How I Got a Dabba Trading Call–And What You Should Learn From itHello Traders!
Recently, I received a call offering high returns, zero taxes, and full flexibility — all through a so-called “private terminal.” It was none other than Dabba Trading — the illegal underbelly of India’s trading ecosystem.
Today, let’s expose how this system operates, why it's illegal, and how to protect yourself from falling into this trap.
What is Dabba Trading?
Dabba Trading is Off-Exchange Trading: You place orders on a fake/private terminal instead of NSE/BSE.
No SEBI Oversight: These trades are not reported to any regulatory authority.
No STT, GST, Stamp Duty, or Taxes: It sounds attractive but is completely illegal.
Operates in Cash Mode: Most of the time, payments and settlements are done in cash or through grey channels.
How Dabba Operators Trap Traders
High Return Promises: They assure guaranteed profits and low brokerage.
Lack of Transparency: You can't verify trades or positions with an official broker.
Fake Profit Statements: Charts and trade books can be manipulated to show profits.
Sudden Disappearances: If caught or exposed, operators can vanish overnight — with your capital.
Risks of Getting Involved
No Legal Protection: If you lose money, you can’t complain to SEBI or file a legal case.
Tax Authorities Crack Down: You may face penalties or scrutiny from IT/ED departments.
Criminal Charges: Participating knowingly can make you complicit in illegal trading.
Reputation Risk: Your name, PAN, and bank accounts can come under scanner.
Why It’s Never Worth It
Short-Term Temptation, Long-Term Damage: Even one trade in dabba can cost you years of progress.
Skill Never Grows: It’s all manipulation — no real trading psychology or discipline builds here.
You’re Feeding a Scam Ecosystem: Operators use your funds for illegal arbitrage and syndicates.
Rahul’s Tip
Whenever someone offers a shortcut in trading, ask:
“If it’s that profitable and safe, why are they calling me instead of trading themselves?”
Trust only regulated platforms. Real trading is tough — but it’s safe and scalable.
Conclusion
Dabba Trading is not smart — it’s risky, illegal, and dangerous for your career and capital.
Let’s trade the right way. Learn, evolve, and grow under proper guidance — not in the shadows.
Have you come across such offers? Share your experience so others can learn and stay safe.
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Advanced Institutions Option Trading - Part 6 Volatility Tools in Options
Understanding volatility is central to success in option trading:
🌀 Types of Volatility:
Historical Volatility (HV): Based on past prices
Implied Volatility (IV): Market’s expectation of future movement
📊 Volatility-Based Strategies:
High IV: Sell premium – strategies like Iron Condor, Credit Spreads
Low IV: Buy premium – strategies like Long Straddle, Long Call/Put
Tools like IV Rank and IV Percentile help traders choose the right strategy based on volatility regime.
Advanced Institutions Option Trading - Part 5Institutional Tools & Platforms
Bloomberg Terminal / Reuters Eikon: Institutional-grade data
FIX Protocols: For high-frequency option order routing
Quant Models: Statistical arbitrage using Python/R
Option Analytics Engines: Measure IV Skew, Smile, Surface modeling
Institutions don’t just trade options—they engineer risk-managed portfolios using AI and predictive analytics.
Option Chain Analysis for Traders
Option Chain provides a list of all available option contracts for a stock/index.
Key Elements:
Strike Prices
Call & Put Prices
Open Interest (OI)
Volume
Implied Volatility (IV)
Change in OI
Interpretation:
High OI + Rising Price = Strong Trend
IV Surge = High Volatility Expectation
PCR (Put-Call Ratio) = Market Sentiment Indicator
PCR > 1: Bearish sentiment
PCR < 1: Bullish sentiment
Advanced Institutions Option TradingFinancial Market is a marketplace where assets such as stocks, bonds, commodities, and derivatives (like options) are bought and sold.
Key components:
Equity Markets – Shares of companies
Debt Markets – Government or corporate bonds
Derivatives Market – Futures, Options
Currency and Commodity Markets
Options are financial contracts giving the buyer the right (not obligation) to buy/sell an asset at a set price before a specific date.
✅ Types of Options:
Call Option: Right to Buy
Put Option: Right to Sell
✅ Key Terminologies:
Strike Price: Agreed price to buy/sell
Premium: Cost of the option
Expiration Date: Validity of the contract
ITM/ATM/OTM: In-the-money / At-the-money / Out-of-the-money
Advanced Institutions Option Trading - Part 10Option Pricing Models
Institutions rely on theoretical models to value options precisely.
