Mostly will work on Monday to Wednesday. Sometimes on Friday.
Why to pay your money to learn this if u can get it here.
U need only practice.
Say bank nifty future is at 32000.
Sell both 32000 call and put.
Considering current volatile market lest say premium on Monday morning is 350 on both sides.
Sold with 700 points combine premium.
If bank nifty will trade in narrow range say +\- 100 hold it.
If moving 200 points
then exit previous sold straddle. Sell new one. Let’s say BN moved +200
Now sell 32200. If bank nifty will move here within range then u will get profit through theta decay. Follow same procedure for next 150-200 pts move.
This is only for single straddle sell position.
Now in second case sell three straddle. 31900/32000/32100
In case of 100 points move no need to change.
If 200 + then future is 32200.
Exit 31900 and sell 31200 straddle.
If moving another 100 then exit 32000 and sell 32300. Continue same with 100 points move.
If no move then
it will consolidate between 32000-32200 or 32100 to 32300 and u will get theta decay.
This is for normal move. Sudden big move may come anytime. So keep SL in system.
If u r selling at 350-350 then keep SL in system 475 for both legs.
Practice it. No need to attend webinar.
Time for a🧵
Mitesh Sir's EXPIRY Option Selling 101:
• What to look for?
• Strike Selection & Ratios
• SL mgmt
• Avoiding freezes
• Monthy Expiry
• Event days
• How he would have traded last expiry?
In collaboration with @AdityaTodmal
Edward de Bono says intelligence is like a🚗 Automobile
“A powerful car may be driven badly. A less powerful car may be driven well. The skill of the car driver determines how the power of the car is used.”
What @Mitesh_Engr Sir looks at for Expiry Trading:
• Technicals of BNF
• Individual Heavyweight stocks of BNF
• Support/Resistance of BNF on weekly TF
• Also has Superb SL management
• When it comes to adjustments, he is always on toes
How to Select Strikes to Sell?
• You can't sell based on premium
• Follow only trend
• Price action is best to sell on expiry day
• Never wait for the options to go to zero
Using Ratios to Sell:
• If BNF is in a range then strangles
• If breakout/ breakdown from a range then directional
• Selling 70/30 or 80/20 ratios
• 2 examples on how he used ratios
"Intraday Banknifty Strangle based on OI data"
(System already shared, today just share few examples)
-Trade timing after 9:45
-Check Banknifty change in OI data at 9:45, and identify the highest OI built up in call side and put side
-We will sell both strikes with combined premium as SL on both legs.
28th June 2021
At 9:45 trading at 35350
Highest OI in call side at 35500 CE and 35000 at put side
Strike selection 35500 CE- 35000 PE
29th June 2021
At 9:45 trading at 35112
Highest OI in call side at 35300 CE and 35000 at put side
Strike selection 35300 CE (232) - 35000 PE (150) Combined premium 382 , Both legs SL 382
30th June 2021
At 9:45 trading at 35002
Highest OI in call side at 35000 CE and 35000 at put side
Strike selection 35000 CE(176)- 35000 PE(213) Combined premium 389 , Both legs SL 389
• I have curated some of the best tweets from the best traders we know of.
• Making one master thread and will keep posting all my threads under this.
• Go through this for super learning/value totally free of cost! 😃
1. 7 FREE OPTION TRADING COURSES FOR
A THREAD:— Aditya Todmal (@AdityaTodmal) November 28, 2020
7 FREE OPTION TRADING COURSES FOR BEGINNERS.
Been getting lot of dm's from people telling me they want to learn option trading and need some recommendations.
Here I'm listing the resources every beginner should go through to shorten their learning curve.
2. THE ABSOLUTE BEST 15 SCANNERS EXPERTS ARE USING
Got these scanners from the following accounts:
3. 12 TRADING SETUPS which experts are using.
These setups I found from the following 4 accounts:
4. Curated tweets on HOW TO SELL STRADDLES.
Everything covered in this thread.
2. How to initiate
3. When to exit straddles
5. Videos on
Curated tweets on How to Sell Straddles— Aditya Todmal (@AdityaTodmal) February 21, 2021
Everything covered in this thread.
2. How to initiate
3. When to exit straddles
5. Videos on Straddles
Share if you find this knowledgeable for the benefit of others.
Or find options that move 1,000% in a single day/week?🤯
I made a thread going over exactly how I find these stocks BEFORE they take off 🚀
So, let's start with the software I use…
Finviz!! Finviz is a free website that I use to scan for stocks.
They have a lot of other cool features as well, but I only use their scanner.
Head on over to finviz and go to the screener
Click on the “All” tab on the top and put in the criteria in the next tweet
This is the first scan that I use for bullish swing setups
✅Vol over 400k
✅Price > $20
The next scan I use is the opposite of the first one.
✅Quarter +10% to -10%
✅Week Down to Week up
This is my bearish scan for swing setups. 👇
The Straddle is a delta neutral strategy and it is important to keep deltas in check during the course of the Trade and not let them run away from you. Of course Volatility is the elephant in the room- but not going there as that will require a separate discussion
The first and most common method is to go 'inverted.' That is to say to shift the untested side to generate additional Premium and increase the runway to Breakeven. So if you start with a Straddle at 700 and price goes to 740, you can move the PE up to say 720.
How much should you move the untested side? While again this is a matter of skill, experience and artistry, the rule of thumb is to cut deltas by half. Remember, prices will move and you have to allow sufficient room for them to fluctuate
The second method is to shift the entire Straddle in the direction of the move. So if you have a 700 Straddle and Price goes to 740, you can shift the Straddle to 720. If you time this right, it can generally be done at virtually no cost or minimal cost.
