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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2. RT the first Tweet to share it with your audience.
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Over the past month, we have shared 15 powerful threads:
These threads cover topics like:
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• Free technical analysis courses, etc.
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1/ Top 26 threads from the past 26 weeks of year
2/ How to build your Twitter
3/ The most simple set-up of Subasish Pani -
4/Free valuable tools that helps you to trader better!
These threads cover topics like:
• Trading
• Psychology
• Strategies (both directional & non-directional)
• Investing
• Free tools for traders
• Free technical analysis courses, etc.
Here they are all in one place!
1/ Top 26 threads from the past 26 weeks of year
Twitter is like a free university.
— Aditya Todmal (@AdityaTodmal) July 1, 2022
However, 98.8 percent of users missed out on the best content on this platform.
Here are the top 26 threads from the past 26 weeks of 2022: \U0001f9f5
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2/ How to build your Twitter
I started at 0 and grew to 109,000 followers
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Here's how we use Twitter and why:
Collaborated with @niki_poojary
THREAD \U0001f9f5 \u2193
3/ The most simple set-up of Subasish Pani -
Subasish Pani revealed the most simple, yet successful strategy: 5EMA set up!
— Nikita Poojary (@niki_poojary) July 3, 2022
Here is a thread of 23 video clips on the 5EMA set-up that will save you hundreds of hours and available to you for no cost!
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Collaborated with @AdityaTodmal
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But very few provide any real value.
Here are 7 of the most valuable FREE Tools you're not using (but should be): \U0001f9f5
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One of the most successful stock trader with special focus on cash stocks and who has a very creative mind to look out for opportunities in dark times
Covering one of the most unique set ups: Extended moves & Reversal plays
Time for a 🧵 to learn the above from @iManasArora
What qualifies for an extended move?
30-40% move in just 5-6 days is one example of extended move
How Manas used this info to book
Post that the plight of the
Example 2: Booking profits when the stock is extended from 10WMA
10WMA =
Another hack to identify extended move in a stock:
Too many green days!
Read
Covering one of the most unique set ups: Extended moves & Reversal plays
Time for a 🧵 to learn the above from @iManasArora
What qualifies for an extended move?
30-40% move in just 5-6 days is one example of extended move
How Manas used this info to book
The stock exploded & went up as much as 63% from my price.
— Manas Arora (@iManasArora) June 22, 2020
Closed my position entirely today!#BroTip pic.twitter.com/CRbQh3kvMM
Post that the plight of the
What an extended (away from averages) move looks like!!
— Manas Arora (@iManasArora) June 24, 2020
If you don't learn to sell into strength, be ready to give away the majority of your gains.#GLENMARK pic.twitter.com/5DsRTUaGO2
Example 2: Booking profits when the stock is extended from 10WMA
10WMA =
#HIKAL
— Manas Arora (@iManasArora) July 2, 2021
Closed remaining at 560
Reason: It is 40+% from 10wma. Super extended
Total revenue: 11R * 0.25 (size) = 2.75% on portfolio
Trade closed pic.twitter.com/YDDvhz8swT
Another hack to identify extended move in a stock:
Too many green days!
Read
When you see 15 green weeks in a row, that's the end of the move. *Extended*
— Manas Arora (@iManasArora) August 26, 2019
Simple price action analysis.#Seamecltd https://t.co/gR9xzgeb9K
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\U0001f9f5
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— Nikita Poojary (@niki_poojary) November 5, 2022
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\U0001f9f5
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A comprehensive \U0001f9f5 :
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More from Option selling
MASTER THREAD on Short Strangles.
Curated the best tweets from the best traders who are exceptional at managing strangles.
