Institutional investors do not like to buy breakouts to new highs. In fact, they generally prefer to buy stocks off of their lows, and sometimes the lower the better.
#Pocketpivot and it's characteristics:-
pocket pivot,” or “buying in the pocket,” is an early base
breakout indicator, which is designed to find buyable pivot points within a stock’s base shortly before the stock actually breaks out of its chart base-
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Institutional investors do not like to buy breakouts to new highs. In fact, they generally prefer to buy stocks off of their lows, and sometimes the lower the better.
point before the stock rose would have given investors buying the stock at good point.
If the stock character is such that it tended to respect it's 10day moving average on it's prior price run before building it's current base then we might use 10dayMA as selling guide.
More from VCP_Chartist📈
🎯Setting up nicely in 10EMA
🎯 Excellent base formation with numerous squats, shakeout and pocket pivots
🎯EPS rate 90, RS rating 80
More detail in thread
@swing_ka_sultan
@Accuracy_Invst @YTA_School @Capt_Kaushaljha @Jitendra_stock @ https://t.co/CRbRYT5feV
#AllCargo
— VCP Charts\U0001f4c8 (@vcpcharts) April 17, 2022
\U0001f3afGood accumulation from base bottom
\U0001f3af Pocket pivots and shakeout will give strength for breakout
\U0001f3af RS strength-81
\U0001f3af EPS strength-90
\U0001f3af Expecting more tightness near pivot point for entry@Accuracy_Invst @swing_ka_sultan @StocksNerd @VVVStockAnalyst @charts_zone pic.twitter.com/yb6pX4Kro5
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Curated the best tweets from the best traders who are exceptional at managing strangles.
• Positional Strangles
• Intraday Strangles
• Position Sizing
• How to do Adjustments
• Plenty of Examples
• When to avoid
• Exit Criteria
How to sell Strangles in weekly expiry as explained by boss himself. @Mitesh_Engr
• When to sell
• How to do Adjustments
• Exit
1. Let's start option selling learning.
— Mitesh Patel (@Mitesh_Engr) February 10, 2019
Strangle selling. ( I am doing mostly in weekly Bank Nifty)
When to sell? When VIX is below 15
Assume spot is at 27500
Sell 27100 PE & 27900 CE
say premium for both 50-50
If bank nifty will move in narrow range u will get profit from both.
Beautiful explanation on positional option selling by @Mitesh_Engr
Sir on how to sell low premium strangles yourself without paying anyone. This is a free mini course in
Few are selling 20-25 Rs positional option selling course.
— Mitesh Patel (@Mitesh_Engr) November 3, 2019
Nothing big deal in that.
For selling weekly option just identify last week low and high.
Now from that low and high keep 1-1.5% distance from strike.
And sell option on both side.
1/n
1st Live example of managing a strangle by Mitesh Sir. @Mitesh_Engr
• Sold Strangles 20% cap used
• Added 20% cap more when in profit
• Booked profitable leg and rolled up
• Kept rolling up profitable leg
• Booked loss in calls
• Sold only
Sold 29200 put and 30500 call
— Mitesh Patel (@Mitesh_Engr) April 12, 2019
Used 20% capital@44 each
2nd example by @Mitesh_Engr Sir on converting a directional trade into strangles. Option Sellers can use this for consistent profit.
• Identified a reversal and sold puts
• Puts decayed a lot
• When achieved 2% profit through puts then sold
Already giving more than 2% return in a week. Now I will prefer to sell 32500 call at 74 to make it strangle in equal ratio.
— Mitesh Patel (@Mitesh_Engr) February 7, 2020
To all. This is free learning for you. How to play option to make consistent return.
Stay tuned and learn it here free of cost. https://t.co/7J7LC86oW0