A THREAD

Topic: Why triple straddle has no real benefit.

A triple straddle is essentially an ATM Straddle & one or two step away straddle on either side. The position is almost neutral strategy just like any other neutral straddle or strangle.

1/

Q: Sir why call option premiums are higher the put?

A: It usually happens when there is big difference between spot & future.

Example

BN Spot: 35110
BN Future: 35300
BN Synthetic Future: 35150

It depends on our perception of what is ATM & accordingly match the calls & puts.

A THREAD

Topic: HOW TO TRADE IN RISING PREMIUMS SCENARIO

Option sellers specially Straddle sellers feel that rising premiums give them excellent opportunity to make easy money. So what they are seeing is the theta aspect of options & ignoring the delta/gamma/vega forces.

1/

With rising premiums come high delta moves. There is a reason why premiums are all increasing up in the first place. High uncertainty & fear is what's controlling the markets during such times. So a volatile 200 point move in nifty is always on the cards.

2/

Adjusting during such delta moves involves high slippages. Such costs go in our system & are irrecoverable. So if the ATM straddle is around 400 & after 200 point downmove, the next straddle is at 450 & the loss is not just 50points but compounded much more.

3/

Also there are chances that there is no decay throughout the day. So a straddle seller has to take that heavy risk of carrying it forward & chances of gap openings are high during such times. If converted into Ironfly, then the cost of the wings is too expensive.

4/

Thus cutting down the initial credit significantly.

There will also be very few instances when premiums don't fall till expiry day. So with each delta move the cost of holding a straddle gets accumulated & pressure keeps mounting for the stubborn option sellers.

5/

FINDING EDGE IN OPTIONS

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)

I soon realised that theta decay with sound adjustments is not an edge, which i earlier thought was & which gave me good returns over the years. After that i went deeper in understanding volatility behaviour, how/where it manifests & all the discrepancies in option chain. (2/n)

With finding edge in logistics i mean how to keep the greeks in check, SL in place & optimum ways of adjustments with minimum slippages. So the main aim here is to write theta without following vol behaviour & having any actual knowledge of what's going on in the markets. (3/n)

A dedicated trader can learn all this in few years & it is something which is 'obvious' to become successful. But majority can't reach this level, as this also requires consistent hustle in live markets. All the seminar/webinar business teaches you till this level only.(4/n)

If you get passed this level though, the real work starts, when you have to find your real edge. This can't be taught in a webinar. It needs serious introspection of your trading skills, psychology & strategies in use, which ultimately allow you to book excellent profits. (5/n)

@javia_savan You answered it yourself 🙂
Adjustment cost is way too high for bnf. Sometimes bnf does exceed nifty in vol crush, but nifty overall is more consistent.

MAHARAJA CHHATRASAL BUNDELA was the great Bundela King who revolted against the Mughal ruler Aurangzeb.
Chhatrasal Bundela was born in year 1649 CE in Maur Hill of Bundela region to Champat Rai and Lal Kunwar. He was the descendent of Rudra Pratap of Orchha.

His ancesters were the vassals of Mughal Emperor. He drew inspiration from his father and revolted against the alien rule of Mughals. He was just 12 yrs old when his parents died in fight against the Mughal Army of Aurangzeb in 1661.

When his beloved father attained martyrdom in the year 166, the young Chatrasal was present in the last battle of his father against the Mughal and from these valiant campaigns,..

..he gathered the courage to free Bundelkhand from Aurangzeb’s rule.
He joined the Mughals initially, and was recommended by the Rajput King Mirza Jai Singh to be recruited in the Mughal Army in order to support their Deccan Campaigns.

But serving the alien rule of Mughals which brought chaos and misery to Bundelkhand was unacceptable for Chatrasal Bundela and his father’s incessant struggle against the Mughals kept the fire of independent Bundelkhand alive in his heart.

