Authors Nikita Poojary

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Nikita Poojary
Nikita Poojary
@niki_poojary
Thread: Free Options Trading Course for Beginners with small capital.

Reference: Option trading marathon series, part 1 from Mr. Subasish Pani ft. @PushkarRThakur

Collaborated with @AdityaTodmal

1/ Trading journey of Mr. Pani

• He has an experience of 7 years.

• He has made a profit of Rs. 20 cr. over these years with a capital of Rs. 2 cr.

• However, it's not easy to make such profits.

• More difficult, is to retain those profits and build more on it.

2/ How he ventured to options selling

• He started with futures and option buying however after a certain point when his capital grew, he faced scalability issues and hence he resorted to options selling.

3/ Investing becomes imp once the capital grows:

• Since his trading profits have grown well, he has started investing (investing is always for LT).

• For folks who dnt have much info regarding investing can simply buy Nifty 50 stocks & keep rebalancing as Nifty 50 does.

4/ Covered calls strategy for the portfolio:

• Pledge the portfolio and receive margin ~80% which he would then use to sell OTM CEs of the stocks which are in his portfolio.

• This helps in generating fixed income from the portfolio.
TRADING
Nikita Poojary
Nikita Poojary
@niki_poojary
#BANKNIFTY

Look how it took support of the upward sloping black trendline https://t.co/mhqkIzBkQN
BANKNIFTY
Nikita Poojary
Nikita Poojary
@niki_poojary
How to make 1% consistently via Option Selling?

• Analyzing the trend
• Selling OTM's
• Making adjustments
• Capturing trending move
• Without big drawdowns
• Right Position Sizing
• Risk Management

Here are the 11 aspects to focus on:

Collaborated with @AdityaTodmal

1. Analyze the trend:

To begin with, determine whether Bank Nifty is trending, consolidating, or stuck in a range.

Why?

Cause we can predict what it will do then.

2. How many points to capture?

The margin required for selling one lot is around Rs. 1.5 lakh for a strangle.

If we earn around Rs. 1500 on one lot, we would make 1% return on our capital.

1500/25 = 60 points

Either sell directional 60 and make it zero.

Or 30-30 both sides.

3. How do we begin in the weekly expiry?

Can tend to skip Friday's as there are two days holiday.

In those 2 days market has ample time to come out with news, react to SGX and so forth.

So from a R:R perspective it is not great to carry from Friday.

Even the decay isn't huge if you see unless there's a big gap and you are on the correct size of it.

The Weekly candle also is from Monday to Friday.

So at Friday EOD we know how the weekly candle looks as well.
OPTION SELLING
Nikita Poojary
Nikita Poojary
@niki_poojary
#HDFCBANK

Does it take support at the lower end of the channel and bounces back

Lets see what happens from here
HDFCBANK
Nikita Poojary
Nikita Poojary
@niki_poojary
#BANKNIFTY

Bears were roasted in the past weeks short squeeze!

In a weeks time BNF is up by 2k points and gave a comfortable closing >35k

Bulls are back in the game!

Outlook for the week Jul 11 -Jul 15, 2022.

THREAD: Deconstructing BANKNIFTY on 4 different TF's.

#BANKNIFTY

1. Monthly TF:

• LH-LL structure & moving within the falling channel.

• No follow through selling post the June month.

• The sharp up move in BNF depicts resilience.

• Bulls are pretty much active near 32200-32800 zone & are strongly defending this level.


#BANKNIFTY

2. Weekly TF:

• Despite a LL-LH structure BNF failed to make a fresh Lower low post LL1.

• The zig zag moves in the index as it is trapped inside the channel is responsible for volatility and SL hits.

• Weekly close >35k is a sign of strength.


#BANKNIFTY

3. Daily TF:

•Witnessed gap up opening in the past 3 days and BNF has successfully managed to stay at higher levels, specifically > 35k level.

• 35300:immediate resistance.

• 36k:strong resistance.

• Already rallied 2182 points from July 1, 2022.


#BANKNIFTY

5. Hourly TF:

• Sharp one way rally means some sideways action is required for the next leg of upmove.

• S/R mentioned on the charts.
ALL
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Nikita Poojary
Nikita Poojary
@niki_poojary
1000 days ago, I started learning about Support & Resistance.