Models Used:
Black-Scholes Model: Most common for European Options
Binomial Model: For American options
Monte Carlo Simulations: For complex path-dependent options
Bachelier Model: For negative rate scenarios
These models help forecast fair value, hedge ratios, and profit probabilities.
🔹 17. Algorithmic and Quant Option Trading
Institutional desks often use automation for efficiency.
Tools & Techniques:
Python, R, C++ for strategy coding
Machine Learning for volatility prediction
Option Flow Analysis (Unusual Orders)
Real-time Gamma Exposure Mapping
Quant desks track Volga, Vanna, Charm, and other second-order Greeks for precise hedging.
Advanced Institutions Option Trading - Part 8Institutional Option Trading Strategies
Let’s dive deeper into how big players operate:
🔶 Volatility Arbitrage:
Take advantage of IV mispricing across strikes/months.
Long low IV, short high IV – Net neutral delta.
🔶 Dispersion Trading:
Buy individual stock options, short index options.
Profit from correlation divergence.
🔶 Box Spread (Synthetic Arbitrage):
Arbitrage between synthetic long/short positions.
Very low risk, used by HFT desks.
Institutions use algorithms to run thousands of such strategies in real time.
Advanced Institutions Option Trading - Part 7Time Decay (Theta) Strategies
Options lose value over time due to Theta Decay.
Strategies to Take Advantage of Theta:
Selling options (Covered Calls, Naked Puts)
Calendar Spreads
Iron Butterflies
Caution:
Theta decay accelerates as expiry nears. Option sellers must hedge their deltas to stay safe.
Risk Management in Options
Institutions and pro traders always focus on capital protection.
🔐 Techniques:
Position sizing (no more than 2-3% risk per trade)
Hedging with opposite legs or underlying
Stop-loss on premium or delta exposure
Use of Greeks for real-time adjustment
Risk management > Strategy in the long run.
Advanced Institutions Option Trading - Part 3Why Trade Options?
Hedging against portfolio loss
Leverage with limited capital
Income generation through strategies like covered calls
Directional trading using strategies like long calls or puts
Investment Strategy using Options
LEAPS (Long-Term Equity Anticipation Securities): Investing in long-term call options
Covered Calls: Generate income while holding stocks
Cash-Secured Puts: Earn premium while waiting to buy a stock at lower price
These are often used by investors to add flexibility and income to portfolios.
Advanced Institutions Option Trading - Part 4 Technical and Fundamental Analysis in Option Trading
Fundamental Analysis: Evaluate company value, earnings, sector performance
Technical Analysis: Price action, patterns, indicators like RSI, MACD
IV & HV Tools: Helps in choosing optimal strike prices based on volatility
Understanding market structure is essential for timing entries/exits in options.
Advanced Institutional Options Trading
Institutions like hedge funds, banks, and proprietary desks use options for complex strategies:
Delta Hedging: Maintain a neutral position
Portfolio Insurance: Using puts during economic downturns
Volatility Arbitrage: Capitalizing on volatility mispricing
Structured Products: Combine options with bonds or equities for customized payoff
These strategies require deep understanding of volatility surfaces, risk models, and massive capital.
Your Trading Beliefs Were Programmed by Your Past–Rewire to Win!Hello Traders!
Ever wondered why you hesitate when it's time to take a trade, or why you cut winners too early and let losers run? It's not the chart — it's your subconscious programming . Most of our trading behaviors are rooted in past beliefs , experiences, and fears that have nothing to do with the market. If you want to level up, it’s time to rewire your mindset .
How Your Past Programs Your Trading Decisions
Fear of Loss Comes from Past Mistakes: A few bad trades early in your journey can make you overly cautious or hesitant to pull the trigger.
Greed is Reinforced by Random Wins: If you got lucky once without following rules, your brain links success with shortcuts.
Self-Doubt is Learned from Past Failures: Losing streaks can make you feel like you're "not cut out" for trading — even if it’s just part of the learning curve.
Overconfidence Comes from Unconscious Bias: If you had a few back-to-back wins, your mind assumes you’re always right — which leads to overtrading.
Rewire Your Mind for Trading Success
Acknowledge Your Programming: Write down patterns you repeat (like fear at breakout or regret after booking early) — awareness is the first step.
Replace Old Beliefs with New Ones: Example: Instead of “I always mess up,” try “I follow my system and improve with each trade.”
Create a Trading Affirmation Routine: Start your day with a mental reset — “I am disciplined, focused, and I trust my setup.”
Track Emotional Triggers in a Journal: Log your trades along with emotions — it helps break subconscious habits.
