๐“๐ก๐ซ๐ž๐š๐ ๐Ÿ๐จ๐ซ ๐Ž๐ฉ๐ญ๐ข๐จ๐ง๐ฌ
The entire thread will have some quick pointers on options trading. These bullet points are based on experience and learning and even if you are completely new,will help you to build some perspective. So,lets go :

-When new,prefer trading monthly options over weekly options to reduce risk
-Set up your trades with greater than 50% Probability Of Profit
- Use implied volatility in your decision making process
-Book some trades at 50% of max profit i.e. locking of profit incase u are buyer
-Donโ€™t adjust losing defined risk strategies. A lot of people get into the bad habit of averaging and run the risk of losing a lot
-Diversify your portfolio across product, direction, and time,this has to be considered while you are planning to put in multiple strikes in folio
-Short Strangles are one of our go-to strategies because of their high probability of profit and increased profit potential.A little effort with understanding of volatility would help
-Allocate no more than 5% of your account to any one trade
-Trade small, trade often to increase your number of occurrences. Some might deny but this works
-In options you might have heard of spreads.Multiple options legs create an options spread. For example, a short strangle consists of selling a call and selling a put simultaneously.
-Any in-the-money short call is at risk of exercise prior to the ex-dividend date.This is because the long call holder will want to buy the stock just prior to the ex-dividend date so that they can receive the dividend payment.This is a fact which a lot of option traders overlook
-Buying out-of-the-money options statistically has the lowest probability of profit. The stock price has to move in your favor fast enough to overcome time decay
-Traders can always fall into the trap of trying to double down on position to recover losses on a previous trade
-As expiration approaches, swings in the option price will become exaggerated as gamma increases
-Selling options too cheap gives you an unfavorable risk/reward profile. You end up with more risk than reward.Additionally,they are more susceptible to vega risk.
There is a lot more to add which in days to come will come in form of thread. In case you liked it,a RT will be appreciated for better reach.
In case u missed the last thread,here it is https://t.co/KBY4VEcV4J
Keep learning
Keep sharing
Keep growing
#AKAL

More from Abhishek Kar

๐“๐จ๐ฉ ๐‘๐ž๐š๐ฌ๐จ๐ง๐ฌ ๐ฐ๐ก๐ฒ ๐“๐ซ๐š๐๐ž๐ซ๐ฌ ๐…๐€๐ˆ๐‹!!
This thread is about the top reasons why most traders fail. If you want more finance and business related threads on regular basis,don't forget to retweet and share with your friends.

1. Negligence of risk management
While we can't foresee what the business sectors will do before long, hours, or days, however we do have full power over our danger levels at some random time. Risk management not just includes stop loss but also avoiding unnecessary trades.

2. Not having it planned out
A philosophy, or set of rules, is necessary. The business sectors can be tumultuous and confounding, particularly for somebody without a particular game plan that can be utilized over and over. Hence,planning essentially is going to help in any case.

3. Wanting to be always right
Numerous unpracticed informal investors center a lot around their triumphant rate. There will be times when you'll question your trading abilities, or even think whether trading is the correct occupation for you. No one is right always,cut losses.

4. Bad risk-to-reward ratio
There are two reasons traders end up with a poor risk-to-reward ratio:
a. They don't have an exit plan and rather essentially respond to the market without doing maths.

b. They can't hold their winnersโ€ฆ yet they hold their losers.

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1/ Hereโ€™s a list of conversational frameworks Iโ€™ve picked up that have been helpful.

Please add your own.

2/ The Magic Question: "What would need to be true for you


3/ On evaluating where someoneโ€™s head is at regarding a topic they are being wishy-washy about or delaying.

โ€œGun to the headโ€”what would you decide now?โ€

โ€œFast forward 6 months after your sabbatical--how would you decide: what criteria is most important to you?โ€

4/ Other Qโ€™s re: decisions:

โ€œPutting aside a list of pros/cons, whatโ€™s the *one* reason youโ€™re doing this?โ€ โ€œWhy is that the most important reason?โ€

โ€œWhatโ€™s end-game here?โ€

โ€œWhat does success look like in a world where you pick that path?โ€

5/ When listening, after empathizing, and wanting to help them make their own decisions without imposing your world view:

โ€œWhat would the best version of yourself doโ€?