increase – Quadrant 2 – Short Buildup

25th to 26th – Price decrease, OI increase – Quadrant 2 – Short Buildup
(Notice the almost 350% increase in OI)

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26th to 27th – What happened ? OTM expired to 10 paisa.

February 24th – 30455, So lets look at 30400CE and 30500PE Strikes

30500PE

24th to 25th – Price decrease, OI increase – Quadrant 2 – Short Buildup

25th to 26th – Price increase, OI decrease – Quadrant 3 – Short Covering and Long
Liquidation.

26th to 27th – What Happened ? Price increase and In the money(ITM) Expiry.

February 25th – 30432 - So let’s look at 30400CE and 30500PE, same analysis as
above.

February 26th – 30306 – So let’s look at 30300CE and 30400PE.

30300CE

24th to 25th – Price Decrease, OI Increase – Short Buildup Quadrant 2.

25th to 26th – Price Decrease, OI Increase – Short Buildup Quadrant 2.
27th Expiry – What Happened ? OTM Expired to 5 paisa.

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30400PE

24th to 25th – Price decrease, OI Increase – Quadrant 2 – Short Buildup.

25th to 26th – Price Increase, OI Decrease – Short Covering and Liquidation – Quadrant 3.
27th – Expiry what happened ? ITM, Price increase.

So how does the above analysis help? First we are checking the price and
volume in the historical data of the BankNifty closing and then we are
checking specific strike prices (ITM) on both the CE and PE side to perform
the analysis and make the inferences.

For monthly expiry, we have to collate all the month data. Please note that
this also includes possibilities of position rollovers hence is a complicated.

Tip:
Try to use previous day or previous session profit as stop loss. OR 10% of capital
deployed. Cut down your positions as the trading day progresses unless setup is
favorable and risk can be taken. Do not be a compulsive trader. Strengthen your
psychology and be humble when you profit and keep calm when in loss. Give back to
society - share knowledge, clear doubts of other traders.

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ANNEXURE Q&A

ABOUT SIVA
1. I want to know more about Mr. Sivakumar Jayachandran. Any links to Bio?
2. Why Siva doesn’t trade equity stocks cash segment ?
3. What are Siva’s after trading hobbies ?

ABOUT TRAINING
4. Where can I get recording of Siva’s webinars ?
5. Is Tradesmart account mandatory ? Can we trade with our app of choice?
6. How to join / migrate to Tradesmart Rs. 3999/month plan ?
7. How does brokerage matter ?
8. I want to join Siva’s next paid webinar. How can I ?
9. I want to join Siva’s next free webinar. How can I ?
10. What will I learn in the webinars ?
11. Can I talk directly with Siva ?

ABOUT TRADING
12. I am a newbie / beginner in trading. Where should I start ?
13. I want to understand option scalping strategy ?
14. I heard option selling is more profitable than option buying. Is it correct ?
15. Which equity derivatives and equity does Siva trade ?
16. Which trading App should I use for Option Trading / Scalping ?
17. How do I get world view and India view before trade begins ?
18. How do I get the automated OI sheet for BANKNIFTY AND NIFTY?
19. What are the common settings for indicators / oscillators in the charts ?
20. What should be my stop loss ?
21. How much capital should I set aside for Option Trading ?
22. How much capital should I use for trading each day?
23. How many computer systems and screens I should have ? What is Siva's system
setup?

ABOUT PSYCHOLOGY OF TRADER

24. I have lot of loans and need money quickly to repay EMIs. What should be my
approach ?
25. When should I not trade ?
26. When should I stop trade ?

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1. I want to know more about Mr. Sivakumar Jayachandran. Any links to Bio?

Originally from Chennai, and based out of Bangalore, Mr. Sivakumar Jayachandran
(Siva) studied hotel management and pursued his passion in the Healthcare I.T
Industry, setup a BPO and then exited with 4x multiple (300% growth for investors). Siva
then turned towards the India equity market as the next growth story and after initial
setbacks, has not looked back since. Please read the full interview at CNBC:

https://www.cnbctv18.com/entrepreneurship/sivakumar-jayachandran-journey-of-a-
bpo-employee-to-a-star-trader-4484421.htm

Mobile: 7829061536 (WhatsApp)

Twitter: @justsiva123
Telegram: t.me/OptionsScalping

2. Why Siva doesn’t trade equity stocks cash segment ?

Siva opines that NIFTY or the broad Indian equities have high price earnings multiples
and are not in investment range. Once the PEs are attractive, he may consider
investments. Siva currently invests in a bit of gold and real estate. Readers can have a
bird’s eye view of NIFTY PE at the following link:

https://nifty-pe-ratio.com/

3. What are Siva’s after trading hobbies ?

Siva is just like any normal person after trading / office hours. Loves to travel, listen to
music and goes for long drives in weekends in his favorite BMW / JEEP SUV on the
interstate.

