8️⃣ things you must know about National Pension Scheme (NPS).
Generation Z & Millennials must read this.

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1️⃣
First and foremost, sole reason for investing in National Pension Scheme:

💡tax saving and there by a place in retirement portfolio.

If you are investing in NPS for any other purpose, you are doing it wrong.

2️⃣
Two types of NPS Account - Tier I & Tier II
👉 Tier I Account: lock in account
👉 Tier II Account: invest and withdraw at will

Tier I Account is the account where all tax deductions are applicable.

Nothing in Tier II. Do not even open, it's useless.

To all NPS Tier II subscribers who have collectively subscribed ~ 3575 Crore:
1) Are you getting any tax benefits by investing in Tier II? No
2) Are you saving for retirement? It can be done through Mutual Funds!
3) Are you getting credit card rewards? It has stopped. 😄

3️⃣
Tax Saving can be done in three sections
80CCD(1)
80CCD(1B)
80CCD(2)

80CCD(1)
This has a limit of 1.5 Lakh and is not over and above 80C Limit.
It is useful only for central government employees. Private Sector Employees and Self Employed have a lot of options for 80C - 1.5L

HOW TO ADJUST A SHORT STRANGLE?

Gone are those days where a short strangle used to expire worthless without any adjustments.

Adjustments are a must when your initial view goes wrong which it will.

Listing down all the ways to adjust a short strangle WITH EXAMPLES below.

1: Rolling up/down:

If you've sold a short strangle and one side premium spikes, you can book the profitable side and roll it up to match the premium of the other side.

eg: If you've sold a 60rs call and a 60rs put. If the 60rs call goes to 100. Then book profits in put and sell a 100 pt put.

This is the most basic way of adjustment.

2: Rolling the losing side:

It's very similar to the above adjustment however, we will consider shifting the losing side instead of profitable side.

eg: If you've sold 50pt call and 50pt put. If the 50pt put spikes up and goes to 120. Sometimes, I wouldn't want to sell a 120 pt call.

Hence, I simply book loss in the put and sell a new put worth 50pts which is farther away from the previous put.

90 million active demat accounts in India.

Less than 1% understand Fibonacci retracement.

This mega thread will help you understand better—starting today:

Collaborated with @AdityaTodmal

1/What is Fibonnaci (Fibo) retracement?:

•Fibo retracement levels help us to identify potential reversal area or identifying potential entry point after a pullback.

•It represents various levels of significance within a swing high and low.

2/How to plot the Fibo?

•Spot the recent swing high & swing low (usually a peak & a low) on a chart.

•Plot the Fibo on these points.

•You'll get 5 key levels of support & resistance (S/R) in between the peak & low.

•Key Fibonacci ratios: 23.6%, 38.2%, 50%, 61.8%, & 100%.

3/ Importance of retracement levels:

• The retracement level forecast can determine the level at which retracement is likely to occur.

• These retracement levels offer traders a favourable entry to open new trades in the direction of the trend.

4/ When to apply Fibo:

•Fibonacci analysis can be applied when there is a noticeable up-move or down-move in prices.

•Applying it in range bound markets would turn out to be a futile exercise.

@MdjVmj Hi, Your thread is ready to read. Option selling strategy thread 🧵*Capital must be above 6lac*Target only banknifty (weekly expiry)* T https://t.co/lPLskzeKTX
Have a good day!