BC OPTIONSLEARNINGS
Saved by @SAnngeri

BENEFITS OF OPTION SELLING

Most of the successful traders here are option sellers.

Ever wondered why?

Why we have chosen option selling?

How to decide what strategies to use?

THIS IS THE ONLY THREAD YOU'LL EVER NEED!

Find out below

 1: Theta decay

The biggest reason and one of the prime reasons is the theta decay.

Option sellers always have an advantage because the as time passes, the option premium falls even if the underlying instrument doesn't move.
2: Being wrong and still making money.

We as option sellers can be wrong with our market view and still end up making money because of the power of theta decay and adjustments to some extent,
3:Playing directional view

Option selling also enables us to take a directional view. Infact, directional view along with theta decay makes it a solid combination.

Debit spreads and credit spreads works great for a directional view.
4: Playing Neutral view

We can make money in option selling even if the market doesn't move as the otm options will go to 0 with the help of theta decay. It's the most fascinating thing.
This is what attracted many into option selling. Strangles, straddles, ironfly, iron condor works extremely well for playing out neutral view,
5: Lower transaction costs

Option selling has extremely low transaction costs as compared to futures and other instruments.

The STT which has to be paid in option selling is drastically low making it an excellent option for many.
6: Hedging

Hedging is an excellent tool in option selling. It protects you from losses and also makes you more money than the original trade itself in some cases.

Hedging also makes sure you stay in the trade and prevents you from being thrown out in small spikes.
7: Limited risk

Usually naked option carries unlimited risk.

But hedging your risk ensures limited risk on your positions.

You can also deploy limited risk strategies which protects you from any big spike and also big gaps.
8: Trading volatility.

Option trading is all about trading volatility. Option selling can be used to take advantage of rising and falling volatility.
Best strategy for rising volatility : Calendar spreads

Best strategy for falling volatility : Strangles, straddles, iron condor, ironfly, butterfly.
9: Adjustments

Adjustments is the heart of option selling.

The ability to adjust your trades and coming out in profit even when your view goes wrong is one of the prime reason why option selling is amazing.

Adjustments can be done in "n" number of ways as per one's style.
10: Lower margin compared to futures

Option selling requires very low margin as compared to futures because of hedging. You can also make your option selling position behave like futures by going with itm options, although I personally don't recommend it to newbies.
11: Playing long/short/neutral view

In option selling,you can play ALL directions

If you're bullish you can play long, If you're bearish you can play short and if you think the market will be rangebound, you can deploy neutral strategies

The flexibility it offers is unmatched!
12: Probability of profit

Close to 80% of the options expire worthless. So the probability is always on your side.

You don't have to be intelligent to make money. Only trade the most high probable setups and you're good to go.
13: Good for consistent returns.

Option selling is an amazing tool for making consistent returns and compounding your money at a decent pace with least drawdown.

You just have to make 2% a month.
2% a month can turn 20 lakhs into 244crs in 10 years!
14: Scalability

Often buying options, futures, etc has a problem of scalability.

But selling options can be done at a scale! It can be done with huge capital and there's seriously no limit as to how much capital one can scale!
15: Portfolio hedging

Option selling is not only used for trading but also for hedging your long term investment portfolio.

Covered calls is an excellent way to collect premiums from option selling as long as your stock is flat/going down and bring down the average price.
16: Cash secured puts

Cash secured puts is an amazing way to buy stocks at your desired price provided you have enough cash to take the delivery of the stock.
17: Psychology

Option selling requires patience by default since it doesn't give you money instantly like other instruments.

It cultivates the habit of patience and also makes you less prone to take unnecessary risks.
That's it for this thread and thanks for reading! I hope you learnt something and make my efforts count!

For more learnings/analysis during live markets join our telegram channel : https://t.co/uNIrqq5aDP

More from Aditya Trivedi

Aditya Trivedi
Aditya Trivedi
@itsAdityaT
Most of the successful traders here are option sellers.

Ever wondered why?

Why we have chosen option selling?

Find our below

1: Being wrong and still making money.

We as option sellers can be wrong with our market view and still end up making money because of the power of theta decay and adjustments to some extent.

Adjustments work better as get closer to expiry since decay is the highest.

2: Theta decay

The biggest reason and one of the prime reasons is the theta decay.

Option sellers always have an advantage because the as time passes, the option premium falls even if the underlying instrument doesn't move.

3:Playing directional view

Option selling also enables us to take a directional view. In fact, directional view along with theta decay makes it a solid combination.

Debit spreads and credit spreads works great for a directional view.

4: Playing Neutral view

We can make money in option selling even if the market doesn't move as the otm options will go to 0 with the help of theta decay. It's the most fascinating thing.

This is what attracted many into option selling.
TRADING
Aditya Trivedi
Aditya Trivedi
@itsAdityaT
HOW TO SAVE TAXES IN TRADING AS AN INDIVIDUAL?

