1. What is an iron fly
2. Perks and Drawbacks
3. What to do when in profit?
4. How to adjust when in loss?
5. Thread on How to keep shifting an iron fly for max credit?
6. Risk-free trades benefits
Let's dive in ↓
The most valuable hedging strategy you aren't using:
The IRON FLY STRATEGY.
Knowing how to use it will protect you from gaps and intraday spikes and 10x your hedging experience.
Here's the step-by-step guide:
Collaborated with @niki_poojary
1. What is an iron fly
2. Perks and Drawbacks
3. What to do when in profit?
4. How to adjust when in loss?
5. Thread on How to keep shifting an iron fly for max credit?
6. Risk-free trades benefits
Let's dive in ↓
Sell ATM CE and PE (Short straddle)
Buy OTM CE and PE (Hedge it by buying on both sides)
Look at the picture below for an example of an iron fly in current weekly options.
Many traders want to receive maximum theta or max credit.
This is why they sell straddles.
But straddles have unlimited risk in them, and can't handle gaps or intraday spikes.
This is why traders like knowing the maximum loss in their trades.
Low capital required—Possible to buy first, sell later
Limit losses—Know your maximum loss upfront
Adjustments—Can reduce losses to zero or almost nothing
Weekly earnings—Possible on a weekly basis
Jackpot—Potential for a jackpot if it expires in middle
Low Probability—If you want a low max loss, the probability is less than 30%
Higher Brokerage costs—Since there are 4 legs and then you will add 3-4 more to adjust costs will be higher
Slippages—Want to free margin from itm strikes, slippages are high
Apply price action and combine your strategy along with your view and technical analysis.
If good in technicals, then can increase the odds of success.
This will fetch you more money than blindly selling iron flies every week.
Technicals increase ROI.
When in profit usually, traders square off their buy legs and buy 1-2 strikes closer.
The aim is to—make the maximum losses even lower than when you started the trade.
Once this is very low, can even stay in the trade for a jackpot.
Since the initial range is small, when in loss, traders want to extend the range of the fly.
They pump in more capital and open another iron fly or a broken wing fly (buy just one side and not two like iron fly).
This way the payoff becomes better.
There are multiple ways for different scenarios.
Very good content on Youtube regarding this.
I will have to do another thread on just the adjustments.
I already mentioned that if you are good at technicals you can use iron fly to have a very good risk-reward trade on your hands.
For eg, in the current week, if your view was bullish instead of selling ATM straddles, you sold 4-5 few strikes above ATM.
I found good content about them on @kapildhama Bhai & @SarangSood Sir's handles.
Both have been extensively doing iron flies for a few years.
Also attached Nitin Kamath's article on trading via strategies.
Shows you how to adjust an iron fly.
Intuitively understand what you are doing.
(@SarangSood)
https://t.co/S6r5IXy3dP
THREAD ON IRONFLY
— Sarang Sood (@SarangSood) December 12, 2020
These days the most preferred strategy for option sellers due to improved margins is IRONFLY. It's essentially a short straddle with long strangle. Long strangle acting as 'WINGS', which help in capping the unlimited risk associated with a short straddle.(1/n)
Can wait for a jackpot
Avoid getting out early with small profits, he believes if you book the strategy out fully in small profits
over the long run hard to make money
as we take full losses when wrong.
(@kapildhama)
https://t.co/RcSwZBknZh
Thread on Iron fly\U0001f447
— Kapil Dhama \U0001f1ee\U0001f1f3 (@kapildhama) August 19, 2021
Many people ask me what is the benefit if we make Iron Fly loss free
last week we made a 35900 Iron fly, and market closed at 35500, if we didn\u2019t make if loss free then we would get max 50 points and if market fall below 35500 then we will book loss
(1/4) pic.twitter.com/8wQ1uO7zCb
I asked @SarangSood Sir a question, he used to sell an iron fly before expiry day every week.
Good pointers from him and @kapildhama Bhai.
Can read this thread for their answers.
https://t.co/p28hU5LgIS
Why do you sell an iron fly every Wednesday? What are the perks of doing it versus selling naked?
— Aditya Todmal (@AdityaTodmal) August 29, 2020
I sell strangles 99% of the time. No hedge.
Which one is a better strategy to make more money on Thursday opening? @SarangSood
Sell next week straddles as they will have huge premiums.
Buy current week options to hedge them as they will be very cheap.
