𝙎𝙝𝙖𝙧𝙞𝙣𝙜 𝙢𝙮 𝙬𝙞𝙨𝙙𝙤𝙢 𝑾𝒐𝒏'𝒕 𝒃𝒆 𝒔𝒖𝒓𝒑𝒓𝒊𝒔𝒆𝒅 𝒊𝒇 𝒕𝒐𝒎𝒐𝒓𝒓𝒐𝒘 𝒖 𝒓𝒆𝒂𝒅 𝒕𝒉𝒆 𝒔𝒂𝒎𝒆 𝒔𝒕𝒖𝒇𝒇 𝒊𝒏 50𝒌 𝒘𝒐𝒓𝒌𝒔𝒉𝒐𝒑 𝒐𝒓 𝒔𝒐𝒎𝒆𝒐𝒏𝒆 𝒎𝒂𝒏𝒂𝒈𝒊𝒏𝒈 𝒚𝒐𝒖𝒓 𝒎𝒐𝒏𝒆𝒚 𝒘𝒊𝒕𝒉 𝒔𝒂𝒎𝒆 𝒍𝒐𝒈𝒊𝒄
Simple and effective way 2 make Money
After closing below S1 if it closes above S1 next day or any day enter the same position again vice versa for R1
Incase of R1 15337 take 15300ce
N in case of S1 14221 use 14200pe
Sell both and hold till expiry or exit if nifty closes below S1 or above R1 around closing
If the same bounces above S1 and falls below R1 re-enfer same strikes
(This is must)Use this margin rule for 1lot banknifty pair keep 4Lax margin
For nifty one lot keep 3Lax
For usdinr 100lots keep 4Lax
I bet you if you do this on consistent basis your ROI will be more than 70% on yearly basis.
More from Optionslearnings
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1. Basics of Option Greeks
2. Basics of Open Interest [futures]
3. Option buying full
4. Data Analysis in Excel
5. Understand Gamma Risk
6. Option buying setup - strike selection
7. Yogeeswar Pal live trading
Chalk out Support & Resistance.
Like make bullish positions on support
Bearish on resistance.
Bullish means sell ATM PE & OTM CE
or bearish means ATM CE & OTM PE
Exit if support or resistance broken.
As it gonna be a trending day.
Hold another leg to breakeven.
If moves comes into favour, one gonna make awesome.
Basic rule for day trading in option buying for beginners.
1) Stick to monthly atm options.
2) Suppose u have a capital of Rs 5 lacs. Your max risk appetite is 1% which is 5k. Assume u look at BNF chart and find a buy setup at 35000 ...
with a stop of 34900 ( 100 point difference). This essentially means that the 35000 atm options will have a stop of Rs 200 ( delta 0.5) assuming all other things are equal. So the number of lots U should typically deal with based on 1% Risk on 5 lacs capital ...
is 5000 / 200, which is 25 , ie 1 lot. If your risk appetite is 2%, then u are allowed to take 50, ie 2 lots. Hence if option price is say, Rs 400, ur stop will be 200 and u have to deal with one lot which means your deployment is 25 x 400 = Rs 10,000....
On the contrary if you deploy the full amount, 500000/(25x400) = 1250 , 50 lots, u r bound to lose the capital at the shortest possible time.
3) This might appear ridiculous, but this is the only way to go steady with control over risk.
Option stop difference is Rs 50 and not Rs 200 as mentioned. Simple calculation overlooked. Accordingly number of lots will increase . However concept remains unchanged.
If we buy hedges, Margin will reduce & ROI increases.
More strategies will be shared going forward.
All u need is execute with Discipline & sticking with system when in DD.
A simple INTRADAY strategy with decent BACKTEST report of more than 3-5% returns on Monthly basis.— OptionSeller(Vardhan) (@CaVardhanCa) August 15, 2021
Will be sharing live report on daily basis for a month.
& will conduct FREE webinar to discuss about the results in coming weeks.
Sharing all rules below.
(1/n) https://t.co/VMlxNtX90s pic.twitter.com/cJaa9axRss
to learn more about Algo Trading (in both directional & non directional) , you can visit my Telegram channel especially created for Algo Strategies.
Will be updating Daily Performance of our Algos in below
Most of the successful traders here are option sellers.
Ever wondered why?
Why we have chosen option selling?
How to decide what strategies to use?
THIS IS THE ONLY THREAD YOU'LL EVER NEED!
Find out below
1: Theta decay
The biggest reason and one of the prime reasons is the theta decay.
Option sellers always have an advantage because the as time passes, the option premium falls even if the underlying instrument doesn't move.
2: Being wrong and still making money.
We as option sellers can be wrong with our market view and still end up making money because of the power of theta decay and adjustments to some extent,
3:Playing directional view
Option selling also enables us to take a directional view. Infact, directional view along with theta decay makes it a solid combination.
