Most people have no clarity regarding synthetics & are just too confused.
Let's begin understanding synthetics & how they can help us trade with a clear understanding!
In NSE, 99.6% of the trading is done in derivatives.
But most of those traders don't know how to lower costs and increase returns.
Here's a breakdown on Options Synthetics: 🧵
Collaborated with @niki_poojary
Most people have no clarity regarding synthetics & are just too confused.
Let's begin understanding synthetics & how they can help us trade with a clear understanding!
1. Calls
2. Puts
3. Futures/Stocks
You don't even need to touch futures/stocks. Whatever kind of payoff graph you want, you can get via options only.
Ft buy + Call sell = Put sell
Ft sell + Call buy = Put Buy
Ft sell + Put sell = Call sell
Ft buy = Call Buy + Put Sell
Fut sell = Put Buy + Call Sell
Know this very well as this is a must to know.
Also, we'll look at 3 problems and 4 myths about strategies.
Let's begin, by looking at the advantages:
Synthetics increases your leverage due to lower margins.
For eg, you want to buy a stock you have to pay a huge margin.
Instead of that you can buy an ATM call and sell an ATM put.
Vice versa for selling.
Margins are drastically lower via options.
There is a cost to trade in futures in the form of huge STT charges, brokerage etc.
Options charges are way lower, so from a charged viewpoint synthetics make more sense.
If you want to go long in July series now, can you go long in futures? No.
But you can sell puts and go long in July series now in options.
We cannot short stocks in India, we need to trade via futures. Some traders don't like to trade in futures as they trade via collateral and mtm loss needs to be paid daily.
Synthetics takes care of that as u only have to pay when booked.
1. Liquidity Issue - In stocks, there are liquidity issues when you try to use synthetics in ITM options.
2. Indian markets have low liquidity in contracts beyond the current month.
Covered call = Fut buy + 2600 call sell
Put sell via synthetics = 2600 Put Sell
Low liquidity here in the Put sold.
Options mtm losses can be adjusted against collateral till you don't "book" the loss.
Futures irrespective of if you book or don't book the loss, you still need to pay by cash daily.
1. Tripple Straddle has a huge advantage.
2. Inverted strangle has an advantage over strangles.
I couldn't have explained better than @SarangSood Sir this concept in his thread.
Read how he shows you how there is no advantage to both.
https://t.co/Gn6hjqIEzm
A THREAD
— Sarang Sood (@SarangSood) May 14, 2021
Topic: Why triple straddle has no real benefit.
A triple straddle is essentially an ATM Straddle & one or two step away straddle on either side. The position is almost neutral strategy just like any other neutral straddle or strangle.
1/
If you buy a call profit is unlimited, but if no movement occurs then the option will deteriorate in value.
If you buy fut and buy put, and if the stock doesn't move, the put goes to zero and fut doesn't give profit.
Both are the same.
1. Low probability of success
2. Constant theta decay.
These same traders when they trade futures are buying puts as "hedges" too which is the same as buying options.
This is totally illogical.
Can achieve the same via only selling puts.
When we buy fut and sell call to "hedge" we pay two margin requirements.
Selling a put requires only one margin.
Vice-versa for covered puts.
If you found this useful, please do RT first tweet.
Follow to never miss them.
See past threads here:
@AdityaTodmal & @niki_poojary
More from Aditya Todmal
A THREAD ON @SarangSood
Decoded his way of analysis/logics for everyone to easily understand.
Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen
1. Keeps following volatility super closely.
Makes 7-8 different strategies to give him a sense of what's going on.
Whichever gives highest profit he trades in.
2. Theta falls when market moves.
Falls where market is headed towards not on our original position.
3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result
He believes in a market operator, if market mover sells volatility Sarang Sir joins him.
4. Theta decay vs Fall in vega
Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
Decoded his way of analysis/logics for everyone to easily understand.
Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen
1. Keeps following volatility super closely.
Makes 7-8 different strategies to give him a sense of what's going on.
Whichever gives highest profit he trades in.
I am quite different from your style. I follow the market's volatility very closely. I have mock positions in 7-8 different strategies which allows me to stay connected. Whichever gives best profit is usually the one i trade in.
— Sarang Sood (@SarangSood) August 13, 2019
2. Theta falls when market moves.
Falls where market is headed towards not on our original position.
