Since IRONFLY is the flavour these days, sharing my own thread. It has GREEKS incorporated which automatically reduces wing size & risk.

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.

FINDING EDGE IN OPTIONS

24/08/15: Nifty gap down 250 points & another 250 after that. Previous few months return gone, but since I'm quick to take my losses, was saved from ruin. Before that my only edge in option selling was adjustments & my forever edge of following PA. (1/n)

I soon realised that theta decay with sound adjustments is not an edge, which i earlier thought was & which gave me good returns over the years. After that i went deeper in understanding volatility behaviour, how/where it manifests & all the discrepancies in option chain. (2/n)

With finding edge in logistics i mean how to keep the greeks in check, SL in place & optimum ways of adjustments with minimum slippages. So the main aim here is to write theta without following vol behaviour & having any actual knowledge of what's going on in the markets. (3/n)

A dedicated trader can learn all this in few years & it is something which is 'obvious' to become successful. But majority can't reach this level, as this also requires consistent hustle in live markets. All the seminar/webinar business teaches you till this level only.(4/n)

If you get passed this level though, the real work starts, when you have to find your real edge. This can't be taught in a webinar. It needs serious introspection of your trading skills, psychology & strategies in use, which ultimately allow you to book excellent profits. (5/n)

@javia_savan You answered it yourself 🙂
Adjustment cost is way too high for bnf. Sometimes bnf does exceed nifty in vol crush, but nifty overall is more consistent.

My previous b'day which fell on expiry day was in 2010. On that day Nifty straddle opened at 45. Day range of nifty was around 30pts :)

(High 5415, Low 5380)

At that time:

•Didn't know the word Straddle though i used to trade them regularly
•Greeks existence wasn't known

•Adjustments felt like a superpower
•Everyday theta decay was a birth right
•Any strategy thought off felt like a personal invention
•Listening to people warning about unlimited loss in option selling was normal
•Making unlimited gain in long straddle seemed a possibility

•Volumes & Oi were closely tracked
•Overnight positions without hedge was a normal routine

All the above points have been changed over the years. But the underlying market psychology & following the price action still remains the same.

Thank you all for the warm wishes 🙏

Low VIX & low premium. Movement is like 20 VIX now.
Now skilled trader will earn.

The logic of Directional and Non Directional Option selling is explained in Video.
Please take Efforts to watch this

@Arindamazumder Namaste, the unroll you asked for: Here comes the 3rd and final part of the long weekend 'Beginners'… https://t.co/zymIw0BrA8 Share this if you think it's interesting. 🤖

As promised, here is a thread on how I use @unusual_whales to help me find actionable plays.

Please note that these are TOOLS, they are not a magic perfect tool for you to get rich quick. There will be winners, there will be losers.
@snorlax_support

1. The Live Flow

I use this tool by far the most. Here is where I identify all of the big moving transactions happening in the market. I generally look for Strikes that are OTM and are weekly or bi-weekly expirations, this shows urgency.

Minimum Premium - For me, I set my minimum premium at $200,000

Emoji's - All selected besides Bid Side, ETF, Monthly, and Leaps.

EXPIRY - Nearest 4-5 Dates

Ask Side - ON
Bid Side - OFF
Exclude Deep ITM - ON

I use this tool at night to prep for the following day. I scan through it watching for anything that pops out at me, when it does I immediately check that tickers flow (more on that next). If I see things jumping out at me that skews the stock bull/bear with strength, I chart.

2. Ticker Flow

I start by looking at the 1K, 5K, 15K, and 30K to get a good feel for the volume for each expiry and strike price. I then go to the history to look at the options breakdown for each day. I mainly focus on Call Prem %, anything over 65%
EX. $MU