If you are new to F&O, you can start with Vertical Spreads (Debit and Credit spreads) instead of buying options in Stocks and Indices.
Here are some ways how you can do it, when you can do it and the right position sizing for doing it... 🧵 (1/25)
1. Bull call spread (Debit spread)
2. Bull put spread (Credit spread)
3. Bear call spread (Credit spread)
4. Bear put spread (Debit spread)
Read about these strategies in the below articles. (4/25)
While going through these strategies, you must have thought you have to wait till expiry for profits/loss. (5/25)
Let's understand how, when and what strategy to use with a few examples:
(you should have knowledge of price action for this) (7/25)
A recent example - since Oct 21 markets started falling, initially we assumed that it could be a pullback but many stocks started falling with good volumes, started making tops and giving false breakouts. (8/25)
In options, you got to be mindful of choosing stocks with good liquidity in options.(9/25)
When stocks/Index started rejecting from their major resistance areas.. mark that level. In reversal trades, you can trade via Credit Spread.
Sell ATM call and buy OTM call. (10/25)
When any stock/Index breaks support and give a breakout, we can trade via Debit Spread as the move is fast in breakouts.
Buy ATM/ITM put and Sell OTM put
In TechM, we could buy 1650 put and sell 1550 put. (13/25)
Check the chart for reference. (14/25)
![](https://pbs.twimg.com/media/FWurIaEUYAAZPdU.png)
When you should initiate a trade?
First, you need to find out the major trend of instrument you are trading either Index or stocks.
At present, we know it's a bearish trend or sell on rise market.. (16/25)
Every week you need to check the large cap stocks (if you are trading in stocks) and Index charts if you are trading Nifty/Banknifty. (17/25)
2. Check if it's near any resistance area
3. If it gave a rejection candle near imp. resistance (mark the level)
4. Or if it's breaking any imp. support
For entry, check the daily chart next day. (18/25)
Check the chart for your reference: (19/25)
![](https://pbs.twimg.com/media/FWutCT1VUAANyGm.png)
If stock/Index is near major support, don't sell call, as chances of reversal will be more from there. Even if it closes below resistance strike at expiry, in reversal, premiums will spike. You will see immediate loss which is tough to handle. (20/25)
Let's check the charts of Nifty/Banknifty for trading weekly expiries(directional trading) via spreads: (21/25)
![](https://pbs.twimg.com/media/FWutz4LVUAAYBHO.jpg)
Vertical spreads are risk defined strategies. Keep sizing such that you don't lose over 3-4% in max loss or use 2L for 1 lot.
I think one should have at least 15L-20L for F&O.
In naked selling or in futures, the sizing should be fixed on notional exposure.(22/25)
![](https://pbs.twimg.com/media/FWuvtN6UYAA8iD6.jpg)
Initially, you must not take more than 2x exposure.
Suppose the Notional value is 6L, you can take 1 lot using 3L or in simple language if you carry a naked selling option or futures, use 3-4L for one lot initially.. (23/25)
https://t.co/TVesQ0xnDe (24/25)
More from Sheetal Rijhwani
The absolute best thread to read on trailing methods by @Traderknight007
Read and follow this.. he has aptly explained about various methods to trail.
Read and follow this.. he has aptly explained about various methods to trail.
2. TRAILING METHODS-
— Trader knight (@Traderknight007) December 24, 2020
1. SWING POINT METHOD-
In this method we use the swing points or the HH- HL OR LH-LL points for placing sl,
In this method we trail our sl when the stock make a Higher low after our entry and keep Trailing the sl till it hits. pic.twitter.com/CqzCkLdWmC
#AffleIndia updated chart
Target - 6400+
Stop loss - 4650 https://t.co/DD6pFtSvMI
Target - 6400+
Stop loss - 4650 https://t.co/DD6pFtSvMI
![](https://pbs.twimg.com/media/FABxaggVkAMLaYR.jpg)
#AffleIndia
— Sheetal Rijhwani (@RijhwaniSheetal) August 8, 2021
It's at retest of weekly breakout level.. we can get a good entry with favourable risk/reward. Have a look at chart! #stockmarket #stockstowatch pic.twitter.com/cS9EOIoWJl
More from Optionslearnings
There are many strategies in market 📉and it's possible to get monthly 4% return consistently if you master 💪in one strategy .
One of those strategies which I like is Iron Fly✈️
Few important points on Iron fly stategy
This is fixed loss🔴 defined stategy ,so you are aware of your losses . You know your risk ⚠️and breakeven points to exit the positions.
