with a stop of 34900 ( 100 point difference). This essentially means that the 35000 atm options will have a stop of Rs 200 ( delta 0.5) assuming all other things are equal. So the number of lots U should typically deal with based on 1% Risk on 5 lacs capital ...
#FreeTip
Basic rule for day trading in option buying for beginners.
1) Stick to monthly atm options.
2) Suppose u have a capital of Rs 5 lacs. Your max risk appetite is 1% which is 5k. Assume u look at BNF chart and find a buy setup at 35000 ...
with a stop of 34900 ( 100 point difference). This essentially means that the 35000 atm options will have a stop of Rs 200 ( delta 0.5) assuming all other things are equal. So the number of lots U should typically deal with based on 1% Risk on 5 lacs capital ...
is 5000 / 200, which is 25 , ie 1 lot. If your risk appetite is 2%, then u are allowed to take 50, ie 2 lots. Hence if option price is say, Rs 400, ur stop will be 200 and u have to deal with one lot which means your deployment is 25 x 400 = Rs 10,000....
More from HMK alias MANOJ
#Learning Those who are interested in options... Here is an old tweet on gamma scalping ...
#Straddle #Gammascalping #Learning Success In option writing can be achieved only by adjustments based on the market developments. The same goes with straddle strategy as well. A method called gamma scalping helps to minimize potential loss in straddles. pic.twitter.com/qgSmgd8RWM
— HMK alias MANOJ (@scorpiomanojFRM) June 19, 2020
More from Optionslearnings
As committed here goes the 2nd "Inside Candle" strategy:-
Queries can be posted on comments, video will take some time to come.
Want market influence to circulate it to reach max audiences.
@DillikiBiili @AnilSinghvi_ @anilbalaji11 @bankniftydoctor @brahmesh https://t.co/SmCZMMkBzV
Inside Candle Trading statergy
*15mints min time frame & more
*whenever you see 2nd(baby)candle
is forming inside of 1st(mother)candle
draw high and low of 1st(mother)candle and
take entry which side 3rd candle breaks
*stop loss - 1.someone can put sl at baby candle low
2.someone can put sl at mother candle low(both works)
*entry - 3rd candle breaking mother candle
*target - 1x2x3x of your risk
#candles could be any colour
Queries can be posted on comments, video will take some time to come.
Want market influence to circulate it to reach max audiences.
@DillikiBiili @AnilSinghvi_ @anilbalaji11 @bankniftydoctor @brahmesh https://t.co/SmCZMMkBzV
I will give free 40 point #banknifty and 20 point # nifty strategy .
— SG (@GhoshSubhag) October 30, 2021
Don't pay me anything, just 1 like or retweet is sufficient \U0001f64f https://t.co/3R1PZZSK84
Inside Candle Trading statergy
*15mints min time frame & more
*whenever you see 2nd(baby)candle
is forming inside of 1st(mother)candle
draw high and low of 1st(mother)candle and
take entry which side 3rd candle breaks
*stop loss - 1.someone can put sl at baby candle low
2.someone can put sl at mother candle low(both works)
*entry - 3rd candle breaking mother candle
*target - 1x2x3x of your risk
#candles could be any colour