Modi is, to borrow a phrase I've seen @harshmadhusudan use often, 'long India'. You're ‘long’ when you invest in / own something expecting it to continually rise in the long term.
Many flashes in the pan routinely propped up as the ‘next big thing’. Kanhaiya Kumar, Hardik Patel & now Tikait.
Why don't they last enough to erode Modi?
Worried about the continuous onslaughts nonetheless & what we can do about it?
Read on..
[Thread]
Modi is, to borrow a phrase I've seen @harshmadhusudan use often, 'long India'. You're ‘long’ when you invest in / own something expecting it to continually rise in the long term.
The fund is, India.
That fund comprises of national security, healthcare, economy, social empowerment and so on.
He is long India.
Kisaan Sammaan Yojana, Jan Dhan, rural empowerment, LPG, strengthening the defense sector etc.
India grows if all its sectors grow - the 'boring' approach.
Going short on something essentially means you bet that it’ll fall in value.
You don’t actually invest in / own the asset because your position is that the asset will lose value.
By the ‘short India’ gang.
What does/should Modi do? How should he react?
This is where I feel he uses the Compounding Principle.
Indeed, this isn’t a short-term bet which could yield sudden windfall.
Importantly, these returns are re-invested in India, i.e., compounded.
That makes the next return a compounded return.
His net worth in 2020 was $84.5 billion. Of that, $84.2 billion was accumulated after he was 50. $81.5 bn, *after* his mid-60s. [Source: Psychology of Money]
A seriously long-term horizon & the value of compounding.
No.
Any such bet, however, is almost always done with the interest earned on the principal, almost never the principal.
Even if the bet is lost, the principal is intact.
Boring, right? Until you realize 9/
Where do they borrow from? I'm sure you can guess.
This hubris on their part - betting it all - is great news for Modi. Why?
(a) Modi, as fund manager, is always on guard;
(b) Despite the entertainment value of shorts & their bets, Indians at large know that their growth is tied to India's growth.
Napoleon has an answer:
The ‘boring’ stuff - healthcare, agriculture, infrastructure etc. Continue building India **brick by brick** without losing focus.
One won’t see gains today, nor tomorrow, but over a long-term horizon - the compounding effect.
When their hubris & the fatal flaw of going short on a resilient India will very likely make them lose in due course.
Or, to actually focus on reforms critical to India without the looming threat of the government falling?
Let's understand the real reward of money:
But, the more goods we buy, the less money we have.
Because what money really gives us is freedom. Freedom to not be stuck in a job we don’t like, to not be able to do what we really want to.
303 seats = Money.
Buying goods = spending political capital to keep crushing dissent.
Freedom = not stuck in a coalition government, actually being able to do what’s good for the country. No pressure of pleasing extraneous 'bosses' [Hint: UPA's NAC]
Like what happened in response to the recent ‘digital strike’ by global celebs.
They tried to short India. India short-squeezed them, showing its collective might.
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— Mitesh Patel (@Mitesh_Engr) February 10, 2019
Strangle selling. ( I am doing mostly in weekly Bank Nifty)
When to sell? When VIX is below 15
Assume spot is at 27500
Sell 27100 PE & 27900 CE
say premium for both 50-50
If bank nifty will move in narrow range u will get profit from both.
Beautiful explanation on positional option selling by @Mitesh_Engr
Sir on how to sell low premium strangles yourself without paying anyone. This is a free mini course in
Few are selling 20-25 Rs positional option selling course.
— Mitesh Patel (@Mitesh_Engr) November 3, 2019
Nothing big deal in that.
For selling weekly option just identify last week low and high.
Now from that low and high keep 1-1.5% distance from strike.
And sell option on both side.
1/n
1st Live example of managing a strangle by Mitesh Sir. @Mitesh_Engr
• Sold Strangles 20% cap used
• Added 20% cap more when in profit
• Booked profitable leg and rolled up
• Kept rolling up profitable leg
• Booked loss in calls
• Sold only
Sold 29200 put and 30500 call
— Mitesh Patel (@Mitesh_Engr) April 12, 2019
Used 20% capital@44 each
2nd example by @Mitesh_Engr Sir on converting a directional trade into strangles. Option Sellers can use this for consistent profit.
• Identified a reversal and sold puts
• Puts decayed a lot
• When achieved 2% profit through puts then sold
Already giving more than 2% return in a week. Now I will prefer to sell 32500 call at 74 to make it strangle in equal ratio.
— Mitesh Patel (@Mitesh_Engr) February 7, 2020
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