Overnight risk will be always capped
Limited Risk will keep you cool
Hedge our position
Strictly not to do for margin, as that will lead to overleveraging.
Traders Sell option for 100 and buy 10 rs option.
That is for margin reduction, not a spread.
The best spreads trader on Twitter: @Ronak_Unadkat
He trades in Nifty & Bank Nifty via spreads majorly.
In the Jainam Broking Speech, he shared how he trades debit and credit spreads:
Here's a breakdown of his 10 step method: ๐งต
Collaborated with @niki_poojary
Overnight risk will be always capped
Limited Risk will keep you cool
Hedge our position
Strictly not to do for margin, as that will lead to overleveraging.
Traders Sell option for 100 and buy 10 rs option.
That is for margin reduction, not a spread.
If the market opens at the lower circuit or upper circuit, then our loss should be limited.
Eg - Expiry Trading on the 24th Feb Expiry
The market gapped down & traders lost huge sums of money.
Some lost 15% or 20% of their capital in a 4% index move.
If India-Pakistan tension news comes again we will open at a lower circuit.
In a 4% index move, people lost 10%, so in the case of a circuit, they will lose 50%.
In these cases, spreads cover your risk.
Even he lost 3-4% of capital on 24th but it is easy to recover in 1-2 months.
Shouldn't lose more than 15% of your capital in case of a lower circuit. (Worst scenario)
Adjustments become easy if the risk is capped.
Doesn't care for greeks but you should know if delta or gamma impacts you, what is our risk we should always be aware of it.
If the market goes against you in a debit spread, you can adjust by selling more options to make it a ratio spread.
Debit Spreads adjustments he does by converting it to a ratio.
Credit spreads no adjustments only stop loss.
If you trade in debit spreads, your 100 comes down to 60 but the 40 rs sold one will come down to 25.
If you bought naked options, then your 100 rs when it comes to 50, you will get out due to 50% capital loss.
After some time it goes back to cost. (regret)
Selling naked options at 100, you will get out when it becomes 200.
Imagine you've sold the 100 rs option and bought a 40rs one for 60 rs credit.
If the 100 becomes 200 then 40 will become 80 so you can hold.
The worst-case loss is fixed.
If you have an index level stop loss, you will get out in naked option s if it doubles without it even touching your level.
They will double and then come back to the price you sold it at.
Whereas in spreads, you can wait out the moves.
In credit spreads, you will sell high premiums and buy lower premiums.
To counter this some people think to sell naked options whatever the credit you received in the credit spread.
But the overnight risk is huge in that case.
Risk reward is not in your favor in such trades.
But the probability is always there. So you will win 8/10 times.
This win rate ensures we make money.
During Breakout/Breakdowns go for debit spreads.
You'll get quick money in such trades.
For reversal trades, use credit spreads.
Premiums vanish very quickly in this case.
When PDH breaks trade a call debit spread, keep the current day low as stop loss and trail via swing lows.
When PDL breaks trade a put debit spread, then keep the current day high as stop loss and trail via swing highs.
Sell Credit spreads during reversals as they help you in case of IV spike
You are protected from IV spikes if you play reversals.
Debit Spreads won't make sense in reversals due to IV crush.
Watch out for @niki_poojary's thread on Mitesh Sir, which she will post today.
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
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 โ
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 โ
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
Saving money on Taxes is a superpower.
Learn it and you can make money faster than ever.
Use these 3 Threads to master Saving Taxes in the next 5 min:
Collaborated with @niki_poojary:
First of all, you need to open a company account if you want to save the highest
1) If you are earning more than 50 lakhs, study this thread.
Listed out the benefits of trading in a corporate
2) How can Individuals save on taxes.
(@niki_poojary
3) How do fund managers and traders save on
Learn it and you can make money faster than ever.
Use these 3 Threads to master Saving Taxes in the next 5 min:
Collaborated with @niki_poojary:
First of all, you need to open a company account if you want to save the highest
If you are earning more than 50 lakhs from trading, just trade in a company account to save taxes.
— Aditya Todmal (@AdityaTodmal) June 1, 2022
1) If you are earning more than 50 lakhs, study this thread.
Listed out the benefits of trading in a corporate
How to save tax when income is above 50 lakhs?
— Aditya Todmal (@AdityaTodmal) March 1, 2022
Here are 9 benefits of trading in a corporate account: \U0001f9f5
Collaborated with @niki_poojary
2) How can Individuals save on taxes.
(@niki_poojary
How to save taxes on the trading profits for an individual
— Nikita Poojary (@niki_poojary) November 26, 2022
4 Legit ways to retain most of the trading income: \U0001f9f5
Collaborated with @AdityaTodmal
3) How do fund managers and traders save on
PAY LESS TAXES.