4. Where can I get recording of Siva’s webinars ?

No, you cannot get recording of his webinars, as his webinars are never recorded. As
Siva shares his desktop and trading terminals with personal information, recording
of webinars is not provided. Any screen recording of webinars by participants(whether
paid or free) is prohibited and is against the spirit of training. Please respect Siva’s
viewpoint in this regard. No recordings please.

5. Is Tradesmart account mandatory ? Can we trade with our app of choice?

You can trade with any app of any platform of your choice. Tradesmart is not
mandatory. However Siva opines that Tradesmart has better support, customer service
and the technical strength to handle robust trading with very less downtime. If you are
desirous of opening an account with Tradesmart, please click the following link for Rs.
15/order plan. https://tradesmartonline.in/?referrer_id=YKAS146 and then migrate to
the Rs. 3999 plan if you are a heavy trader.

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6, How to join / migrate to Tradesmart Rs. 3999/month plan ?

First you have to open a regular trading account with TradeSmart with the link / referral
ID as above (Ans 5.)

Then, You can migrate to the 3999/month plan from 15/order plan by sending an email
to support@vnsfin.com and cc Options.Scalper123@gmail.com with the following
message in the body of the email and NOT as attachment.

Request for Change of Brokerage plan

To
VNS Finance & Capital Services Ltd
401-402, A Wing, Mangalya, Marol Maroshi Road,
Near Marol Fire Station,
Andheri East, Mumbai
400 059.

Sub: Request for change of Brokerage Plan for Client ID________________

I, ______________________________ having internet trading account with you for

NSE/BSE with Unique Client Code: __________ do wish to change my brokerage plan
as given below:

Please do the needful.

Yours Faithfully,

Client’s Name
Client’s VNS Unique Client Code: _____________

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7. How does brokerage matter ?

Every trader should keep in mind before choosing a broker and these are the key
parameters someone should pre-check before opening up a trading account

First and the fore most is the software and the comfort of working on the same with
ease
Most of the traders get mis-guided by the huge margins being provided but again
trading on huge margins probability losing out the capital quick
How much we pay for each trade is more important as it directly impacts the profit -
most importantly paying brokerage from profits are OK but imagine paying high
brokerage even on losses
Many don’t even look at the contract notes every day
If the broker provides an APP as we may trade at times on the move too
Also one should check if they have call and trade facility
Capacity - there are a few brokers with huge customer base always has a problem
on big days and that’s where we get chances to make big money. Also as they have
huge customer base most of the times it gets slower when loaded fully.
Some brokers do not allow to pick OTM strikes , which again making huge profits
through those calls gets affected

There are people who pay even 150 Rs for buying options per lot, god knows how
they make profits. Also a few people say they pay a 0.7% and if they look
at the contract note , they will know how much they spend out.

Though I have about 7 to 8 brokers , I have always used Trade Smart as my primary
broker which is not only cost effective but also very much user friendly. Most of the
traders just to avoid brokerage , instead of pyramiding at bottoms or tops , they buy at
one go just to avoid small brokerages. A retail trader on my experience trades about 10
to 15 entries. Even 10 entries 10 * 20rs per day. 200rs * 22trading days is easy 4500.

In the unlimited 3999 plan u can trade as many as you, Be Smart and Trade Smart...

8. I want to join Siva’s next paid webinar. How can I ?

Please keep following the Telegram channel for the dates and process for enrolment.
Seats get filled fast, usually 2-3 weeks before the actual date of the webinar.

9. I want to join Siva’s next free webinar. How can I ?

Please keep following the Telegram channel for the dates and process for enrolment.
Seats get filled fast, usually 3 weeks before the actual date of the webinar.

10. What will I learn in the webinars ?

How to trade, how to place trailing SL, charts, how to read OI, when to take trade and
not to take. How to trade on expiry days etc..

