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:
In a down trending market people are tempted to sell CE & avoid selling PE's, however it would be disastrous to hold those CE's till expiry
Trailing is the answer during high VIX, as the momentum is faster on both sides
Check past few days charts on 3min TF for more clarity