Nikita Poojary's Threads | Buzz Chronicles

Catch me if you can @Mitesh_Engr

Time for a🧵
Mitesh Sir's EXPIRY Option Selling 101:
• What to look for?
• Strike Selection & Ratios
• SL mgmt
• Avoiding freezes
• Monthy Expiry
• Event days
• How he would have traded last expiry?

In collaboration with @AdityaTodmal

Edward de Bono says intelligence is like a🚗 Automobile

“A powerful car may be driven badly. A less powerful car may be driven well. The skill of the car driver determines how the power of the car is used.”

What @Mitesh_Engr Sir looks at for Expiry Trading:

• Technicals of BNF
• Individual Heavyweight stocks of BNF
• Support/Resistance of BNF on weekly TF
• Also has Superb SL management
• When it comes to adjustments, he is always on toes

How to Select Strikes to Sell?

• You can't sell based on premium
• Follow only trend
• Price action is best to sell on expiry day
• Never wait for the options to go to zero

Using Ratios to Sell:

• If BNF is in a range then strangles
• If breakout/ breakdown from a range then directional
• Selling 70/30 or 80/20 ratios
• 2 examples on how he used ratios

Nikita Poojary
@niki_poojary

Time for a Thread🧵On yesterday’s “F&O Pe Charcha - Diary Of An Option Seller” with @Mitesh_Engr by @Paytm Money

Why Gain/loss ratio is important that the batting average
• More than the Win Loss ratio check the total Gain /loss ratio
• If your avg loss is 1% and avg gain is +5% then even if you are losing in 7 positions and winning in 3 out of 10 still you will be net profitable

Treat Trading as a business:
• Stick to a single strategy. Eg: A restaurateur usually wouldn’t be changing his recipe on a daily basis
• Mitesh Sir only works on BO or BD strategy, as he is a versatile trader

• Any trader should atleast experience 3 scenarios i.e. bull, bear & consolidation
• Target 4% per month i.e. 48% p.a.
• Option buying requires skill, everyday there wont be huge momentum, so buying options won’t yield good results, but high chances of falling into a bad habit

Stock Selection:
• In F&O segment there are ~150 stocks
• Not everyday all stocks will move
• Only 5-7 stocks move upside or downside
• Focus only these momentum stocks
• Check which one is moving
• Range BO/BD never disappoints. BO/BD from a rectangle (consolidation)

Nikita Poojary
@niki_poojary

Sep 1, 2021, fresh month starts with a challenge i.e. introduction of Peak Margin rules by SEBI

Time for a 🧵

Lets demystify the Peak Margin rules and try to find solutions for the option sellers!

Peak Margin by SEBI:
• 100% upfront margin for intraday trades in the derivative segment
• Effectively MIS orders = NRML orders, as both will attract same margin in the derivative segment
• Minimum margin for equity intraday trades will be 20% of trade value i.e. 5X leverage

How things used to operate erstwhile?
• Until last year there were no standardization of leverage
• Brokerage firms used to offer their clients intraday leverage of 5x, 10, 15x, 20x etc. as margin reporting was done on EoD basis

• Brokerage firms were allowing customers to take intraday positions with margins far lesser than required via products like MIS, BO, CO, etc. as the positions used to get squared off before the trading hours

• Eg: If 1 lot of Nifty futures require (SPAN + exposure of) Rs. 1.1L, brokerage houses would allow to trade with just 20-30% of this amount i.e Rs. 33k

Nikita Poojary
@niki_poojary

Sep 23, 2021 - Weekly expiry, preceded by the FOMC meet and not to mention the gap up which then turned out to be a trending day

Here’s how the strangles were converted into straddles & how the positions were managed!

