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: 🧵
Collaborated with @niki_poojary
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.
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.
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.
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.
If the market is going up and your put options are giving you profits, roll them up to extract more theta.
This will increase your downside risk but the upside risk will be lowered which is what we want.
You want the market to come down, if it doesn't come down we want to make some extra money.
So can sell puts options of the lower breakeven of the fly.
In most cases, this will eliminate the upside risk.
If the market goes up, no worry.
When in profit your first aim should be to eliminate the max loss completely.
This way you can play for a potential jackpot as well if it expires in the center.
If good with technicals you'll be able to wait for important levels to be taken out.
If that happens then you can even change your bias toward the trade.
You'll be better off than non-directional traders as a result if you don't adjust and market reverses.
Sometimes the best thing to do is just stick to your initial view and not do anything.
Markets are designed to kick out the normal straddle/strangle traders by hitting their stop losss and then coming back to their original range.
If you're okay with the loss, can just leave the trade till expiry and check if your view was right or not.
R:R is pretty good in iron flies.
Your risk will go up even more than what you originally thought the risk you were taking.
While rolling up your puts in a bullish market, if the market reverses it will be tough to manage in case of a fast downmove.
Don't do it with your full capital until you get the hang of it.
Commit to at least 3-6 months of experience before you start doing this with a decent capital size.
Most people cannot handle the mtm swings which is due to deploying a large amount of capital.
We also wrote a thread for beginners to understand the iron fly strategy.
Here it is.
The most valuable hedging strategy you aren't using:— Aditya Todmal (@AdityaTodmal) June 26, 2022
The IRON FLY STRATEGY.
Knowing how to use it will protect you from gaps and intraday spikes and 10x your hedging experience.
Here's the step-by-step guide:
Collaborated with @niki_poojary pic.twitter.com/l4sjPY8wvz
More from Aditya Todmal
However, I liked the free website of Icici Direct the most.
Here is a breakdown of what it can do: 🧵
Collaborated with @niki_poojary
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.
• 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%.
BEST OPTIONS STRATEGY FOR CONSISTENT INCOME -
OPTIONS WHEEL STRATEGY
Everything to know about this strategy I'm posting in this thread.
Step 1: Stock Selection
1. For this strategy you're going to have to choose some stocks that you think will be doing well in the future/long term.
2. Stock must be in an uptrend.
3. Stock options should be liquid enough to trade in.
4. List of stocks attached
Step 2: Which option to sell?
1. Sell put at a support according to charts.
2. Sell put at a strike far away from the spot where you think the probability of the stock falling will be very very low.
3. Sell put at a price where you're willing to buy the stock at.
Step 3: What to do when in profit/loss?
1. If in profit you can just roll up the puts thereby increasing the ROI or shift to other stocks to make more profit.
2. If in loss take delivery of the shares equivalent to the lot size in cash market.
Step 4: What to do after taking the delivery?
1. Sell calls to lower your cost price of the stock. For eg, you took delivery of Reliance at 1900, sell 2100 CE which is about 10% away.
2. Keep doing this till your CE expires ITM and then give delivery of your stock away
Collaborated with @niki_poojary
We'll divide these separately into sections of
1. Intraday Trading Strategies
2. Positional Trading Strategies
3. Uses of Indicators
From the accounts
1. 6 Intraday Strategies 🧵
How to Filter Stocks for Intraday
How you can filter stocks for Intraday trades - \U0001f9f5— Sheetal Rijhwani (@RijhwaniSheetal) August 15, 2021
As a kid, we would do homework before school the next day - you have to do homework here too. A specific sector performs on a particular day and studying things a day before will help you spot that particular sector. (1/11)
Intraday BNF strangle based on OI data. 🧵
Thread on— Jig's Patel (@jigspatel1988) July 4, 2021
"Intraday Banknifty Strangle based on OI data"
(System already shared, today just share few examples)
A few setups to make intraday trading easy.
A few setups/strategies that can make your intraday trading easy. I follow them personally:— Sheetal Rijhwani (@RijhwaniSheetal) September 12, 2021
Add these stocks in your watchlist for next few days -
-If a stock closed exactly at resistance with good volumes or it has been consolidating near resistance for a long time. (1/10)
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
Subasish Pani revealed the most simple, yet successful strategy: 5EMA set up!— Nikita Poojary (@niki_poojary) July 3, 2022
Here is a thread of 23 video clips on the 5EMA set-up that will save you hundreds of hours and available to you for no cost!
5EMA set-up: \U0001f9f5!
Collaborated with @AdityaTodmal
(2) Topic: Using Volume the right way by
VOLUME is the ultimate Trading cheat code.— Indrazith Shantharaj (@indraziths) August 6, 2022
But, most people never use it in the right way \u2013 because no one ever taught them how.
Here are 10 psychological triggers to knowing Volume in a better way :
(3) Topic: Python Courses to learn from by
I am learning python from the past 45 days. Recently I built some programs for very simple trade automation.— Saketh R (@saketh1998) November 3, 2022
Here are some courses which helped me learn and do it!
Like and Retweet if you find it Useful
(4) Topic: A list of the top screeners by
Stock Screeners is an integral part of doing homework post market hours.— Yash Mehta (@YMehta_) August 5, 2022
Most of us use screeners to filter buzzing stocks out of 1000+ stock and it saves lot of times.
Here is the list of top screeners:
Also, last screener is one of my favourite to pick early momentum stocks.
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 ↓
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.
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.
More from Optionslearnings
Decoded his way of analysis/logics for everyone to easily understand.
1. Analysis of volatility, how to foresee/signs.
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.
