After my face2face received many request on making video on Data Analysis in Excel.
Tanking first step in that direction made a small video on how to do data Analysis in excel.
what you will learn?
1. Thought process,
2. How to get EOD data
3.

Story of this week:
Gap pe gap.. gap pe gap.. milta hai.
lekin entry nahi milti

Most risky position of option selling is ovenight straddle/strangle as we carry risk of black swan event.
Lets try to find the solution can we mitigate or reduce this risk?

[1/n]

Will try to explain with 24th Feb 22 gap down [3.2%] how the strategy wise impact looks like. assumed cap 25L

1⃣ say we deploy full capital i.e. for 1.6L 1 lot we trade. attached pic shows impact on various strategies. in straddle we lost highest 8.5% of cap,
[2/n]

in strangle lost in range of 2.4 - 2% .
in iron-fly loss of 2% &
iron condor [with 200 points hedge] 0.5%

Now, these numbers can be on much higher side if gap is bigger or say circuit. This assumes we exit at open - if we stay till close numbers are worst.

[3/n]

2⃣ now lets reduce position size take 1 lot per 2 Lac or 2.5 La... bot files attached

by doing this we reduce impact of naked position below 6% for straddle & below 1.5% for strangles
same time, ironfly & iron condor impact down to 1.15% & 0.3% respectively

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3⃣ now lets see impact if we trade 1 lot every 5 lacs.
impact of strangles and iron condors is with in limit on overall capital [< 0.75%]

idea is to chose your battle wisely.

to sum-up:
1⃣ Prefer hedged strategies [ironfly/IC (with closer hedges)] as compared to naked

[5/n]

Locking in profit is and important aspect of trading. profitable trade turning into loser can have very negative impact on your psychology. few tricks how i do it.
1. If I have naked call/ put buy - i will convert into Spread by selling otm CE/PE
2. for bull call spread -
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book existing bull call spread and execute another bull call spread with lower debit
3. If we are in last 2 weeks of Expiry - can convert bull call spread in to ratio or butterfly.
4. If we have naked CE/PE sell - hedge it with otm CE/PE [credit spread]

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5. if we have PE credit spread - can add ce credit spread [convert to Iron condor]
this list is just 2% of what we can do with options. understand the logic of each strategy and transition from one strategy to another.
[3/3]

@vivekthebaria Fully agree.I work based on similar calculation
1. Generate some return from investing funds in liquid, nifteebees,stocks
2. Pledging it - use for option trading - even with 10 points per week can- get 28% p.a.
3. Once u do this consistently. Next step, how to improve returns.

Rule based Option selling video now uploaded on our youtube

We don't have to be smarter than
the rest. We have to be more disciplined than the rest. - Warren Buffett.

All important Options Selling Strategies..
A thread🧵:

Simple Directional Call Sell

View: Neutral to bearish
Limited Profit, unlimited risk.
High Probability of profit.
High Margin required.

Simple Directional Put Sell

View: Neutral to Bullish
Limited Profit, unlimited risk.
High Probability of profit.
High Margin required.

Call Credit Spread

View: Neutral to bearish
Limited Profit, Limited risk.
High Probability of profit.
Low Margin required.

Put Credit Spread

View: Neutral to Bullish
Limited Profit, Limited risk.
High Probability of profit.
Low Margin required.

Thanks @ITRADE191 bro. I'm following your setup from last few months.
PDL
PDH
VWAP
PDVWAP
PIVOTS
Its help me a lot .
I compiled your last tweets as pdf, hope it's help others also. I learn a lot of from this.

If you find it useful please retweet and follow

#Knowledge
A 2016 post that I posted in AAFL Facebook group on max pain ... Might be useful from awareness perspective...