Above 42700, all traders were expecting a breakout.
But do you know failed breakouts are more powerful than breakouts?
Sharp selling will happen if a failed breakdown occurs and he was fully prepared for it.
Subhasish Pani earned +1,41,25,022 profit in Option Buying on Expiry day yesterday.
He captured the down move in both futures and options.
Here's a breakdown of how he earned this profit: 🧵
Collaborated with @niki_poojary
Above 42700, all traders were expecting a breakout.
But do you know failed breakouts are more powerful than breakouts?
Sharp selling will happen if a failed breakdown occurs and he was fully prepared for it.
He was giving hints from 1-2 months for Option Buyers regarding when they should buy options at a low IV.
The current market scenario was one where the premiums were too low.
According to him, one should plan for a buying trade during such scenarios and target big.
Prefers 12 o clock momentum usually whenever there is a gap-down scenario.
Already the market above 42700 buyers weren't strong enough. So on Thursday in a gap-down scenario, he was expecting a big downfall.
He bought 36,000 qty of puts of 42500 strike at 92 and exited them at 391.
(43200 qty is an error by him, correct qty should be 36,000)
Here is the order book with the timings of when he bought and also the timing where he sold.
Bought the puts at 91 of strike 42500, and sold them at 391.
Because of a bearish bias, he had already taken some future shorts home on Wednesday.
When the down-move started immediately post-opening, he was already in 20 lakhs profits in futures.
Since he made 20 lakhs in futures, he decided to risk those profits to earn higher for the day.
So he bought 42400 puts at 92 with the intention of only risking 20 lakhs in them and finally exited them near 391, thus making a huge profit.
Option buying premiums are low for the last 10 expiries and in many of them, we have seen very good momentum on expiries.
If premiums are cheap and a big movement comes, its the best thing for option buyers so they should be prepared.
He says a buyer should plan a good R:R trade for buying either when Option Sellers are scared (due to low premiums) or stuck (in round number strikes).
When premiums are low, sellers are easily trapped as there is very less scope to adjustments.
Usually, before an event what happens is there is an increase in volatility and premiums shoot up on both sides to compensate for the risk associated with the BUDGET.
This time the premiums had not increased.
Perfect scenario!
In January, he is just coming out of a drawdown.
No one likes to always be in a drawdown, and one should risk profits made already to make more going ahead.
So from a month or two he might have been flat, so he risked less.
He hates an R:R of 1:1 & usually prefers it to be 1:6 and 1:10.
Today he got out at 1:3 approx.
Only in scalping does he trade with low R:R.
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More from Aditya Todmal
12 TRADING SETUPS used by professional traders:🧵
Collaborated with @niki_poojary
Here's what you'll learn in this thread:
1. Capture Overnight Theta Decay
2. Trading Opening Range Breakouts
3. Reversal Trading Setups
4. Selling strangles and straddles in Bank Nifty
6. NR4 + IB
7. NR 21-Vwap Strategy
Let's dive in ↓
1/ STBT option Selling (Positional Setup):
The setup uses price action to sell options for overnight theta decay.
Check Bank Nifty at 3:15 everyday.
Sell directional credit spreads with capped
@jigspatel1988 2/ Selling Strangles in Bank Nifty based on Open Interest Data
Don't trade till 9:45 Am.
Identify the highest OI on puts and calls.
Check combined premium and put a stop on individual
@jigspatel1988 3/ Open Drive (Intraday)
This is an opening range breakout setup with a few conditions.
To be used when the market opens above yesterday's day high
or Below yesterday's day's
Collaborated with @niki_poojary
Here's what you'll learn in this thread:
1. Capture Overnight Theta Decay
2. Trading Opening Range Breakouts
3. Reversal Trading Setups
4. Selling strangles and straddles in Bank Nifty
6. NR4 + IB
7. NR 21-Vwap Strategy
Let's dive in ↓
1/ STBT option Selling (Positional Setup):
The setup uses price action to sell options for overnight theta decay.
