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.
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)
More from Sarang Sood
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If you are new to F&O, you can start with Vertical Spreads (Debit and Credit spreads) instead of buying options in Stocks and Indices.
Here are some ways how you can do it, when you can do it and the right position sizing for doing it... 🧵 (1/25)
Traders who are trading in cash and want to explore options generally start with options buying without much knowledge. They buy OTM strikes and trade with wrong position sizing. With no idea about the perfect entry, they end up feeling that F&O is risky. (2/25)
After losses in F&O buying, this is how I approached it and it rewarded me pretty well in initial phase. I find this strategy easy to start things off. And then, you can explore other strategies too and find what works for you. (3/25)
Vertical spread is a directional, defined risk options trading strategy:
1. Bull call spread (Debit spread)
2. Bull put spread (Credit spread)
3. Bear call spread (Credit spread)
4. Bear put spread (Debit spread)
Read about these strategies in the below articles. (4/25)
https://t.co/KQvYOsu9kv
While going through these strategies, you must have thought you have to wait till expiry for profits/loss. (5/25)
Here are some ways how you can do it, when you can do it and the right position sizing for doing it... 🧵 (1/25)
Traders who are trading in cash and want to explore options generally start with options buying without much knowledge. They buy OTM strikes and trade with wrong position sizing. With no idea about the perfect entry, they end up feeling that F&O is risky. (2/25)
After losses in F&O buying, this is how I approached it and it rewarded me pretty well in initial phase. I find this strategy easy to start things off. And then, you can explore other strategies too and find what works for you. (3/25)
Vertical spread is a directional, defined risk options trading strategy:
1. Bull call spread (Debit spread)
2. Bull put spread (Credit spread)
3. Bear call spread (Credit spread)
4. Bear put spread (Debit spread)
Read about these strategies in the below articles. (4/25)
https://t.co/KQvYOsu9kv
While going through these strategies, you must have thought you have to wait till expiry for profits/loss. (5/25)
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On the occasion of youtube 20k and Twitter 70k members
A small tribute/gift to members
Screeners
technical screeners - intraday and positional both
before proceeding - i have helped you , can i ask you so that it can help someone else too
thank you
positional one
run - find #stock - draw chart - find levels
1- Stocks closing daily 2% up from 5 days
https://t.co/gTZrYY3Nht
2- Weekly breakout
https://t.co/1f4ahEolYB
3- Breakouts in short term
https://t.co/BI4h0CdgO2
4- Bullish from last 5
intraday screeners
5- 15 minute Stock Breakouts
https://t.co/9eAo82iuNv
6- Intraday Buying seen in the past 15 minutes
https://t.co/XqAJKhLB5G
7- Stocks trading near day's high on 5 min chart with volume BO intraday
https://t.co/flHmm6QXmo
Thank you
A small tribute/gift to members
Screeners
technical screeners - intraday and positional both
before proceeding - i have helped you , can i ask you so that it can help someone else too
thank you
positional one
run - find #stock - draw chart - find levels
1- Stocks closing daily 2% up from 5 days
https://t.co/gTZrYY3Nht
2- Weekly breakout
https://t.co/1f4ahEolYB
3- Breakouts in short term
https://t.co/BI4h0CdgO2
4- Bullish from last 5
intraday screeners
5- 15 minute Stock Breakouts
https://t.co/9eAo82iuNv
6- Intraday Buying seen in the past 15 minutes
https://t.co/XqAJKhLB5G
7- Stocks trading near day's high on 5 min chart with volume BO intraday
https://t.co/flHmm6QXmo
Thank you