What a coincidence today. I was in a trade with the intention of zero to hero. Brought Nifty 18450 CE at the start of the day when it will trading at 2.65₹. Now after the quick rally that market gave in the last minutes, made my 18450 CE end at 34₹.. Roughly I made a profit of 1450 per lot, i just entered with very less quantity. My total quantity was 100 in nifty. So ending my day good, because if i would loss i would have lost only 300 rupees. Zero to hero works but not every time. If you are not sure the about the market. Try not to enter the market with heavy quantity, just enter the quantity you feel it will not matter if you even loss the trade! I hope you understood what i am trying to say.
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As the name suggests, it's a gamble in a way. People buy options at very low premiums, close to expiry, hoping it to expire ITM.
If you're lucky and market moves in your favour then that low premium option can or might generate 100% or 200% or even a lot higher returns, there by it becoming HERO. Or else it would completely decay and become ZERO.
Never ever try this without the in depth knowledge of market & option greeks behaviour. And also never invest a great sum or all of your capital in a ZERO - HERO game. I suggest to never buy more than 2 lots, that too at a very low premium.
I hope you know that in options, sellers have a advantage to buyers and mostly they win. But, closer to the expiry is the only time when they are at disadvantage. Trade responsibly and do your due diligence before taking a trade.
Zero to Hero options strategy - the term itself tells us that you will have to select a strike price and wait for it to either be Zero or Hero.
Things to note while you take up Zero to Hero challenge
- Only take up Zero to Hero on a expiry day
- You have to buy an option rather then selling the option.
- Do not buy an contact value more than 500 - 600 rupees.
- Only enter a trade with 2 -3 lots max.
- Target should be minimum 1:4 the contract value.
Why do Zero to hero strategy work on expiry day?
because the strike price are low when compared to other days. And, also we get to see many strike price that was trading at a very low price in the beginning of the day and by EOD, we see that the strike price of that contact is gone too high.
You can create your own strategy and work on the Zero to hero program.
I bought 5L worth bharat bond ETF and I pledge them. After 6% haircut, I will get 4.7L margin. There are 4 days for the ... 4K from my bank account for MTM loss?