Here are 10 pointers from Support and Resistance that'll get you started in the next 3 mins: 🧵

Collaborated with @AdityaTodmal

1/ Understanding Support and Resistance:

• Support levels indicate where there will be a surplus of buyers.

• Resistance levels indicate where there will be a surplus of sellers.


• When the price moves up and then pulls back, the highest point reached before it pulled back is now resistance.

• When the price continues up again, the lowest point reached before it started back is now support.


2/ What is a Support:

• Support is the level at which demand is strong enough to absorb the supply.

• The price is likely to bounce back and moves up in the opposite direction.

• Support is a level where the demand from buyers is expected to be much higher than sellers.


3/ What is a Resistance:

• It is the opposite of a support level.

• It is a price point (ceiling) at which the stock price is not expected to rise any higher.

• Resistance is a price point at which there are more sellers than buyers in the market for a particular stock.
ALL
Nikita Poojary
Nikita Poojary
@niki_poojary
Why we sold only CE's today ?

A small 🧵

Collaborated with @AdityaTodmal

• BNF reversed from 32155 (low made on Mar'8)

• One side rally to butcher the CE writers

• Gap up opening by ~1300 points

• From Mar'8 low till today open ~2800 point rally

• 2800 point rally in just 1.5days

• Trend on the larger TF still bearish

• Due to election results we decided no to carry any overnight positions

• Selling PE on the back of 2800 point rally would have been disastrous due to unfavorable R/R

• So we were very clear to short only CE's

• But then need to follow the trend

• We decided to short CE at the break of first 5min candle

• By 9.45 it started to reverse


• Spotted M pattern at the resistance and started shorting CE's thereafter i.e. post 12.12 hours
OPTIONSLEARNINGS
Nikita Poojary
Nikita Poojary
@niki_poojary
I have taken 4000+ trades in the past 3 years as an Option Seller.

Here are the 11 mistakes I've made in my journey, that you desperately need to avoid: 🧵

Collaborated with @AdityaTodmal

1/ Level-Based Trading on non-expiry days:

On expiry days all OTM options are going to go to zero, so you can take a bet on a particular level for a high reward.

But on the other days, the spikes are just too much, especially in this low-Vix environment.
OPTION SELLING
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Nikita Poojary
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.
SCREENERS
Nikita Poojary
Nikita Poojary
@niki_poojary
Another month of value addition:

• 7 Powerful hacks to manage your personal finances
• 8 unique concepts by Subasish Pani that you need to know
• 9 threads that generated over 46,00,000 views
• 10 best videos to enhance your expiry trading

🧵 Four threads from May 2022:

When seeking financial freedom, personal finance plays a significant


Option selling, extended moves, psychology of buyers and sellers


Everything you need to know from trading to cool websites and benefits of a pvt ltd. company to reduce the


Expiry trading made easy with these 10 videos from good
TRADING GUIDE
Nikita Poojary
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
SCREENERS , MANAS ARORA
Nikita Poojary
Nikita Poojary
@niki_poojary
#KOTAKBANK

Bearish flag under formation, no BD yet!
KOTAKBANK
Nikita Poojary
Nikita Poojary
@niki_poojary
In the month of October 2022, we have shared 15 threads, which includes:

• Free Price action course worth 50k
• Best videos to learn expiry trading
• Bollinger Band set up with min 1:4 RR
• Hacks to avail tradingview premium features for free

and much more 🧵

1/: Eight websites that F&O trades just can't afford to


2/ Bollinger band set up with minimum 1:4 R/R by Subasish


3/ Eight books on Option trading that every trader should


4/ List of threads to make you a pro in option
IMPORTANT THREAD
Nikita Poojary
Nikita Poojary
@niki_poojary
#NIFTY

Bearish engulfing on monthly or bullish harami on Weekly , which one will play out?

Outlook for the week Jan 2 - 6, 2022.

THREAD: Deconstructing NIFTY on 5 different TF's.

#NIFTY

1. Monthly TF:

• Although the structure in monthly TF is of HH-HL, December monthly candle is a more of a bearish engulfing.

• However it is exactly at the support

• 17800-18000 looks like a strong support.


#NIFTY

2. Weekly TF:

• 17800- 1800 used to be a resistance in April & August 2022.

• However post BO of those levels, they might act as an immediate support.