Debit spreads and credit spreads works great for a directional view.
4: Playing Neutral view
We can make money in option selling even if the market doesn't move as the otm options will go to 0 with the help of theta decay. It's the most fascinating thing.
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You can't magic away the vast distances involved. Clue: we fly in only 1/192th of our trade compared to the amount that arrives via sea
In 2016, the UK transported 484,000,000 tons of freight by sea, but just 2,511,000 tons by air (192x less than by sea). Therefore absurd to think of simply substituting air freight for sea freight (e.g. if we have to fly in food or medicines because of post-Brexit jams at ports)— Edwin Hayward (@uk_domain_names) October 28, 2018
But even if you invented a teleporter tomorrow, WTO terms are so bad, so stacked against us, that a no-deal Brexit will be a total economic disaster
Here's the truth about Brexit, the "punishment" some people claim the EU wants to inflict on us, the full horrific consequences of no deal, and the dangers lurking behind any deal we reach. Buckle in, it's pretty long. Better to be thorough than to leave anything out. 1/47— Edwin Hayward (@uk_domain_names) October 14, 2018
And while the Brexiteers fantasise, real jobs are being lost, investments are drying up, companies are moving assets to the EU27 or redomiciling. All already happened and happening right now, not in some mythical
Ok, it's high time to look at the REAL effects of Brexit. As the Tories implode & Labour sits on its hands, companies are executing contingency plans, shifting jobs & assets, slashing investments, or redomiciling (accounting exercise). Happening NOW, not in a fantasy future. 1/95— Edwin Hayward (@uk_domain_names) November 14, 2018
Of course, there are many, many myths that Brexiteers perpetuate that are total fiction. You've seen a couple of them already. The thread below busts a whole lot
Unicorn Shredder: Hard Brexit Truths— Edwin Hayward (@uk_domain_names) November 15, 2018
- The major economic harm Brexit is already inflicting on the UK
- Reality of "no deal" & WTO terms
- EU "punishment" narrative
- Endangered industries: automotive & haulage
+ much, much more...
(Each tweet is a self-contained thread.)
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!
[Free CDMO Masterclass #18] https://t.co/208eQbYKEF
[Free Art of Investing] https://t.co/bHvUqnpiTE
[Paid IIC Dec 2020 on SeQuent] https://t.co/3iDO438Et9
[Charity fund raise on Unseen Trends in Biotechnology] https://t.co/eNi1x1qwhH
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This is Long but it will end with a BOOM
With no constitutional authority to do so, Congress created a separate form of government for the District of Columbia, a ten-mile square parcel of land (see, Acts of the Forty-first Congress,”
Section 34, Session III, chapters 61 and 62).
The act — passed when the country was weakened and financially depleted in the aftermath of the Civil War — was a strategic move by foreign interests (international bankers) who were intent upon gaining a stranglehold on the coffers
and neck of America.
Congress cut a deal with the international bankers (specifically Rothschilds of London) to incur a DEBT to said bankers. Because the bankers were not about to lend money to a floundering nation without serious stipulations, they devised a way to get their
foot in the door of the United States.
The Act of 1871 formed a corporation called THE UNITED STATES. The corporation, OWNED by foreign interests, moved in and shoved the original Constitution into a dustbin.
With the Act of 1871, the organic Constitution was defaced — in effect vandalized and sabotage — when the title was capitalized and the word “for” was changed to “of” in the title.
This spring at SxSW, @SusanWojcicki promised "Wikipedia snippets" on debated videos. But they didn't put them on flat earth videos, and instead @YouTube is promoting merchandising such as "NASA lies - Never Trust a Snake". 2/
A few example of flat earth videos that were promoted by YouTube #today:
Why Gain/loss ratio is important that the batting average
• More than the Win Loss ratio check the total Gain /loss ratio
• If your avg loss is 1% and avg gain is +5% then even if you are losing in 7 positions and winning in 3 out of 10 still you will be net profitable
Treat Trading as a business:
• Stick to a single strategy. Eg: A restaurateur usually wouldn’t be changing his recipe on a daily basis
• Mitesh Sir only works on BO or BD strategy, as he is a versatile trader
• Any trader should atleast experience 3 scenarios i.e. bull, bear & consolidation
• Target 4% per month i.e. 48% p.a.
• Option buying requires skill, everyday there wont be huge momentum, so buying options won’t yield good results, but high chances of falling into a bad habit
• In F&O segment there are ~150 stocks
• Not everyday all stocks will move
• Only 5-7 stocks move upside or downside
• Focus only these momentum stocks
• Check which one is moving
• Range BO/BD never disappoints. BO/BD from a rectangle (consolidation)