Time for a Thread 🧵

• Wednesday night (IST) there was an event, FOMC meet
• Markets were jittery, as they say, when US sneezes the world catches cold
• Both Dow & Nifty were weak
• All eyes were fixed on the Fed Reserve Chair Jerome Powell’s take on interest rate and the pace of asset purchases

• So didn’t wanted to get caught on the wrong side, hence on Wednesday noon Shorted a strangle
• ~700-800 points away from where the BNF was about to close i.e. 37k levels
• 37800 CE @ 43 & 37700 CE @ 34 & 36200 PE 28 & 36300 PE at 34

• On Wednesday 37K strike witnessed heavy CE & PE Open interest 2.5mn & 2mn of CE & PE writing respectively

• On Wed night, the cat was out of the bag and Mr. Powell kept interest rates at zero & continued the current pace of asset purchases
• Dow celebrated the news and on Thursday morning (weekly expiry) i.e. Sep 23, 2021 BNF opened with a gap up of ~300 points and opened at 37241

Nikita Poojary
@niki_poojary

One of the most successful stock trader with special focus on cash stocks and who has a very creative mind to look out for opportunities in dark times

Covering one of the most unique set ups: Extended moves & Reversal plays

Time for a 🧵 to learn the above from @iManasArora

What qualifies for an extended move?

30-40% move in just 5-6 days is one example of extended move

How Manas used this info to book

The stock exploded & went up as much as 63% from my price.

Closed my position entirely today!#BroTip pic.twitter.com/CRbQh3kvMM
— Manas Arora (@iManasArora) June 22, 2020

Post that the plight of the

What an extended (away from averages) move looks like!!

If you don't learn to sell into strength, be ready to give away the majority of your gains.#GLENMARK pic.twitter.com/5DsRTUaGO2
— Manas Arora (@iManasArora) June 24, 2020

Example 2: Booking profits when the stock is extended from 10WMA

10WMA =

#HIKAL

Closed remaining at 560
Reason: It is 40+% from 10wma. Super extended

Total revenue: 11R * 0.25 (size) = 2.75% on portfolio

Trade closed pic.twitter.com/YDDvhz8swT
— Manas Arora (@iManasArora) July 2, 2021

Another hack to identify extended move in a stock:

Too many green days!

Read

When you see 15 green weeks in a row, that's the end of the move. *Extended*

Simple price action analysis.#Seamecltd https://t.co/gR9xzgeb9K
— Manas Arora (@iManasArora) August 26, 2019

Nikita Poojary
@niki_poojary

Few weeks ago @Ronak_Unadkat Sir conducted an exclusive session for me & @adityatodmal to explain how he trades.

He was kind enough to share all his trade strategies and was patient enough to answer our doubts.

Thought of making a 🧵for the benefit of the larger audience here.

Sir's Option Selling Logic 🧵:
• Reversals in Intraday Option selling
• Strike Selection & SL
• Hedging for any Black Swan Event
• Positional Option selling
• Ratio Spreads
• How to manage the positions
• Capital mgmt

In collaboration with @AdityaTodmal

How to play reversals
• Always look at the chart as a starting point
• Spot the Swing low
• Sell Strikes 300-400 points below that swing low
• Buy a proper hedge

• Example on how to play reversals on Intraday
• Instead of the selling the support strike sell a bit far

• As the strike is far from the support you get enough cushion

• As soon as the SL is hit, you can exit the positions

• without your strike coming into ITM

Nikita Poojary
@niki_poojary

Undisputed champion 🏆 in option selling and undoubtedly India's best trader @Mitesh_Engr Sir

Lessons on how to trade in such difficult times from the Indian Options Conclave 3.0 by Jainam Broking Ltd

Time for a🧵

Collaborated with @AdityaTodmal

How to trade in options during high volatility i.e. India vix>22-23 ?

