All you need to know about Option Buying Setup:
Youtube channel:
https://t.co/Tn5s5tQucn

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1. Option Buying setup video [English]:
https://t.co/oCuI7ryOVS

2. Option Buying setup video [Hindi]:
https://t.co/GEtwvPipih
[1/3] @jitendrajain

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

[4/n]

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]

Rule based Option selling video now uploaded on our youtube

@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.

Today trade

important off PDL/H