BC OPTIONSLEARNINGS
Saved by @SAnngeri

THREAD: 14 of the best resources/topics for anyone who wants to start option selling as a career. 🧵

Collaborated with @niki_poojary

 1. Best Sources of knowledge for a beginner in option selling?

Zerodha Varsity from @Nithin0dha's team & the @tastytrade financial network.

Links:
https://t.co/iYpilaaaoV

https://t.co/iooGW9CrCZ
2. Top YouTube Channel for Options Learning?

Power of Stocks - Subhasish Pani

What you'll learn:
1. How to form a trading plan.
2. How to scale an account with risk-reward in option selling.
3. Technical analysis logics you can use daily.

15 Learnings:
https://t.co/bv2mbiajZv
3. What are the preconditions to start option Selling:

You should know technical Analysis basics like:
- Support/Resistance
- Chart Patterns
- Candle Patterns
- Dow Theory (HH, LL)

This will help you start taking high probability trades.
4. Risk Management is a must for option selling

If you don't learn to manage your risk, making money in trading is going to be an extremely difficult endeavor

Have some rules:
1. Risk no more than 0.25% per trade as a beginner
2. Risk no more than 2% in a day for the first year
You have to decide how much you're willing to lose in a day.

Whatever the amount, divide it by 3. Just risk that amount in 3 trades in a day. Stop trading if you lose 3 times.

This prevents us from overtrading and losing more.
5. Minimum Capital requirement for option selling.

Beginners can learn and practice option selling with 5L capital.

You'll be able to trade 5 lots with this. If you're doing well can take leverage by buying options and selling more quantities.

(Only if you're doing well)
5. Safest way for beginners to start:

Target options that have over 90% probability of going to zero.

As a beginner target only 0.5% per week.

If you've been profitable for 6 months, try for targets like 0.75% to 1% a week.
6. When to follow Directional strategies and when to follow non-directional strategies?

If the market is in a range, can sell options on both sides outside the range and make a profit. (strangle)

If the market has given a breakout or breakdown then avoid non-directional trading
7. How to select the strike price for selling options.

I started selecting strikes initially which were very low premiums. But had a higher probability of going to zero.

In order to become a really good trader, you need to have "profit cushion".
Once you get the profit can sell strikes based on:

- Support/Resistance
- Premium Based Strike Price

Get a sense of when and how to do adjustments.
8. Stock Options or Index options which one is good for a beginner-level person?

I personally found trading in stocks is totally useless. Not worth the effort you put in.

Unlike an index, stocks can move > 10% and beyond in the F&O segment

Not worth the stress they cause
Beginners should concentrate on index option selling.

Find your comfort whether it's Nifty or Bank Nifty. Personally, I have seen the switch from Nifty to Bank Nifty being quite difficult for some traders.

Might as well start practicing Bank Nifty from the get-go.
9. Top 3 mistakes we made trading.

- Not building a portfolio when the market corrects 30%
- Venturing in stock options due to their luring premiums
- Intend to recover all losses from the same stock thereby ending up marrying a stock
10. What % of return one should expect on a weekly or monthly basis?

Beginners would be doing great if they just manage to even break even after their first year.

Most people are wiped out in the initial years.

Later on, one can gradually move from 2-4% per month returns.
11. How to maintain Good Risk Reward in option Selling

This is an area which we want to learn the most and focus upon in the next 2 years.

However, a simple rule to follow, if you're making 4% a month, don't lose more than 2% in any single week.
12. Is knowledge of Option Greeks is really Important?

Big no! We are aware of greeks and have spent time learning them, but they have not helped us in a single trade.

If you know your support & resistance and when to exit, then no need to know Greeks.
13. Website to analyze Option Chain Data

Although we don't give much importance to option data as it doesn't work nowadays.

Opstra & NSE websites are enough, additionally, our friends really like Icharts and trading tick.
14. How to be prepared for every week?

Learn to create a weekly trading plan. Here's a thread on creating one after analyzing @niki_poojary's account.

https://t.co/aVh21muOYi
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

Aditya Todmal
Aditya Todmal
@AdityaTodmal
A Thread on the Boss himself @Mitesh_Engr

Mitesh Sir's Positional Option Selling 101:

• How to find direction
• Which options to sell
• How to deploy capital
• Exit criteria
• What ROI he targets weekly
• What % risk he takes

Done with the help of @niki_poojary


How @Mitesh_Engr Sir finds the direction?