In the current scenario, option sellers who are deploying strangles are unable to make money

E.g.: If a trader is selling a strangle of Rs. 100 each leg then during a fast momentum on either side, one leg becomes 80 & the other one Rs. 200
So overall, the strangle seller is at a loss

Strangles & Straddles are easy to manage in low vix

During high vix, find reversals

Mitesh Sir follows 3min TF in Bank nifty futures chart

Specimen:

Nikita Poojary
@niki_poojary

In the past few months I have curated various threads🧵

For some reason, people seem to love it

Here are all of them, chronologically:

DJ Sir's set up made in collaboration with @AdityaTodmal

In this thread, I'll walk you through my set up, absorb it as much as you can.
The instrument that I trade in are Nifty (NF) options
Thanks to @AdityaTodmal @niki_poojary for contributing in making this pic.twitter.com/BrMrGydb1v
— itrade(DJ) (@ITRADE191) June 27, 2021

Nikita Poojary
@niki_poojary

I have recd a lot of queries on exactly which video did Subasish Pani taught this set up..
Folks you can check his y'days video

Although, I have learnt this extended move set up from @iManasArora 🙌

Do follow him & check his timeline for such set ups!

#BANKNIFTY
90degree upmove qualifies for abnormality, be cautious \U0001f6a8 pic.twitter.com/uyFCMpGOuR
— Nikita Poojary (@niki_poojary) November 30, 2021

I shorted the ATM CE's which Subasish Pani does, and hence I mentioned strike selection inspired by Mr. Pani!

Nikita Poojary
@niki_poojary

@AdityaTodmal Stan Weinstein's Secrets For Profiting in Bull and Bear Markets

& Mark Minervini Books

Nikita Poojary
@niki_poojary

#ICICIBANK
Bullish pennant in the making

Nikita Poojary
@niki_poojary

@Kunaljain_007 #HDFCBANK
Flag & pennant formation

Nikita Poojary
@niki_poojary

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

THREAD: 14 of the best resources/topics for anyone who wants to start option selling as a career. \U0001f9f5

Collaborated with @niki_poojary
— Aditya Todmal (@AdityaTodmal) March 13, 2022

2. @Mitesh_Engr Sir's process for positional option selling

A Thread on the Boss himself @Mitesh_Engr

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
— Aditya Todmal (@AdityaTodmal) July 4, 2021

3. How @Mitesh_Engr sells options on an

Catch me if you can @Mitesh_Engr

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
— Nikita Poojary (@niki_poojary) July 17, 2021

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

Nikita Poojary
@niki_poojary

#HDFCBANK https://t.co/jQcxQZ3K1b

#HDFCBANK
15min TF rectangle formation pic.twitter.com/vgb7DFRYrJ
— Nikita Poojary (@niki_poojary) October 13, 2021

Nikita Poojary
@niki_poojary

Mr. Rakesh Jhunjhunwala (RJ) is the richest trader & investor in India.

He's earned $6,000M or ₹45,600CRS from his best bets.

THREAD: Jhunjhunwala's 6 best trades.

Collaborated with @AdityaTodmal

1. TATA TEA

In 1986, he bought 5,000 shares at Rs 43, which rose to Rs. 143 in a span of 3 months.

Made a neat Rs. 5lacs.

2. SESA GOA (now VEDANTA)

Initially bought at Rs 28, thereafter pyramiding at Rs 35.

The stock rallied to Rs 65 in a span of 4months.

By now he had made Rs. 25lacs.

3. TATA POWER

Using the Rs. 25lacs,he bought TATA POWER at Rs. 150 and it rallied to Rs. 1000 thereby making a neat Rs. 2.5-3crs.

4. 1989's budget was a game changer for RJ.

Prior to the budget the stocks had been hammered.

RJ's hunch was the upcoming budget wont be a disappointment & hence he staked Rs. 3crs. & made Rs. 20 crs. by the end of the budget.

Nikita Poojary
@niki_poojary

𝐁𝐚𝐬𝐢𝐜𝐬 𝐨𝐟 𝐃𝐞𝐫𝐢𝐯𝐚𝐭𝐢𝐯𝐞𝐬 - 𝐏𝐚𝐫𝐭 𝐈𝐈𝐈

Topics covered:

• Moneyness of an Option

• Intrinsic value & Time value of an option

• Why Intrinsic value & time value matters

• Implied Volatility

Time for a 🧵

Curated in collaboration with
@AdityaTodmal

• Moneyness of Option contract:
• ITM option
• ATM option
• OTM option

• Intrinsic Value of an option:
• Positive payoff for the buyer

• Intrinsic value of ITM CE options = Spot- Strike

• Intrinsic value of an:
i) ITM for a CE option: Positive
ii) ATM for a CE option: Zero
• Intrinsic value is never Negative

Nikita Poojary
@niki_poojary

• A cash stock wizard, who doesn't trade the stereotype triangle, rectangle, H&S etc.

