BC TRADING
Saved by @CodyyyGardner

FINDING EDGE IN OPTIONS

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)

 I soon realised that theta decay with sound adjustments is not an edge, which i earlier thought was & which gave me good returns over the years. After that i went deeper in understanding volatility behaviour, how/where it manifests & all the discrepancies in option chain. (2/n)
With finding edge in logistics i mean how to keep the greeks in check, SL in place & optimum ways of adjustments with minimum slippages. So the main aim here is to write theta without following vol behaviour & having any actual knowledge of what's going on in the markets. (3/n)
A dedicated trader can learn all this in few years & it is something which is 'obvious' to become successful. But majority can't reach this level, as this also requires consistent hustle in live markets. All the seminar/webinar business teaches you till this level only.(4/n)
If you get passed this level though, the real work starts, when you have to find your real edge. This can't be taught in a webinar. It needs serious introspection of your trading skills, psychology & strategies in use, which ultimately allow you to book excellent profits. (5/n)
So you need to know when to use which strategy & use adjustments to fully extract it's potential or if view goes wrong then minimize damage or even come out profitable. If later happens back to drawing board, because you've been proven wrong in the crutial first step. (6/n)
Do this everyday, year after year & you have something. Putting all efforts in backtesting a strategy where maximum crowd is (like a straddle) & finding perfect entry/exits with a click of a button will not give an edge. In this process we miss on the bigger picture. (7/n)
Markets change so quickly that even if some strategy was doing well 2 years ago, most likely it will stop acting soon. If a trader is making consistent money in the same strategy year after year, his edge lies somewhere else not in the strategy itself. (8/n)
New option traders don't even know that there is more required other than knowing strategies & adjustments. Webinars are sold promising of giving an advantage, but majority of those selling can't really profit from it. Their real edge lies in finding those who seek an edge. (9/n)

More from Sarang Sood

Sarang Sood
Sarang Sood
@SarangSood
10 mistakes in my 14 years of trading as an option seller 🧵

1. Staying neutral all the time. Majority of the years i have been a neutral option seller. I now realise that having a little sense of direction would have given me an added advantage with better utilisation of capital & also leverage (till the time it was available).

2. Too much importance on adjustments. Initially like most of the new option sellers, i had this notion that i can perfect my adjustment skills for any market conditions. Ofcourse i was wrong. Market is supreme & we need to respect it at times.

3. Not giving importance to greeks. For initial 6 years i didn't even know the existence of greeks. Since i started using them, option selling has become rather less complicated on the contrary of what most people believe.

4. Having too much confidence on the certainty of theta decay. Enough is said about it already. Theta decay is not an edge.
OPTIONSLEARNINGS , ALL
Sarang Sood
Sarang Sood
@SarangSood
A THREAD

Topic: Why triple straddle has no real benefit.

A triple straddle is essentially an ATM Straddle & one or two step away straddle on either side. The position is almost neutral strategy just like any other neutral straddle or strangle.

1/

We can also view the position as an ATM straddle, a strangle & inverted strangle.

For example

Nifty: 14700

Triple straddle: 14600,14700,14800

Another view:

14700 straddle
14800-14600: strangle
14600-14800: Inverted strangle

2/

So the real question is what is the advantage of an inverted strangle over it's otm counterpart?

The answer is none.

They both have same premiums/theta. Only that slippages will be high in inverted strangle when we do the required adjustments plus liquidity issue.

3/

So isn't it better that instead of a triple straddle, we can just do ATM Straddle & 2* OTM strangle.

So in the above eg. the position will be

14700 ATM straddle
2* 14800-14600 otm strangle.

Same premium received, similar range just that there's no nuisance of ITM options.

4/

The question arises:

Why trade in an ATM straddle & 2* OTM Strangles? Why over-complicate?

Options are in itself a complicated instrument. Wouldn't it be better to stick to one straddle or a strangle & adjust accordingly?

Lesser the strikes, more there will be clarity.

5/
ALL , SARANGS OPTIONS TEACHING
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Sarang Sood
Sarang Sood
@SarangSood
AN ESSENTIAL THREAD ON OPTION ADJUSTMENTS

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)

1) We need a way to measure the imbalance created by a delta move in an option strategy. We can measure through premiums, distance from index or delta of greeks (i personally use delta). So basically whatever way of measure we use, both sides should be equal in it. (2/5)

2) Adjustment can either be done by selling extra quantity of profitable side, buying the quantity of losing side or shifting both the sides. I personally shift the sides because with extra quantities our Gamma gets imbalanced & the risk increases if market reverses. (3/5)

3) While the first 2pts are objective, when to make an adjustment is totally subjective. It can be fine tuned through experience. It also depends upon what strategy u are using. For a short strangle the adjustment required is faster than a ratio spread or an IC. (4/5)

Straddle/strangle require faster adjustments because they are more vulnerable to delta or IV spike. Any other strategies like ratio spreads, ironfly, butterfly have some bought option, which can negate the spikes for a while. So we need a defined system as to WHEN to adjust.(5/n)
ALL
Sarang Sood
Sarang Sood
@SarangSood
Q: Sir why call option premiums are higher the put?

