....YAAD AYA KUCH 😃😃😃

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Nifty today

The best spreads trader on Twitter: @Ronak_Unadkat

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.

2. Circuit:

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.

Sharing a simplest ever to trade options.

Chalk out Support & Resistance.
Play contra.
Like make bullish positions on support
Or
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.

A THREAD:

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.

(1/10)

1st Course - TASTYTRADE

This channel on YouTube is a goldmine for people wanting to learn about options both basics and advanced. By far the best and the most popular channel out there amongst option traders.

2nd Course - OPTION ALPHA

This channel is also pretty well known amongst option traders and they have laid out the path to generate consistent income trading options.

3rd Course - PROJECT OPTION

Lengthy videos explaining the benefit of trading options and has gone through

4th Course - TASTYTRADE

Another crash course on options by tastytrade. Different strategies have been compared while some focus on trade management is also