Rahul’s Tip
Your subconscious doesn’t care about candlesticks — it reacts to fear, identity, and habits. Rewire your trading beliefs the same way you train a muscle: repetition, awareness, and intent.
Conclusion
The market is not your enemy — your programming might be. Every trader who succeeds rewires their belief system with discipline, patience, and constant reflection. If you keep sabotaging your success, it’s not about strategy — it’s time to upgrade your mental operating system.
What trading belief did you have to unlearn to improve your performance? Share it in the comments below!
How to Use India VIX to Size Your Positions!Hello Traders!
Position sizing is one of the most ignored aspects of trading, yet it’s what separates consistent traders from gamblers. Today, let’s talk about a powerful tool many overlook: India VIX . When used correctly, VIX helps you adjust your position size based on market volatility , keeping your risk in check and improving your win rate.
What is India VIX?
India VIX = Volatility Index: It measures the expected volatility in Nifty for the next 30 days based on options pricing.
Higher VIX = Higher Fear: A rising VIX indicates uncertainty, panic, and more wild moves.
Lower VIX = Calm Markets: A falling VIX reflects confidence, low volatility, and tight price action.
Why Position Sizing Should Depend on VIX
High VIX Days (Above 16–18): Markets are more volatile. Reduce your position size to control your stop-loss risk.
Low VIX Days (Below 12–13): Markets are calmer. You can size up slightly because expected range is tighter.
Helps Avoid Overleveraging: Using the same lot size in all volatility zones is a recipe for disaster.
Rahul’s Easy VIX-Based Sizing Rule
VIX < 13 → Normal Size
→ You can use your standard lot size, as market is stable.
VIX 13–17 → 75% Size
→ Slightly reduce position to handle range expansion.
VIX > 17 → 50% or Less
→ Market is aggressive, reduce size and tighten risk control.
Real Impact on Traders
Avoid Big Drawdowns: A good trade in high VIX can still hurt due to huge slippage or wide stop-losses.
Smoother Equity Curve: Smaller positions in wild markets help protect capital, while bigger trades on calmer days optimize returns.
Confidence to Hold Longer: You can hold with peace of mind when sizing matches market mood.
Conclusion
India VIX is not just an index — it’s a risk barometer. Use it to fine-tune your trade size, especially if you're trading options, intraday setups, or expiry-based strategies. Don’t just focus on entries — manage your size smartly and stay in the game longer!
How do you adjust your size during high volatility? Let’s discuss in the comments!
Advanced Put Call Ratio (PCR)Slide 1: Introduction to Advanced Put Call Ratio (PCR)
The Put Call Ratio (PCR) is a widely used sentiment indicator in options trading. It measures the volume or open interest of put options relative to call options. Advanced analysis of PCR helps traders gauge market sentiment—whether fear or greed is dominant—and anticipate potential reversals or continuations.
Slide 2: Basic Formula and Types
PCR Formula:
Volume-based PCR = Total Put Volume / Total Call Volume
Open Interest-based PCR = Total Put OI / Total Call OI
Interpretation:
PCR > 1: Bearish sentiment (more puts)
PCR < 1: Bullish sentiment (more calls)
Key Types:
Index PCR – NIFTY, BANKNIFTY PCR
Stock PCR – For individual stocks
Slide 3: Advanced Interpretation of PCR
1. Contrarian Indicator:
Very high PCR (e.g., >1.5): Indicates excess fear, potential reversal upward
Very low PCR (e.g., <0.6): Indicates extreme optimism, potential market correction
2. Trend Confirmation:
Stable rising PCR in uptrend = Confirmed strength
Falling PCR in downtrend = Confirmed weakness
3. Divergence Signal:
If prices rise but PCR also rises → underlying caution (hidden bearishness)
If prices fall but PCR drops → lack of fear (hidden bullishness)
Slide 4: Using PCR with Other Tools
Combine PCR with:
Volume & OI Data – To confirm trader positions
Implied Volatility (IV) – High PCR + high IV = fear-based overreaction
Support/Resistance Levels – Look for breakout confirmations
Technical Indicators – RSI, MACD, VWAP with PCR for enhanced edge
Option Trading Master class Part -6What is Option Trading?
Definition:
Options are derivative contracts that give the holder the right, but not the obligation, to buy or sell an asset at a pre-decided price within a specific timeframe.
Types of Options:
Call Option: Right to buy
Put Option: Right to sell
Option Participants:
Buyers (Holders): Limited risk, unlimited reward
Sellers (Writers): Limited reward, unlimited risk
How Options Work (With Example)
Imagine Reliance stock is trading at ₹2,500.
