You answered it yourself 🙂
Adjustment cost is way too high for bnf. Sometimes bnf does exceed nifty in vol crush, but nifty overall is more consistent.
More from Sarang Sood
@SarangSood Sarang bhai according to you what number of vix is ideal for option buyers and what is that for option sellers? And is there any common number which is ideal for both?
— Dhaval bhatt (@Dhavalb55011726) July 14, 2021
This is Master thread of all the useful tweets (imo) that i have shared in the past. Going through them may provide some knowledge on options, volatility, greeks & trading psychology. Will keep updating in the future.
Thanks for following 🙏
👇👇
https://t.co/PKoiCFSrXJ
FINDING EDGE IN OPTIONS
— Sarang Sood (@SarangSood) January 9, 2021
24/08/15: Nifty gap down 250 points & another 250 after that. Previous few months return gone, but since I'm quick to take my losses, was saved from ruin. Before that my only edge in option selling was adjustments & my forever edge of following PA. (1/n)
https://t.co/Qd3VpXcBlN
AN ESSENTIAL THREAD ON OPTION ADJUSTMENTS
— Sarang Sood (@SarangSood) June 8, 2020
Adjustments can be done in variety of ways & depends totally at the discretion of the trader. To get a clear mind we need to know the following:
1) What to follow,
2) How to make the adjustment,
3) When to make the adjustment. (1/5)
https://t.co/5AtqFPYFgA
THREAD ON DELTA (The most important GREEK)
— Sarang Sood (@SarangSood) January 2, 2021
Many traders don't indulge in understanding GREEKS because they think they are very complicated.
There are 4 primary greeks:
Delta
Gamma
Theta
Vega
In my experience, understanding DELTA is enough to take benefit of greeks.(1/n)
https://t.co/imMobLg7fv
My trading journey started at the age of 17. Coming from a family of professional traders it was easy to get a headstart & i quickly got accustomed to it. But at that time i didn't have a clue of what I'm getting into. I very well knew how money is made & lost in the markets(1/5)
— Sarang Sood (@SarangSood) August 1, 2020
P.S. No one specifically invented ironfly & it's adjustments. A good trader can figure it out on his own. I've been doing it on & off for yrs.
THREAD ON IRONFLY
— Sarang Sood (@SarangSood) December 12, 2020
These days the most preferred strategy for option sellers due to improved margins is IRONFLY. It's essentially a short straddle with long strangle. Long strangle acting as 'WINGS', which help in capping the unlimited risk associated with a short straddle.(1/n)
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