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Saved by @SAnngeri

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: ๐Ÿงต

Collaborated with @niki_poojary

 1. Why trade via spreads?

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.
2. Circuit:

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 in 4% people are losing so huge then imagine if Modi says black money is back, we will open at an upper circuit.

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%.
To recover a 50% loss on capital, you need to make 100% returns with the leftover capital to break even.

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.
3. Rules:

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.
4. Adjustments:

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.
5. Holding power:

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)
In the case of selling options:

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.
6. SL hitting without index level move

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.
7. Overnight Risk:

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.
8. Risk Reward:

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.
9. When to use which strategy?

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.
10. Setup for debit spreads

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.
During Reversals:

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.
This is the only thread you'll need on spreads trading.

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

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Aditya Todmal
Aditya Todmal
@AdityaTodmal
Important Concepts from Power of Stocksโ€” Subhasish Pani

7+ years of trading experience in 14 tweets๐Ÿงต

Collaborated with @niki_poojary

1/โ€” Inside Candles

Inside Candle, breakout strategy has very good accuracy.

There are two candles in the inside candle, the mother candle, and the baby candle.

He trades the breakout of the high/low of the baby candle with the opposite level as a stop loss.

When to pyramid the trade if it goes right?

The next level to add more quantity is the mother candle's high or low, depending on a breakout or breakdown.

The stop loss will remain the baby candle low during a breakout and vice versa during a breakdown.

2/โ€” Big Gap up

If the market is bullish, next day if it opens a big gap up then the buyers are already in profit.

Most traders don't want to see their MTM reduced in such times.

Wait for the first red candle and short the first 5 min red candle with a day high stop.

The R:R is too good in such setups.

There are multiple videos of him catching the day high with this setup.

Everyone's looking for selling puts and he makes money selling calls.
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Aditya Todmal
Aditya Todmal
@AdityaTodmal
If you use it right, Iron Fly is the most solid risk-defined strategy in trading.

But most people don't know how to adjust the strategy when it goes wrong.

Here are 7 adjustments you can do to lower risk and increase profitability: ๐Ÿงต

Collaborated with @niki_poojary

0/ Who is this for?

This will greatly benefit people who freeze when it comes to managing their trades and keep booking losses.

Some trade with too much fear as well when things go wrong.

Knowing these adjustments will give you the confidence to try to manage your trades.

Most of them are to lower risk on the side the market is going in.

Some adjustments even increase the profit potential and probabilities of the trade being in profit on expiry.

Let's begin by having a look at the adjustments.

Here is the adjustment number 1 below.

1/ Don't do anything till your breakeven arrives

One reason these strategies go wrong far too quickly is due to adjusting them too frequently.

You can escape most adjustments if you simply wait for the market to arrive at your breakeven.

This will work well in monthly options.

2/ Remove Risk from Untested Side

If you've taken an iron fly and the market has gone up you can shift your put buy upwards and lock the downside risk to potentially zero.

This way you've secured one side and just need to manage the bleeding side.
OPTIONSLEARNINGS , ALL , IRONFLY RISK MANAGEMENT
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Aditya Todmal
Aditya Todmal
@AdityaTodmal
Master Thread of all my threads!

Hello!! ๐Ÿ‘‹

โ€ข I have curated some of the best tweets from the best traders we know of.

โ€ข Making one master thread and will keep posting all my threads under this.

โ€ข Go through this for super learning/value totally free of cost! ๐Ÿ˜ƒ

1. 7 FREE OPTION TRADING COURSES FOR


2. THE ABSOLUTE BEST 15 SCANNERS EXPERTS ARE USING

Got these scanners from the following accounts:

1. @Pathik_Trader
2. @sanjufunda
3. @sanstocktrader
4. @SouravSenguptaI
5. @Rishikesh_ADX


3. 12 TRADING SETUPS which experts are using.

These setups I found from the following 4 accounts:

1. @Pathik_Trader
2. @sourabhsiso19
3. @ITRADE191
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4. Curated tweets on HOW TO SELL STRADDLES.

Everything covered in this thread.
1. Management
2. How to initiate
3. When to exit straddles
4. Examples
5. Videos on
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Aditya Todmal
Aditya Todmal
@AdityaTodmal
I listened to @Ronak_Unadkat Sir's recent interview with @iarjuntandon on Groww so you don't have to.

