2 hours of non-stop Twitter space by @kapildhama

Topic - Data Points to check as a Option seller

Mega Thread 🧵 of all the data points to check as a option seller shared by Mr. Kapil Dhama is complied

Retweet to reach wider -Learning should never stop

#StockMarketindia
1/18 https://t.co/m0NXToSU1p

2/18

-Make your own trading system
- First identify what suits you ?
Trend Following
Directional or Non-directional option selling
9:20straddle
Naked option buying/selling

-Never take more than 1% loss in intraday
-There is no specific trick in market only important is process
3/18

-Chart & Data plays a important role ( Understand to combine to identify trades/direction )
-In all trades knowing exit point is very important

Simple target for Kapil sir in straddle is 100 points in a week on BNF & Loss exit point is 50 points after adjustment (R:R 1:2)
4/18

- Simple target for Kapil sir in straddle is 50 points in a week on NF & Loss exit point is 25 points after adjustment (R:R 1:2)

Check data after 3:00 p.m Chart + Data ?

Check how is the closing ( Location of closing - Near Day high or Day low or mid of the day )
5/18

Example:

-If market is near high ( Check in data whether Near ATM PE has more writing & in CE writing whether is less at higher strike price) - It is a Probability

Once Data is bullish along with the close he choose

Strangle- Rs.70 PE & Rs.40 CE or scroll down
6/18

Strangle - Rs.50 PE with 10 lots & Rs.50 CE with 5 lots

Data should support chart . If market closing near high but near ATM PE writing is less and CE writing is more ( Chart & Data is not matching )

He never prefer Naked option entry specially for positional
7/18

He looks data in perspective of option seller

Data to check for Intraday: ( Avoid on friday because data is immature)
- After 9:30 a.m ( Check PE or CE writing is more)
- If Gapup & sustain for 15 minutes (Obviously More PE then CE writing - Better probability is bullish)
8/18

-Then need to check whether aggressive PE
- Check current day data for aggressive
-Check Near ATM how aggressive writing

-Need guts to add naked writing in near ATM
-Data created by big players so understand to judge so we can take trades(Check whether data &chart match)
9/18

-If CE writing take over PE writing nee to change the view for directional traders
-Always combine Data with charts because market is probability not certainty
-He never check PCR

What to check and
What not to check is important (spending time here is just wasting time)
10/18

How he initiate trade after Data check for directional trade?

-For directional go straddle or spread or strangle
Strangle -Rs.60 PE & Rs.40 CE ( If the directional move comes option price becomes half we get cushion)
11/18

Why he avoid MAX OI based selling on expiry?

Example 18100 MAX OI

So if price crosses 18100 panic on one leg by SL triggers as a buy order which can also lead to sudden option premium shout up ( Panic for option sellers)
12/18

But same problem of panic is very less in next strike like 18050/18100 during that spike

Why spike occurs? Because everyone become buyers because of option sellers SL triggers as buy order.

This is one main reason he avoid selling in MAX OI
13/18

MAX OI breach for him it is a option buying opportunity & not a option selling

Check the option premium before entering trades if it is not decent swift to next week

Better to sell next week expiry with Rs.60/70 premium than selling Rs.15/20 premium in current week
14/18

-In all option selling trades placing sl is important
-Data is a reservoir like in dam. Until dam is safe it is useful for nearest village

-He believe straddle means hold both leg if one leg SL hit means exit both leg
-He do combine premium SL on 100 points away straddle
15/18

Slow up or down move is more dangerous there are days without big candle nifty will be up/down 250 point

In this case let's say NF is at 18000 after a hour CMP -18100 nearest first resistance is 18120. If first resistance breaches check data

Scroll down to continue
16/18

-Whether 17900/800 PE writers are shifting higher to 18000 PE if it happens more chance of price testing next resistance ( Bullishness will continue)

Don't stay on the hope holding CE selling better to exit CE sell or shift higher

Because PE sellers will be aggressive
17/18

Don't hope for rejection get confirmation from data & charts. Until there is not confirmation avoid entering opposite direction trades

Market is dynamic not static so we need to be dynamic
18/18

After taking overnight option selling position if premium opens more than double he will square off at 9:16 a.m and look for other trading opportunity.

Here is the end of the Mega thread

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#ஆதித்தியஹ்ருதயம் ஸ்தோத்திரம்
இது சூரிய குலத்தில் உதித்த இராமபிரானுக்கு தமிழ் முனிவர் அகத்தியர் உபதேசித்ததாக வால்மீகி இராமாயணத்தில் வருகிறது. ஆதித்ய ஹ்ருதயத்தைத் தினமும் ஓதினால் பெரும் பயன் பெறலாம் என மகான்களும் ஞானிகளும் காலம் காலமாகக் கூறி வருகின்றனர். ராம-ராவண யுத்தத்தை


தேவர்களுடன் சேர்ந்து பார்க்க வந்திருந்த அகத்தியர், அப்போது போரினால் களைத்து, கவலையுடன் காணப்பட்ட ராமபிரானை அணுகி, மனிதர்களிலேயே சிறந்தவனான ராமா போரில் எந்த மந்திரத்தைப் பாராயணம் செய்தால் எல்லா பகைவர்களையும் வெல்ல முடியுமோ அந்த ரகசிய மந்திரத்தை, வேதத்தில் சொல்லப்பட்டுள்ளதை உனக்கு

நான் உபதேசிக்கிறேன், கேள் என்று கூறி உபதேசித்தார். முதல் இரு சுலோகங்கள் சூழ்நிலையை விவரிக்கின்றன. மூன்றாவது சுலோகம் அகத்தியர் இராமபிரானை விளித்துக் கூறுவதாக அமைந்திருக்கிறது. நான்காவது சுலோகம் முதல் முப்பதாம் சுலோகம் வரை ஆதித்ய ஹ்ருதயம் என்னும் நூல். முப்பத்தி ஒன்றாம் சுலோகம்

இந்தத் துதியால் மகிழ்ந்த சூரியன் இராமனை வாழ்த்துவதைக் கூறுவதாக அமைந்திருக்கிறது.
ஐந்தாவது ஸ்லோகம்:
ஸர்வ மங்கள் மாங்கல்யம் ஸர்வ பாப ப்ரநாசனம்
சிந்தா சோக ப்ரசமனம் ஆயுர் வர்த்தனம் உத்தமம்
பொருள்: இந்த அதித்ய ஹ்ருதயம் என்ற துதி மங்களங்களில் சிறந்தது, பாவங்களையும் கவலைகளையும்


குழப்பங்களையும் நீக்குவது, வாழ்நாளை நீட்டிப்பது, மிகவும் சிறந்தது. இதயத்தில் வசிக்கும் பகவானுடைய அனுக்ரகத்தை அளிப்பதாகும்.
முழு ஸ்லோக லிங்க் பொருளுடன் இங்கே உள்ளது
https://t.co/Q3qm1TfPmk
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