Time for a Thread🧵On yesterday’s “F&O Pe Charcha - Diary Of An Option Seller” with @Mitesh_Engr by @Paytm Money
• More than the Win Loss ratio check the total Gain /loss ratio
• If your avg loss is 1% and avg gain is +5% then even if you are losing in 7 positions and winning in 3 out of 10 still you will be net profitable
• Stick to a single strategy. Eg: A restaurateur usually wouldn’t be changing his recipe on a daily basis
• Mitesh Sir only works on BO or BD strategy, as he is a versatile trader
• Target 4% per month i.e. 48% p.a.
• Option buying requires skill, everyday there wont be huge momentum, so buying options won’t yield good results, but high chances of falling into a bad habit
• In F&O segment there are ~150 stocks
• Not everyday all stocks will move
• Only 5-7 stocks move upside or downside
• Focus only these momentum stocks
• Check which one is moving
• Range BO/BD never disappoints. BO/BD from a rectangle (consolidation)
• Trade only in trending stocks
• Mostly in the first hour itself movement can be seen
• Post market work is to check the range of the stock & whenever they are near the BO/BD one should add them into watchlist & monitor it
• By 9:07 i.e. the pre-open one can get the pre-opening rates of the stocks
• Check the ones that are near BO or BD and then add them to watchlist
• Even if you lose on 7 out of 10 and make on 3, with max loss of 1% of total capital when you lose & make 5-7% on the winners you are still net profitable
• Stocks after BO or BD usually moves in the range of 5-7-10%
• Traders having modest capital should always go with hedge or rather trade in cash to keep the risk under check
• In intra day one can stick to SL
• Mitesh Sir never hedges his position as he is disciplined enough to take a position only post a BD or BO
• In stocks never attempt straddle or strangle as the stock can move suddenly and unlike index stocks can move > 10% and beyond in F&O segment
• In such cases, one has to just exit with SL only
• In index weekly or monthly options are preferable
• For learning, one can try only in cash given the position sizing & risk management
• At the age of 38 years Mitesh Sir started as a full time trader after gaining experience for 3-4 cycles of the 3 situations (Bull, Bear & consolidation)
• He started in Dec 2017 with a capital of 45 lacs and made it to 70 lacs in a span of 3 months with a full time job
• Earlier there was a benefit of leverage,
• Now as per the norms leverage has been done away with
• So one is forced to play intraday
• Hence Better to opt for option buying instead of selling if one has a skill in finding direction
• Buy options with SL in intraday.
• Find the range in index. He would prefer index because in stocks whenever there is BO or BD stock moves by 5-7-10%
• In index he has witnessed 1 upper circuit and 2 lower circuits only so far
• Probability of a big move is less in Index, unless any mega events i.e. elections, Demon, lockdown, 3rd wave (if any)
• If you're satisfied with less profit but prefers more mental peace then hedge.
• Mitesh Sir doesn’t prefer hedges as his profit gets limited
• Nifty adjustments are very difficult given the low premium. Bank nifty has multiple strikes so easy to adjust
• Nifty has less theta component in it
• In nifty you'll have to make a straddle and then inverted strangle it's that difficult
• Some traders only sell options
• Some only buy
• Some only do intraday futures
• Everyone has different skill
• He does everything
• His skill is more in selling than buying options, so whenever he buys options he only puts 2% of his capital
• Preferably buy a future over buying a Deep ITM CE if one wants to gain 100% absolute as futures do not have a time value component, they move lock step vis-à-vis spot
• Bull market means direction is clear. Wherever the fresh breakout starts one can sell that option with full capital also and make 2%.
