1. What is a Strangle
2. Benefits and Drawbacks
3. How to extract more profit through strangles?
4. How to adjust them when in loss?
5. Videos on Positional Strangles
6. Vix Correlation
Let's dive in ↓
*MEGA THREAD ON SHORT STRANGLES* 🧵
This thread is a step-by-step guide on what I have learned trading Short Strangles.
Collaborated with @niki_poojary
1. What is a Strangle
2. Benefits and Drawbacks
3. How to extract more profit through strangles?
4. How to adjust them when in loss?
5. Videos on Positional Strangles
6. Vix Correlation
Let's dive in ↓
Selling OTM CE & OTM PE of the same instrument you are trading.
Look at the picture below for an example of a short strangle in current weekly options.
The highest probability of profit is there in a strangle.
By mastering this technique you can earn a consistent weekly income.
Most of the times we can predict the weekly range.
So sell options outside this range to profit consistently.
Higher probability - More than 80% winning chance
Can turn directional too - If your SL hits on one side can sell on the opposite side and make it directional.
The biggest range of profit you'll get in options of any expiry.
Adjustments - Can increase your breakevens by shifting your strangle or by using futures
Jackpot - If you sell high premium options on both sides and it expires in your range, then you make big money
Gaps - If a big gap happens you are in for a big loss
Spikes - If you sell and if IV spikes, you'll be in loss
Don't know max loss - Unlike hedged strategies, you don't know your maximum losses upfront
Margins - Higher than flies or condors
If the market is trading in a range technically, it is the perfect time to do short strangles.
Also when you think the IV is very high.
Have a look at an example when the market is in a range.
Short strangles have given the highest returns when VIX is declining.
So whenever the vix is in an increasing mode, please avoid this strategy.
Lower SL - Don't have to react until your SL hits, can keep lowering the SL to lower your risk.
- Positional traders don't need to react till their level breaks.
- Until the market is stuck in a range nothing has to be done.
Even a small stop gives you the chance to earn higher.
If you're in good profit, can shift both your options closer to the spot to extract more profit from them.
Exaplined in an example below:
For eg, 40 rs premium is needed in Bank NIfty to extract 1% profit on margin.
You can start with 40-40 rs strangles on both sides.
When these decay you can extract a further 30 points from each side.
So instead of earning 40, you at times earn 70 from both sides.
All adjustments depend upon your risk appetite and the view you take of the market.
The same adjustment method won't work every week as all weeks are different.
However, you must know all the ways so you can choose the right one accordingly.
Eg: If the market is going down, you may roll down your calls and roughly sell the same premium the loss giving put is trading at.
If the market reverses, the IV's will fall and the calls may not give you as big a damage as much as the put will fall.
You don't always want to deal with the hassle of converting your otm strangles to near OTM or ATM options.
If you feel your strike is in danger then book loss in the losing side and sell an option further away at a safe strike.
Extremely important for high POP strategies.
Whenever you start trading short strangles there are going to be times where the vix will rise or the directional movement will cause you a loss.
So first rule is to keep position sizing very low to begin with.
Once you've done that you may deploy some more quantity & again sell a High probability strangle.
This way the second batch of quantities you've sold are very safe.
You can keep booking the untested side of your strangle and bring it closer
Eventually by rolling too much, you will end up with a Short Straddle.
Then you must adjust the straddle in different ways
Click below to know
https://t.co/1PSR246GUE
The highest THETA strategy you aren't using:
— Aditya Todmal (@AdityaTodmal) July 10, 2022
The SHORT STRADDLE STRATEGY.
Knowing how to use it can potentially give you the highest profits if the market stays in a range.
Here's the step-by-step guide: \U0001f9f5
Collaborated with @niki_poojary pic.twitter.com/kiha1d7asm
Traders usually add to the winning leg and sometimes play with ratios when it comes to their view.
For eg, if you have sold a strangle with a neutral view and your view is turning bullish.
They sell more OTM puts and vice versa for bearish.
Here is a video of them explaining Short Strangles.
https://t.co/zM1Lv3y1Cd
Check out his excellent video to learn from him.
His method of dealing with Positional Strangles.
https://t.co/BrcLw01eKe
Strangles are not all rosy, they can lead to significant losses if some overnight news comes or if it's not managed properly.
Develop some risk management rules & get out at a 0.5% or 1% loss to stay longer in the game.
Get better with practice.
If you did, share the thread
Hop back up to retweet the first tweet
See past threads here: @AdityaTodmal & @niki_poojary
If you enjoyed this, here's another one:
https://t.co/l7vakmDdLB
There are so many tools related to trading.
— Aditya Todmal (@AdityaTodmal) July 9, 2022
But very few provide any real value.
Here are 7 of the most valuable FREE Tools you're not using (but should be): \U0001f9f5
Collaborated with @niki_poojary
More from Aditya Todmal
The most successful stock trader from America & the winner of all the trading competitions he competes in.
20 Powerful tweets to learn from @markminervini
A 🧵thread...
Jesse Livermore
Never let a loss exceed 8% changed his trading game for the
Key early decisions to make for your trading
Never listen to
20 Powerful tweets to learn from @markminervini
A 🧵thread...