RISHI PINGALA:THE ANCIENT INDIAN SAGE DISCREDITED FOR HIS MAJOR CONTRIBUTIONS TO MATHEMATICS & PHI

Have you ever heard about,"The Golden Ratio"?
The Golden Ratio or Phi(Greek) is a mathematical ratio of nature. Mother Nature is the most exquisite artist in herself.

&Its this Phi she uses to create all the beauty in World.
If anyone uses this ratio correctly in their art,it can turn into a spell-binding piece of work.Such is the significance of'Phi'.But my thread isn't about it.Its about somethin called'Fibonacci Series'&who actually made it

Phi is related to Fibonacci series(0,1,1,2,3,5,8,13,21,34...)
&this series is responsible for everything dat is beautiful on this planet. Just try to calculate the ratio of any 2 successive numbers ÷ each of them by the number before it in above infinite series.

E.g. 3/2=1.5, 5/3=1.666, 8/5=1.6, 34/21=1.61904 and so on. Did you notice something? The ratio is coming almost same every time. This ratio is called 'Phi 'which is numerically represented as 1:1.618. This Golden Spiral is made in exact proportion of 1:1.618.

The thing I want to emphasize here is that we always find only those things appealing and attractive that have Phi. It's in our subconscious. Isn't it some revelation? We are the part of this Divine proportion of the God or the Mother Nature. Check these:

SRI MOOKAMBIKA DEVI, KOLLUR (KAR)

There was an Asura, Kaumasura, who was doing penance to please Shiva and get a boon. To prevent him from asking for a boon, Devi Saraswati made him dumb (hence called Mookasur)
Later, Adi Parashakti slayed him and came to be called Mookambika.

It is said that Adi Shankaracharya had a vision in which Devi agreed to follow him provided he did not look back. He kept walking and was assured of her presence due to the sound of anklets. When he reached here in Kollur, he turned back as the sound of anklets had stopped.

So Devi stayed here and merged with the lingam. The place came to be called Mookambika Kshetram.
The linga has integrated on it’s left side MahaKali, Maha Lakshmi and Maha Saraswathi and on the right side- Brahma, Vishnu and Shiva.

A swarna rekha (gold line) divides this linga into left and right portion. Adi Shakthi in this Udhbhavlinga form appears only here.
Devi sits in padmasana and has 4 hands.
Adi Shankaracharya installed the Sri Chakra in front of Devi and also composed the Soundarya Lahiri here.

@SaveToBookmarks Namaste! There you go! Original tweet by @buzz_chronicles: "@SaveToBookmarks Namaste! You can find it here. Original tweet by @AchuthArora: ...". Enjoy 👌

Hi! There you go! Original tweet by @SaveToBookmarks: "@buzz_chronicles @AchuthArora @OllieEmberson @rattibha No more missed tweet 😉!

...". See You soon! 👉

Mahabharat - the great war - 18 days of heroism, deceit, blood and intrigue - now as a mega Twitter thread.

I'll add the events from a few days of the war each day.

Caveats: lots of editorialization, creative liberties and interpretations.

There will also be a lot of asides - especially around war strategy and tactics, the characters and their motivations and non-canon storylines.

Over the years, I've read multiple versions, phenomenal translations and modern retellings. So be prepared for a potpourri.

There are different ways of looking at this war. Was it a family feud? Sure - but whose family? Shantanu's or Satyavati's? Was Vyas essentially telling us his family history? And then Kunti added a twist to this tale. Here's a helpful chart:

Satyavati's two sons from Shantanu both died without children. Vyas - her first son - fathered Dhritarashtra and Pandu (and Vidur).

Pandu never fathered any children. Kunti and Madari gave birth to six demi-gods (Karna and the five Pandavs).

So Satyavati Vs Kunti and Madari.

Or was this a fight between two massive neighbouring kingdoms - the Kurus and the Panchals? While many smaller kingdoms joined the battle, most of the Pandav army (more than half of their 7 divisions) came from the Panchals. King Drupad and his son Shikhandi led two divisions.