11. Can I talk directly with Siva ?

Yes, you can message him at the details given above and call with prior information
and approval of time. Please respect Siva’s time for phone calls and the best way to
reach him is to DM on Telegram or WhatsApp.

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12. I am a newbie / beginner in trading. Where should I start ?

Start your understanding by following the index charts and price movement on the
option chain excel sheet or on the NSE India website. Trade only in 1 lot until you
understand movement of call and put premiums. Understand weekly expiry and
monthly expiry.

13. I want to understand options scalping strategy ?

Options Scalping is a quick entry and exit strategy usually within minutes of price
movement in the intended direction and involves option buying either Call side
or Put side. This strategy is primed for Option Buying and not Option Selling.

14. I heard option selling is more profitable than option buying. Is it correct ?
Option Buying does not have the obligation to buy or deliver stocks. Hence the loss,
if any is limited to the premium paid. Option Selling is a different science / art,
and requires its own setup. Siva recommends Option Buying as a trading system
(Calls or Puts). Option Buying enables to make money quickly whichever direction the
underlying asset price (BankNifty Spot) moves. The risk benefit tradeoff in Option
Buying is a better profile than in Option Selling.

15. Which equity derivatives and equity does Siva trade ?

Siva trades in BankNifty as it offers the liquidity and price movement (volatility)
required for trading. Also BankNifty reflects the core banking sector of Indian
economy, hence moves well with external events and Macro / Micro economy
trends.

16. Which trading App should I use for Option Trading / Scalping ?
You can use any trading app from any broker, however Siva recommends TradeSmart.
You can get preferential and exclusive priced plans with Siva referral. Please refer ‘Why
Brokerage Matters’ question answer above.

17. How do I get world view and India view before trade begins ?

Visit investing.com, Bloomberg.com, NSE India Option Chain data etc.

Links below:

• https://chartink.com/stocks/banknifty.html
• https://in.investing.com/indices/indices-futures
• https://www.nseindia.com/products/content/equities/equities/oi_spurts.htm
• https://www.bloomberg.com/asia
• https://www.moneycontrol.com/
• https://nifty-pe-ratio.com/

https://www.nseindia.com/live_market/dynaContent/live_watch/option_chain/optionKeys.jsp?
symbolCode=-9999&symbol=BANKNIFTY&symbol=BANKNIFTY&instrument=OPTIDX&date=-
&segmentLink=17&segmentLink=17

18. How do I get the automated OI sheet for BANKNIFTY AND NIFTY?
Download the latest updated sheet from this telegram link.
(https://t.me/c/1469090377/37737 (link will work only for telegram members)

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19. What are the common settings for indicators / oscillators in the charts ?
Please refer image below for chart settings in Kite of Zerodha.

20. What should be my stop loss ?

Siva’s recommendation for Stop Loss is previous day’s profit on an overall basis for the
day.

21. How much capital should I set aside for Option Trading ?
You can trade with minimum 10000 INR, but 1lakh is recommended.

22. How much trading capital should I use for trading each day?
One third of your original capital should be used maximum for trades each day.

23. How many computer systems and screens I should have ? What is Siva's
system setup?
As long as you are able to track charts and enter orders in the NEST trading terminal, it
is fine. No need to have fancy 4-6 screens, powerful desktops. However i5 / i7 is
recommended. Siva utilizes three i5 and i7 systems (desktop and laptops) and
mobile app clients for trading on the move.

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24. I have lot of loans, need money quickly to repay EMIs. What should be my
approach ?
Just like any other vocation, trading also needs study and practice, there are no
shortcuts. However instead of investing directly in equities, taking a low risk method of
trading in options and that too option buying may be an attractive option for gains over
a period of two to three quarters. Siva took almost 7-10 years to be profitable at a
sustainable consistent level.

You have to learn well, practice well and try to be disciplined to exit trades without
greed and repeat the cycle. Try to achieve consistent trading results and efficiency.
There are no shortcuts, learn one setup / one strategy well and practice it with 1 or 2
lots and then grow into bigger lots.

For your financial advisory, please consult with a SEBI registered financial advisor
or a certified financial planner.

25. When should I not trade ?

When there is sideways movement, when indicators are giving false signals, when
momentum is huge due to unexpected external events or announcements. There is a
risk of capital erosion.

26. When should I stop trade ?

When you reach your target profit for the day.

ALL THE BEST

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