• Daily charts S/R
• 75 min charts S/R
• Intraday trend
• Always play directional
• Never trades in strategies


Which options to sell in weekly expiry according to @Mitesh_Engr?

• Weekly candle High/Low
• Sell 1% away options from those
• Exit when levels breached


Position Sizing by @Mitesh_Engr Sir.

How to deploy your capital?

• First sell 20%
• Pyramid the next day
• When to exit
• What to do when view goes wrong
• What to do with idle capital


Some important tweets of @Mitesh_Engr Sir

• What Data to look at
• ROI for safe players per month
• Max risk per day
• Gather knowledge and play directional
• Never play strategies
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Aditya Todmal
Aditya Todmal
@AdityaTodmal
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%.
SCREENERS , ALL , ICICI
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Aditya Todmal
Aditya Todmal
@AdityaTodmal
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)
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Aditya Todmal
Aditya Todmal
@AdityaTodmal
Want to become better at Positional Trading?

Read this thread...

12 Rules for Professional Positional Traders:

THREAD: 🧵

Collaborated with @niki_poojary

Rule 1:

"Trade with a stop loss of 2% on your capital for the week."

If you're losing more than 2%, chances are your reading of the market is wrong. The best would be to call it quits for that week.

(1/N)

Rule 2:

" Don't trade in the first 10 mins of any day"

Every day, there is far too much noise in the first few minutes. Positional traders should avoid some time in order to avoid being butchered right away.

(2/N)

Rule 3:

" Wait for candle closings in your timeframe"

Beware of wicks. They are buyer/seller traps. Rather wait for a good candle to close above your support/resistance to open/close a trade.

(3/N)

Rule 4:

" Don't lose more than 10% of your capital in a big gap"

The day I experienced the greatest Mtm loss to my capital was February 24. The figure was -47 lakhs. It was around 10% of my capital. Losing much more would set me back several months.

(4/N)
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Aditya Todmal
Aditya Todmal
@AdityaTodmal
Twitter is like a free university.

However, 98.8 percent of users missed out on the best content on this platform.

Here are the Top 52 threads from the past 52 weeks of 2022: 🧵

Collaborated with @niki_poojary

(1) Topic: 5EMA Setup of Subhasish Pani by


(2) Topic: Using Volume the right way by


(3) Topic: Python Courses to learn from by


(4) Topic: A list of the top screeners by
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Kapil Dhama \U0001f1ee\U0001f1f3
Kapil Dhama 🇮🇳...
@kapildhama
For weekend learning.

1. Reverse buying (Iron Fly Adjustments) https://t.co/1HCmF6ej9e

2. Straddle setup and adjustments
https://t.co/MFvRjemrHw

3. In depth option chain analysis
https://t.co/W9iiCiBJaw

4. Expiry calendar setup
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AP
AP
@ap_pune
Tata Consumer too

There u have 30 now

Stick to these only !!!!


I keep getting msgs from ppl stuck in other stocks.

Just yday, someone asked abt Mindtree.

he shorted a CE and then when he wanted to cover,
the spread was 70 / 92 !!!

How many have faced such a problem?

Please add to this thread with actual examples

stock / strike price and rate
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itrade(DJ)
itrade(DJ)
@ITRADE191
Here is the detailed information of about strategy,

Entry time : 9.30 - 10
Exit : Upto you

Strategy :
Sell weekly ATM CE & PE at almost equal price
For ex : Sell Nifty 17250 CE at 50 and Nifty 17250 PE at 48 so it will become short straddle

Buy monthly ATM or near ATM CE & PE at matching price (5-10 points diff should be fine) as hedge
For ex : Buy Nifty 17250 CE at 150 and Nifty 17300 PE at 155 so it will become long straddle.

Weekly Short straddle + Monthly Long straddle

Adjustment:

• If you feel slightly bullish/bearish then no adjustment needed
• If Nifty moves 50 up or down and sustain then just simply roll up or down half of qnty and keep rest of the quantity. If market goes up or down further then roll up or down rest.