A THREAD🧵

In this thread I'll list down all the legal ways in which you can save taxes on the profits you earned from the stock market.

1: Split your money between family members.

If you are trading with a good capital size, to lower taxes, you can always split your money in you family member's account. This greatly reduces your taxes.

It gets even better if they are not earning any money from other sources as there's no tax upto a certain income slab.

2: Claim expenses:

This is the best part. You can claim any expenses which are related to your business.

It could be :

- Rent: Rent of your office. If you're working from your house you can partially claim the rent of the house too.

- Devices: We can easily claim expenses on Laptops, mobile phones, ac, tv, fridge , etc. Anything that's related to the business.

- Internet and electricity: You can claim deduction on internet and electricity bill.
ALL
Advertisement
Aditya Trivedi
Aditya Trivedi
@itsAdityaT
HOW TRADING FROM A CORPORATE ACCOUNT CAN HELP YOU TO SAVE TAXES?

Since I myself have started trading from a corporate account recently, I'll share about my reasons for doing so and how drastically it can help to reduce taxes.

1: Save taxes:

The prime objective was only and only to reduce taxes. There's no other reason to trade from a corporate account.

2: Form a Pvt Ltd company : I've formed up a Pvt Ltd company since that's what I was advised by majority of the people including my CA as opposed to LLP/HUF.

3: Claiming Expenses: This is the most beneficial aspect of a pvt ltd company.

You can literally claim any expenses in the name of the company. Some of them are:

- Rent expense: You can literally claim your office rent as an expense. Your registered office can also be your own house where you live.

Further you can also claim electricity expenses and what not.
ALL , SAVING TAXES
Aditya Trivedi
Aditya Trivedi
@itsAdityaT
JESSE LIVERMORE is considered the greatest trader of all time.

He was the richest person in the world during his time.

I've read majority of his books and picked out learnings which are relevant even today with examples of the current scenario.


1: Remember that stocks are never too high for you to begin buying or too low to begin selling.

This principle still holds true today in trading, especially trend following.

Most people think if a stock has run up too much, then it's price is high and it will reverse.

But a trader should always be on the right side of a trend.

For eg: Asianpaints has been making new highs constantly, the major money would've been by the people who were on the right side of the trend i.e long.


Never buy it just because it has fallen too much. Instead short it and make money.

2: “Being a little late in a trade is insurance that your opinion is correct.”

It's okay to enter in a trade after you have received confirmation from the market.

Trading after confirmation will make your sacrifice your profits but it will also protect you against the loss
ALL
Aditya Trivedi
Aditya Trivedi
@itsAdityaT
How do I handle big overnight gaps?

As I mostly take neutral positions overnight, I've been asked this a lot. So here you go.

1 : Take the right position sizing:

If you have the correct position size then there's nothing to fear from big gaps.

I like to take positions in such a way that I don't lose more than 2-3: incase of a big gap. This provides mental piece.

2: Have a calm mind:

This is of prime importance and somethin where most of the guys have trouble. Constantly panicking is going to do no good. What's going to happen will happen.

Having a calm mind allows you to think and act more clearly.

3: The 3 way rule:
If the markets open a a big gap there are not just going to stay there. Three things can happen.

a) It can go up : In this case you can use the move to recover our money.

b)It can go down : Just like the previous point you can take good advantage of it.

c) It stays there: After a big gap, obviously the IVs will explode. If the market stays then, premiums will be high and it will provide excellent opportunity to play neutral and recover your losses or atleast some part of it.
ALL

More from Optionslearnings

Jitendra Jain
Jitendra Jain
@jitendrajain
Option Buying Setup!
OPTIONSLEARNINGS
Aditya Todmal
Aditya Todmal
@AdityaTodmal
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:

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


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
OPTIONSLEARNINGS , ALL , OPTION SELLINGREADWISE SAVE AS OPTION SELLINGRATTIBHA SAVE AS PDF
Advertisement
Jig's Patel
Jig's Patel
@jigspatel1988
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

Sell both option with combine SL
Enjoy easy and simple intraday trading strategy
Today 35000CE and 34500PE
OPTIONSLEARNINGS , OPTION LEARNING , OPTIONSELLING
Jitendra Jain
Jitendra Jain
@jitendrajain
Simple Rule based Option selling in
OPTIONSLEARNINGS , ALL
Aditya Todmal
Aditya Todmal
@AdityaTodmal
Here are my TOP 10 BEST TWEETS of the week: 10th September.🧵

• Psychological mistakes to avoid
• Iron fly strategy
• Calenders strategy
• 3 great books on trading stocks.
• Various risks and how to manage.
• How breakout stocks behave.
• Solutions for peak margin.

