As the name suggests, you need to sell options in this strategy
It involves 2 legs:
Short OTM CE
Short OTM PE
Short Strangle
Net credit with a sideways stance
A thread 🧵
#options #trading
As the name suggests, you need to sell options in this strategy
It involves 2 legs:
Short OTM CE
Short OTM PE
You expect the market to trade within a narrow range. A narrow range means low volatility and hence lowering option premium due to theta decay
Shorting options means that you will receive premium
Ex Nifty spot 16200
To create Short Strangle
Short 16300CE @92
Short 16100PE @132
Total premium received = 92 + 132 = 224
The max profit is the premium received at entering the strategy, possible when the market expires within or at the selected strikes
In the Ex, expiry at or between 16100 or 16300, means options go worthless due to theta decay and you receive 224 points per lot
The risk is open ended.If the market expires outside the selected strikes,there will be a loss
The extent of the loss depends upon the magnitude of the rally away from your strikes
In that case, volatility and option premium would increase which means more loss
Short Strangles: are
More sensitivity towards theta decay due to OTM options
Have wider breakeven points, good for option selling
Narrow price move and less volatility means more decay, compared to straddles, for same time-wise correction
While creating a Short Strangle you receive a lesser premium compared to Short Straddles.
This is due to OTM options used in strangles, which have a lesser premium compared to ATM option used in short straddles
Short Strangle Stance – Sideways
Involves selling OTM CE and OTM PE
Max Profit – Limited to the premium received (on expiry within strikes)
Risk – Unlimited (on expiry outside breakevens)
Breakevens – Wider
Don’t forget to like and retweet
Thanks for reading
https://t.co/6FXicuJ8rm
Long Strangle Option Strategy
— Finkarma (@finkarmaIN) May 19, 2022
Twin sister to Long Straddle & retail favorite due to low-cost improvisation
A detailed thread#options #trading pic.twitter.com/uo2SSgkBC9
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10 threads that will teach you more than any Course on Trading🧵
1/ Lies that you've been told about trading.
From:
2/ Pitfalls that every discretionary trader faces, and how to overcome them.
From: @KillerTrader_
3/ The only trading psychology post you need to read.
From: @indian_quant
4/ A thread on Trading mistakes.
It's inevitable that you will make a lot of mistakes in your trading career, what's truly important is if you learn from those mistakes or keep repeating them.
From:
1/ Lies that you've been told about trading.
From:
Which are the biggest lies told by well meaning people in trading?
— Anandable Conservative Trader (@AnandableAnand) December 29, 2021
I will list the ones I heard and believed initially, which was detrimental to my progress
Lets do this and you add one LIE u heard many times
First
1. Its impossible to make money in intra-day trading
+
2/ Pitfalls that every discretionary trader faces, and how to overcome them.
From: @KillerTrader_
What are the pitfalls I faced as a discretionary trader and how I overcame them:
— Killer Trader \U0001f4c9\U0001f4c8 (@KillerTrader_) October 10, 2021
A thread \U0001f9f5#StockMarketindia
3/ The only trading psychology post you need to read.
From: @indian_quant
The only trading psychology post you need to read:
— Indian Quant \U0001f1ee\U0001f1f3 (@indian_quant) October 28, 2021
===========
This guy gets appreciation and possibly makes money only after he reaches from one point to another.
But if his entire focus is on :
1. Not falling down the rope.
2. Keeps on thinking to reach the other end
..contd pic.twitter.com/YQCEnnU7iR
4/ A thread on Trading mistakes.
It's inevitable that you will make a lot of mistakes in your trading career, what's truly important is if you learn from those mistakes or keep repeating them.
From:
Trading Mistakes & Lessons Learnt \U0001f9f5
— Sourabh Sisodiya, CFA (@sourabhsiso19) September 30, 2021
1) I always keep my mistakes & lessons learnt in front of my screen while trading.
Bcz we as traders tend to commit the same mistakes everytime.
So seeing your learnt lessons everyday ensures that you avoid them.
#trading #mistakes pic.twitter.com/4MYFlCS9Hi
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If you're looking for some content to help build upon your flow skills, here are 3 threads I created that go over how I hunt the flow to find winning trades 🌊
https://t.co/MVK4lV4ZmK
https://t.co/33PH8ILV9C
https://t.co/MjP7Dtzqkm
@unusual_whales @snorlax_support
https://t.co/MVK4lV4ZmK
https://t.co/33PH8ILV9C
https://t.co/MjP7Dtzqkm
@unusual_whales @snorlax_support
As promised, here is a thread on how I use @unusual_whales to help me find actionable plays.
