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

Timefram is 3 min, you can set as per your req. 5 or 10 min. But I used in 3 min only
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
OI also used for the direction.

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.
2. If market open above or below PDR than I will wait till 9:30, weather it take support at PDH or PDL then I will sell the options.
3.Let’s assume that Market open gap up above PDR and at 9:30 is above PDH than
I sell naked put options where the highest OI in put(good qty) as well also sell the some qty of another put at strike where the supertrend indicate price (less qty) if it in upside no issue just hold it
but if it reverse than I convert the first sell put option in strangle with call highest OI (good qty) ). and second put(less qty) option we have to exit once nifty trading below VWAP and supertrend.
4.RSI is generally we use for like above 60 we have neked put, below 40 we have call sell and between 40-60 we have strangle.
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.
6.ADX used for the momentum like if we want to buy the options than will do above 25 mark. Always buy ITM options.
Mostly I used three screen One 32 inch screen the chart, Second screen I mostly track OI & straddle chart and strangle chart, third screen use for trading only.
In every options I used 3 times as SL in system if any moves around 80-100 points in 5 min than I will be exit from the trade.
Guys In discretionary options selling you need to be active full day, because you have to enter and exit based on conditions in multiple time,
Thanks.

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,

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Once upon a time there was a Raja named Uttānapāda born of Svayambhuva Manu,1st man on earth.He had 2 beautiful wives - Suniti & Suruchi & two sons were born of them Dhruva & Uttama respectively.
#talesofkrishna https://t.co/E85MTPkF9W


Now Suniti was the daughter of a tribal chief while Suruchi was the daughter of a rich king. Hence Suruchi was always favored the most by Raja while Suniti was ignored. But while Suniti was gentle & kind hearted by nature Suruchi was venomous inside.
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The story is of a time when ideally the eldest son of the king becomes the heir to the throne. Hence the sinhasan of the Raja belonged to Dhruva.This is why Suruchi who was the 2nd wife nourished poison in her heart for Dhruva as she knew her son will never get the throne.


One day when Dhruva was just 5 years old he went on to sit on his father's lap. Suruchi, the jealous queen, got enraged and shoved him away from Raja as she never wanted Raja to shower Dhruva with his fatherly affection.


Dhruva protested questioning his step mother "why can't i sit on my own father's lap?" A furious Suruchi berated him saying "only God can allow him that privilege. Go ask him"