• Creative enough to look beyond the obvious

• Covering another unique set up: Rating Houses Contra Trades or as he calls it "Moody-no-so-Moody indicator"

🧵 to learn from @iManasArora

• Usually international rating agencies come with a downgrade only after a massive correction in the stock

• Similarly these rating agencies come with an upgrade report post a sharp rise in the stock

• Don't take them on face value and DYOR!

• How Ultra Bullish articles from rating/broker houses is used to dump the stock to retail

• New traders provide liquidity for BIG players to offload their stocks

#HEG

• Example 1: BofAML sees 100% rise

• Read this thread to know in detail

Next 2-4 weeks are crucial for #HEG. If it does not hold up the current level plus minus 5%, there will be an 80% chance of a 20% drop which could extend to up to 50% drop.

News based rally on a low volume could turn into a classic case of late stage base fail. pic.twitter.com/eh3ncaSxoy
— Manas Arora (@iManasArora) October 19, 2018

Nikita Poojary
@niki_poojary

7 effective trading journal tools that you can use to make better decisions (instead of just maintaining a trading journal):🧵

Collaborated with @AdityaTodmal

Lets start with the harsh truth.

80% of traders just maintain a trading journal and never evaluate.

Recording your trades on day-to-day basis is just maintaining a trade book which your broker can furnish anytime.

Hence this exercise of recording trades is simply futile.

Things to record in the Trading Journal:

1.Long/ Short
2. Symbol
3. Qty
4. Buy Date
5. Buy price
6. Sell Date
7. Sell price
8. Profit/Loss
9. SL
10. % of cap risked
11.RoI %
12.RoCE %
13.Days held
14.R/R
15.Set up used

Once all the records are in place you need to build an analytics tool.

Trade records on its own is just the raw data which needs to be processed to derive info out of it.

Record your 50 or 100 trades.

Thereafter, analyse the following:

1. No. of wins
2. No. of Losses
3. % of winning trades ( No. of wins/Total trades)
4. Avg gain %
5. Avg loss %
6. Gain to Loss ratio ( 4./5.)
7. Reward to Risk ratio
8. Open Risk

Nikita Poojary
@niki_poojary

Over 5 million people trade with @zerodhaonline

But ~90% don't know how to use their charting software optimally

Here are the 7 cool things you can do which you never knew 🧵

Collaborated with @AdityaTodmal

Many traders love @tradingview charting tool, but don't have a paid version/too lazy to follow the hacks that we shared

Traders who use @zerodhaonline as their broker platform can use @tradingview charting tool for free

Read this entire thread to know more

First things first, the default charting tool in Zerodha is ChartIQ

Change that to @tradingview by clicking on the profile settings

1. How to add indicators?

Open a blank chart & thereafter click on indicators to add whichever indicators you wish to add

2. How to customize further within an indicator?

For further settings within any indicator simply select the tool settings icon

Nikita Poojary
@niki_poojary

#BANKNIFTY

Look how it took support of the upward sloping black trendline https://t.co/mhqkIzBkQN

#BANKNIFTY

\U0001d403\U0001d41a\U0001d422\U0001d425\U0001d432 \U0001d413\U0001d405: 38855 is the BO level on daily TF which was taken out on Feb 2 & if BNF sustains above 39500 level in the coming week then we can see a fresh leg of upmove

Formation of rising wedge i.e. HH & HL pattern

S/R on daily mentioned pic.twitter.com/liaqfEezkW
— Nikita Poojary (@niki_poojary) February 6, 2022

Authors Nikita Poojary