• If Nifty moves one side or about to breach BEP then add equal amount of lot. This can balance tested side. For ex: If I bought 17300 CE 4 lot as hedge then add 4 lot so you will have only one side risk . Note: Remember to keep SL at cost price (only for additional lot bought)

Capital requirement:
2.2 L for 4 lot
Adjustment requires additional capital upto 1L

Note : High risk high reward strategy, please don’t execute until you fully understand. Kindly do paper trading or backtest.
RR : 1:1
POP : 45-55%
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HMK alias MANOJ
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@scorpiomanojFRM
#Knowledge
A 2016 post that I posted in AAFL Facebook group on max pain ... Might be useful from awareness perspective...
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Nikita Poojary
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@niki_poojary
The most practical & effective resources on option trading comes from real traders

THREAD: Playbook on option selling to grow your knowledge & P/L account

Collaborated with @AdityaTodmal

1. Basics of Option selling

• The A,B,C,D one should be aware of before taking a plunge into option selling


2. @Mitesh_Engr Sir's process for positional option selling


3. How @Mitesh_Engr sells options on an


4. Transcript of @Mitesh_Engr Sir's “F&O Pe Charcha - Diary Of An Option
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Took me 5 years to get the best Chartink scanners for Stock Market, but you’ll get it in 5 mminutes here ⏰

Do Share the above tweet 👆

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What is best way to sell strangle in Banknifty on an intraday basis
Simple
at 9:45 Open Option chain and check In which strike highest OI change in call side and put side

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RANI NAIKI DEVI AND THE BATTLE OF KASAHRADA

Mohammad Ghori, the young Ghurid Prince conquered Ghaznavids in Afghanistan in the year 1173 CE. He conducted some successful raids into the Indian territory, which even Mahmud Ghazni & the Persians couldn't do.


First&foremost,Ghori invaded states of Multan &Uch in India.After this he turned to southern states of Gujarat &Rajputana.Everybody knows this about Ghori,but what most pple r unaware of is the defeat he suffered at hands of Chalukyan Queen Naiki Devi in 1178 Battle of Kasahrada.


When he marched southwards, his first target was the prosperous fortified town of Anhilwara Patan.
It was the capital of Chalukyas(also known as Solankis of Gujarat) which was established by Vanraj of Chapotkata Dynasty in 8th century.


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प्राचीन काल में गाधि नामक एक राजा थे।उनकी सत्यवती नाम की एक पुत्री थी।राजा गाधि ने अपनी पुत्री का विवाह महर्षि भृगु के पुत्र से करवा दिया।महर्षि भृगु इस विवाह से बहुत प्रसन्न हुए और उन्होने अपनी पुत्रवधु को आशीर्वाद देकर उसे कोई भी वर मांगने को कहा।


सत्यवती ने महर्षि भृगु से अपने तथा अपनी माता के लिए पुत्र का वरदान मांगा।ये जानकर महर्षि भृगु ने यज्ञ किया और तत्पश्चात सत्यवती और उसकी माता को अलग-अलग प्रकार के दो चरू (यज्ञ के लिए पकाया हुआ अन्न) दिए और कहा कि ऋतु स्नान के बाद तुम्हारी माता पुत्र की इच्छा लेकर पीपल का आलिंगन...

...करें और तुम भी पुत्र की इच्छा लेकर गूलर वृक्ष का आलिंगन करना। आलिंगन करने के बाद चरू का सेवन करना, इससे तुम दोनो को पुत्र प्राप्ति होगी।परंतु मां बेटी के चरू आपस में बदल जाते हैं और ये महर्षि भृगु अपनी दिव्य दृष्टि से देख लेते हैं।

भृगु ऋषि सत्यवती से कहते हैं,"पुत्री तुम्हारा और तुम्हारी माता ने एक दुसरे के चरू खा लिए हैं।इस कारण तुम्हारा पुत्र ब्राह्मण होते हुए भी क्षत्रिय सा आचरण करेगा और तुम्हारी माता का पुत्र क्षत्रिय होकर भी ब्राह्मण सा आचरण करेगा।"
इस पर सत्यवती ने भृगु ऋषि से बड़ी विनती की।


सत्यवती ने कहा,"मुझे आशीर्वाद दें कि मेरा पुत्र ब्राह्मण सा ही आचरण करे।"तब महर्षि ने उसे ये आशीर्वाद दे दिया कि उसका पुत्र ब्राह्मण सा ही आचरण करेगा किन्तु उसका पौत्र क्षत्रियों सा व्यवहार करेगा। सत्यवती का एक पुत्र हुआ जिसका नाम जम्दाग्नि था जो सप्त ऋषियों में से एक हैं।
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