— Aditya Todmal (@AdityaTodmal) September 25, 2022
How the best (Traders and Fund Managers) get away with paying less taxes, protecting their capital and creating substantial wealth.
And the exact methods for you to use (kept secret from 99% of Traders): \U0001f9f5
Collaborated with @niki_poojary
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1/โWhat would need to be true for you toโฆ.Xโ
Why is this the most powerful question you can ask when attempting to reach an agreement with another human being or organization?
A thread, co-written by @deanmbrody:
2/ First, โXโ could be lots of things. Examples: What would need to be true for you to
- โFeel it's in our best interest for me to be CMO"
- โFeel that weโre in a good place as a companyโ
- โFeel that weโre on the same pageโ
- โFeel that we both got what we wanted from this deal
3/ Normally, we arenโt that direct. Example from startup/VC land:
Founders leave VC meetings thinking that every VC will invest, but they rarely do.
Worse over, the founders donโt know what they need to do in order to be fundable.
4/ So why should you ask the magic Q?
To get clarity.
You want to know where you stand, and what it takes to get what you want in a way that also gets them what they want.
It also holds them (mentally) accountable once the thing they need becomes true.
5/ Staying in the context of soliciting investors, the question is โwhat would need to be true for you to want to invest (or partner with us on this journey, etc)?โ
Multiple responses to this question are likely to deliver a positive result.
Why is this the most powerful question you can ask when attempting to reach an agreement with another human being or organization?
A thread, co-written by @deanmbrody:
Next level tactic when closing a sale, candidate, or investment:
— Erik Torenberg (@eriktorenberg) February 27, 2018
Ask: \u201cWhat needs to be true for you to be all in?\u201d
You'll usually get an explicit answer that you might not get otherwise. It also holds them accountable once the thing they need becomes true.
2/ First, โXโ could be lots of things. Examples: What would need to be true for you to
- โFeel it's in our best interest for me to be CMO"
- โFeel that weโre in a good place as a companyโ
- โFeel that weโre on the same pageโ
- โFeel that we both got what we wanted from this deal
3/ Normally, we arenโt that direct. Example from startup/VC land:
Founders leave VC meetings thinking that every VC will invest, but they rarely do.
Worse over, the founders donโt know what they need to do in order to be fundable.
4/ So why should you ask the magic Q?
To get clarity.
You want to know where you stand, and what it takes to get what you want in a way that also gets them what they want.
It also holds them (mentally) accountable once the thing they need becomes true.
5/ Staying in the context of soliciting investors, the question is โwhat would need to be true for you to want to invest (or partner with us on this journey, etc)?โ
Multiple responses to this question are likely to deliver a positive result.
Recently, the @CNIL issued a decision regarding the GDPR compliance of an unknown French adtech company named "Vectaury". It may seem like small fry, but the decision has potential wide-ranging impacts for Google, the IAB framework, and today's adtech. It's thread time! ๐
It's all in French, but if you're up for it you can read:
โข Their blog post (lacks the most interesting details): https://t.co/PHkDcOT1hy
โข Their high-level legal decision: https://t.co/hwpiEvjodt
โข The full notification: https://t.co/QQB7rfynha
I've read it so you needn't!
Vectaury was collecting geolocation data in order to create profiles (eg. people who often go to this or that type of shop) so as to power ad targeting. They operate through embedded SDKs and ad bidding, making them invisible to users.
The @CNIL notes that profiling based off of geolocation presents particular risks since it reveals people's movements and habits. As risky, the processing requires consent โ this will be the heart of their assessment.
Interesting point: they justify the decision in part because of how many people COULD be targeted in this way (rather than how many have โ though they note that too). Because it's on a phone, and many have phones, it is considered large-scale processing no matter what.
It's all in French, but if you're up for it you can read:
โข Their blog post (lacks the most interesting details): https://t.co/PHkDcOT1hy
โข Their high-level legal decision: https://t.co/hwpiEvjodt
โข The full notification: https://t.co/QQB7rfynha
I've read it so you needn't!
Vectaury was collecting geolocation data in order to create profiles (eg. people who often go to this or that type of shop) so as to power ad targeting. They operate through embedded SDKs and ad bidding, making them invisible to users.
The @CNIL notes that profiling based off of geolocation presents particular risks since it reveals people's movements and habits. As risky, the processing requires consent โ this will be the heart of their assessment.
Interesting point: they justify the decision in part because of how many people COULD be targeted in this way (rather than how many have โ though they note that too). Because it's on a phone, and many have phones, it is considered large-scale processing no matter what.