• Next day again if it again gaps up and goes up he will sell last day closing price strike put to gain more after squaring off the previous put
• And that’s how he identify the range
• With practice anyone can learn this, so practice is the only key to the success
• Sell strangles as we're in a range
• If market goes up near the resistance you can try with straddle selling there as market may halt for 2-3 days there before taking the level out
• If resistance crossed then go single side only
• Better play positional
• He doesn’t prefer Intraday straddle or strangle
• New traders should get disheartened in the learning phase, and hence start with a small capital
• Don’t risk more than a 1% of the total capital
• In case he is holding a strangle and the next day there is a gap down
• For the First 15 mins he doesn't do anything, he analyses the price action:
i. Gaps down and comes up : don’t do anything(just keep the SL of the PE at day high+ 10points)
• Gaps down & continues down move: exit the PE’s as direction is clear & sell only CE’s aggressively(usually the expensive ones now)
• If he sells for 100 and it opens at 300, he will either cut the option or straddle or sell future
• Fear only sets in, when the position size is not proper
• He doesn't recommend leverage if you want to become a professional trader.
• Either get huge capital or train your mind to see percentage return instead of absolute return
• If Mitesh Sir loses the current trading capital that he has in his account, it won't affect him as he's invested part of his wealth in other assets
• Also he is confident about his knowledge & skill which will always help him out.
More from Nikita Poojary
He's earned $6,000M or ₹45,600CRS from his best bets.
THREAD: Jhunjhunwala's 6 best trades.
Collaborated with @AdityaTodmal
1. TATA TEA
In 1986, he bought 5,000 shares at Rs 43, which rose to Rs. 143 in a span of 3 months.
Made a neat Rs. 5lacs.
2. SESA GOA (now VEDANTA)
Initially bought at Rs 28, thereafter pyramiding at Rs 35.
The stock rallied to Rs 65 in a span of 4months.
By now he had made Rs. 25lacs.
3. TATA POWER
Using the Rs. 25lacs,he bought TATA POWER at Rs. 150 and it rallied to Rs. 1000 thereby making a neat Rs. 2.5-3crs.
4. 1989's budget was a game changer for RJ.
Prior to the budget the stocks had been hammered.
RJ's hunch was the upcoming budget wont be a disappointment & hence he staked Rs. 3crs. & made Rs. 20 crs. by the end of the budget.
Covering one of the most unique set ups: Extended moves & Reversal plays
Time for a 🧵 to learn the above from @iManasArora
What qualifies for an extended move?
30-40% move in just 5-6 days is one example of extended move
How Manas used this info to book
Post that the plight of the
Example 2: Booking profits when the stock is extended from 10WMA
Another hack to identify extended move in a stock:
Too many green days!
He was kind enough to share all his trade strategies and was patient enough to answer our doubts.
Thought of making a 🧵for the benefit of the larger audience here.
Sir's Option Selling Logic 🧵:
• Reversals in Intraday Option selling
• Strike Selection & SL
• Hedging for any Black Swan Event
• Positional Option selling
• Ratio Spreads
• How to manage the positions
• Capital mgmt
In collaboration with @AdityaTodmal
How to play reversals
• Always look at the chart as a starting point
• Spot the Swing low
• Sell Strikes 300-400 points below that swing low
• Buy a proper hedge
• Example on how to play reversals on Intraday
• Instead of the selling the support strike sell a bit far
• As the strike is far from the support you get enough cushion
• As soon as the SL is hit, you can exit the positions
• without your strike coming into ITM
• Inside Bar set up
• Free option selling course for beginners with small capital
• List of best books on technical analysis and chart reading
• How to reduce your tax liability
and much more 🧵
1/ Powerful Concepts that every trader should
2/ List of Books based on Technical Analysis that will help you
3/ Free options trading courses from 10 different
4/ Points to know for beginners in
As this year comes to an end, here are the 11 most powerful threads on Subasish Pani exclusively compiled for you all.
Collborated with @AdityaTodmal
1/ Important concepts from Power of Stocks - Subasish
2/ Important concepts with video links of Subasish
3/ The 5 EMA
Subasish Pani revealed the most simple, yet successful strategy: 5EMA set up!— Nikita Poojary (@niki_poojary) July 3, 2022
Here is a thread of 23 video clips on the 5EMA set-up that will save you hundreds of hours and available to you for no cost!
