1. Multi-timeframe Technical Analysis
2. Option Chain Data
Also, 3 strategies to deploy for:
1. Aggressive Traders (2.6%)
2. Moderate Risk Traders (1.3%)
3. Low-Risk Traders (0.8%)
Technical Analysis and 3 Strategies to deploy for Aggressive, Moderate, and Conservative Traders.
🧵 Weekly Bank Nifty Analysis for 8th December Expiry:
1. Multi-timeframe Technical Analysis
2. Option Chain Data
Also, 3 strategies to deploy for:
1. Aggressive Traders (2.6%)
2. Moderate Risk Traders (1.3%)
3. Low-Risk Traders (0.8%)
Let's start by doing some basic technical analysis.
We'll look at:
• Weekly charts.
• Daily charts.
• Hourly / 60 min charts.
• 15 min charts.
• The market has given 4 continuous green closes, so not expecting a big momentum on upside.
• This week my view is that it can take a pause.
• Longer term trend is super bullish.
• Any dip will towards 41800 will be a retest, and should be used to go long.
• Candlestick pattern—Hanging Man
• Chart Pattern—Breakout Failure
• A pin bar candle is very powerful but only after a downmove.
• Here it forms near the top of upmove.
• Means some sellers are present. Below 43000 can sell calls above 43600 for the week.
• I am seeing this rectangle on 15 min charts.
• Price broke the rectangle on the upside & failed to sustain.
• Now it's back in the rectangle.
• So weekly sellers can sell short strangles & if the rectangle low breaks, can roll down calls to a higher premium.
• Opstra shows that the options chain data is flat to bearish.
• OI is being added on both sides on ATM options.
• Data is matching with our bias and technicals which is sideways until the rectangle low/high is broken.
The premiums are shown here for the strikes.
1. Aggressive Traders
Aggressive traders would have sold 415003600 calls as that's one strike above the breakout failure level.
Would have also sold puts as it is in a range. 42500 puts.
ROI is around 2.60%
Can sell strangles of 44000 calls and 42300 puts.
ROI is approximately 1.34%.
Can sell 44200 calls and 42000 puts. This is a strangle.
Fetches you approximately 0.8% ROI.
You guys should be targeting 2% per month and playing far away from spot levels of BNF.
4 expires per month to make 0.50% each week and end with 2%.
Check out @niki_poojary's analysis which she will post before Monday, hers is a bit different from mine each time.
Retweet the first tweet and help others find this thread.
More from Aditya Todmal
Curated tweets of @sourabhsiso19
Found awesome content: ⏬
1. Moneycontrol
2. Bank nifty Strangles/Straddles
3. Learnings
4. Expiry Trading
5. Directional trading
6. Long Term Investing
7. Pivot system
8. DHS pattern
9. Multiple trade management threads/ways.
Moneycontrol article on @sourabhsiso19
What Sourabh does and how to trade like him?
Why trade multiple systems? ⏬
1. Keeps drawdown at minimum.
2. Strong money management can be applied.
3. Better psychology.
Thread on how options allow you to change your positions in a dynamic manner.
Found awesome content: ⏬
1. Moneycontrol
2. Bank nifty Strangles/Straddles
3. Learnings
4. Expiry Trading
5. Directional trading
6. Long Term Investing
7. Pivot system
8. DHS pattern
9. Multiple trade management threads/ways.
Moneycontrol article on @sourabhsiso19
@moneycontrolcom did a detailed story on my trading journey.
— Sourabh Sisodiya, CFA (@sourabhsiso19) May 26, 2020
But many couldn\u2019t read it as it needed a pro-subscription.
So here\u2019s a blog on the same :https://t.co/dwN2xieUKd#trading #journey #quant #options #algotrading #markets #OptionsTrading
What Sourabh does and how to trade like him?
Getting many DM\u2019s on how I can learn and trade like you.
— Sourabh Sisodiya, CFA (@sourabhsiso19) January 10, 2020
To be a succesful trader one needs an edge
My edge:
1)focus on selected instruments (Banknifty majorly and few stocks)
2) backtested my strategies historically (for past 10years)
(1)
Why trade multiple systems? ⏬
1. Keeps drawdown at minimum.
2. Strong money management can be applied.
3. Better psychology.
Do I trade only BNF ?
— Sourabh Sisodiya, CFA (@sourabhsiso19) March 4, 2020
Other than BNF intraday , I run few other systems too.
1) Intraday Momentum
2) Positional systems
3) Vol Crush Trade etc
Goal of system trading is to run few non-correlated strategies together so that system drawdown is at the minimum.#trading #systems pic.twitter.com/mS8jFEaLUW
Thread on how options allow you to change your positions in a dynamic manner.
Options Thread
— Sourabh Sisodiya, CFA (@sourabhsiso19) December 7, 2019
How options allows to change and adjust view dynamically.
Let\u2019s understand with a live example.
Example : Nifty is at 11921 and you are bullish on Nifty.
1) Buy Naked 11900 CE(call) at 167
Breakeven : 12068
Max Loss : Rs 12555
Max Profit : Unlimited pic.twitter.com/TXMhh5HWsd
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.
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.
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
More from Trading
Option Trading is very difficult to master as there are so many things to understand.
Here is a master thread related that will help a beginner to understand about Options Trading.
A complete course worth Rs 50K for free.
1/ A detailed thread on basics of Option Greeks and how it impacts Options
2/ Basic Option Trading Strategies:
There are many option strategies to trade. But keeping your strategy simple is the key.
In this thread, all the basic option trading strategies are being
3/ What are the things that you should look at before taking any Option
4/ Is Option Selling Possible with Rs 1 Lakh Capital?
Even a beginner can start trading in option selling with capital as low as Rs 1 Lakh.
What are the techniques one can use and how to mitigate the infinite loss risk is shared in this
Here is a master thread related that will help a beginner to understand about Options Trading.
A complete course worth Rs 50K for free.
1/ A detailed thread on basics of Option Greeks and how it impacts Options
There are various Options Greeks like: Delta, Gamma, Vega, Rho, Theta.
— Yash Mehta (@YMehta_) September 4, 2022
A complete guide on how these #Option Greeks impact option price.
2/ Basic Option Trading Strategies:
There are many option strategies to trade. But keeping your strategy simple is the key.
In this thread, all the basic option trading strategies are being
Option trading is tough but here\u2019s what can make it easier for you
— The Chartians (@chartians) September 17, 2022
8 option strategies that you can use in any market (sold as a \u20b9 50,000 course !)
3/ What are the things that you should look at before taking any Option
They say options trading can make YOU BANKRUPT - is it true ?
— The Chartians (@chartians) September 23, 2022
If yes then why ?
A thread on Risk management and Position sizing in options trading (worth 50k\u20b9 course)\U0001f9f5
4/ Is Option Selling Possible with Rs 1 Lakh Capital?
Even a beginner can start trading in option selling with capital as low as Rs 1 Lakh.
What are the techniques one can use and how to mitigate the infinite loss risk is shared in this
101 guide on how you can start option selling to generate active returns with less capital (Rs 1 Lakh) \U0001f9f5:
— Yash Mehta (@YMehta_) August 19, 2022
A course on option selling available for free.
