Detailed thread on how @niki_poojary & I managed our positions on Thursday and got a big profit via straddles.

Many people were asking us in the comments, how we managed.

Explained transparently what we did.

Hope you get something to learn from this. 😀👍

A lot of websites provide you with data for trading.

However, I liked the free website of Icici Direct the most.

Here is a breakdown of what it can do: 🧵

Collaborated with @niki_poojary

Advantages:

1. Quantitative Analysis in one place
2. Easy to find stocks where action taking place
3. Find the exact price levels at which OI is being added.

You can check out this free website by clicking on this

Where is the action taking place?

For eg, Nifty Heatmap Can easily scan for:

- Long Build up = Price Up and OI up
- Long Unwinding = Price Down and OI down
- Short Buildup = Price Down and OI up
- Short Covering = Price Up and OI down

Price levels of OI being added:

• Check 15 mins Built-up in any stock
• Can find Intraday Bullish and bearish trend
• Eg of IBUL who was down 5% on Friday. Short Built-up had started in the morning itself.
• Shows the quantities which are being traded in those intervals.

Time Intervals:

• There are 25, time intervals available every day.

• If a stock has to go up or down a lot it will be heavily dominated in these time intervals.

• IBUL had 10 times short built up on Friday. -5.79 %

• ITC had 14 long built-ups on Friday. +2.6%.

A THREAD:

BEST OPTIONS STRATEGY FOR CONSISTENT INCOME -

OPTIONS WHEEL STRATEGY

Everything to know about this strategy I'm posting in this thread.

(1/12)

Step 1: Stock Selection

1. For this strategy you're going to have to choose some stocks that you think will be doing well in the future/long term.

2. Stock must be in an uptrend.

3. Stock options should be liquid enough to trade in.

4. List of stocks attached

(2/12)

Step 2: Which option to sell?

1. Sell put at a support according to charts.

2. Sell put at a strike far away from the spot where you think the probability of the stock falling will be very very low.

3. Sell put at a price where you're willing to buy the stock at.

(3/12)

Step 3: What to do when in profit/loss?

1. If in profit you can just roll up the puts thereby increasing the ROI or shift to other stocks to make more profit.

2. If in loss take delivery of the shares equivalent to the lot size in cash market.

(4/12)

Step 4: What to do after taking the delivery?

1. Sell calls to lower your cost price of the stock. For eg, you took delivery of Reliance at 1900, sell 2100 CE which is about 10% away.

2. Keep doing this till your CE expires ITM and then give delivery of your stock away

(5/12)

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)

Short Straddle is the highest payoff strategy in Option Selling.

However, it comes with huge risks as well.

You become good at managing Straddles with adjustments.

Here's a step-by-step breakdown on them:

Collaborated with @niki_poojary

🧵

1/ Longer-term short straddle:

If you're a fan of very big ranges for your trades, you'll get the biggest one in long-term options.

Long Term can be 3 months, 6 months, or a year away as well.

The only drawback with longer-term straddles is the slippage.

Example:

In the above example, in the March expiry, we have collected 1500 points in the 18000 Nifty Straddle.

This is actually low risk compared to the monthly or weekly Straddles.

Beginners:

Can try their hands at long-term options.

You'll get sufficient time to adjust and learn.

2/ Weekly expiries will have a very short range:

Higher risk.

Frequent adjustments.

Below is an example of a weekly Straddle in Bank Nifty.

Premium Collected: 700 points

Bank Nifty at times, moves more than this in a day.

Due to these small ranges, people prefer to do weekly Iron Fly instead of Straddles.

This takes care of the undefined risk in a small range in Straddles.

Also requires very slow and easier adjustments.

How do I save taxes above 50,00,000 income?

• Not hiding income
• Not spending too much time
• Not trading in multiple accounts simultaneously

It's the same process that the top traders & fund managers use to save taxes. It works.

THREAD: 🧵

Collaborated with @niki_poojary

The Ultimate Guide for Traders who want to understand how they can use:

1) Unsecured Loans
2) Claim Expenses
3) Pvt Company

To drastically lower their taxes.

Have spoken to a lot of CA's and have got this information from them.

Follow these steps to pay lower taxes: ↓

Step 1:

The first thing traders do is loan their money to their family members to trade in their accounts so that they can make a profit in the family members' name.

This way the tax is divided by different names.

So you don't have to pay taxes on one name only.

How do they do this?

They use "Unsecured Loans".

It is completely legal to give a loan to your family.

Once they get the loan in their account, they can use that money to start trading.

30% tax is charged above 15 lakhs income.

Until 15 lakhs, you can trade in their names.

Assuming a family of 4 (most common) until 60 lakh profit you can do this.

This would be much better than making 60 lakh income on one name only.

Not only are you charged a lower tax rate by doing this, but you also make use of the no-tax slabs.

Before paying a hefty amount to learn options trading have a look at this here is the small of Compilation of Options trading learning Series recorded by @vivbajaj which may help you to shorten your learning curve
Caution: Compilation of series is for Serious learners only.

Trading करने से पहले ये करना जरूरी है। by

Futures और Options से बड़ा पैसा कमाने का सही तरीका Mitesh Patel का |
by

Options Calendar Trading करने का अनोखा तरीका by

Profitable Options Trading using CPR Pivot System by

WHAT IS OPEN INTEREST, HOW TO ANALYZE IT AND DOES IT WORK?

In the thread I'll explain everything about Open interest and also all the tools used to analyze it and my personal opinion.

THIS IS THE ONLY THREAD YOU'LL EVER NEED ON OPEN INTEREST.

1: What is Oi?

Support if Mr A buys 10 lots of 17000ce in Nifty and Mr B sells 10 lots of call in Nifty then the total Oi on 17000 strike price will be 10.

So Oi is basically the number of outstanding contracts which are not squared off.

2: What is Oi used for?

Oi is only used to determine support and resistance on a particular strike price.

For eg: Nifty 16000pe has the highest Oi and 16200pe has to highest Oi.

So 16000 and 16200 level can be considered as good supports.

In the same way, 16500 ce has highest Oi and it can be considered as a resistance.

3: But why?

Highest Oi at 16500ce indicates that highest number of people have sold it BUT it also means that highest number of people have Bought it!

If 16500 acts as resistance, the option will go to 0 and all the buyers will lose money.