— SpyGuy \U0001f575\ufe0f\U0001f3fb\u200d\u2642\ufe0f (@SpyGuyTrading) August 26, 2021
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
Students of @Mitesh_Engr are real gems on twitter!
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
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
In this thread, I'll walk you through my set up, absorb it as much as you can.
— itrade(DJ) (@ITRADE191) June 27, 2021
The instrument that I trade in are Nifty (NF) options
Thanks to @AdityaTodmal @niki_poojary for contributing in making this pic.twitter.com/BrMrGydb1v
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The first area to focus on is diversity. This has become a dogma in the tech world, and despite the fact that tech is one of the most meritocratic industries in the world, there are constant efforts to promote diversity at the expense of fairness, merit and competency. Examples:
USC's Interactive Media & Games Division cancels all-star panel that included top-tier game developers who were invited to share their experiences with students. Why? Because there were no women on the
ElectronConf is a conf which chooses presenters based on blind auditions; the identity, gender, and race of the speaker is not known to the selection team. The results of that merit-based approach was an all-male panel. So they cancelled the conference.
Apple's head of diversity (a black woman) got in trouble for promoting a vision of diversity that is at odds with contemporary progressive dogma. (She left the company shortly after this
Also in the name of diversity, there is unabashed discrimination against men (especially white men) in tech, in both hiring policies and in other arenas. One such example is this, a developer workshop that specifically excluded men: https://t.co/N0SkH4hR35
USC's Interactive Media & Games Division cancels all-star panel that included top-tier game developers who were invited to share their experiences with students. Why? Because there were no women on the
ElectronConf is a conf which chooses presenters based on blind auditions; the identity, gender, and race of the speaker is not known to the selection team. The results of that merit-based approach was an all-male panel. So they cancelled the conference.
Apple's head of diversity (a black woman) got in trouble for promoting a vision of diversity that is at odds with contemporary progressive dogma. (She left the company shortly after this
Also in the name of diversity, there is unabashed discrimination against men (especially white men) in tech, in both hiring policies and in other arenas. One such example is this, a developer workshop that specifically excluded men: https://t.co/N0SkH4hR35
1/OK, data mystery time.
This New York Times feature shows China with a Gini Index of less than 30, which would make it more equal than Canada, France, or the Netherlands. https://t.co/g3Sv6DZTDE
That's weird. Income inequality in China is legendary.
Let's check this number.
2/The New York Times cites the World Bank's recent report, "Fair Progress? Economic Mobility across Generations Around the World".
The report is available here:
3/The World Bank report has a graph in which it appears to show the same value for China's Gini - under 0.3.
The graph cites the World Development Indicators as its source for the income inequality data.
4/The World Development Indicators are available at the World Bank's website.
Here's the Gini index: https://t.co/MvylQzpX6A
It looks as if the latest estimate for China's Gini is 42.2.
That estimate is from 2012.
5/A Gini of 42.2 would put China in the same neighborhood as the U.S., whose Gini was estimated at 41 in 2013.
I can't find the <30 number anywhere. The only other estimate in the tables for China is from 2008, when it was estimated at 42.8.
This New York Times feature shows China with a Gini Index of less than 30, which would make it more equal than Canada, France, or the Netherlands. https://t.co/g3Sv6DZTDE
That's weird. Income inequality in China is legendary.
Let's check this number.
2/The New York Times cites the World Bank's recent report, "Fair Progress? Economic Mobility across Generations Around the World".
The report is available here:
3/The World Bank report has a graph in which it appears to show the same value for China's Gini - under 0.3.
The graph cites the World Development Indicators as its source for the income inequality data.
4/The World Development Indicators are available at the World Bank's website.
Here's the Gini index: https://t.co/MvylQzpX6A
It looks as if the latest estimate for China's Gini is 42.2.
That estimate is from 2012.
5/A Gini of 42.2 would put China in the same neighborhood as the U.S., whose Gini was estimated at 41 in 2013.
I can't find the <30 number anywhere. The only other estimate in the tables for China is from 2008, when it was estimated at 42.8.