What is best way to sell strangle in Banknifty on an intraday basis
Simple
at 9:45 Open Option chain and check In which strike highest OI change in call side and put side
Sell both option with combine SL
Enjoy easy and simple intraday trading strategy
Today 35000CE and 34500PE
More from Jig's Patel
Short straddle is non-directional strategy
Selling same strike price CALL/PUT option same underlying with same expiry.
Nifty Spot at 14353, So you can sell 14350 CE as well 14350 PE of 14 Jan. Expiry.
(1/n)
*RETWEET for max response
Bullish short straddle: Selling 14400 CE and 14400 PE of same expiry.
Bearish short straddle: Selling 14250 CE and 14250 PE of same expiry.
You can sell straddle as per your market view.
If you are natural view sell CE and PE at ATM strike.
(2/n)
Short straddle has limited profit potential (only premium) and unlimited risk without adjustment.
In Example, Short straddle of 14350, Breakeven is (14131.0-14569.0), need 1.7Lac Margin to sell straddle.
Maximum profit: 16k and Loss: Unlimited, Winning probability: 50%
(3/n)
If market staying near at 14350 then win. Probability increase slowly. Rewards also increase slowly.
Volatility(IV) is also play important role in selling straddle, Like If IV increase so straddle premium increase and IV cool off so premium casually comes down.
(4/n)
Short straddle adjustment:
https://t.co/59Lr64kEtK way to limit the overnight risk.
Convert short straddle in Ironfly, its nothing we have to add long strangle in short straddle it become Ironfly. It gives the good Risk Rewards.
(5/n)
Today I am sharing how I will filter out the stock for intraday trade,
This strategy is called "NR21-VWAP" trading,
For filtering the stock I will use NR21 + Inside bar theory (its a very old but popular theory),
Filtering stock used below screener end of the day
(1/n)
Screener
https://t.co/SSPkYEoFMP
You have to do homework at the end of the day, Run the screener and List out the stock in this screener, hardly 3-4 stock in the list,
Next day trading, Just open chart 15 min TF,
Add VWAP and Volume indicator in Chart,
(2/n)
Buy setup:
If stock price move above VWAP and with high volume then trade activated above VWAP,
SL is trade trigger candle Low,
Sell Setup:
price move below VWAP with volume than trade activated.
SL is high of that candle
(3/n)
Volume indicator,
Open the chart and see the volume of last ten to fifteen 15 Min TF candle volume compare with a current candle if the volume is more than triple then our trade is right,
(4/n)
Eg. Yesterday filtered stock attached,
See the example of BERGEPAINT,
Trade activated at 532.27 and SL 527, Closing price 555
Profit booking criteria, I believe in 1:2 RR, if 5 point SL then I will book 10 point profit,
If you Like kindly RETWEET to reach maximum trader,
More from Optionslearnings
@SarangSood Sarang bhai according to you what number of vix is ideal for option buyers and what is that for option sellers? And is there any common number which is ideal for both?
— Dhaval bhatt (@Dhavalb55011726) July 14, 2021
1. Never be Greedy in a High Vix Environment.
Sellers selling OTM get lured by higher premiums and sell near ATM or more than they usually do, this will burn your hand as High premiums also mean that you will end up giving higher premium back than usual as soom as it spikes.
2. Hope
Hope drives a man crazy and this is true for trading the most, hoping for a reversal to cut the pain. Humans have a tendency to avoid the pain and one does not accept the pain by not booking a loss
Tom Hougaard explains this well below.
https://t.co/zDbDT2hdej
3. Not having a setup in non directional Selling
You cannot make money long term if you don’t have a set of rules or adjustments in place already if you are trading long term. Make a plan or a system so that you always know how to survive. Your Position is non D not the market.
4. Getting Egoistic
Many people think they are supreme because they are selling options much likely because of the Trend on Twitter in the community,
You are a trader think like one and remain one trading a certain way does not make you better.
You May Also Like
Like company moats, your personal moat should be a competitive advantage that is not only durable—it should also compound over time.
Characteristics of a personal moat below:
I'm increasingly interested in the idea of "personal moats" in the context of careers.
— Erik Torenberg (@eriktorenberg) November 22, 2018
Moats should be:
- Hard to learn and hard to do (but perhaps easier for you)
- Skills that are rare and valuable
- Legible
- Compounding over time
- Unique to your own talents & interests https://t.co/bB3k1YcH5b
2/ Like a company moat, you want to build career capital while you sleep.
As Andrew Chen noted:
People talk about \u201cpassive income\u201d a lot but not about \u201cpassive social capital\u201d or \u201cpassive networking\u201d or \u201cpassive knowledge gaining\u201d but that\u2019s what you can architect if you have a thing and it grows over time without intensive constant effort to sustain it
— Andrew Chen (@andrewchen) November 22, 2018
3/ You don’t want to build a competitive advantage that is fleeting or that will get commoditized
Things that might get commoditized over time (some longer than
Things that look like moats but likely aren\u2019t or may fade:
— Erik Torenberg (@eriktorenberg) November 22, 2018
- Proprietary networks
- Being something other than one of the best at any tournament style-game
- Many "awards"
- Twitter followers or general reach without "respect"
- Anything that depends on information asymmetry https://t.co/abjxesVIh9
4/ Before the arrival of recorded music, what used to be scarce was the actual music itself — required an in-person artist.
After recorded music, the music itself became abundant and what became scarce was curation, distribution, and self space.
5/ Similarly, in careers, what used to be (more) scarce were things like ideas, money, and exclusive relationships.
In the internet economy, what has become scarce are things like specific knowledge, rare & valuable skills, and great reputations.