A: It usually happens when there is big difference between spot & future.

Example

BN Spot: 35110
BN Future: 35300
BN Synthetic Future: 35150

It depends on our perception of what is ATM & accordingly match the calls & puts.
OPTIONSLEARNINGS
Sarang Sood
Sarang Sood
@SarangSood
Hello! Welcome to my profile.

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


https://t.co/Qd3VpXcBlN


https://t.co/5AtqFPYFgA


https://t.co/imMobLg7fv
OPTION MASTER THREAD , ALL

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Emperor\U0001f451
Emperor👑
@EmperorBTC
CHEAT-SHEET

Multiple Confirmation short.

A Short Entry that we shared in 2020.

Study it point wise.

1. Bearish Candle type and lowering of volume on Price rise.

2. OBV divergence.

3. Accumulation with Bearish candles and Volume increase on Price decrease.

STUDY IT!


Explanation

1. When price increases with a decreasing volume, it's bearish.

2. OBV, On Balance Volume should be correlated with price.
If price increases without similar increase in OBV, it's bearish.

3. During consolidation, if the volume increases during dumps, it's bearish
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SPACVet
@SpacVet
My number 1 stock pick for 2021 is: Pine Island Acquisition Corp.

$PIPP

Let me break down why I think this will be THE SPAC of 2021. 👇

TL:DR – the management team is loaded with President Biden’s closest friends and advisors. No other SPAC has this level of access.

$PIPP company overview:

-focused on defense, government service & aerospace
-perfect focus when you consider who is on their Management Team


$PIPP Management

-here's where it gets EXCITING
-founded by John Thain (ex Merrill Lynch CEO and Uber director)
-then STACKED with veteran Government and Administration key figures


$PIPP Insane Management Connections

-the list of PIPP "DC Partners" includes:

-- President Biden's pick for Secretary of State (Tony Blinken)
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$PIPP - The Joe Biden Connection

- Tony Blinken and President Biden are close allies.
- Blinken has been an advisor to Biden for decades
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Sajal Kapoor
Sajal Kapoor
@unseenvalue
On this auspicious day of #GuruPurnima, happy to share an easy to read and an exceptionally worthwhile investment. I plan to make a thread that will hopefully help us invest and live better. Thank you @awealthofcs 🙏🏻


Experience has taught me that less is always more when making investment decisions. Simplicity trumps complexity. Conventional gives you much better odds than exotic. A long-term process is more important than short-term outcomes.

And perspective goes much further than tactics. Tactics are useless to investors in a matter of days—sometimes in a matter of hours. But perspective is something that stays with the investor for a lifetime. It allows you to adapt to the changing market and economic landscape.

While keeping it simple won’t make it any easier to predict the future—no one has a crystal ball—it can give you the necessary capacity to make rational decisions, no matter what happens next.

Perspective is so important because, without it, even the most intelligent of investors can be ruined from a lack of self-awareness in their own abilities. Investors that fail to put the news or market moves into the proper context....[1/2]
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Trader knight
Trader knight
@Traderknight007
How position sizing can affect your trading performance-

Assuming that you are trading a Trend-following system with Big RR and low win-rate.

For example, assume that you risk one percent per trade on a 100,000 account
and you have 20 straight losses.

That one percent is of your remaining equity and at the end of 20 losses, you would be down to 81,790.60.

Now if you got a 30R winner and you are risking one percent of your balance of 81,790.60, your new equity would be 106,327.9,


You’ve had 20 losses and one winner though you are still up 10Rplus your equity is up by 6.3R percent.

Now, let’s say you risk five percent per trade on your balance. At the end of 20 straight losses, you would be down to 35,772.89 or down 64 percent.


If you risk five percent on this amount and get a 30R winner, you would be up to 89,621.48. You are up 10R, but because of your position sizing, your equity is still down over 10 percent.

#positionsizing
#Trading
#nifty50

This is why position sizing is the most important factor in trading if you get it right and you have an edge, you will do good.

Thanks for reading till here.
@AnandableAnand @jitendrajain @quatltd @sohamtweet
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Trader knight
Trader knight
@Traderknight007
Life is a continuous journey of going through peaks and troughs of Happiness and struggle.

We can only see the Happy part of other lives, but ignore what they might have gone through to achieve that.


But let me tell you, even if someone is at ease right now, doesn't mean that he will continue to be at ease for their whole life.

The struggle will come again and we will have to go through it ,whatever we do, whoever we are , we have to cross that river of pain.

Even,In trading there are times when nothing works out, you go through long time and money draw-downs.

Even if you think you are a master, you have to go through it.

If you are struggling right now, don't lose hope as the tables will turn.

But remember to work as hard as you can and do as much good work as you can in your ease or Joyful time of life, because the tables will turn again.

Thank you for reading.

Trader knight.
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November is here, and that means a massive shift is coming. And by "massive" I am of course referring to the redefinition of the kilogram unit of mass that the world has been building up to for more than 100 years. Let me explain:


1/ I've had an unhealthy fascination with metrology (the study of measurement) ever since my 2nd year as a physics major when I took a class devoted to duplicating historic physics experiments, so please indulge me for going into heavy detail (get it?) about the kilogram.

