BC OPTIONSLEARNINGS

yogesh nanda
@yogeshnanda1 5 years, 5 months ago 817 views

for positional straddle - i prefer monthly expiry [because of higher premium and comfortable to manage monthly options]
for positional strangle/IC - i prefer weekly expiry [as it is easy to get 15 points every week then getting 60 points in whole month]
views are welcome..

More from yogesh nanda

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

Telegram Group:
https://t.co/zcMFYLuFUU

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

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

3. learn Position Sizing:
https://t.co/mjGwmms21Y

4. overcome late OI signal:
https://t.co/rULPzfNpId

5. Gamma impact
https://t.co/6r9wKx3ewC

6. Risk Management

7. 4 part video on optimisation of various aspect:
a https://t.co/G7FDAm9VEg
b https://t.co/KjkzlbDBeR
c https://t.co/Vcn5icNO9P
d https://t.co/SsggfnwPNZ

8. examples
a https://t.co/S9OB41tNxx
b https://t.co/xZeKvZq3Uo
c https://t.co/mgQVYJu8te
d

yogesh nanda
@yogeshnanda1

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 -
[1/3]

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]

[2/3]

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]

yogesh nanda
@yogeshnanda1

@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.

yogesh nanda
@yogeshnanda1

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]

yogesh nanda
@yogeshnanda1

Few useful videos on our youtube channel:
https://t.co/pzyd1ju3i9

1. Basics of Option Greeks
https://t.co/eKqDXdAvyO

2. how to get more leverage with new margin rules
https://t.co/H59jvSGFig

3. how to trade option

4. how to trade using futures Open Interest
https://t.co/ez1OoB7QWM

5. Data Analysis using Excel:
https://t.co/dYhcNlWZWX

6. Expiry Trading video by yogeeswar Pal
https://t.co/HYXkvhBdGU

7. Rule based Option Selling

8. Rule based option buying setup
https://t.co/eDORzcqe8H

@jitendrajain @yogeeswarpal
[3/n]

More from Optionslearnings

Kavita
@Kavitastocks

There are many strategies in market 📉and it's possible to get monthly 4% return consistently if you master 💪in one strategy .
One of those strategies which I like is Iron Fly✈️

Few important points on Iron fly stategy

This is fixed loss🔴 defined stategy ,so you are aware of your losses . You know your risk ⚠️and breakeven points to exit the positions.
Risk is defined , so at psychological🧠 level you are at peace🙋‍♀️

How to implement
1. Should be done on Tuesday or Wednesday for next week expiry after 1-2 pm
2. Take view of the market ,looking at daily chart
3. Then do weekly iron fly.
4. No need to hold this till expiry day .

5.Exit it one day before expiry or when you see more than 2% within the week.
5. High vix is preferred for iron fly
6. Can be executed with less capital of 3-5 lakhs .
https://t.co/MYDgWkjYo8 have R:2R so over all it should be good.

8. If you are able to get 6% return monthly ,it means close to 100% return on your capital per annum.

Aditya Todmal
@AdityaTodmal

A THREAD ON @SarangSood

Decoded his way of analysis/logics for everyone to easily understand.

Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen

1. Keeps following volatility super closely.

Makes 7-8 different strategies to give him a sense of what's going on.

Whichever gives highest profit he trades in.

I am quite different from your style. I follow the market's volatility very closely. I have mock positions in 7-8 different strategies which allows me to stay connected. Whichever gives best profit is usually the one i trade in.
— Sarang Sood (@SarangSood) August 13, 2019

2. Theta falls when market moves.
Falls where market is headed towards not on our original position.

Anilji most of the time these days Theta only falls when market moves. So the Theta actually falls where market has moved to, not where our position was in the first place. By shifting we can come close to capturing the Theta fall but not always.
— Sarang Sood (@SarangSood) June 24, 2019

3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result

He believes in a market operator, if market mover sells volatility Sarang Sir joins him.

This week has been great so far. The main aim is to be in the right side of the volatility, rest the market will reward.
— Sarang Sood (@SarangSood) July 3, 2019

4. Theta decay vs Fall in vega

Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.

There is a difference between theta decay & fall in vega. Decay is certain but there is no guaranteed profit as delta moves can increase cost. Fall in vega on the other hand is backed by a powerful force that sells options and gives handsome returns. Our job is to identify them.
— Sarang Sood (@SarangSood) February 12, 2020

itrade(DJ)
@ITRADE191

For your understanding https://t.co/U89feuPEhC

Today morning I was bullish looking at SGX Nifty. The first put I sold was 14000 PE.

