To begin with, determine whether Bank Nifty is trending, consolidating, or stuck in a range.
Why?
Cause we can predict what it will do then.
How to make 1% consistently via Option Selling?
• Analyzing the trend
• Selling OTM's
• Making adjustments
• Capturing trending move
• Without big drawdowns
• Right Position Sizing
• Risk Management
Here are the 11 aspects to focus on:
Collaborated with @AdityaTodmal
To begin with, determine whether Bank Nifty is trending, consolidating, or stuck in a range.
Why?
Cause we can predict what it will do then.
The margin required for selling one lot is around Rs. 1.5 lakh for a strangle.
If we earn around Rs. 1500 on one lot, we would make 1% return on our capital.
1500/25 = 60 points
Either sell directional 60 and make it zero.
Or 30-30 both sides.
Can tend to skip Friday's as there are two days holiday.
In those 2 days market has ample time to come out with news, react to SGX and so forth.
So from a R:R perspective it is not great to carry from Friday.
The Weekly candle also is from Monday to Friday.
So at Friday EOD we know how the weekly candle looks as well.
If the market was consolidating recently then we are going to wait for a proper breakout or breakdown.
If it is taking too much time we can sell far otms.
But with the intention of exiting the strangle when a breakout/breakout happens.
Post a big movement in the weekly candle, we are looking for an inside candle in the current week.
Thereby we would look for selling strangles as they would be most rewarding.
Usually can target around 30-40 rs premiums.
Adjustments can generate more returns than you had originally planned.
Basic rolling up and down can be done to extract higher premiums.
Can't adjust every move though, so should know when to exit.
Here is where levels come into play.
There are levels after which Bank Nifty is going to make a big move.
In my Youtube channel as well as my twitter, I always share my bias.
Sometimes I don't mark one side at all.
That's when I am expecting a trending move.
https://t.co/Ywik8EMxl0
#BANKNIFTY
— Nikita Poojary (@niki_poojary) November 13, 2022
4. Hourly TF:
\u2022 S/R mentioned on the charts.
\u2022 Moving within the rising channel.
\u2022 41300 zone is a good level to go long in case any reversal pattern.
\u2022 40800-850 would act as a first pullback post BO, good levels to go long on positional basis. pic.twitter.com/E2x9DCKY0s
https://t.co/g7MwzR706i
I gathered 15 examples of Weekly Bank Nifty analysis
— Aditya Todmal (@AdityaTodmal) December 2, 2022
By @niki_poojary, chronologically:
Save 100+ hours researching.
A thread: \U0001f9f5
Don't take more than a 3% hit.
I have seen traders usually lose their minds when they lose more than this. The cycle of bad trading originates after this.
So we have to ensure to not let it happen in the first place.
Psychology needs to be intact.
On Rs. 10 Lakh maximum you can sell is 6 lots.
Beginner should avoid any leverage unless they are profitable for 6 months consistently.
Don't enter all your qty at once.
Stagger the qty as and when you make profits.
Do respect your SL.
Never change it based on Hope or your bias as you always go wrong as the market is supreme. Your SL should be the one which you had planned before taking an entry in the trade.
Can go and backtest your trading and look for areas for improvement.
Forward testing is also essential to see if you can do it in the live markets and keep a check on your emotions when trend is not in favour but your SL is also not hit.
We have a FREE Youtube Channel where we cover our analysis of the markets.
If interested feel free to join using this link: https://t.co/ijbLiYzXml
https://t.co/7pmJkbBM2N
Do you want to know how to create a Trading Plan using only Price Action?
— Nikita Poojary (@niki_poojary) October 26, 2022
Here's a breakdown of 11 simple yet powerful steps to create one: \U0001f9f5
Collaborated with @AdityaTodmal
If you enjoyed this thread:
1. Follow us @Adityatodmal & @niki_poojary for more threads on Price action, Option Selling & Trading growth.
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More from Nikita Poojary
In the past few months I have curated various threads🧵
For some reason, people seem to love it
Here are all of them, chronologically:
DJ Sir's set up made in collaboration with @AdityaTodmal
For some reason, people seem to love it
Here are all of them, chronologically:
DJ Sir's set up made in collaboration with @AdityaTodmal
In this thread, I'll walk you through my set up, absorb it as much as you can.
— itrade(DJ) (@ITRADE191) June 27, 2021
The instrument that I trade in are Nifty (NF) options
Thanks to @AdityaTodmal @niki_poojary for contributing in making this pic.twitter.com/BrMrGydb1v
More from Option selling
Master Thread of all my threads!
Hello!! 👋
• I have curated some of the best tweets from the best traders we know of.
• Making one master thread and will keep posting all my threads under this.
• Go through this for super learning/value totally free of cost! 😃
1. 7 FREE OPTION TRADING COURSES FOR
2. THE ABSOLUTE BEST 15 SCANNERS EXPERTS ARE USING
Got these scanners from the following accounts:
1. @Pathik_Trader
2. @sanjufunda
3. @sanstocktrader
4. @SouravSenguptaI
5. @Rishikesh_ADX
3. 12 TRADING SETUPS which experts are using.
These setups I found from the following 4 accounts:
1. @Pathik_Trader
2. @sourabhsiso19
3. @ITRADE191
4.
4. 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
Hello!! 👋
• I have curated some of the best tweets from the best traders we know of.
• Making one master thread and will keep posting all my threads under this.
• Go through this for super learning/value totally free of cost! 😃
1. 7 FREE OPTION TRADING COURSES FOR
A THREAD:
— Aditya Todmal (@AdityaTodmal) November 28, 2020
7 FREE OPTION TRADING COURSES FOR BEGINNERS.
Been getting lot of dm's from people telling me they want to learn option trading and need some recommendations.
Here I'm listing the resources every beginner should go through to shorten their learning curve.
(1/10)
2. THE ABSOLUTE BEST 15 SCANNERS EXPERTS ARE USING
Got these scanners from the following accounts:
1. @Pathik_Trader
2. @sanjufunda
3. @sanstocktrader
4. @SouravSenguptaI
5. @Rishikesh_ADX
The absolute best 15 scanners which experts are using.
— Aditya Todmal (@AdityaTodmal) January 29, 2021
Got these scanners from the following accounts:
1. @Pathik_Trader
2. @sanjufunda
3. @sanstocktrader
4. @SouravSenguptaI
5. @Rishikesh_ADX
Share for the benefit of everyone.
3. 12 TRADING SETUPS which experts are using.
These setups I found from the following 4 accounts:
1. @Pathik_Trader
2. @sourabhsiso19
3. @ITRADE191
4.
12 TRADING SETUPS which experts are using.
— Aditya Todmal (@AdityaTodmal) February 7, 2021
These setups I found from the following 4 accounts:
1. @Pathik_Trader
2. @sourabhsiso19
3. @ITRADE191
4. @DillikiBiili
Share for the benefit of everyone.
4. 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
Curated tweets on How to Sell Straddles
— Aditya Todmal (@AdityaTodmal) February 21, 2021
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.