If anywhere near the center can make good money.
(@kapildhama)
(@shubham_quant)
https://t.co/k1GRkq1BCM
Even he has suggested trading through strategies keeps traders profitable over the longer run.
(@Nithin0dha)
https://t.co/qq5hePi9Ue
If you enjoyed this thread:
1. Follow us @AdityaTodmal & @niki_poojary for more of these
2. RT to share this thread with your audience
Here's another thread we think you'd like:
https://t.co/SrfYWVaLt7
12 TRADING SETUPS used by professional traders:\U0001f9f5
— Aditya Todmal (@AdityaTodmal) June 25, 2022
Collaborated with @niki_poojary
More from Aditya Todmal
I gathered the 38 best screeners from @YMehta_
Save 100+ hours researching.
A thread:
Collaborated with @niki_poojary
10 Free Candlestick Pattern
Top 9 Price Action-based
7 Strategies with their
4 Investment Strategies with their
Save 100+ hours researching.
A thread:
Collaborated with @niki_poojary
10 Free Candlestick Pattern
Screeners helps trader in saving lot of time in filtering best stocks out of 5000+ stocks listed.
— Yash Mehta (@YMehta_) October 28, 2022
Here is the list of top 10 Free Candlestick Pattern based screeners that I use:
Also, last two screeners are my favorite to pick early momentum stocks.
Top 9 Price Action-based
Screeners helps trader in saving lot of time in filtering best stocks out of 1000+ stocks listed.
— Yash Mehta (@YMehta_) September 16, 2022
Here is the list of top 9 Free Price Action based screeners that I use:
Also, last screener is my favorite to pick early momentum stocks.
7 Strategies with their
Screeners helps trader in saving lot of time in filtering best stocks out of 5000+ listed stocks.
— Yash Mehta (@YMehta_) December 9, 2022
Here is the list of top 7 Free Strategy and its respective screeners that I use:
Also, last screener is my favorite to pick early momentum stocks.
4 Investment Strategies with their
There are so many investment strategies, still hardly anyone creates long term wealth in stocks.
— Yash Mehta (@YMehta_) November 25, 2022
Sharing 4 Investment Strategies based on Technical Analysis and Screeners for free (sold as a \u20b9 50,000 course!).
Shared a bonus trading strategy at the end.
A thread \U0001f9f5:
More from Optionslearnings
DJ SIR THREAD
Great video with points helpful for beginners.
Made 4 threads on DJ Sir with the help of @niki_poojary
1. Selecting strikes to trade in with risk management.
2. How he took some aggressive trades.
3. Multiple charts analysis for intraday trading.
4. Trade Setup
Attaching all threads made on DJ Sir. After watching the video you can refer to this tweet for notes about his strategy and learn a few other ideas.
Compiling these together for easy access to his knowledge.
1. Selecting strikes and risk
2. Going aggressive with help of data and
3. Intraday
Great video with points helpful for beginners.
Made 4 threads on DJ Sir with the help of @niki_poojary
1. Selecting strikes to trade in with risk management.
2. How he took some aggressive trades.
3. Multiple charts analysis for intraday trading.
4. Trade Setup
https://t.co/Ngoc5bh906 Thank Mahek bhai for making this video basis my set up which i have been following since past 2 yr I\u2019m not promoting this software, neither I 'll gain any referral if anyone subscribes for this software ,Purpose is to share help fellow traders!\U0001f60a
— itrade(DJ) (@ITRADE191) September 5, 2021
Attaching all threads made on DJ Sir. After watching the video you can refer to this tweet for notes about his strategy and learn a few other ideas.
Compiling these together for easy access to his knowledge.
1. Selecting strikes and risk
5. A THREAD on . . . .
— Aditya Todmal (@AdityaTodmal) July 11, 2021
How @ITRADE191 selects strikes to trade in and how he follows risk management.