5EMA set-up: \U0001f9f5!
Collaborated with @AdityaTodmal
4/ The Bollinger Band set-
A set up which has a minimum Risk/Reward (R/R) of 1:4— Nikita Poojary (@niki_poojary) October 2, 2022
This set up can be used for intraday, option selling, option buying, as well as investing.
Maximum profit strategy by Subasish Pani.
Bollinger band set-up: \U0001f9f5!
Collaborated with @AdityaTodmal pic.twitter.com/aEIUVQF2XY
More from Mplearnings
How I am playing expiry trades.
Catch me if you can @Mitesh_Engr— Nikita Poojary (@niki_poojary) July 17, 2021
Time for a\U0001f9f5
Mitesh Sir's EXPIRY Option Selling 101:
\u2022 What to look for?
\u2022 Strike Selection & Ratios
\u2022 SL mgmt
\u2022 Avoiding freezes
\u2022 Monthy Expiry
\u2022 Event days
\u2022 How he would have traded last expiry?
In collaboration with @AdityaTodmal pic.twitter.com/9uN2vQQ4hc
Mitesh Sir's Positional Option Selling 101:
• How to find direction
• Which options to sell
• How to deploy capital
• Exit criteria
• What ROI he targets weekly
• What % risk he takes
Done with the help of @niki_poojary
How @Mitesh_Engr Sir finds the direction?
• Daily charts S/R
• 75 min charts S/R
• Intraday trend
• Always play directional
• Never trades in strategies
Which options to sell in weekly expiry according to @Mitesh_Engr?
• Weekly candle High/Low
• Sell 1% away options from those
• Exit when levels breached
Position Sizing by @Mitesh_Engr Sir.
How to deploy your capital?
• First sell 20%
• Pyramid the next day
• When to exit
• What to do when view goes wrong
• What to do with idle capital
Some important tweets of @Mitesh_Engr Sir
• What Data to look at
• ROI for safe players per month
• Max risk per day
• Gather knowledge and play directional
• Never play strategies
Mitesh Sir's FUTURES BREAKOUT TRADES 101:
• How to pick stocks at right time?
• What to look for?
• Importance of BO post consolidation
• How to manage SL
• How to get huge profits
• Multiple Examples
In collaboration with @niki_poojary
Importance of Trading only BO or BD stocks by @Mitesh_Engr Sir: 👇
•Two questions to always ask:
~Why stock is going up/down and when?
~ Who is behind big up/down and when?
• Trade only stocks with Momentum
• Instant results
• Small SL or huge profits
Sir's take on how to Trade: 👇
• Observe fight between buyer & seller
• Position will be created within first 3 hours
• Operators will win
• Just find BO or BD
• Look for huge volume support
• Give company to operators
• ATP importance explained
How to take trade in Breakout/Breakdown stocks by @Mitesh_Engr Sir: 👇
• Check Support & Resistance
• Wait for 2-3 months consolidation
• Surge in volumes
• Trade on 3 min charts
• Small SL
• Keep trailing
• Always pyramid in profit
When and Why to Pyramid? By @Mitesh_Engr Sir
• Adding to winning positions
• Signals of continued strength
• Potentially large profits
• An Example of pyramiding in one of his trades
My trading is very simple. Selling option based on support and resistance. Time frame: Daily and 75 min.
Keep distance of 1-2% from S & R so one has chance to exit or adjust if trade goes against.
And last one my tgt is 4% pm. Above it bonus.
Dear Nitesh can you share some idea how you makes successful trade. Please I am in a big loss since I started my journey of stock market in 2017. Then I took 15 lac loan and everything is vanished. Now I am in so much struggle to pay the EMI— Ganesh (@Eshan70302504) May 30, 2021
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In 2019, thanks to the fine folks at @DelReyBooks, you'll all get to read it.
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