Options and their price action analysis.
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More from Subhadip Nandy

This is actually an interesting question and a correct observation. Many people before you also have made this observation, so I am going to explain this the best I can


I am trading since badla days. There being long meant you had to pay badla / interest and being short meant you received badla. Similar to an options buyer having theta burn and an options seller being theta positive. So the bias among pros were being short bit

Now, as of now I am an options buyer. All my strategies are geared towards options buying, so I have a theta burn continuosly. I do use strategies to cover that a bit, but still the burn is there

Now, let's consider how an options buyer makes money. His enemy is theta, vega can be friend or enemy ( coming to this in next tweet) , Delta is whether his view is right or wrong

Now say I am bullish on BNF and I buy calls and I am directionally correct . As BNF goes up, generally IV will decrease. This leads to a double whammy.
1. Vega hurts me
2. Theta decay increases.
So, the position does give money, but slowly

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Trading Strategies 101

14 "must-try" trading strategies you can start using today: ๐Ÿงต

Collaborated with @niki_poojary

We'll break these into portions of:

1. Intraday Trading Techniques
2. Positional Trading Techniques
3. Indicator Applications

1/ 6 Intraday Strategies ๐Ÿงต

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2/ Intraday BNF strangle based on OI data. ๐Ÿงต


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