Above 42700, all traders were expecting a breakout.
But do you know failed breakouts are more powerful than breakouts?
Sharp selling will happen if a failed breakdown occurs and he was fully prepared for it.
Subhasish Pani earned +1,41,25,022 profit in Option Buying on Expiry day yesterday.
He captured the down move in both futures and options.
Here's a breakdown of how he earned this profit: 🧵
Collaborated with @niki_poojary
Above 42700, all traders were expecting a breakout.
But do you know failed breakouts are more powerful than breakouts?
Sharp selling will happen if a failed breakdown occurs and he was fully prepared for it.
He was giving hints from 1-2 months for Option Buyers regarding when they should buy options at a low IV.
The current market scenario was one where the premiums were too low.
According to him, one should plan for a buying trade during such scenarios and target big.
Prefers 12 o clock momentum usually whenever there is a gap-down scenario.
Already the market above 42700 buyers weren't strong enough. So on Thursday in a gap-down scenario, he was expecting a big downfall.
He bought 36,000 qty of puts of 42500 strike at 92 and exited them at 391.
(43200 qty is an error by him, correct qty should be 36,000)
Here is the order book with the timings of when he bought and also the timing where he sold.
Bought the puts at 91 of strike 42500, and sold them at 391.
Because of a bearish bias, he had already taken some future shorts home on Wednesday.
When the down-move started immediately post-opening, he was already in 20 lakhs profits in futures.
Since he made 20 lakhs in futures, he decided to risk those profits to earn higher for the day.
So he bought 42400 puts at 92 with the intention of only risking 20 lakhs in them and finally exited them near 391, thus making a huge profit.
Option buying premiums are low for the last 10 expiries and in many of them, we have seen very good momentum on expiries.
If premiums are cheap and a big movement comes, its the best thing for option buyers so they should be prepared.
He says a buyer should plan a good R:R trade for buying either when Option Sellers are scared (due to low premiums) or stuck (in round number strikes).
When premiums are low, sellers are easily trapped as there is very less scope to adjustments.
Usually, before an event what happens is there is an increase in volatility and premiums shoot up on both sides to compensate for the risk associated with the BUDGET.
This time the premiums had not increased.
Perfect scenario!
In January, he is just coming out of a drawdown.
No one likes to always be in a drawdown, and one should risk profits made already to make more going ahead.
So from a month or two he might have been flat, so he risked less.
He hates an R:R of 1:1 & usually prefers it to be 1:6 and 1:10.
Today he got out at 1:3 approx.
Only in scalping does he trade with low R:R.
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More from Aditya Todmal
Compilation of the best learnings from @BankniftyA through his tweets.
Have compiled his:
1. Expiry day trading.
2. Trade logics.
3. Multiple Charts analysis.
3. BTST criteria for stocks.
Share if you find it helpful so that everyone can benefit.
A pdf of his moneycontrol article where you can read about his journey and how he trades.
Advice on how to not let your mood influence your decisions.
Expiry day Trading:
How to become better?
When I had spoken to him on phone he advised me to backtest all expiries and rigorously practice them again and again to develop conviction. Superb advice!
Acts based on support and resistance levels from charts
Have compiled his:
1. Expiry day trading.
2. Trade logics.
3. Multiple Charts analysis.
3. BTST criteria for stocks.
Share if you find it helpful so that everyone can benefit.
A pdf of his moneycontrol article where you can read about his journey and how he trades.
— Harsh (@HarshAsserts) September 11, 2020
Advice on how to not let your mood influence your decisions.
When trading,moods will want to influence ur decisions
— Banknifty Addict (Gaurav) (@BankniftyA) December 29, 2019
How to minimize:
-Have a backtested plan/system
-Know yourself(emotion and panic levels)
So trade size is important to keep ur emotions in check
-dont focus too much on pnl
-have a back up plan ready
& last stay positive!!
Expiry day Trading:
How to become better?
When I had spoken to him on phone he advised me to backtest all expiries and rigorously practice them again and again to develop conviction. Superb advice!
Backtest the complete expiry and practice again and again till u develop conviction
— Banknifty Addict (Gaurav) (@BankniftyA) November 5, 2020
Acts based on support and resistance levels from charts
Support and resistance levels based on technical charts on various time frames.
— Banknifty Addict (Gaurav) (@BankniftyA) December 19, 2019
Breaking any of the above, leads to a direction
and then only directional play.
I spent over 100 hours studying the best patterns in Technical Analysis taught to me by @niki_poojary.
Turns out, patterns trading is simple—if you follow these 8 Patterns:
Let's start: ↓
While studying her Twitter profile and with constant talks with her, I found these to be the most important patterns she focuses on always.
Then I wrote a small summary of what each pattern means.
Also attached are some examples from her tweets.
1/ Cup and handle Pattern
Happens during an uptrend.
The cup portion has a U-shaped appearance.
The bears are getting weaker as they are unable to drive the prices below the last low.
Subhasish Pani uses this a lot in stocks to spot bullish trades.
Eg
Eg
Turns out, patterns trading is simple—if you follow these 8 Patterns:
Let's start: ↓
While studying her Twitter profile and with constant talks with her, I found these to be the most important patterns she focuses on always.
Then I wrote a small summary of what each pattern means.
Also attached are some examples from her tweets.
1/ Cup and handle Pattern
Happens during an uptrend.
The cup portion has a U-shaped appearance.
The bears are getting weaker as they are unable to drive the prices below the last low.
Subhasish Pani uses this a lot in stocks to spot bullish trades.
Eg
5: When to play directional:
— Nikita Poojary (@niki_poojary) December 18, 2022
Whenever the index is moving in a single direction, its important to go with the trend.
A few weeks ago when BNF broke out of the cup and handle pattern, all we had to do was sell PEs.
Pls note: weekly TF chart is attached to just show the C&H BO pic.twitter.com/z0wgUzJW8t
Eg
#VOLTAS Another cup & handle pattern for cash positional pic.twitter.com/Jsc99xJfwY
— Nikita Poojary (@niki_poojary) October 23, 2019
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Margatha Natarajar murthi - Uthirakosamangai temple near Ramanathapuram,TN
#ArudraDarisanam
Unique Natarajar made of emerlad is abt 6 feet tall.
It is always covered with sandal paste.Only on Thriuvadhirai Star in month Margazhi-Nataraja can be worshipped without sandal paste.
After removing the sandal paste,day long rituals & various abhishekam will be https://t.co/e1Ye8DrNWb day Maragatha Nataraja sannandhi will be closed after anointing the murthi with fresh sandal paste.Maragatha Natarajar is covered with sandal paste throughout the year
as Emerald has scientific property of its molecules getting disturbed when exposed to light/water/sound.This is an ancient Shiva temple considered to be 3000 years old -believed to be where Bhagwan Shiva gave Veda gyaana to Parvati Devi.This temple has some stunning sculptures.
#ArudraDarisanam
Unique Natarajar made of emerlad is abt 6 feet tall.
It is always covered with sandal paste.Only on Thriuvadhirai Star in month Margazhi-Nataraja can be worshipped without sandal paste.
After removing the sandal paste,day long rituals & various abhishekam will be https://t.co/e1Ye8DrNWb day Maragatha Nataraja sannandhi will be closed after anointing the murthi with fresh sandal paste.Maragatha Natarajar is covered with sandal paste throughout the year
as Emerald has scientific property of its molecules getting disturbed when exposed to light/water/sound.This is an ancient Shiva temple considered to be 3000 years old -believed to be where Bhagwan Shiva gave Veda gyaana to Parvati Devi.This temple has some stunning sculptures.
