Option Selling Made Easy: Learn CPR, Supertrend, Credit Spread Strategy with Vineet Mehra

In the video, Vineet Mehra discusses his option selling strategy, focusing on positional option selling on indices and credit spread options. Mehra explains that 70-75% of his trades are positional option selling, and 20-25% are intraday option selling. He emphasizes the importance of having a clear trading strategy and shares his use of the central pivot range (CPR) and super trend indicator. Mehra also explains the benefits of credit spread options, which offer a net credit of premium and the advantage of theta decay.

He provides an example of a credit spread strategy's performance, revealing it was profitable in 69.5% of the back-tested weeks, with an average return of 1.25% per week and an average weekly loss of 3%. Mehra also shares his rules for not taking trades, specifically focusing on the CPR strategy, and discusses the importance of risk management and understanding market dynamics.

Vineet Mehra discusses his bread-and-butter strategy for option selling, which involves using the central pivot range (CPR) and the super trend indicator. He clarifies that he is not only backtesting but also actively trading this strategy, aiming for a return of 30-35% per year. The CPR is calculated using the weekly high, low, and close, and it consists of a pivot, top pivot, bottom pivot, and resistance (R1) and support (S1) levels.

The pivot is an essential data point as it indicates the balance between buyers and sellers, and the R1 and S1 levels act as strong support and resistance levels, respectively. Mehra emphasizes the importance of understanding market dynamics and the significance of high, low, and close data points in determining these levels.

Vineet Mehra discusses a case study where they decided not to take a trade due to the price being overstretched and it being an event week. They also share their experience of learning the importance of creating a setup for trading and the value of sharing knowledge. The speaker, who has learned the strategy from Vineet Mehra, expresses gratitude for the opportunity to learn and shares his Twitter handle for those interested in connecting with him. They emphasize the importance of continuous improvement and helping others in the trading community.