Anilji most of the time these days Theta only falls when market moves. So the Theta actually falls where market has moved to, not where our position was in the first place. By shifting we can come close to capturing the Theta fall but not always.
— Sarang Sood (@SarangSood) June 24, 2019
3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result
He believes in a market operator, if market mover sells volatility Sarang Sir joins him.
This week has been great so far. The main aim is to be in the right side of the volatility, rest the market will reward.
— Sarang Sood (@SarangSood) July 3, 2019
4. Theta decay vs Fall in vega
Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
There is a difference between theta decay & fall in vega. Decay is certain but there is no guaranteed profit as delta moves can increase cost. Fall in vega on the other hand is backed by a powerful force that sells options and gives handsome returns. Our job is to identify them.
— Sarang Sood (@SarangSood) February 12, 2020
One of the best directional traders, who always identifies directional moves early on and rakes in big bucks.
@niki_poojary is a pro trader and is sitting with an ROI of about 60% for the year.
Here are 7 of her best threads from 2022 to make you a pro today (completely free):
By the end of this thread, you'll learn 5 lessons:
1. 10 most Powerful Intraday Setups with Screeners
2. Systematically become a good trader
3. Bollinger band set-up
4. Fibonacci retracements
5. Create a Trading Plan using only Price Action
...and a few more
Let's go ↓
Create a Trading Plan using only Price
10 Powerful Intraday Setups with
1:4 RR Bollinger band
@niki_poojary is a pro trader and is sitting with an ROI of about 60% for the year.
Here are 7 of her best threads from 2022 to make you a pro today (completely free):
By the end of this thread, you'll learn 5 lessons:
1. 10 most Powerful Intraday Setups with Screeners
2. Systematically become a good trader
3. Bollinger band set-up
4. Fibonacci retracements
5. Create a Trading Plan using only Price Action
...and a few more
Let's go ↓
Create a Trading Plan using only Price
Do you want to know how to create a Trading Plan using only Price Action?
— Nikita Poojary (@niki_poojary) October 26, 2022
Here's a breakdown of 11 simple yet powerful steps to create one: \U0001f9f5
Collaborated with @AdityaTodmal
10 Powerful Intraday Setups with
10 most Powerful Intraday Setups with Screeners: \U0001f9f5
— Nikita Poojary (@niki_poojary) November 8, 2022
Collaborated with @AdityaTodmal
1:4 RR Bollinger band
A set up which has a minimum Risk/Reward (R/R) of 1:4
— Nikita Poojary (@niki_poojary) October 2, 2022
This set up can be used for intraday, option selling, option buying, as well as investing.
Maximum profit strategy by Subasish Pani.
Bollinger band set-up: \U0001f9f5!
Collaborated with @AdityaTodmal pic.twitter.com/aEIUVQF2XY
I gathered the 38 best screeners from @YMehta_
Save 100+ hours researching.
A thread:
Collaborated with @niki_poojary
10 Free Candlestick Pattern
Top 9 Price Action-based
7 Strategies with their
4 Investment Strategies with their
Save 100+ hours researching.
A thread:
Collaborated with @niki_poojary
10 Free Candlestick Pattern
Screeners helps trader in saving lot of time in filtering best stocks out of 5000+ stocks listed.
— Yash Mehta (@YMehta_) October 28, 2022
Here is the list of top 10 Free Candlestick Pattern based screeners that I use:
Also, last two screeners are my favorite to pick early momentum stocks.
Top 9 Price Action-based
Screeners helps trader in saving lot of time in filtering best stocks out of 1000+ stocks listed.
— Yash Mehta (@YMehta_) September 16, 2022
Here is the list of top 9 Free Price Action based screeners that I use:
Also, last screener is my favorite to pick early momentum stocks.
7 Strategies with their
Screeners helps trader in saving lot of time in filtering best stocks out of 5000+ listed stocks.
— Yash Mehta (@YMehta_) December 9, 2022
Here is the list of top 7 Free Strategy and its respective screeners that I use:
Also, last screener is my favorite to pick early momentum stocks.
4 Investment Strategies with their
There are so many investment strategies, still hardly anyone creates long term wealth in stocks.