Psychological mistakes to


Iron fly strategy


Calenders strategy to give you consistent


Compounding is
OPTIONSLEARNINGS

You May Also Like

Hector Navarro
Hector Navarro
@Hectorisfunny
I'm going to attempt to chronologically list all of the Marvel characters Stan Lee had a hand in creating. Working with his genius collaborators, Stan and his team produced an insane amount of iconic characters in a roughy ten year period. (Thread)


With his younger brother, writer Larry Lieber, and Jack "the King" Kirby:

Groot

Tales to Astonish #13 (November, 1960)


With writer Lieber, and artist Kirby:

Fin Fang Foom

Strange Tales #89 (October, 1961)


With the King, Stan gives birth to the Marvel Universe:

The Fantastic Four

Fantastic Four #1 (November, 1961)


With Jack Kirby:

Mister Fantastic

Fantastic Four #1 (November, 1961)
CULTURE
Jaya_Upadhyaya
Jaya_Upadhyaya
@Jayalko1
SRI KANTESH HANUMANTHA, KADARAMANDALAGI (KAR)
#bharatmandir

KANTESHA means Prabhu full of brightness.
Here, Sri Hanuman appears with a front face and sparkling eyes. Earlier, the village was also called KANTESHPURI on the name of Kantesha Hanuman.


Several thousands of years ago, Hanuman lived in this village. He once saw the Sun and mistaking it to be a fruit, began flying towards it. Since then, this village came to be known as Kadara Man Dalagi. (Kadar means rays, mandala is cluster of rays).


It is believed that King Janmejaya had set up the shrine to get rid of his difficulties.
There is a small pond on the right side of the kshetram where Teppotsava (Float festival) is celebrated.

Kanaka Dasa has praised Sri Kantesha in his various poetic compositions.


Kanaka Dasa was the first devotee to popularize the power of Kantesha. It is said that once Kanaka Dasa was deeply wounded in a battle. To seek blessings, he visited Tirupati but Sri Venkatesha appeared in his dream and advised him to see Kantesha first before seeing him.
ALL
Advertisement
Dr Catherine Pemble is #SocialDistancing
Dr Catherine Pemble is...
@CatherinePemble
Right, screw it. Here's a thread on *that* FBLive by Alex Cairnie about #Govanhill. Lets do a watch-through shall we? (Mind, I'm a resident of Govanhill, and a sociologist. I'm also 5'3, and a visibly queer woman so if half his claims are true I should be living in terror)

00:30: Welcomes viewers and uses points out that his videos are only getting attention b/c they're 'horrific'. Directs folk to his Youtube page. So already clout hunting.

1:08: "I've been warned to stay out of Govanhill. I'm a marked man" (proceeds to use a beanie as a disguise)

1:30 "Laughing and joking aside, here's somebodys front garden." Proceeds to show litter and claim its thrown from windows and this is 'common'. I know a handful of streets with litter issues like this, but its neither common nor unique to #govanhill and other deprived areas.

2:10 "Don't be under any illusion I'm only showing you the bad bits" - only shows you the bad bits.

3:45: He's had offers of help, but hes said no because hes not responsible for 'anybody elses safety' Good lord.

5:01: "Its not that bad. But its not all good either" -Correct

6:00: TW: child abuse - He starts claiming to have been contacted by a health professional and told about child abuse 'in the area'. Huge ethical issues here as the 'professional' who has 'been in the game a long time' is reporting to Facebook Dude and not authorities.
HEALTH
Billy Bostickson \U0001f3f4\U0001f441&\U0001f441 \U0001f193
Billy Bostickson 🏴👁&👁 ...
@BillyBostickson
1. Project 1742 (EcoHealth/DTRA)
Risks of bat-borne zoonotic diseases in Western Asia

Duration: 24/10/2018-23 /10/2019

Funding: $71,500
@dgaytandzhieva
https://t.co/680CdD8uug


2. Bat Virus Database
Access to the database is limited only to those scientists participating in our ‘Bats and Coronaviruses’ project
Our intention is to eventually open up this database to the larger scientific community
https://t.co/mPn7b9HM48


3. EcoHealth Alliance & DTRA Asking for Trouble
One Health research project focused on characterizing bat diversity, bat coronavirus diversity and the risk of bat-borne zoonotic disease emergence in the region.
https://t.co/u6aUeWBGEN


4. Phelps, Olival, Epstein, Karesh - EcoHealth/DTRA


5, Methods and Expected Outcomes
(Unexpected Outcome = New Coronavirus Pandemic)
ALL
Stephen Bush
Stephen Bush
@stephenkb
Some quick thoughts on Sam Gyimah's resignation after conversations with various Conservative MPs: 1) the chances of a second referendum are a lot higher than I thought:

2) At this point, if you are a young and ambitious Tory MP it is now so overwhelmingly in your interest to vote against the withdrawal agreement. V v hard to see how Julian Smith can cap rebellion at under 100:

3) Really just to reiterate 1) Gyimah is the kind of "No, never gonna rebel" vaguely pro-EU Tory you'd need to get on side to outweigh Labour Leavers and Real Concerners.
POLITICS