Jesse Livermore
Some important quotes by Jesse Livermore... pic.twitter.com/UklL86oTvb
— Mark Minervini (@markminervini) June 16, 2021
Never let a loss exceed 8% changed his trading game for the
The big turning point in my trading came when I made a decision and vowed to NEVER EVER let a loss exceed 8%. During the next 5 years I averaged 220% per year for a total compounded return of 33,500%. It's been 28 years since and I have never broken that discipline not even once!
— Mark Minervini (@markminervini) April 26, 2021
Key early decisions to make for your trading
A few key decisions early in my trading career and my financial life completely changed for the better in just a few years.
— Mark Minervini (@markminervini) June 13, 2021
1. No big losses
2. No averaging down
3. No chasing extended stocks
4. No giving back decent profits
5. Always get odds on my money
Never listen to
Only losers discourage dreamers. Only those who never achieved big things discourage those attempting to achieve big things. Only those who think small discourage those who think big. Never believe discourages. The have no credibility! Believe winners. Believe in YOU! \U0001f447 pic.twitter.com/JdAhRy3lRJ
— Mark Minervini (@markminervini) June 14, 2021
DJ SIR THREAD
Great video with points helpful for beginners.
Made 4 threads on DJ Sir with the help of @niki_poojary
1. Selecting strikes to trade in with risk management.
2. How he took some aggressive trades.
3. Multiple charts analysis for intraday trading.
4. Trade Setup
Attaching all threads made on DJ Sir. After watching the video you can refer to this tweet for notes about his strategy and learn a few other ideas.
Compiling these together for easy access to his knowledge.
1. Selecting strikes and risk
2. Going aggressive with help of data and
3. Intraday
Great video with points helpful for beginners.
Made 4 threads on DJ Sir with the help of @niki_poojary
1. Selecting strikes to trade in with risk management.
2. How he took some aggressive trades.
3. Multiple charts analysis for intraday trading.
4. Trade Setup
https://t.co/Ngoc5bh906 Thank Mahek bhai for making this video basis my set up which i have been following since past 2 yr I\u2019m not promoting this software, neither I 'll gain any referral if anyone subscribes for this software ,Purpose is to share help fellow traders!\U0001f60a
— itrade(DJ) (@ITRADE191) September 5, 2021
Attaching all threads made on DJ Sir. After watching the video you can refer to this tweet for notes about his strategy and learn a few other ideas.
Compiling these together for easy access to his knowledge.
1. Selecting strikes and risk
5. A THREAD on . . . .
— Aditya Todmal (@AdityaTodmal) July 11, 2021
How @ITRADE191 selects strikes to trade in and how he follows risk management.
Short thread explained via pictures with the help of @niki_poojary.https://t.co/YiYYaIReNS
2. Going aggressive with help of data and
6. Thread on how @ITRADE191 made 3 lakhs in 2 days.
— Aditya Todmal (@AdityaTodmal) July 11, 2021
You will need:
1. Pivots
2. Vwap
3. PDL/PDH (Previous day high/low)
4. Advance/Decline Ratio.https://t.co/o9tLOaLpEh
3. Intraday
7. DJ @ITRADE191 multiple chart analysis for INTRADAY TRADING.
— Aditya Todmal (@AdityaTodmal) July 11, 2021
1. Core setup
2. Pivot points trades
3. PDH/PDL trades
4. Open interest addictions combined with rejections on charts.
5. Website to confirm biashttps://t.co/qZQCWOSisa
More from All
#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
சூரியன் உலக இயக்கத்திற்கு மிக முக்கியமானவர். சூரிய சக்தியால்தான் ஜீவராசிகள், பயிர்கள்
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
சூரியன் உலக இயக்கத்திற்கு மிக முக்கியமானவர். சூரிய சக்தியால்தான் ஜீவராசிகள், பயிர்கள்
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Viruses and other pathogens are often studied as stand-alone entities, despite that, in nature, they mostly live in multispecies associations called biofilms—both externally and within the host.
https://t.co/FBfXhUrH5d
Microorganisms in biofilms are enclosed by an extracellular matrix that confers protection and improves survival. Previous studies have shown that viruses can secondarily colonize preexisting biofilms, and viral biofilms have also been described.
...we raise the perspective that CoVs can persistently infect bats due to their association with biofilm structures. This phenomenon potentially provides an optimal environment for nonpathogenic & well-adapted viruses to interact with the host, as well as for viral recombination.
Biofilms can also enhance virion viability in extracellular environments, such as on fomites and in aquatic sediments, allowing viral persistence and dissemination.
Viruses and other pathogens are often studied as stand-alone entities, despite that, in nature, they mostly live in multispecies associations called biofilms—both externally and within the host.
https://t.co/FBfXhUrH5d
Microorganisms in biofilms are enclosed by an extracellular matrix that confers protection and improves survival. Previous studies have shown that viruses can secondarily colonize preexisting biofilms, and viral biofilms have also been described.
...we raise the perspective that CoVs can persistently infect bats due to their association with biofilm structures. This phenomenon potentially provides an optimal environment for nonpathogenic & well-adapted viruses to interact with the host, as well as for viral recombination.
Biofilms can also enhance virion viability in extracellular environments, such as on fomites and in aquatic sediments, allowing viral persistence and dissemination.
