Covered Debit spread adjustment (In case of market reverse)
Also covered one of the straddle adjustments

Hope you get to learn something 🙂

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Today trade

https://t.co/Lhk6pRdaRr

Today trade

WHY I SELL 15700 PUT Aggressively

TrAdE toDaY

WHAT IS OPEN INTEREST, HOW TO ANALYZE IT AND DOES IT WORK?

In the thread I'll explain everything about Open interest and also all the tools used to analyze it and my personal opinion.

THIS IS THE ONLY THREAD YOU'LL EVER NEED ON OPEN INTEREST.

1: What is Oi?

Support if Mr A buys 10 lots of 17000ce in Nifty and Mr B sells 10 lots of call in Nifty then the total Oi on 17000 strike price will be 10.

So Oi is basically the number of outstanding contracts which are not squared off.

2: What is Oi used for?

Oi is only used to determine support and resistance on a particular strike price.

For eg: Nifty 16000pe has the highest Oi and 16200pe has to highest Oi.

So 16000 and 16200 level can be considered as good supports.

In the same way, 16500 ce has highest Oi and it can be considered as a resistance.

3: But why?

Highest Oi at 16500ce indicates that highest number of people have sold it BUT it also means that highest number of people have Bought it!

If 16500 acts as resistance, the option will go to 0 and all the buyers will lose money.

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.

https://t.co/wz4J1gNN3J

Technical Analysis and 3 Strategies to deploy for Aggressive, Moderate, and Conservative Traders.

🧵Weekly Bank Nifty Analysis for 7th July Expiry:

You'll learn multi-timeframe technical analysis for the current week from this thread.

Also, there are 3 strategies one may deploy according to their risk appetite:

1. Aggressive Traders (1.6%)
2. Moderate Risk Traders (0.93%)
3. Low-Risk Traders (0.6%)

1. Technicals

Let's start with the technicals. We'll look at:

• Weekly charts
• Daily charts
• Hourly/60 min charts
• 15 min charts

1. Weekly-

• The past 2 weeks indicate buyers have entered and are trying to lift the market up.

• These buyers would be under stress if the last week's low of 33080 breaks on the downside.

• Till that low doesn't break, those buyers are going to be in control.

2. Daily:

• If we get a daily close above the 34150 level, a higher high (HH) will be formed, and I would be very bullish on the markets.

• Friday's candle is a big green candle, and if it's low breaks then I would be bearish.

• There is no clear and obvious pattern yet.

Why we sold only CE's today ?

A small 🧵

Collaborated with @AdityaTodmal

• BNF reversed from 32155 (low made on Mar'8)

• One side rally to butcher the CE writers

• Gap up opening by ~1300 points

• From Mar'8 low till today open ~2800 point rally

• 2800 point rally in just 1.5days

• Trend on the larger TF still bearish

• Due to election results we decided no to carry any overnight positions

• Selling PE on the back of 2800 point rally would have been disastrous due to unfavorable R/R

• So we were very clear to short only CE's

• But then need to follow the trend

• We decided to short CE at the break of first 5min candle

• By 9.45 it started to reverse

• Spotted M pattern at the resistance and started shorting CE's thereafter i.e. post 12.12 hours

volume का फ़ंडा 😇😊

Many are looking for options basics video
Here is curated list

VIDEO 1 Basic of CALL and PUT : https://t.co/LR9GGRJcXM
VIDEO 2 Type of Options : https://t.co/7mYgcACWR2
VIDEO 3 : OPTIONS GREEKS :