2/ So what actually *defines* a unit of measurement? If you're American, you probably know a mile is 5280 feet and a foot is 12 inches and an inch is 2.54 centimeters etc. But where does this chain of definitions end? Is it turtles all the way down?

3/ It's actually not! For all units (even the imperial units used in America) the answers all end with the Système International (SI) unit definitions established and maintained for over 100 years by the Bureau International des Poids et Mesures (BIMP) in France.

4/ At the base of this tower are the SI base units. Just 7 SI base units define every other unit in existence. They are:

Kilogram, kg (mass)
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Second, s (time)
Kelvin, K (temp)
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Vibhu Vashisth
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THE LESSER KNOWN MAHARANA OF MEWAR:RANA KUMBHA
Kumbalgarh Fort is one of most spectacular sites of India,atop a hill abt 3600ft above sea lvl in the https://t.co/LkjmzzBhE2's second largest wall is surrounding it.A fort wall second only to Great wall of China,still not so famous.


This longest wall of India stretches to almost 36Km and encompasses a few hills, many step wells and over 360 temples and palaces. Birth place of the Great Maharana Pratap, this fort is named after another Great Maharana of Mewar, who is not given his due in the History.


Builder of many architectural marvels like the Kumbhalgarh Fort, an erudite scholar, a patron of arts, music, culture & a great warrior was the Great Maharana Kumbha. Yet we don't know much about him. Let's get to know him a little.


Maharana Kumbha was the undefeated King of Mewar from 1433-1468CE.He never lost any battles &kept Mewar out of the reach of Islamic Invaders till the time he was alive. Born on Makar Sakranti to Maharana Mokal & Saubhagya Devi, Rana Kumbha was only 13 when he ascended the throne.


His father was killed by his own relatives in a political conspiracy. He was a powerful King about 8ft tall &charismatic personality,a hardcore Hindu Rajput who could shed his life for Hindu honour without thinking twice.He was an ardent skillful warrior who never lost a battle.
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Anu Satheesh \U0001f1ee\U0001f1f3
Anu Satheesh 🇮🇳...
@AnuSatheesh5
Neyyattinkara Krishna Kshetram
#Thiruvananthapuram
#KeralaTemples 🚩

Neyyattinkara Krishna Kshetram is considered as the Guruvayur of Trivandrum. Thrikkayyil Venna (butter) is main offering to Neyyattinkara Unnikannan. Kshetram is supposed to be built by Marthanda Varma.


Sthala Puranam says that, Anizham Thirunal Marthanda Varma was surrounded by his enemies, Ettuveettil Pillamar, while he was near the place where Temple is situated now. The king prayed to Padmanabhaswamy to protect him.  At that time, a small boy was seen there and he


advised the king to hide himself inside the hollow trunk of a jack fruit tree. The king was surprised to find a small boy in the forest, but agreed to the advice
Thus he was saved from the attack. When the enemies left, king tried to know about the boy, but he couldn't.


He believed that it was krishna himself who saved his life. A temple was built here, which is the present Neyyattinkara Krishna Kshetram. The jack fruit tree where  the king hid himself is now known as Ammachi Plavu. Ashtami Rohini, Vishu are very famous here

Hare Krishna
🙏🕉🙏
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SK
SK
@sk_diary1
Margatha Natarajar murthi - Uthirakosamangai temple near Ramanathapuram,TN
#ArudraDarisanam
Unique Natarajar made of emerlad is abt 6 feet tall.
It is always covered with sandal paste.Only on Thriuvadhirai Star in month Margazhi-Nataraja can be worshipped without sandal paste.


After removing the sandal paste,day long rituals & various abhishekam will be https://t.co/e1Ye8DrNWb day Maragatha Nataraja sannandhi will be closed after anointing the murthi with fresh sandal paste.Maragatha Natarajar is covered with sandal paste throughout the year


as Emerald has scientific property of its molecules getting disturbed when exposed to light/water/sound.This is an ancient Shiva temple considered to be 3000 years old -believed to be where Bhagwan Shiva gave Veda gyaana to Parvati Devi.This temple has some stunning sculptures.
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Anu Satheesh
Anu Satheesh
@AnuSatheesh5
Sri Mridanga Saileswari Temple Muzhakkunnu, Kannur KERALA

The temple is established by Parasurama and it is one among 108 Durga temples.
Devi will answer all the prayers of her devotees who pray to her with utmost devotion lighting the ghee deepam.


It is the family diety of Kerala Varma Pazhassi Raja.
Devi is present in three forms Kali, Saraswati and Lakshmi.

Legend...👇
Once a Mridungam ( musical instrument) shaped rock fell from heaven here.
@SriramKannan77


Devi originated in the form of Mridangam and Parasurama captivated the essence of Devi into a Vigraham. Vigraham is made of Panchaloham.
Kathakali, an art form of Kerala originated here.


Temple Vigraham was stolen 3-4 times, but because of power of Devi all the attempts were failure. Police records says that Whenever the thieves try to steal, they lose their senses, and they will be in a confused state. So they will abandon the idol.
🕉
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