I am also mark in chart PDL,PDH and PDC.
Also observing the reversal price action in chart for trend change, Only reversal PA
Along with indicator I am also use the OI data for strike selection
A Thread on Discretionary Option trading:
Intraday options selling style
Instrument is Nifty.
I am using following indicator on Nifty fut. chart for finding the market trend as well behavior
Exp. Moving avg (5 & 20)
Supertrend(10,3)
VWAP
RSI(14) set upband-60 lower band-40
ADX
I am also mark in chart PDL,PDH and PDC.
Also observing the reversal price action in chart for trend change, Only reversal PA
Along with indicator I am also use the OI data for strike selection
After 9:20 AM I will start trading based on setup.
1.If market in PDR and Mov. Avg & ST is flat and RSI in range of 40-60 Than I will sell strangle where Highest cumulative OI in nifty.
3.Let’s assume that Market open gap up above PDR and at 9:30 is above PDH than
5.Moving avg. ST and VWAP generally used for additional confirmation and trend as well Stoploss of naked options. VWAP I used for pyramiding also.
More from Jig's Patel
Guys,
Today I am sharing how I will filter out the stock for intraday trade,
This strategy is called "NR21-VWAP" trading,
For filtering the stock I will use NR21 + Inside bar theory (its a very old but popular theory),
Filtering stock used below screener end of the day
(1/n)
Screener
https://t.co/SSPkYEoFMP
You have to do homework at the end of the day, Run the screener and List out the stock in this screener, hardly 3-4 stock in the list,
Next day trading, Just open chart 15 min TF,
Add VWAP and Volume indicator in Chart,
(2/n)
Buy setup:
If stock price move above VWAP and with high volume then trade activated above VWAP,
SL is trade trigger candle Low,
Sell Setup:
price move below VWAP with volume than trade activated.
SL is high of that candle
(3/n)
Volume indicator,
Open the chart and see the volume of last ten to fifteen 15 Min TF candle volume compare with a current candle if the volume is more than triple then our trade is right,
(4/n)
Eg. Yesterday filtered stock attached,
See the example of BERGEPAINT,
Trade activated at 532.27 and SL 527, Closing price 555
Profit booking criteria, I believe in 1:2 RR, if 5 point SL then I will book 10 point profit,
If you Like kindly RETWEET to reach maximum trader,
Today I am sharing how I will filter out the stock for intraday trade,
This strategy is called "NR21-VWAP" trading,
For filtering the stock I will use NR21 + Inside bar theory (its a very old but popular theory),
Filtering stock used below screener end of the day
(1/n)
Screener
https://t.co/SSPkYEoFMP
You have to do homework at the end of the day, Run the screener and List out the stock in this screener, hardly 3-4 stock in the list,
Next day trading, Just open chart 15 min TF,
Add VWAP and Volume indicator in Chart,
(2/n)
Buy setup:
If stock price move above VWAP and with high volume then trade activated above VWAP,
SL is trade trigger candle Low,
Sell Setup:
price move below VWAP with volume than trade activated.
SL is high of that candle
(3/n)
Volume indicator,
Open the chart and see the volume of last ten to fifteen 15 Min TF candle volume compare with a current candle if the volume is more than triple then our trade is right,
(4/n)
Eg. Yesterday filtered stock attached,
See the example of BERGEPAINT,
Trade activated at 532.27 and SL 527, Closing price 555
Profit booking criteria, I believe in 1:2 RR, if 5 point SL then I will book 10 point profit,
If you Like kindly RETWEET to reach maximum trader,
Thread on Short straddle with adjustments:
Short straddle is non-directional strategy
Selling same strike price CALL/PUT option same underlying with same expiry.
Nifty Spot at 14353, So you can sell 14350 CE as well 14350 PE of 14 Jan. Expiry.
(1/n)
*RETWEET for max response
Bullish short straddle: Selling 14400 CE and 14400 PE of same expiry.
Bearish short straddle: Selling 14250 CE and 14250 PE of same expiry.
You can sell straddle as per your market view.
If you are natural view sell CE and PE at ATM strike.
(2/n)
Short straddle has limited profit potential (only premium) and unlimited risk without adjustment.
In Example, Short straddle of 14350, Breakeven is (14131.0-14569.0), need 1.7Lac Margin to sell straddle.
Maximum profit: 16k and Loss: Unlimited, Winning probability: 50%
(3/n)
If market staying near at 14350 then win. Probability increase slowly. Rewards also increase slowly.
Volatility(IV) is also play important role in selling straddle, Like If IV increase so straddle premium increase and IV cool off so premium casually comes down.
(4/n)
Short straddle adjustment:
https://t.co/59Lr64kEtK way to limit the overnight risk.
Convert short straddle in Ironfly, its nothing we have to add long strangle in short straddle it become Ironfly. It gives the good Risk Rewards.
(5/n)
Short straddle is non-directional strategy
Selling same strike price CALL/PUT option same underlying with same expiry.
Nifty Spot at 14353, So you can sell 14350 CE as well 14350 PE of 14 Jan. Expiry.
(1/n)
*RETWEET for max response
Bullish short straddle: Selling 14400 CE and 14400 PE of same expiry.
Bearish short straddle: Selling 14250 CE and 14250 PE of same expiry.
You can sell straddle as per your market view.
If you are natural view sell CE and PE at ATM strike.
(2/n)
Short straddle has limited profit potential (only premium) and unlimited risk without adjustment.
In Example, Short straddle of 14350, Breakeven is (14131.0-14569.0), need 1.7Lac Margin to sell straddle.
Maximum profit: 16k and Loss: Unlimited, Winning probability: 50%
(3/n)
If market staying near at 14350 then win. Probability increase slowly. Rewards also increase slowly.
Volatility(IV) is also play important role in selling straddle, Like If IV increase so straddle premium increase and IV cool off so premium casually comes down.
(4/n)
Short straddle adjustment:
https://t.co/59Lr64kEtK way to limit the overnight risk.
Convert short straddle in Ironfly, its nothing we have to add long strangle in short straddle it become Ironfly. It gives the good Risk Rewards.
(5/n)