Check Bank Nifty at 3:15 everyday.
Sell directional credit spreads with capped
A thread about STBT options selling,
— Jig's Patel (@jigspatel1988) July 17, 2021
The purpose is simple to capture overnight theta decay,
Generally, ppl sell ATM straddle with hedge or sell naked options,
But I am using Today\u2019s price action for selling options in STBT,
(1/n)
@jigspatel1988 2/ Selling Strangles in Bank Nifty based on Open Interest Data
Don't trade till 9:45 Am.
Identify the highest OI on puts and calls.
Check combined premium and put a stop on individual
Thread on
— Jig's Patel (@jigspatel1988) July 4, 2021
"Intraday Banknifty Strangle based on OI data"
(System already shared, today just share few examples)
(1/n)
@jigspatel1988 3/ Open Drive (Intraday)
This is an opening range breakout setup with a few conditions.
To be used when the market opens above yesterday's day high
or Below yesterday's day's
#OpenDrive#intradaySetup
— Pathik (@Pathik_Trader) April 16, 2019
Sharing one high probability trending setup for intraday.
Few conditions needs to be met
1. Opening should be above/below previous day high/low for buy/sell setup.
2. Open=low (for buy)
Open=high (for sell)
(1/n)
Curated tweets on How to Sell Straddles
Everything covered in this thread.
1. Management
2. How to initiate
3. When to exit straddles
4. Examples
5. Videos on Straddles
Share if you find this knowledgeable for the benefit of others.
1. Straddles explanation from the boss himself.
Everything covered in this thread.
1. Management
2. How to initiate
3. When to exit straddles
4. Examples
5. Videos on Straddles
Share if you find this knowledgeable for the benefit of others.
1. Straddles explanation from the boss himself.
How to sell option?
— Mitesh Patel (@Mitesh_Engr) January 30, 2021
Here let me explain through simple math.
Say BN at 30000
30000 straddle trading at combine premium 800 ( based on current volatility)
Put at 400
Call at 400
You don\u2019t know direction. Sold both.
If move will not come than both will decrease gradually.
Saving money on Taxes is a superpower.
Learn it and you can make money faster than ever.
Use these 3 Threads to master Saving Taxes in the next 5 min:
Collaborated with @niki_poojary:
First of all, you need to open a company account if you want to save the highest
1) If you are earning more than 50 lakhs, study this thread.
Listed out the benefits of trading in a corporate
2) How can Individuals save on taxes.
(@niki_poojary
3) How do fund managers and traders save on
Learn it and you can make money faster than ever.
Use these 3 Threads to master Saving Taxes in the next 5 min:
Collaborated with @niki_poojary:
First of all, you need to open a company account if you want to save the highest
If you are earning more than 50 lakhs from trading, just trade in a company account to save taxes.
— Aditya Todmal (@AdityaTodmal) June 1, 2022
1) If you are earning more than 50 lakhs, study this thread.
Listed out the benefits of trading in a corporate
How to save tax when income is above 50 lakhs?
— Aditya Todmal (@AdityaTodmal) March 1, 2022
Here are 9 benefits of trading in a corporate account: \U0001f9f5
Collaborated with @niki_poojary
2) How can Individuals save on taxes.
(@niki_poojary
How to save taxes on the trading profits for an individual
— Nikita Poojary (@niki_poojary) November 26, 2022
4 Legit ways to retain most of the trading income: \U0001f9f5
Collaborated with @AdityaTodmal
3) How do fund managers and traders save on
PAY LESS TAXES.
— Aditya Todmal (@AdityaTodmal) September 25, 2022
How the best (Traders and Fund Managers) get away with paying less taxes, protecting their capital and creating substantial wealth.
And the exact methods for you to use (kept secret from 99% of Traders): \U0001f9f5
Collaborated with @niki_poojary