Call Buyer: Buys a ₹2,500 Call Option by paying ₹50 premium
Scenario A (Stock goes to ₹2,600):
Intrinsic value = ₹100
Profit = ₹100 – ₹50 = ₹50 per share
Scenario B (Stock goes to ₹2,400):
Option expires worthless
Loss = ₹50 (premium paid)
Option Trading Master class Part -7Fundamentals of Stock Investing
Types of Investors:
Value Investors: Focus on undervalued companies
Growth Investors: Target high-growth potential stocks
Dividend Investors: Prefer regular income from dividends
Research Parameters:
Earnings per Share (EPS)
Price-to-Earnings Ratio (P/E)
Return on Equity (ROE)
Debt-to-Equity Ratio
Industry Trends
Tools for Investing:
Demat and Trading Account
Research Platforms (e.g., TradingView, Screener.in)
Portfolio Tracker (e.g., Zerodha Console)
Option Trading Master classIntroduction to Investing and Option Trading
Investing and option trading are two pillars of wealth creation and risk management in modern finance. Investing focuses on long-term growth by acquiring assets that appreciate over time, while option trading involves strategic bets on price movements within a defined period using derivative contracts. Together, they offer investors a combination of growth, income, and hedging capabilities.
What is Investing?
Definition:
Investing is the process of allocating money into financial instruments (like stocks, bonds, ETFs, or real estate) with the expectation of generating a return over time.
Key Objectives:
Wealth accumulation
Passive income generation
Capital preservation
Beating inflation
Common Asset Classes:
Equity (Stocks): Ownership in companies
Fixed Income (Bonds): Lending capital to earn interest
Real Estate: Physical properties generating rental income
Mutual Funds/ETFs: Pooled investments
Commodities and Gold: Inflation hedges
Learn institutional Trading Part -5Option Buying vs Selling
Option Buyers
Pay premium
Unlimited profit, limited risk
Need strong directional movement
Option Sellers (Writers)
Receive premium
Limited profit, unlimited risk
Thrive in sideways or range-bound markets
Need deep knowledge of Greeks and risk management
6. Popular Option Trading Strategies
Beginner Strategies
Long Call/Put – Directional trades
Protective Put – Hedge stock losses
Covered Call – Generate income from holdings
Intermediate Strategies
Bull Call Spread – Buy and sell calls of different strikes
Bear Put Spread – Buy and sell puts
Straddle – Buy both call and put at same strike (high volatility)
Strangle – Buy OTM call and put (cheaper than straddle)
Advanced Strategies
Iron Condor – Neutral strategy with 4 legs
Butterfly Spread – Limited risk range strategy
Calendar Spread – Exploiting time decay differences
Ratio Spread – More contracts sold than bought
Learn institution Trading Part -3How Option Prices Move – The Greeks
Delta: Sensitivity to price change in the underlying
Gamma: Rate of change of Delta
Theta: Time decay – loss in value as expiry nears
Vega: Sensitivity to Implied Volatility (IV)
Rho: Interest rate sensitivity
Understanding Greeks helps manage risk, adjust positions, and time trades better.
4. Why Traders Choose Options
Leverage: Control large positions with limited capital
Risk Control: Limited loss in buying options
Flexibility: Multiple strategies (bullish, bearish, neutral)
Hedging: Protect existing stock portfolios
Income Generation: Through writing options like covered calls
Master class 9. Introduction to Option Trading
Options are powerful derivative instruments that give buyers the right (not obligation) to buy or sell an underlying asset at a predetermined price within a specific time. They are commonly used for hedging, speculation, and income strategies.
There are two basic types:
Call Options: Right to buy
Put Options: Right to sell
Options derive value from stocks, indices (Nifty, Bank Nifty), commodities, or currencies and are traded on platforms like NSE in India.
2. Key Terminology in Option Trading
Strike Price: Price at which the option can be exercised
Premium: Cost of buying the option
Expiry: Last day the option is valid
Lot Size: Fixed number of underlying units (e.g., 50 for Nifty)
Intrinsic Value: Real value of an option if exercised now
Time Value: Portion of premium linked to time left before expiry
ATM/ITM/OTM: At The Money, In The Money, Out of The Money – defines moneyness of options
Advanced Technical Master classMulti-Timeframe Analysis involves analyzing multiple chart timeframes (Monthly, Weekly, Daily, 4H, 1H) to confirm trend direction and improve timing accuracy.