Short thread explained via pictures with the help of @niki_poojary.https://t.co/YiYYaIReNS
2. Going aggressive with help of data and
6. Thread on how @ITRADE191 made 3 lakhs in 2 days.
— Aditya Todmal (@AdityaTodmal) July 11, 2021
You will need:
1. Pivots
2. Vwap
3. PDL/PDH (Previous day high/low)
4. Advance/Decline Ratio.https://t.co/o9tLOaLpEh
3. Intraday
7. DJ @ITRADE191 multiple chart analysis for INTRADAY TRADING.
— Aditya Todmal (@AdityaTodmal) July 11, 2021
1. Core setup
2. Pivot points trades
3. PDH/PDL trades
4. Open interest addictions combined with rejections on charts.
5. Website to confirm biashttps://t.co/qZQCWOSisa
The most practical & effective resources on option trading comes from real traders
THREAD: Playbook on option selling to grow your knowledge & P/L account
Collaborated with @AdityaTodmal
1. Basics of Option selling
• The A,B,C,D one should be aware of before taking a plunge into option selling
2. @Mitesh_Engr Sir's process for positional option selling
3. How @Mitesh_Engr sells options on an
4. Transcript of @Mitesh_Engr Sir's “F&O Pe Charcha - Diary Of An Option
THREAD: Playbook on option selling to grow your knowledge & P/L account
Collaborated with @AdityaTodmal
1. Basics of Option selling
• The A,B,C,D one should be aware of before taking a plunge into option selling
THREAD: 14 of the best resources/topics for anyone who wants to start option selling as a career. \U0001f9f5
— Aditya Todmal (@AdityaTodmal) March 13, 2022
Collaborated with @niki_poojary
2. @Mitesh_Engr Sir's process for positional option selling
A Thread on the Boss himself @Mitesh_Engr
— Aditya Todmal (@AdityaTodmal) July 4, 2021
Mitesh Sir's Positional Option Selling 101:
\u2022 How to find direction
\u2022 Which options to sell
\u2022 How to deploy capital
\u2022 Exit criteria
\u2022 What ROI he targets weekly
\u2022 What % risk he takes
Done with the help of @niki_poojary pic.twitter.com/tcTKV02oO2
3. How @Mitesh_Engr sells options on an
Catch me if you can @Mitesh_Engr
— Nikita Poojary (@niki_poojary) July 17, 2021
Time for a\U0001f9f5
Mitesh Sir's EXPIRY Option Selling 101:
\u2022 What to look for?
\u2022 Strike Selection & Ratios
\u2022 SL mgmt
\u2022 Avoiding freezes
\u2022 Monthy Expiry
\u2022 Event days
\u2022 How he would have traded last expiry?
In collaboration with @AdityaTodmal pic.twitter.com/9uN2vQQ4hc
4. Transcript of @Mitesh_Engr Sir's “F&O Pe Charcha - Diary Of An Option
Time for a Thread\U0001f9f5On yesterday\u2019s \u201cF&O Pe Charcha - Diary Of An Option Seller\u201d with @Mitesh_Engr by @Paytm Money
— Nikita Poojary (@niki_poojary) August 1, 2021
You May Also Like
“We don’t negotiate salaries” is a negotiation tactic.
Always. No, your company is not an exception.
A tactic I don’t appreciate at all because of how unfairly it penalizes low-leverage, junior employees, and those loyal enough not to question it, but that’s negotiation for you after all. Weaponized information asymmetry.
Listen to Aditya
And by the way, you should never be worried that an offer would be withdrawn if you politely negotiate.
I have seen this happen *extremely* rarely, mostly to women, and anyway is a giant red flag. It suggests you probably didn’t want to work there.
You wish there was no negotiating so it would all be more fair? I feel you, but it’s not happening.
Instead, negotiate hard, use your privilege, and then go and share numbers with your underrepresented and underpaid colleagues. […]
Always. No, your company is not an exception.
A tactic I don’t appreciate at all because of how unfairly it penalizes low-leverage, junior employees, and those loyal enough not to question it, but that’s negotiation for you after all. Weaponized information asymmetry.
Listen to Aditya
"we don't negotiate salaries" really means "we'd prefer to negotiate massive signing bonuses and equity grants, but we'll negotiate salary if you REALLY insist" https://t.co/80k7nWAMoK
— Aditya Mukerjee, the Otterrific \U0001f3f3\ufe0f\u200d\U0001f308 (@chimeracoder) December 4, 2018
And by the way, you should never be worried that an offer would be withdrawn if you politely negotiate.
I have seen this happen *extremely* rarely, mostly to women, and anyway is a giant red flag. It suggests you probably didn’t want to work there.
You wish there was no negotiating so it would all be more fair? I feel you, but it’s not happening.
Instead, negotiate hard, use your privilege, and then go and share numbers with your underrepresented and underpaid colleagues. […]
