BC OPTIONSLEARNINGS
Saved by @SAnngeri

THREAD: 14 of the best resources/topics for anyone who wants to start option selling as a career. ๐Ÿงต

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
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
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)
TECH , STOCKLEARNINGS , STOCKS
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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: ๐Ÿงต

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:

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


Time Intervals:

โ€ข There are 25, time intervals available every day.

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

โ€ข IBUL had 10 times short built up on Friday. -5.79 %

โ€ข ITC had 14 long built-ups on Friday. +2.6%.
SCREENERS , ALL , ICICI
Aditya Todmal
Aditya Todmal
@AdityaTodmal
How to manage risk in Option Selling?

10 frameworks to improve your risk management in 1 month:

Collaborated with @niki_poojary

In this thread you'll how to manage risk with:

1. Directional markets
2. Range-bound markets
3. Mtm stop loss
4. Booking profits
5. Overnight hedging
6. Event Risk
7. Position Sizing
8. No leverage
9. Reducing positions when wrong
10. Calculating risk upfront

Let's go โ†“

Directional markets:

There is no point in the market being directional and you adjusting a non-directional trade.

As a general rule, you should only adjust once or maximum twice and then give up on firefighting.

Then you should side with a directional move.

Mistake of a non-directional trader:

Non-directional traders face heavy losses in directional markets.

If you are able to limit your losses in such scenarios, your risk management will improve.

The "I can adjust any move" mindset has to vanish for this to improve.

Big Range:

Moves in a big range are usually violent, and this is where non-directional traders lose money despite the fact that they are correct in assuming that the market is range bound.

Level-based stops work best in such an environment with reduced quantities.
TRADING
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: ๐Ÿงต

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
ALL

More from Optionslearnings

yogesh nanda
yogesh nanda
@yogeshnanda1
All you need to know about Option Buying Setup:
Youtube channel:
https://t.co/Tn5s5tQucn

Telegram Group:
https://t.co/zcMFYLuFUU

1. Option Buying setup video [English]:
https://t.co/oCuI7ryOVS

2. Option Buying setup video [Hindi]:
https://t.co/GEtwvPipih
[1/3] @jitendrajain

3. learn Position Sizing:
https://t.co/mjGwmms21Y

4. overcome late OI signal:
https://t.co/rULPzfNpId

5. Gamma impact
https://t.co/6r9wKx3ewC

6. Risk Management

7. 4 part video on optimisation of various aspect:
a https://t.co/G7FDAm9VEg
b https://t.co/KjkzlbDBeR
c https://t.co/Vcn5icNO9P
d https://t.co/SsggfnwPNZ

8. examples
a https://t.co/S9OB41tNxx
b https://t.co/xZeKvZq3Uo
c https://t.co/mgQVYJu8te
d
OPTIONSLEARNINGS
itrade(DJ)
itrade(DJ)
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https://t.co/cPPRSjtYU3
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Aditya Todmal
Aditya Todmal
@AdityaTodmal
Trading Strategies 101

14 "must-try" trading strategies you can start using today: ๐Ÿงต

Collaborated with @niki_poojary

We'll break these into portions of:

1. Intraday Trading Techniques
2. Positional Trading Techniques
3. Indicator Applications

1/ 6 Intraday Strategies ๐Ÿงต

How to Filter Stocks for Intraday


2/ Intraday BNF strangle based on OI data. ๐Ÿงต


3/ A few setups to make intraday trading easy.
ALL , OPTIONSLEARNINGS , OPTIONS STRATERGY
Aditya Todmal
Aditya Todmal
@AdityaTodmal
Most of the traders on Twitter are non-directional traders.

Only a few trade on one side according to direction.

Here are 9 benefits of directional trading you cannot miss:๐Ÿงต

Collaborated with @niki_poojary

1/ Higher Returns

Playing as per the trend usually gets you more conviction in your trades.

Which then leads to higher returns as you trade with the increased confidence.

Rather than selling 30-30 on each side, for eg, can just sell 90-100 on one side and make more.

2/ Easy management

It is easier to manage directional trades according to stop loss or targets based on patterns.

Don't need additional factors to think of for eg, premiums, distance from the spot, greeks, etc.

3. Avoid adjustments constantly

Non-directional option sellers have to constantly do adjustments to their trades.

Many times their original view is right but then the adjustments go wrong.

To combat these adjustments, they make more adjustments that unnecessarily use margins.

4. Improves price action analysis

You cannot be a good directional trader without having a very good grip on price action analysis.

Constantly using the price to make trades rather than playing for theta leads you to better understand price action.
OPTIONSLEARNINGS
Aditya Todmal
Aditya Todmal
@AdityaTodmal
@Ronak_Unadkat Sir has more than 100 videos on his Youtube channel.

He mainly focuses on the same few concepts to take a trade.

I can teach you those in the next 5 minutes:๐Ÿงต

Collaborated with @niki_poojary

1/โ€” OI unwinding for Aggressive trades

Okay, so you must begin your search for these type of trades "ANYDAY AFTER 1 PM".

For eg:

If the market is going up and you spot some large unwinding on the call side.

Sell the immediate puts from where the market reversed to go up.

Where option sellers are trapped no need to check the support resistance as a big directional move is going to happen.

Just aggressively sell puts straight up, pocket the higher premiums and make high returns.

Explaining the logic in the next tweet.

Logic:

Simple, option sellers are tapped. In this case on the call side.

When a seller is trapped he will buy his option back.

Option buyer will not be in a hurry to square off as he is in profit.

This will result in a huge spike in calls.

A call option seller cutting his position means he is not confident that the market will go down or sideways.

We take a hint from him and sell puts to make a profit.
OPTIONSLEARNINGS , ALL

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๐ŸŽ‰๐ŸŽ‰ PHP 7.3 is here!

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This will certainly be a required styling choice for me. Same delightful benefits of trailing comma in multi-line PHP arrays, and JavaScript objects.


๐Ÿงต Less disgusting heredoc syntax!

Inlining heredoc strings in any way right now is grrrosssss. Now we get sensible capabilities. Everything that was wrong with it is now fixed!

(Ignore the bad syntax highlighting)


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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.
OPTIONSLEARNINGS , MONTHLY OPTIONS SELLING , OPTIONS LEARNING