You answered it yourself ๐
Adjustment cost is way too high for bnf. Sometimes bnf does exceed nifty in vol crush, but nifty overall is more consistent.
More from Sarang Sood
This is Master thread of all the useful tweets (imo) that i have shared in the past. Going through them may provide some knowledge on options, volatility, greeks & trading psychology. Will keep updating in the future.
Thanks for following ๐
๐๐
https://t.co/PKoiCFSrXJ
FINDING EDGE IN OPTIONS
— Sarang Sood (@SarangSood) January 9, 2021
24/08/15: Nifty gap down 250 points & another 250 after that. Previous few months return gone, but since I'm quick to take my losses, was saved from ruin. Before that my only edge in option selling was adjustments & my forever edge of following PA. (1/n)
https://t.co/Qd3VpXcBlN
AN ESSENTIAL THREAD ON OPTION ADJUSTMENTS
— Sarang Sood (@SarangSood) June 8, 2020
Adjustments can be done in variety of ways & depends totally at the discretion of the trader. To get a clear mind we need to know the following:
1) What to follow,
2) How to make the adjustment,
3) When to make the adjustment. (1/5)
https://t.co/5AtqFPYFgA
THREAD ON DELTA (The most important GREEK)
— Sarang Sood (@SarangSood) January 2, 2021
Many traders don't indulge in understanding GREEKS because they think they are very complicated.
There are 4 primary greeks:
Delta
Gamma
Theta
Vega
In my experience, understanding DELTA is enough to take benefit of greeks.(1/n)
https://t.co/imMobLg7fv
My trading journey started at the age of 17. Coming from a family of professional traders it was easy to get a headstart & i quickly got accustomed to it. But at that time i didn't have a clue of what I'm getting into. I very well knew how money is made & lost in the markets(1/5)
— Sarang Sood (@SarangSood) August 1, 2020
P.S. No one specifically invented ironfly & it's adjustments. A good trader can figure it out on his own. I've been doing it on & off for yrs.
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)
@SarangSood Sarang bhai according to you what number of vix is ideal for option buyers and what is that for option sellers? And is there any common number which is ideal for both?
— Dhaval bhatt (@Dhavalb55011726) July 14, 2021
More from Trading
Complete Backtest and Indicator link
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๐ธ Max 3 Entries per day
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[2/18]
Why Monthly Option buying ?
๐ธ Less theta decay compared to weekly options
๐ธ Less Volatility
๐ธ Supertrend and MA Settings
[3/18]
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[5/18]
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Once upon a time there was a Raja named Uttฤnapฤda born of Svayambhuva Manu,1st man on earth.He had 2 beautiful wives - Suniti & Suruchi & two sons were born of them Dhruva & Uttama respectively.
#talesofkrishna https://t.co/E85MTPkF9W
Prabhu says i reside in the heart of my bhakt.
— Right Singh (@rightwingchora) December 21, 2020
Guess the event. pic.twitter.com/yFUmbfe5KL
Now Suniti was the daughter of a tribal chief while Suruchi was the daughter of a rich king. Hence Suruchi was always favored the most by Raja while Suniti was ignored. But while Suniti was gentle & kind hearted by nature Suruchi was venomous inside.
#KrishnaLeela
The story is of a time when ideally the eldest son of the king becomes the heir to the throne. Hence the sinhasan of the Raja belonged to Dhruva.This is why Suruchi who was the 2nd wife nourished poison in her heart for Dhruva as she knew her son will never get the throne.
One day when Dhruva was just 5 years old he went on to sit on his father's lap. Suruchi, the jealous queen, got enraged and shoved him away from Raja as she never wanted Raja to shower Dhruva with his fatherly affection.
Dhruva protested questioning his step mother "why can't i sit on my own father's lap?" A furious Suruchi berated him saying "only God can allow him that privilege. Go ask him"