• Current weekly candle is closer to the support (erstwhile resistance)


#NIFTY

3. Daily TF:

• After a sharp vertical fall, we expected a buying momentum

• Also Nifty filled the Gap.

• Strong support at 17800


#NIFTY

4. Hourly TF:

Moving within the rising channel, albiet the channel is quite steep.
TRADING
Nikita Poojary
Nikita Poojary
@niki_poojary
7 POWERFUL PERSONAL FINANCIAL HACKS that you wish you knew yesterday.

THREAD: Thumb rules that will make you better in managing your personal finance.

Collaborated with @AdityaTodmal

1. Rule of 72: To estimate when your money will be doubled.

Lets say you are investing in an instrument that gives you 8% p.a.

How long will it take to double your investment:

72 /Rate of interest i.e. 72/8 =9 years.

Conversely, if you come across any plans where they say you'll double your money in 7 years.

Now you can compute the interest rate.

i.e. 72/ 7years = 10.29% p.a.

2. Rule of 144 : To estimate when your money will be tripled.

114/rate of interest p.a. = No. of years required to triple your money.

Eg: lets say you are getting 12% p.a. in an instrument.

Your money will be tripled in 114/12 = 9.5 years.

3. Rule of 70: Estimates the impact of inflation on your wealth.

70 / expected long term inflation = No. of years by when your wealth will be worth half of what it is today.

Your total wealth is Rs. 1 cr. & long term inflation rate is 5%.

70/5 = 14 years.
SCREENERS , ALL
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Nikita Poojary
Nikita Poojary
@niki_poojary
1/Closing price different from the last trading price (LTP)

•There is so much noise regarding PE premiums going up or CE premiums losing their value tomorrow morning at the opening ( in case flat).

•Remember that the LTP usually differs from the closing price.

2/ This is because the closing price is the weighted average price of the last 30 mins of trading.

•The difference today is noticeably more as the market made a sharp upmove post 15:00 hours i.e. the last 30 mins.
CATAGORY TRADING
Nikita Poojary
Nikita Poojary
@niki_poojary
97% of retailers buy options and lose money.

But, you can buy options:

• At the right time
• For BTST
• When premiums are too low

The difference? Understanding how they work.

Here's how you can buy options if you're a beginner:

Collaborated with @AdityaTodmal

1/ Basic knowledge of Technicals:

Option buying is about capturing the momentum, hence sound knowledge of technical analysis is required.

Without any knowledge, if one is buying an option purely because he/she feels market will rise/fall is equivalent to buying lottery tickets.

2/ Technical Analysis knowledge:

The analysis could involve usage of pure price action or indicators or a mix of both to capture momentum.

Getting the direction right is very crucial, however along with the direction the timing is equally important.

3/ Basics of CE & PE:

Option holders can buy or sell a security at a predetermined price using contingent financial derivatives called options.

In return for such access, option purchasers charge a small amount referred to as a premium to such sellers.

4/ Why CE & PE options are purchased:

CE is an abbrevation for Call Option and PE for Put option.

The CE buyer benefits every time the price of the underlying goes up.

Polar opposite is the PE option, as a PE option buyer benefits every time the price of the underlying falls.
OPTIONS
Nikita Poojary
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
SCREENERS
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Nikita Poojary
Nikita Poojary
@niki_poojary
Shortlisting stocks is a tedious task.

Here are the 10 most Powerful Positional Setups with Screeners that is available for FREE: 🧵

Collaborated with @AdityaTodmal

1/ Short term breakouts:

This strategy involves finding stocks that are trading near their high in the past 4 months with rising volumes and closing strong, indicating a possible breakout.

• 15-minute stock breakouts

2/ Volume Shockers (stocks with rising volumes):

Stocks that have seen a sudden spurt in their volume by over 2x times the average volume over the past 10 trading sessions and have gained or lost more than 5%

3/ Potential breakouts:

• Stocks nearing 200 day high by 5% & showing consolidation for the past 30 days with volume above 50 day

4/ Strong Stocks:

• This strategy involves finding stocks closing higher than their previous trading day continuously for the past 5
STOCK
Nikita Poojary
Nikita Poojary
@niki_poojary
#BHARTIARTL

Now at 758, simple BO of resistance after a long consolidation https://t.co/yrNRAGc2lh
AIRTEL