After that market took resistance at R2, then I changed my view. Sold 14650 CE and then even uptill 14300 CE. pic.twitter.com/Bo4La6kJRe
— itrade(DJ) (@ITRADE191) April 20, 2021

MyFnO
@MyFnO

The video explains #concepts of #putcall #openinterest so it can help many #beginners also along with some #advanced techniques of reading data.
Please #retweet if you find it useful🙏

its our 1st attempt in Hinglish,
so any feedback will help😀

https://t.co/TE7Aiph6sp

Nikita Poojary
@niki_poojary

Undisputed champion 🏆 in option selling and undoubtedly India's best trader @Mitesh_Engr Sir

Lessons on how to trade in such difficult times from the Indian Options Conclave 3.0 by Jainam Broking Ltd

Time for a🧵

Collaborated with @AdityaTodmal

How to trade in options during high volatility i.e. India vix>22-23 ?

In the current scenario, option sellers who are deploying strangles are unable to make money

E.g.: If a trader is selling a strangle of Rs. 100 each leg then during a fast momentum on either side, one leg becomes 80 & the other one Rs. 200
So overall, the strangle seller is at a loss

Strangles & Straddles are easy to manage in low vix

During high vix, find reversals

Mitesh Sir follows 3min TF in Bank nifty futures chart

Specimen:

📸- sculpture on outer walls of Hoysaleswara temple, Halebeedu,Karnataka

Krishna has 4hands with Shankha,Chakra,Mace&Lotus holding Satyabhama tightly,mounted on Garuda. Garuda has a beautifully carved Parijata tree trunk in left hand& a weapon in his right hand, attacking Indra.

Other side is Indra,riding on Airavata.Indra can be seen attacking Krishna with his Vajrayutham.Airavata is charging towards Garuda.Wife of Indra can be seen in pillion seat.Just look at the Detailing of Garuda & Airavat sculptures.

So what led Krishna to steal parijatha tree👇

Narada Rishi once returning from Indralok collected few Parijatha flowers&reached Dwaraka.There he met Bhagwan Krishna&gave the heavenly flowers to him.Narada explained the greatness of Parijatha flowers & also said that these flowers must be given to the most loved ones.

Despite knowing Satyabhama’s anger,Krishna gave it to Rukmani Devi.Narada Rishi then went to palace of Satyabhama. He narrated whole incident that had happened.Satyabhama turned furious on hearing that Krishna gave Parijatha to Rukmini.Then Satyabhama shows her anger to Krishna.

Aditya Todmal
@AdityaTodmal

The absolute best 15 scanners which experts are using.

Got these scanners from the following accounts:

1. @Pathik_Trader
2. @sanjufunda
3. @sanstocktrader
4. @SouravSenguptaI
5. @Rishikesh_ADX

Share for the benefit of everyone.

Listing all scanners from @Pathik_Trader Sir first.

1. Open

2. 80-20 Reversal Setup

3. Fake

4. Trapping Inside Bar (Positional Setup)

Aditya Todmal
@AdityaTodmal

MASTER THREAD on Short Strangles.

Curated the best tweets from the best traders who are exceptional at managing strangles.

• Positional Strangles
• Intraday Strangles
• Position Sizing
• How to do Adjustments
• Plenty of Examples
• When to avoid
• Exit Criteria

How to sell Strangles in weekly expiry as explained by boss himself. @Mitesh_Engr

• When to sell
• How to do Adjustments
• Exit

1. Let's start option selling learning.
Strangle selling. ( I am doing mostly in weekly Bank Nifty)
When to sell? When VIX is below 15
Assume spot is at 27500
Sell 27100 PE & 27900 CE
say premium for both 50-50
If bank nifty will move in narrow range u will get profit from both.
— Mitesh Patel (@Mitesh_Engr) February 10, 2019

Beautiful explanation on positional option selling by @Mitesh_Engr
Sir on how to sell low premium strangles yourself without paying anyone. This is a free mini course in

Few are selling 20-25 Rs positional option selling course.
Nothing big deal in that.
For selling weekly option just identify last week low and high.
Now from that low and high keep 1-1.5% distance from strike.
And sell option on both side.
1/n
— Mitesh Patel (@Mitesh_Engr) November 3, 2019

1st Live example of managing a strangle by Mitesh Sir. @Mitesh_Engr

• Sold Strangles 20% cap used
• Added 20% cap more when in profit
• Booked profitable leg and rolled up
• Kept rolling up profitable leg
• Booked loss in calls
• Sold only

Sold 29200 put and 30500 call
Used 20% capital@44 each
— Mitesh Patel (@Mitesh_Engr) April 12, 2019

2nd example by @Mitesh_Engr Sir on converting a directional trade into strangles. Option Sellers can use this for consistent profit.

• Identified a reversal and sold puts

• Puts decayed a lot

• When achieved 2% profit through puts then sold

Already giving more than 2% return in a week. Now I will prefer to sell 32500 call at 74 to make it strangle in equal ratio.

To all. This is free learning for you. How to play option to make consistent return.
Stay tuned and learn it here free of cost. https://t.co/7J7LC86oW0
— Mitesh Patel (@Mitesh_Engr) February 7, 2020