BEST OPTIONS STRATEGY FOR CONSISTENT INCOME -
OPTIONS WHEEL STRATEGY
Everything to know about this strategy I'm posting in this thread.
Step 1: Stock Selection
1. For this strategy you're going to have to choose some stocks that you think will be doing well in the future/long term.
2. Stock must be in an uptrend.
3. Stock options should be liquid enough to trade in.
4. List of stocks attached
Step 2: Which option to sell?
1. Sell put at a support according to charts.
2. Sell put at a strike far away from the spot where you think the probability of the stock falling will be very very low.
3. Sell put at a price where you're willing to buy the stock at.
Step 3: What to do when in profit/loss?
1. If in profit you can just roll up the puts thereby increasing the ROI or shift to other stocks to make more profit.
2. If in loss take delivery of the shares equivalent to the lot size in cash market.
Step 4: What to do after taking the delivery?
1. Sell calls to lower your cost price of the stock. For eg, you took delivery of Reliance at 1900, sell 2100 CE which is about 10% away.
2. Keep doing this till your CE expires ITM and then give delivery of your stock away
Beginners Options Books:
1) The Bible of Options Strategies - Guy Cohen
2) The Financial Times Guide to Options - Lenny Jordan
3) Simple Options Trading Formulas - Billy Williams
Books on Options Greeks:
1) Trading Options Greeks - Dan Passarelli
2) How to Calculate Options Prices & their Greeks - Pierino Ursone
Books on Options Volatility Trading:
1) Option Volatility & Pricing - Sheldon Natenberg
2) Option Trading: Pricing & Volatility Strategies & Techniques - Euan Sinclair
3) The Volatility Smile - Derman & Miller
Books on Options Trading:
1) Trading Options At Expiration - Jeff Augen
2) Options as a Strategic Investment - Lawrence Williams
3) Positional Options Trading - Euan Sinclair
4) Options Spread Strategies - Tony Saliba
5) Options Strategies for Directionless Markets - Tony Saliba
Other important Options Books:
1) Options, Futures & other Derivatives - John Hull
2) Options Trading Strategies - Scott Danes
3) Covered Call for Beginners - Freeman Publications
The instrument that I trade in are Nifty (NF) options
Thanks to @AdityaTodmal @niki_poojary for contributing in making this
How to set your charts:
Lets try to understand what to sell when 50EMA, VWAP & RSI works in different scenarios
What options to sell and how to place the SL
Important to have a birds eye view when trading in NF options as many stocks influences its movement
Nobody will give you this kind of knowledge in any paid webinar like they gave this in a thread! One more brilliant thread by @ITRADE191 @AdityaTodmal @niki_poojary
P.S. No one specifically invented ironfly & it's adjustments. A good trader can figure it out on his own. I've been doing it on & off for yrs.
THREAD ON IRONFLY— Sarang Sood (@SarangSood) December 12, 2020
These days the most preferred strategy for option sellers due to improved margins is IRONFLY. It's essentially a short straddle with long strangle. Long strangle acting as 'WINGS', which help in capping the unlimited risk associated with a short straddle.(1/n)
How to play mine and other traders’ trigger watchlists.
\U0001f3b2 How to play trigger watchlists \U0001f3b2— Adam Sliver \U0001f3c0 (@AdamSliverTrade) October 10, 2021
1. How/When to enter:
This is NOT an exact science, there is no way to avoid fakeouts. These are KEY levels, and for that reason, provide strong moves. However, they can be hard to break due to their significance. You must manage risk.
How I select stocks to build a watchlist & Insight on my trading style.
\U0001f4daThread: How I Make Watchlists\U0001f4dd— Adam Sliver \U0001f3c0 (@AdamSliverTrade) September 2, 2021
There are countless ways to make watchlists. Each trader looks for particular things in a setup that fits their style. There is no science here. My goal is to share a simplistic strategy on how to become SELF-SUFFICIENT with watchlists. \U0001f91d
How to use FinTwit as a resource.
\U0001f4c8How to use FinTwit to your advantage\U0001f4c8— Adam Sliver \U0001f3c0 (@AdamSliverTrade) September 8, 2021
There\u2019s a lot of people that post great content on here. So I\u2019d like to share some of the best, and how you can use their strategies to add to your own playbook. \u2705
Small Account Crypto Strategy:
He trades in Nifty & Bank Nifty via spreads majorly.
In the Jainam Broking Speech, he shared how he trades debit and credit spreads:
Here's a breakdown of his 10 step method: 🧵
Collaborated with @niki_poojary
1. Why trade via spreads?
Overnight risk will be always capped
Limited Risk will keep you cool
Hedge our position
Strictly not to do for margin, as that will lead to overleveraging.
Traders Sell option for 100 and buy 10 rs option.
That is for margin reduction, not a spread.
If the market opens at the lower circuit or upper circuit, then our loss should be limited.
Eg - Expiry Trading on the 24th Feb Expiry
The market gapped down & traders lost huge sums of money.
Some lost 15% or 20% of their capital in a 4% index move.
If in 4% people are losing so huge then imagine if Modi says black money is back, we will open at an upper circuit.
If India-Pakistan tension news comes again we will open at a lower circuit.
In a 4% index move, people lost 10%, so in the case of a circuit, they will lose 50%.
To recover a 50% loss on capital, you need to make 100% returns with the leftover capital to break even.
In these cases, spreads cover your risk.
Even he lost 3-4% of capital on 24th but it is easy to recover in 1-2 months.