More from Option selling
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
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
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
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.
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
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
Start with a low capital and master all 3 phases of the market – upward, downward and consolidation. If your winning trades are >60-70%, then increase your capital.
Treat trading as a business and target similar gains. An annual profit of 25% is reasonable and achievable.
Does a restaurant change recipes every day? No.
Similarly, stick to strategies if there is a 70% success rate. If it doesn’t work for 2 months, don’t worry, it might work for the rest of the 10 months
Option buyers need more skill than sellers as they need to catch the direction at the right time.
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2) All EU leaders watching tomorrow’s vote. Of course they want to avoid a no deal #Brexit BUT they feel the deal - so painfully negotiated between EU and UK - is too fresh to re-open. Clarifications, yes but fundamental renegotiations, no.
3) The EU’s international reputation as a tough deal-maker is at stake here too. If Brussels now suddenly “gives in” to U.K. on EU red lines (eg backstop) then that would weaken the EU’s reputation in future trade negotiations with other non EU countries
4) Also on backstop the EU is unlikely to cave in to favour a relationship with a leaving member state (UK) against the explicit wishes and ignoring the deep concerns of a continuing member: Ireland.
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Twitter should be like that airport shuttle service, the moment you walk out (start following someone) - there should be a chauffeur (new stock idea) ready to drive you to your destination!
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[Q&A on APIs]
Originally named as Lachit Deca, Lachit Borphukan, the fierce and invincible Ahom Commander, was born during the early 17th century at Betioni in the Golaghat district of modern Assam.
His father, Momai Tamuli Borbarua was the ‘Governor’ of the kingdom and also ‘Commander-in-Chief’ of Ahom army under King Pratap Singha during his reign starting from 1603 to 1639. Lachit received military training from an early age and joined the Ahom King Jayadhvaj Singha...
...(1648-1663) as a scarf-bearer. The post ‘scarf-bearer’ or ‘Soladhara Barua’ is considered as a part of the incumbent king’s personal staff. Owing to his military training Lechit was appointed "Ghora Barua", Supdt. of the Royal horses. When Chakradhwaj Singha became king..
..of Ahom dynasty in 1663,he appointed him Suptd. of The Royal Guards &finally he was appointed as Borphukan by the king.Then onwards,he was known as Lachit Borphukan.Borphukan used to be top councillor in Ahom Kingdom. This position was embedded with executive & judicial powers.
Assam was facing incessant Islamic invasion since Jan1662, when Mughal General Mir Jumla II attacked Ahom capital Gargaon. He never defeated Ahom king Jayadhwaja Singha as king retreated to hill &continued Guerrilla warfare.Prolonged fight &prospect of stalemate disturbed Jumla.
The ancient Indian kings called a head crown as a Mukut and it would mostly constitute of a golden ornamental headgear like an oval cap with gems.
Sometimes it would also include a halo circle to show the divinity of the king
As it was considered that kings were appointment by the gods themselves. Example the kings of mewar considered themselves to be the ‘Diwan of eklingji')
But in most cases very few Mukut with halo effect have been found.
Samudragupta in the gupta era coin. You can see the helmet like headwear on him.
Till gupta era the solid golden head wear was used in most days of the monarch.
But since the onset of 8th century it reduced in usage and was now used only as a ceremonial headwear.
Whereas earlier the Maharaja had to wear the mukut whenever his court was in session.
Still mukut was being used prominently for ceremonial activities till recent times.
Maharaj Dahir of Sindh👇
But as times past the style of headwear also changed.
The kings mostly wore turbans ordained with pearls and gems while rarely anyone wore a true Mukut after 16th century.
Portrait of Sri Krishna Dev Raya👇
If you are compromising too much, there is a chance that you are getting manipulated.
Why are you the one that's always compromising?
How come the other person always gets their way?
Be more curious.
If something seems off, stick up for yourself.
'Wait, you sure I am being manipulated?'
I have no clue, that is only something that you can decide for yourself.
'Dang is there anything I need to look out for?'
But let me give you a few things to look out for.
I see manipulation as skillfully controlling someone's behavior for egotistical or unethical purposes.
'How come people don't leave when it's happening to them?'
Because most people have 0 clue that they are being manipulated.
1. Guilt Trip
You ever made a mistake around someone, only for them to hold it over your head?
The will always bring up the mistake when you 2 are not seeing eye to eye.
These people will use that mistake as leverage to get what they want from you in the future.
2. The Rationalizer
This person will commit the worst acts & find a way to rationalize it.
Example: cheaters when they get caught.
They have every excuse in the book for why they did it.
Heck, they are so good at rationalizing, they will make it seem like your fault.