I receive quite a few requests on my trading style and my philosophy as a trader, though I have covered this in my tweets at different points of time, but I think let me summarise all of them in single thread.
Let’s begin
I am a directional option seller. Mostly trading in weekly bank nifty options. I do intraday trades as well but my psychology and trading style is better suited for positional trades. I am an investment banker in full time job which is very demanding (10-12 hrs)on a workday
I generally trade based on few methods/indicators as outlined below
Time frame - 30 min for trend, use 15 min for entry
Support, resistance- I like to mark daily support, resistance as well as weekly and monthly levels and observe price behaviour near these levels
Use RSI for momentum, ADX to see whether market is trending or trading, use Parabolic SAR, market profile and anchor Vwap for directional view.
My approach is simple, trade in line with bigger trend, if main trend ( daily or weekly) is bullish, I will use every dip to sell puts
I will not be selling calls against the main trend. I will sit out when market is falling. Example, when Bank nifty gap down on Wednesday, i was selling next week’s far away puts than selling calls as main trend was still bullish.