A Screener combination on ADX and Darvas filters

@Rishikesh_ADX

Trending Day Simple Option Buying Strategy

A thread about SIMPLE OPTION BUYING STRATEGY USING VWAP

A Thread 🧵

Generally, VWAP is used to know the strength in a buying or selling. VWAP means VOLUME WEIGHTED AVERAGE PIRCE

when price starts rising it would be pulled back to VWAP line. Then buyers would again rush in to buy the stock taking it to price higher

If we compare the CALL and PUT charts, we can identify the correct entry. On trending days VWAP acts as support/resistance

If market is trending UPSIDE, VWAP acts as support in CALL option charts of ATM STRIKES and same VWAP acts as RESISTANCE in PUT option charts of ATM STRIKES

compare the charts of CALLS and PUTS attached here to get an overall idea. This is a simple strategy that most don’t use

Today was this kind of day. Use VWAP on 5 minutes chart on OPTION CHARTS
17000 CE, 17050 CE, 17100 CE, 17150 CE charts

NEUTRAL STRATEGIES

If market is sideways, These strategies can be deployed

Retweet for max reach!

A Thread 🧵🧵🧵

If our view is sideways or market is moving sideways, it is not good for option buyer. In that case we use this OPTION SELLING STRATEGIES to benefit from the sideways market

SHORT STRADDLE

In this strategy we sell ATM CALL OPTION and PUT OPTION with the same underlying INSTRUMENT, same STRIKE PRICE and same EXPIRY DATE

We receive premium, we benefit from the premium decay. Theta is our friend in this strategy.

The combined premium we receive, added to strike price becomes our upside break even

When the same premium is subtracted from the strike price becomes our downside break even

As long the underlying trades in this range, we benefit from the THETA DECAY and becomes our profit.

The huge risk is overnight carrying of the position. We never know when the market open LC because of BLACK SWAN events.

pay off chart for your reference

How I trade short straddle & short strangle for regular income

A thread 🧵🧵

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👉Basically, A short straddle is selling ATM CE and ATM PE

Sell - Nifty Nov 18100 CE
Sell - Nifty Nov 18100 CE

Combined premium is 500

Breakeven points would come at 18600-17600

BULLISH STRATEGIES

If we want to trade in F&O then, first we have to create a view.

A thread on strategies 🧵🧵

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If our view is BULLISH then we can deploy following strategies

1⃣Call Buy

👉If our view is TOO BULLISH then we can simply buy a CALL option of ATM strike

👉Risk would be the premium we have paid and
Reward would be unlimited only If it goes above strike price + premium paid

Consider below example :

You bought 17200 CE at 110, at expiry in order to be in profit

Nifty has to stay above 17200 + your premium you paid 110 = 17310.

2⃣Bull Call Spread

👉Spreads are deployed when our view is NEUTRAL TO BULLISH

👉These are limited risk and limited reward strategies

👉In this spread, we use only calls to trade our bullish view

👉We buy a CALL option of ATM strike and SELL a CALL option above that strike.

👉Risk would be the premium debited and
Reward when ever it goes above SOLD STRIKE.

Example : You bought 17200 CE at 110

And sold 17350 at 51

So, 110 - 51 = 59👇

So you will be in profit if it stays above
17200 + 59 = 17259

Bearish Strategies

A Thread, read till the end to compare three

strategies, tried explaining in simple language🧵🧵👇

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If we want to trade in F&O, we have to create a view

If our view is bearish, then following strategies can be deployed.

1⃣ Buy Put

👉If our view is to bearish, we can simply buy ATM put and ride the downward momentum.

👉Risk would be limited to the premium we have paid
Reward would be unlimited, as long as it goes below (strike price- premium paid).

Example :

You bought 17200 put option at 135.9

Max loss is nifty lot size = 50 * premium paid

50*135.9 = 6795

In order to be in profit on expiry it should close below 17200 - 135.9 = 17064

Called as breakeven shown in chart👇

✅Bear Spreads

👉Spread strategies are used when our view is neutral to bearish

👉These strategy's are limited risk and limited reward strategies.

This #macd screener can do

Last time I shared a basic stock screener for Investors.

Today I will share 1 Basic stock screener for traders .. 👍

#CPR is an indicator which is used for #Intraday in Stock Market.

This learning thread would be on
"𝙐𝙨𝙚𝙨 𝙤𝙛 𝘾𝙋𝙍"

Like❤️& Retweet🔁for wider reach and for more such learning thread in the future.

Also, an investment strategy is shared using CPR in the end.

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Central Pivot Range (CPR) acts like a magnetic level for any stock/index. Traders use it for intraday but it works on higher time frame as well.
CPR is just the three lines which is like a magnet and price approaches these levels. CPR acts like a support or resistance.

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What are these three lines now?

𝗣𝗶𝘃𝗼𝘁 = (High + Low + Close)/3
𝗕𝗖 = (High + Low)/2
𝗧𝗖 = (Pivot – BC) + Pivot

For intraday chart use previous day candle HLC. Similarly, for Daily Chart it would be Monthly HLC. For Weekly/Monthly Chart use Yearly HLC.

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This indicator is available on Zerodha Kite (web version) and it works well there. It's also available in @tradingview but setup needs to be done based on the time frame.

Images are shared for CPR setup of both the terminals (Zerodha and Tradingview).

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CPR can be used in finding trend.

If CPR is moving up for the next day, then trend is up. If CPR is moving down for the next day, then trend is down.

Some examples for both:
In the below chart of Nifty (5 mins), CPR is moving down and price is also in downtrend.

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