I am quite different from your style. I follow the market's volatility very closely. I have mock positions in 7-8 different strategies which allows me to stay connected. Whichever gives best profit is usually the one i trade in.— Sarang Sood (@SarangSood) August 13, 2019
2. Theta falls when market moves.
Falls where market is headed towards not on our original position.
Anilji most of the time these days Theta only falls when market moves. So the Theta actually falls where market has moved to, not where our position was in the first place. By shifting we can come close to capturing the Theta fall but not always.— Sarang Sood (@SarangSood) June 24, 2019
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.
This week has been great so far. The main aim is to be in the right side of the volatility, rest the market will reward.— Sarang Sood (@SarangSood) July 3, 2019
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.
There is a difference between theta decay & fall in vega. Decay is certain but there is no guaranteed profit as delta moves can increase cost. Fall in vega on the other hand is backed by a powerful force that sells options and gives handsome returns. Our job is to identify them.— Sarang Sood (@SarangSood) February 12, 2020
Yesterday sell 14700 than 14600 than 14800 market come down sell sell 15 k call going up sell 14400 put Getting some profit buy protection 14450 pe 14950 ce now u know ur max loss now wait or do adjustment with sell upar side ce or pe it\u2019s practical knowledge not books knowledge pic.twitter.com/J5sPGClVUZ— itrade(DJ) (@ITRADE191) May 16, 2021
Chalk out Support & Resistance.
Like make bullish positions on support
Bearish on resistance.
Bullish means sell ATM PE & OTM CE
or bearish means ATM CE & OTM PE
Exit if support or resistance broken.
As it gonna be a trending day.
Hold another leg to breakeven.
If moves comes into favour, one gonna make awesome.
You May Also Like
2) The 'Claudium' was intended as a sacred complex to revere Claudius and the imperial cult. Construction began soon after the death and deification of the emperor in 54 AD, initiated by his widow Agrippina who was likely responsible for his supposed death by poisoning. #LostRome
3) The sprawling temple complex sat on a gigantic podium that spread across the Caelian Hill, measuring 180 x 200 metres; with towering retaining walls of travertine that raised the structure 20 metres above the valley below. #LostRome
4) The elevated sacred area was likely entered by steps facing the temple on the west side. The temple itself had a projecting hexastyle porch and was surrounded by gardens and a grand portico, probably the 'porticus Claudia' mentioned in Martial's 'On the Spectacles'. #LostRome
5) Statues of both Agrippina and Claudius’ ill-fated young son Britannicus, sculpted in sumptuous dark Egyptian greywacke, were discovered among the ruins on the Caelian Hill in 1651 – and had almost certainly been displayed in the temple precinct. #LostRome
Rules of thumb that simplify decisions.
• If unsure what action to take, let your 80-year-old self make it.
• If unsure who to work with, pick the person that has the best chances of breaking you out of a 3rd world prison.
• If procrastinating on an item, you only have 2 options:
1. Make the pain of not doing it greater than the pain of doing it.
2. Make the pleasure of doing it greater than the pleasure of not doing it.
• If stuck with 2 equal options, pick the one that feels like it will produce the most luck later down the line.
I used this razor to go for drinks with a stranger rather than watch Netflix.
In hindsight, it was the highest ROI decision I've ever made.
• If someone brags about their success or happiness, assume it’s half what they claim.
• If someone downplays their success or happiness, assume it’s double what they claim.
The map is not the terrain.
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.
Love,that is not real,has no passion. Its fire turns into embers, it doesn’t not smell. The day, the night, the moon&year burn without sun, light, comfort&sleep.
#Reyyan #Miran #ReyMir #EbruŞahin #AkınAkınözü
The praise in this episode goes foremost to Ebru because she portrayed Reyyan so realistically like a woman who truly lost her unborn child. I was in awe and pain watching her along the episode, all her breakdowns and tears were so real.
Of course also Akın took his part and did his part masterfully, but he rightfully was the one who stood aside in this specific episode that needed to be about Reyyan’s pain and thus concentrated on Ebru.
And last but not least, if I say thank you to something that B gave us this year, then it’s to have Ali as our director. Also in this episode we saw the artistic eye behind every shot and I loved it.
I don’t know who wrote ep. 52 but ep. 53 was going strong once more on symbols: roses, stones, fire and trees were incorporated and especially the ReyMir dialogues were written very well. I truly loved every ReyMir scene.
So let's get into it.
Sri Devi Karumariamman mandir is in Thiruverkadu, a suburb of Chennai. It is said that God Muruga came here and obtained the 'Vel' (spear) from His mother, Goddess Karumari (an avatar of Parvathi) 1/n
to fight the demon Suran and hence this place was called as 'Vel kadu' and became as Verkadu. As per legend Devi Karumariamman once disguised as a soothsayer visited Bhagwan Surya, the Sun God, to predict His future. 2/n
Not realising that the soothsayer is none other than Sakthi Matha, Surya ignored Her. Angered by his indifference, Devi Karumariamman immediately retreated. Bhagwan Surya lost His glory and the earth plunged into darkness. 3/n
Bhagwan Surya then realised His folly and pleaded forgiveness from Devi Karumariamman. In order to pacify mother Karumariamman, Suryadev said that His rays would fall on Her directly twice in a year and touch her feet. (in the month of Panguni (March- April) & during (Sep - Oct)
Mother Karumari Amman is worshipped here in two forms.A swayambu (self manifested) with only head visible above the ground and another one in a graceful sitting posture with all Parasakthi features,with four arms holding skull, sword, trishul, udukkai (damru). 5/n