Risk is defined , so at psychological🧠 level you are at peace🙋♀️
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.
8. If you are able to get 6% return monthly ,it means close to 100% return on your capital per annum.
One of those strategies which I like is Iron Fly✈️
Few important points on Iron fly stategy
This is fixed loss🔴 defined stategy ,so you are aware of your losses . You know your risk ⚠️and breakeven points to exit the positions.
Risk is defined , so at psychological🧠 level you are at peace🙋♀️
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.
8. If you are able to get 6% return monthly ,it means close to 100% return on your capital per annum.
As committed here goes the 2nd "Inside Candle" strategy:-
Queries can be posted on comments, video will take some time to come.
Want market influence to circulate it to reach max audiences.
@DillikiBiili @AnilSinghvi_ @anilbalaji11 @bankniftydoctor @brahmesh https://t.co/SmCZMMkBzV
Inside Candle Trading statergy
*15mints min time frame & more
*whenever you see 2nd(baby)candle
is forming inside of 1st(mother)candle
draw high and low of 1st(mother)candle and
take entry which side 3rd candle breaks
*stop loss - 1.someone can put sl at baby candle low
2.someone can put sl at mother candle low(both works)
*entry - 3rd candle breaking mother candle
*target - 1x2x3x of your risk
#candles could be any colour
Queries can be posted on comments, video will take some time to come.
Want market influence to circulate it to reach max audiences.
@DillikiBiili @AnilSinghvi_ @anilbalaji11 @bankniftydoctor @brahmesh https://t.co/SmCZMMkBzV
![](https://pbs.twimg.com/media/FDHs9JxUUAMoiRE.jpg)
I will give free 40 point #banknifty and 20 point # nifty strategy .
— SG (@GhoshSubhag) October 30, 2021
Don't pay me anything, just 1 like or retweet is sufficient \U0001f64f https://t.co/3R1PZZSK84
Inside Candle Trading statergy
*15mints min time frame & more
*whenever you see 2nd(baby)candle
is forming inside of 1st(mother)candle
draw high and low of 1st(mother)candle and
take entry which side 3rd candle breaks
*stop loss - 1.someone can put sl at baby candle low
2.someone can put sl at mother candle low(both works)
*entry - 3rd candle breaking mother candle
*target - 1x2x3x of your risk
#candles could be any colour
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Joshua Hawley, Missouri's Junior Senator, is an autocrat in waiting.
His arrogance and ambition prohibit any allegiance to morality or character.
Thus far, his plan to seize the presidency has fallen into place.
An explanation in photographs.
🧵
Joshua grew up in the next town over from mine, in Lexington, Missouri. A a teenager he wrote a column for the local paper, where he perfected his political condescension.
2/
By the time he reached high-school, however, he attended an elite private high-school 60 miles away in Kansas City.
This is a piece of his history he works to erase as he builds up his counterfeit image as a rural farm boy from a small town who grew up farming.
3/
After graduating from Rockhurst High School, he attended Stanford University where he wrote for the Stanford Review--a libertarian publication founded by Peter Thiel..
4/
(Full Link: https://t.co/zixs1HazLk)
Hawley's writing during his early 20s reveals that he wished for the curriculum at Stanford and other "liberal institutions" to change and to incorporate more conservative moral values.
This led him to create the "Freedom Forum."
5/
His arrogance and ambition prohibit any allegiance to morality or character.
Thus far, his plan to seize the presidency has fallen into place.
An explanation in photographs.
🧵
Joshua grew up in the next town over from mine, in Lexington, Missouri. A a teenager he wrote a column for the local paper, where he perfected his political condescension.
2/
![](https://pbs.twimg.com/media/Eqvf09HXMAEwh5r.png)
By the time he reached high-school, however, he attended an elite private high-school 60 miles away in Kansas City.
This is a piece of his history he works to erase as he builds up his counterfeit image as a rural farm boy from a small town who grew up farming.
3/
![](https://pbs.twimg.com/media/Eqvg_oHXcAMouZE.png)
After graduating from Rockhurst High School, he attended Stanford University where he wrote for the Stanford Review--a libertarian publication founded by Peter Thiel..
4/
(Full Link: https://t.co/zixs1HazLk)
![](https://pbs.twimg.com/media/EqviLRSXUAQGsLb.png)
Hawley's writing during his early 20s reveals that he wished for the curriculum at Stanford and other "liberal institutions" to change and to incorporate more conservative moral values.
This led him to create the "Freedom Forum."
5/
![](https://pbs.twimg.com/media/Eqvmm4WXMAAT1lH.png)