Application:
Identify long-term trend (Monthly/Weekly)
Use Daily/4H for entry signals
Filter noise with lower timeframes
Key Tools: Moving Averages, Trendlines, MACD
Module 2: Advanced Chart Patterns
Key Patterns Covered:
Harmonic Patterns (Gartley, Bat, Crab)
Elliott Waves (Impulse & Corrective Waves)
Wyckoff Method (Accumulation/Distribution Phases)
Practical Use:
Pattern + Volume = Strong Entry
Combine with Fib levels for reversal confirmation
Module 3: Volume Price Analysis (VPA)
Core Principle:
Volume precedes price. Learn to read volume spikes, absorption, and exhaustion.
Indicators to Use:
On Balance Volume (OBV)
Volume Profile
VWAP
Institution Master class Welcome to the Institution Trading Master Class, an advanced educational module crafted for serious traders and investors who want to understand how big institutions trade, move markets, and manage risk at scale. This course blends practical market experience with strategic tools and institutional concepts.
📘 Page 1: Understanding Institutional Trading
🔹 What is Institutional Trading?
Institutional trading refers to market activities performed by large entities like:
Mutual Funds
Pension Funds
Hedge Funds
Insurance Companies
Foreign Institutional Investors (FIIs)
Rent Your Stocks Like Real Estate – Learn the SLB System!Hello Traders & Long-Term Investors!
What if I told you that you could generate passive income from your long-term stock holdings — just like renting out real estate? Welcome to the world of SLB – Securities Lending & Borrowing , a system that allows you to lend your idle stocks to traders and earn interest in return. Yet, very few investors use it to their advantage. Let’s explore how it works and how you can start using this strategy smartly.
What is the SLB System?
SLB = Securities Lending and Borrowing: It’s a regulated mechanism by NSE where investors can lend stocks to borrowers (mostly short sellers) and earn lending fees.
Tenure Based Lending: You can lend stocks for fixed durations (typically up to 12 months), and the borrower must return them after the contract ends.
Lenders Keep All Rights: Even when you lend stocks, you continue to receive dividends, bonuses, and rights issues during the tenure.
Why Use SLB? Key Benefits
Extra Income on Idle Stocks: Earn 3–12% annually (or more) as lending fees — especially in volatile or high-demand stocks.
No Need to Sell Holdings: You don’t lose ownership or long-term benefits; your stocks remain part of your portfolio.
Safe & Regulated by SEBI: SLB is managed by NSE’s clearing corporation — with collateral and proper risk management.
Zero Market Risk for Lenders: If the borrower fails to return stocks, the clearing house settles it with margin and penalties.
How to Start Using SLB as a Retail Investor
Approach Your Broker: Many brokers like Zerodha, ICICI, and HDFC offer SLB through their platform — just activate the SLB module.
Eligible Stocks Only: Not all stocks are eligible — check the NSE SLB list for approved large and mid-cap stocks.
Track Lending Rates: Lending demand changes — high-interest rates are often seen in stocks with upcoming corporate actions or high short interest.
Rahul’s Tip
Think of SLB like renting your flat in a good location — why let it sit idle when you can earn steady cash flow? Combine SLB with your long-term strategy for compounding benefits.
Conclusion
The SLB system is a game-changer for retail investors holding long-term portfolios. It allows you to generate income without exiting your positions . Just like real estate investors earn monthly rent — you can earn steady returns by lending quality stocks. Don’t let your capital sit idle — make it work smarter for you!
Have you ever used SLB? Planning to start now? Let’s discuss in the comments!
Simplified Approach to read Candlesticks -Easy Candles ~ Part 1MARKETSCOM:OIL
Introduction
⦿ Candles form the basis of chart creation and analysis.
⦿ A weak foundation can destabilise your entire structure. This thread will clarify and simplify your understanding of price candles.
I use two types of candles on charts:
1. Momentum/trending candles
2. Ranging/trading candles
Understanding these eliminates the need to memorize complex candle names (e.g., Marubozu, Harami bullish) cause every candlestick pattern is formed with combination of these 2 candels only.
Definitions:
⦿ Momentum candle: Body >50% of total size
⦿ Range candle: Body <50% of total size
Decode Momentum Candle
⦿ Only Buyers here - Clear Trend
Decode Range Candle
⦿ Both Buyers & Sellers here - No Trend
⦿ Indecision mode among participants.
⦿ Understand what major players did in the last candle to predict their next move.
⦿ Don't just memorise candle names; grasp the psychology behind them.
⦿ I'll share the levels of candle strength to elevate your candle reading.
♦️Stay tuned and follow for more educational
content.