He went from 4Lakh to 4,00,00,000 Rs. (4 Crore)

Let's learn how he 100x his capital

Takeaways from the interview: ๐Ÿงต

Collaborated with @niki_poojary

1/ How did he begin his journey?

Started stock market journey in 2012. Went into full-time in 2021.

Colleagues used to invest in mutual funds and that's how he started in the stock markets.

Started to make 8-10% return per year initially.

2/ Initial Profits

After that he attended a seminar due to his friend where he understood that there's a term called Futures and Options as well.

He had 4 lakh rupees, so he started with that amount.

3/ Lost 60% of his capital

In the next 5 days, his capital grew to 5 lakh rupees followed by another increase of 1 lakh profit in the next 5 days.

In the coming 10 days post his profits, his capital reduced to 2 lakh from 6 lakh.

4/ Instrument traded?

Which instrument was he trading during that initial period?

He was trading full quantities in futures and options buying during that time, without any hedging.
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Aditya Todmal
Aditya Todmal
@AdityaTodmal
Everyone wants to accelerate their trading in 2023

Yet, 99% don't know the best strategies to trade better.

14 free trading strategies to crush this year:

Collaborated with @niki_poojary

Will be covering these three types of strategies:

1. Intraday Trading Strategies
2. Positional Trading Strategies
3. Uses of Indicators

I have found these three accounts to have top-notch quality:

1. @RijhwaniSheetal
2. @jigspatel1988
3. @YMehta_

1. 6 Intraday Strategies ๐Ÿงต

How to Filter Stocks for Intraday


Intraday BNF strangle based on OI data.


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There are many strategies in market ๐Ÿ“‰and it's possible to get monthly 4% return consistently if you master ๐Ÿ’ชin one strategy .
One of those strategies which I like is Iron Flyโœˆ๏ธ

Few important points on Iron fly stategy

This is fixed loss๐Ÿ”ด defined stategy ,so you are aware of your losses . You know your risk โš ๏ธand breakeven points to exit the positions.
Risk is defined , so at psychological๐Ÿง  level you are at peace๐Ÿ™‹โ€โ™€๏ธ

How to implement
1. Should be done on Tuesday or Wednesday for next week expiry after 1-2 pm
2. Take view of the market ,looking at daily chart
3. Then do weekly iron fly.
4. No need to hold this till expiry day .

5.Exit it one day before expiry or when you see more than 2% within the week.
5. High vix is preferred for iron fly
6. Can be executed with less capital of 3-5 lakhs .
https://t.co/MYDgWkjYo8 have R:2R so over all it should be good.

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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.


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The video explains #concepts of #putcall #openinterest so it can help many #beginners also along with some #advanced techniques of reading data.
Please #retweet if you find it useful๐Ÿ™

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For Weekend learning

Some knowledgeable tweets/threads by me...

I will keep adding to this thread over time

Starting with:

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2. Best free Data website - Icici Direct
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A thread on Option Synthetics

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Best free website to get Data from - ICICI DIRECT

Advantages:
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2. Easy to find stocks where action taking place
3. Find the exact price levels at which OI is being


PER ORDER Vs PER LOT brokerage

Which one is better?

Read the thread to know why one is clearly better than the


Finally, Check out Subhasish Pani Channel - Power of Stocks

My favorite Youtuber from the trading community without a doubt.

Spend your weekend learning from his channel.
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Simple and effective way 2 make Money


Idea 1:- Use pivot level like 14800 in case of nifty and sell 14800straddle monthly expiry (365+335) exit if nifty closes on daily basis below S1 or above R1

After closing below S1 if it closes above S1 next day or any day enter the same position again vice versa for R1

Idea2:- Use R1 and S1 corresponding strikes multiple
Incase of R1 15337 take 15300ce
N in case of S1 14221 use 14200pe
Sell both and hold till expiry or exit if nifty closes below S1 or above R1 around closing
If the same bounces above S1 and falls below R1 re-enfer same strikes

Use same criteria for nifty, usdinr and banknifty

(This is must)Use this margin rule for 1lot banknifty pair keep 4Lax margin
For nifty one lot keep 3Lax
For usdinr 100lots keep 4Lax

I bet you if you do this on consistent basis your ROI will be more than 70% on yearly basis.

Couldn't explain easier than this

Criticisms are most welcomed.
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