• He has an experience of 7 years.
• He has made a profit of Rs. 20 cr. over these years with a capital of Rs. 2 cr.
• However, it's not easy to make such profits.
• More difficult, is to retain those profits and build more on it.
Thread: Free Options Trading Course for Beginners with small capital.
Reference: Option trading marathon series, part 1 from Mr. Subasish Pani ft. @PushkarRThakur
Collaborated with @AdityaTodmal
• He has an experience of 7 years.
• He has made a profit of Rs. 20 cr. over these years with a capital of Rs. 2 cr.
• However, it's not easy to make such profits.
• More difficult, is to retain those profits and build more on it.
• He started with futures and option buying however after a certain point when his capital grew, he faced scalability issues and hence he resorted to options selling.
• Since his trading profits have grown well, he has started investing (investing is always for LT).
• For folks who dnt have much info regarding investing can simply buy Nifty 50 stocks & keep rebalancing as Nifty 50 does.
• Pledge the portfolio and receive margin ~80% which he would then use to sell OTM CEs of the stocks which are in his portfolio.
• This helps in generating fixed income from the portfolio.
• Need to have a firm commitment.
• In terms of money and in terms of how much time you would give yourself in market.
• Lets say you start with Rs. 10k.
• Buy everyday one single stock exit with Rs. 300 loss and profit of Rs. 600 with position sizing.
• Do this exercise for 30 days.
• This is to understand the process.
• Be disciplined
• Don't do system hopping
• Try to take atleast 100 trades to understand the nuances of the system, as develop discipline over the period.
• If your view is that market will go up, an option buyer will buy a CE and if the view is that market will go downside then an option buyer will buy a PE.
• Every option has a premium.
• Nifty option strikes has an interval of 50 points and Banknifty has 100 points.
• Check Option chain for more details:
- Nifty : https://t.co/5BrThceFd3
- Banknifty: https://t.co/HbPkJw310q
• Buyer makes money if the market moves in his favor.
• Option sellers make money if the market remains sideways or moves in his favour.
• Wherever the spot is sell both CE & PE of the same strike.
• Currently NF spot is at 17530, so to short a straddle one has to sell both 17550 CE & PE together.
• Net premium collected is Rs. ~330
•Premium decay happens the most on Tuesday Wednesday and Thursday
• Trade this in intraday and avoid overnight risk while learning.
• Probability of this set up is 70%
• The R/R should be 1:2
• Capital required for 2 lot of strangle is aprrox. 3 lacs
• Book out based on target or SL:
- SL: if the losses amount to Rs. 5,000 or
- Target: it if the strangle is in profit of Rs. 10,000.
• Especially when you are in learning phase.
• Also Subasish doesn't believe in adjusting the legs, its usually SL or target for him.
• Take that as a learning, as you will exactly know how much point SL you need to keep.
• How does the option premium behaves towards the expiry etc.
• Although any trader requires discipline while entering and exiting trades however option buyers requires this virtue a lot more.
• An option buyer can make money only if he can time the momentum properly.
• Usually momentum is better from 9.15- 10.30am.
• 5min TF will have more trades than 15min.
• Select the TF as per your temperament.
• If one has slightly more capital then look for trades between 1.30-3.30pm.
• 10.30-12.30pm: No trading zone.
• If you have booked losses in 3-4 trades in the morning hour then just close for the day.
• If you are in profit in the morning trade , then you can risk that profit and trade in the closing hour.
• E.g. you are using 5min TF.
• If any candle breaks the first 5min high or low buy CE or PE accordingly.
• Eg: Market gives a BO of the first 5min candle basis which you buy a CE option, but thereafter before reaching your 1:2 target it makes a downmove.
• Now exit the CE buy and buy a PE.
• If the market is in momentum then you'll be in profit.
• If your SL gets hit, then that's an indication that market is consolidating.
• If both the sides SL gets hits then better to close trading for the day.
• Focus only on 9.15-10.30am everyday.
• Thursdays when there is weekly expiry focus on 1.30-3.30 pm as well, as a strong move towards the end of expiry can fetch handsome returns.
• Performance comparison should be with oneself rather than comparing with profits of others on the SM.
Venue: Andheri East.
Go through these links and sign up for the workshop.
- FAQ here: https://t.co/l00nLRLgvN
- Registration form: https://t.co/2VdjEKPn5v
https://t.co/tDscnKiAKg
An option buyer made Rs. 58 lacs from Rs. 2 lac capital in a span of just one month (March 2020 COVID crash).
— Nikita Poojary (@niki_poojary) August 27, 2022
He is none other than Mr. Subasish Pani.
THREAD: 11 things you must know to become an option buyer.
Collaborated with @AdityaTodmal
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I’m torn on how to approach the idea of luck. I’m the first to admit that I am one of the luckiest people on the planet. To be born into a prosperous American family in 1960 with smart parents is to start life on third base. The odds against my very existence are astronomical.
I’ve always felt that the luckiest people I know had a talent for recognizing circumstances, not of their own making, that were conducive to a favorable outcome and their ability to quickly take advantage of them.
In other words, dumb luck was just that, it required no awareness on the person’s part, whereas “smart” luck involved awareness followed by action before the circumstances changed.
So, was I “lucky” to be born when I was—nothing I had any control over—and that I came of age just as huge databases and computers were advancing to the point where I could use those tools to write “What Works on Wall Street?” Absolutely.
Was I lucky to start my stock market investments near the peak of interest rates which allowed me to spend the majority of my adult life in a falling rate environment? Yup.
Ironies of Luck https://t.co/5BPWGbAxFi
— Morgan Housel (@morganhousel) March 14, 2018
"Luck is the flip side of risk. They are mirrored cousins, driven by the same thing: You are one person in a 7 billion player game, and the accidental impact of other people\u2019s actions can be more consequential than your own."
I’ve always felt that the luckiest people I know had a talent for recognizing circumstances, not of their own making, that were conducive to a favorable outcome and their ability to quickly take advantage of them.
In other words, dumb luck was just that, it required no awareness on the person’s part, whereas “smart” luck involved awareness followed by action before the circumstances changed.
So, was I “lucky” to be born when I was—nothing I had any control over—and that I came of age just as huge databases and computers were advancing to the point where I could use those tools to write “What Works on Wall Street?” Absolutely.
Was I lucky to start my stock market investments near the peak of interest rates which allowed me to spend the majority of my adult life in a falling rate environment? Yup.