12 TRADING SETUPS used by professional traders:🧵

Collaborated with @niki_poojary

@niki_poojary Here's what you'll learn in this thread:

1. Capture Overnight Theta Decay
2. Trading Opening Range Breakouts
3. Reversal Trading Setups
4. Selling strangles and straddles in Bank Nifty
6. NR4 + IB
7. NR 21-Vwap Strategy

Let's dive in ↓
@niki_poojary 1/ STBT option Selling (Positional Setup):

The setup uses price action to sell options for overnight theta decay.

Check Bank Nifty at 3:15 everyday.

Sell directional credit spreads with capped risk.

(@jigspatel1988)

https://t.co/VDcvtPikoC
@niki_poojary @jigspatel1988 2/ Selling Strangles in Bank Nifty based on Open Interest Data

Don't trade till 9:45 Am.

Identify the highest OI on puts and calls.

Check combined premium and put a stop on individual legs.

(@jigspatel1988)

https://t.co/T31Ly4Cgjq
@niki_poojary @jigspatel1988 3/ Open Drive (Intraday)

This is an opening range breakout setup with a few conditions.

To be used when the market opens above yesterday's day high

or Below yesterday's day's low.

(@Pathik_Trader)

https://t.co/NP21EMsBd7
@niki_poojary @jigspatel1988 @Pathik_Trader Here are the backtesting results of the open Drive strategy.

https://t.co/KSmj0B9lsA
@niki_poojary @jigspatel1988 @Pathik_Trader 4/ Setups on PDC and PDH (Previous Day Close/High)

This is an intraday set up to be used on the long side.

Both PDC and PDH will be used as supports.

2 examples are given for better understanding.

(@Pathik_Trader)

https://t.co/DkqJi5DBrC
@niki_poojary @jigspatel1988 @Pathik_Trader 5/ High Probability Reversal Setup 80-20

This is a setup for Swing traders.

Another setup involving decision points.

(@Pathik_Trader)

https://t.co/0WldTmZOli
@niki_poojary @jigspatel1988 @Pathik_Trader 6/ Fake Paradise (Reversal Setup)

The setup uses a 20-day high or low with conditions to catch reversals with good Risk Reward.

R:R is so good, that even 1:5 Risk Reward trades are possible.

7 examples have been shown in this setup.

(@Pathik_Trader)

https://t.co/O6tqhmdB7J
@niki_poojary @jigspatel1988 @Pathik_Trader 7/ Open = High or Open = Low Setup

(@Pathik_Trader)

https://t.co/bsV2y1hZnD
@niki_poojary @jigspatel1988 @Pathik_Trader 8/ Trapping Inside Bar (Positional Setup)

Wait for Nr4+ib to fail & catch it and execute the trade the next day.

NR4 = Narrow Range for 4 days

IB = Inside bar

(@Pathik_Trader)

https://t.co/DdAEUTnn9t
@niki_poojary @jigspatel1988 @Pathik_Trader 9/ Straddle setup

Opening within previous day range

Straddle premiums below 20 sma

(@sourabhsiso19)

https://t.co/UUMrdMirPG
@niki_poojary @jigspatel1988 @Pathik_Trader @sourabhsiso19 10/ Shorting high momentum stocks

(@DillikiBiili)

https://t.co/NpThuSzTbE
@niki_poojary @jigspatel1988 @Pathik_Trader @sourabhsiso19 @DillikiBiili 11/ Trading Momentum stocks

(@DillikiBiili)

https://t.co/qXJPfno2T2
@niki_poojary @jigspatel1988 @Pathik_Trader @sourabhsiso19 @DillikiBiili 12/ NR21-Vwap Strategy

(@jigspatel1988)

https://t.co/LTggqWJeYU
@niki_poojary @jigspatel1988 @Pathik_Trader @sourabhsiso19 @DillikiBiili That's a wrap!

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More from Aditya Todmal

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.


4. Theta decay vs Fall in vega

Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
Here are my top 10 best tweets of the week: 24th September.

• Stocks to buy & hold forever
• Companies which will always be in business
• How to 10x money in 10 years?
• Feedback of company employees
• MWPL & F&O ban list explained
• Tradingview free version tricks

Stocks one can buy and hold


These companies will always keep running, no matter if recessions come or not.


26% CAGR makes your money 10x in 10


Some life

More from Optionslearnings

A Thread on How to NOT do blunders while selling Options. 🧵🪡

1. Never be Greedy in a High Vix Environment.

Sellers selling OTM get lured by higher premiums and sell near ATM or more than they usually do, this will burn your hand as High premiums also mean that you will end up giving higher premium back than usual as soom as it spikes.


2. Hope

Hope drives a man crazy and this is true for trading the most, hoping for a reversal to cut the pain. Humans have a tendency to avoid the pain and one does not accept the pain by not booking a loss

Tom Hougaard explains this well below.

https://t.co/zDbDT2hdej


3. Not having a setup in non directional Selling

You cannot make money long term if you don’t have a set of rules or adjustments in place already if you are trading long term. Make a plan or a system so that you always know how to survive. Your Position is non D not the market.


4. Getting Egoistic

Many people think they are supreme because they are selling options much likely because of the Trend on Twitter in the community,
You are a trader think like one and remain one trading a certain way does not make you better.

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