— Yash Mehta (@YMehta_) November 25, 2022
Sharing 4 Investment Strategies based on Technical Analysis and Screeners for free (sold as a \u20b9 50,000 course!).
Shared a bonus trading strategy at the end.
A thread \U0001f9f5:
More from Optionslearnings
17% need workshop. 😂😀
This is my simple trading.
How many are believing only in simple trading system?
— Mitesh Patel (@Mitesh_Engr) April 3, 2021
This is my simple trading.
I don\u2019t have any magic.
— Mitesh Patel (@Mitesh_Engr) January 7, 2021
Next week I will prefer to sell put in between strike 30500-31000 as shown in pic. Will manage upto 31000.
If breaks 31000 as first down support then will exit put nearby 31000 strike and will sell
31500 call ( will act as resistance again )
Simple hai na pic.twitter.com/hPLIMq3tSe
This Simple Strategy has given around 18500/- in 20 days with a ROI of 3% on 5 lakh capital.
If we buy hedges, Margin will reduce & ROI increases.
More strategies will be shared going forward.
All u need is execute with Discipline & sticking with system when in DD.
(1/n) https://t.co/3KH9v0tgsb
to learn more about Algo Trading (in both directional & non directional) , you can visit my Telegram channel especially created for Algo Strategies.
Will be updating Daily Performance of our Algos in below
If we buy hedges, Margin will reduce & ROI increases.
More strategies will be shared going forward.
All u need is execute with Discipline & sticking with system when in DD.
(1/n) https://t.co/3KH9v0tgsb
A simple INTRADAY strategy with decent BACKTEST report of more than 3-5% returns on Monthly basis.
— OptionSeller(Vardhan) (@CaVardhanCa) August 15, 2021
Will be sharing live report on daily basis for a month.
& will conduct FREE webinar to discuss about the results in coming weeks.
Sharing all rules below.
(1/n) https://t.co/VMlxNtX90s pic.twitter.com/cJaa9axRss
to learn more about Algo Trading (in both directional & non directional) , you can visit my Telegram channel especially created for Algo Strategies.
Will be updating Daily Performance of our Algos in below
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Speech Delay is most common in children nowadays
In ancient times, our grandparents used to follow typical natural way of caring the needs of a child. All they used were more of natural products than chemical based for the growth of child.
One of major step followed was to feed Gurbach Jadd/ Vasa Kommu/ Acorus Calamus for initiating good speech ability in a child. This stem was needed to babies on Tuesdays and Sundays in mother's milk.
Vasa is feed to baby after the 1st bath on 12th day in week. Weekly only thrice it is fed and named as :
Budhwar - Budhi Vasa
Mangalwar - Vaak Vasa
Ravi Vaar - Aayush Vasa
This stem is burnt and rubbed against the grinding stone in mother's milk or warm water to get a paste
The procedure to make it is in the link
https://t.co/uo4sGp7mUm
It should not be given daily to the child. Other main benefits are
1. It clears the phlegm in child's throat caused due to continuous milk intake. It clears the tracts and breathing is effortless.
2. Digestion
For children who haven't got their speech and is delayed than usual should feed this vasa on these days in week atleast for 6months. Don't get carried away with this dialogue
"Some gain speech little late"
In ancient times, our grandparents used to follow typical natural way of caring the needs of a child. All they used were more of natural products than chemical based for the growth of child.
One of major step followed was to feed Gurbach Jadd/ Vasa Kommu/ Acorus Calamus for initiating good speech ability in a child. This stem was needed to babies on Tuesdays and Sundays in mother's milk.
Vasa is feed to baby after the 1st bath on 12th day in week. Weekly only thrice it is fed and named as :
Budhwar - Budhi Vasa
Mangalwar - Vaak Vasa
Ravi Vaar - Aayush Vasa
This stem is burnt and rubbed against the grinding stone in mother's milk or warm water to get a paste
The procedure to make it is in the link
https://t.co/uo4sGp7mUm
It should not be given daily to the child. Other main benefits are
1. It clears the phlegm in child's throat caused due to continuous milk intake. It clears the tracts and breathing is effortless.
2. Digestion
For children who haven't got their speech and is delayed than usual should feed this vasa on these days in week atleast for 6months. Don't get carried away with this dialogue
"Some gain speech little late"
