Edward de Bono says intelligence is like a🚗 Automobile
“A powerful car may be driven badly. A less powerful car may be driven well. The skill of the car driver determines how the power of the car is used.”
What
@Mitesh_Engr Sir looks at for Expiry Trading:
• Technicals of BNF
• Individual Heavyweight stocks of BNF
• Support/Resistance of BNF on weekly TF
• Also has Superb SL management
• When it comes to adjustments, he is always on toes
How to Select Strikes to Sell?
• You can't sell based on premium
• Follow only trend
• Price action is best to sell on expiry day
• Never wait for the options to go to zero
Using Ratios to Sell:
• If BNF is in a range then strangles
• If breakout/ breakdown from a range then directional
• Selling 70/30 or 80/20 ratios
• 2 examples on how he used ratios
Stop Loss Management:
Logical explanation given by
@Mitesh_Engr Sir on how to manage stop losses
• SL shouldn't hit easily given the spikes on expiry day
• High probability of success
• Don't lose huge in a violent move
Excellent explanation on how to avoid an option freeze on an expiry day:
• Keep Stop loss below range
• Exit when hit
• Re-enter when index enters range
Conviction:
• Ability to take re-entry multiple times
• High premiums
• Limited qty
• High profit
• Don't sell Rs. 1-3 options
• Sell higher premiums and book them at Rs. 2-5
Have added an example of how he had conviction on a particular expiry day
Monthly Expiry:
• Never assume option writers will defend their positions
• They are already expired
• Play according to day trend
• No prediction
How to play expiry if knitted with Events:
• No expiry view ahead of the event
• Take decision post the event
• Look at price action to see where chances are based on certain levels
• Risk would lower as we've avoided the volatility
What
@Mitesh_Engr Sir has to say on low premium selling on expiry day: 👇
• Sell lower premiums high probability
• Repeat multiple times
• Lose heavy one time
• Risk reward is unfavorable
• Classic case of eating like a chicken & shitting like an elephant
How to play last Thursday's Expiry? (15th July 2021)
• Daily chart shows ready for breakout
• Derived supports on hourly charts
Through explanation as to how
@Mitesh_Engr Sir plays intraday on expiry
A detailed explanation on last Thursday's Expiry given below:
Please go through it to absorb better
Put option charts of last Thursday
• All Puts trading below ATP
• All strikes were supports or below it
Call Option charts of last Thursday
• Trading below ATP after 13:00 hours
• 36000 was a resistance
• Calls above it expected to be zero
This was a thread on how
@Mitesh_Engr Sir trades on expiry day.
@niki_poojary and
@AdityaTodmal will be collaborating to make more such interesting threads on how Mitesh Sir trades
Keep an 👀 out for those threads
Happy learning weekend to everyone!🤠
If you have missed out on how
@Mitesh_Engr Sir trades Positional Option selling
You can check the same here 👇
https://t.co/Bz4Vt8u4lX