• Positional Strangles
• Intraday Strangles
• Position Sizing
• How to do Adjustments
• Plenty of Examples
• When to avoid
• Exit Criteria
How to sell Strangles in weekly expiry as explained by boss himself. @Mitesh_Engr
• When to sell
• How to do Adjustments
• Exit
Beautiful explanation on positional option selling by @Mitesh_Engr
Sir on how to sell low premium strangles yourself without paying anyone. This is a free mini course in
1st Live example of managing a strangle by Mitesh Sir. @Mitesh_Engr
• Sold Strangles 20% cap used
• Added 20% cap more when in profit
• Booked profitable leg and rolled up
• Kept rolling up profitable leg
• Booked loss in calls
• Sold only
2nd example by @Mitesh_Engr Sir on converting a directional trade into strangles. Option Sellers can use this for consistent profit.
• Identified a reversal and sold puts
• Puts decayed a lot
• When achieved 2% profit through puts then sold
Curated the best tweets from the best traders who are exceptional at managing strangles.
• Positional Strangles
• Intraday Strangles
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How to sell Strangles in weekly expiry as explained by boss himself. @Mitesh_Engr
• When to sell
• How to do Adjustments
• Exit
1. Let's start option selling learning.
— Mitesh Patel (@Mitesh_Engr) February 10, 2019
Strangle selling. ( I am doing mostly in weekly Bank Nifty)
When to sell? When VIX is below 15
Assume spot is at 27500
Sell 27100 PE & 27900 CE
say premium for both 50-50
If bank nifty will move in narrow range u will get profit from both.
Beautiful explanation on positional option selling by @Mitesh_Engr
Sir on how to sell low premium strangles yourself without paying anyone. This is a free mini course in
Few are selling 20-25 Rs positional option selling course.
— Mitesh Patel (@Mitesh_Engr) November 3, 2019
Nothing big deal in that.
For selling weekly option just identify last week low and high.
Now from that low and high keep 1-1.5% distance from strike.
And sell option on both side.
1/n
1st Live example of managing a strangle by Mitesh Sir. @Mitesh_Engr
• Sold Strangles 20% cap used
• Added 20% cap more when in profit
• Booked profitable leg and rolled up
• Kept rolling up profitable leg
• Booked loss in calls
• Sold only
Sold 29200 put and 30500 call
— Mitesh Patel (@Mitesh_Engr) April 12, 2019
Used 20% capital@44 each
2nd example by @Mitesh_Engr Sir on converting a directional trade into strangles. Option Sellers can use this for consistent profit.
• Identified a reversal and sold puts
• Puts decayed a lot
• When achieved 2% profit through puts then sold
Already giving more than 2% return in a week. Now I will prefer to sell 32500 call at 74 to make it strangle in equal ratio.
— Mitesh Patel (@Mitesh_Engr) February 7, 2020
To all. This is free learning for you. How to play option to make consistent return.
Stay tuned and learn it here free of cost. https://t.co/7J7LC86oW0
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This is a pretty valiant attempt to defend the "Feminist Glaciology" article, which says conventional wisdom is wrong, and this is a solid piece of scholarship. I'll beg to differ, because I think Jeffery, here, is confusing scholarship with "saying things that seem right".
The article is, at heart, deeply weird, even essentialist. Here, for example, is the claim that proposing climate engineering is a "man" thing. Also a "man" thing: attempting to get distance from a topic, approaching it in a disinterested fashion.
Also a "man" thing—physical courage. (I guess, not quite: physical courage "co-constitutes" masculinist glaciology along with nationalism and colonialism.)
There's criticism of a New York Times article that talks about glaciology adventures, which makes a similar point.
At the heart of this chunk is the claim that glaciology excludes women because of a narrative of scientific objectivity and physical adventure. This is a strong claim! It's not enough to say, hey, sure, sounds good. Is it true?
Imagine for a moment the most obscurantist, jargon-filled, po-mo article the politically correct academy might produce. Pure SJW nonsense. Got it? Chances are you're imagining something like the infamous "Feminist Glaciology" article from a few years back.https://t.co/NRaWNREBvR pic.twitter.com/qtSFBYY80S
— Jeffrey Sachs (@JeffreyASachs) October 13, 2018
The article is, at heart, deeply weird, even essentialist. Here, for example, is the claim that proposing climate engineering is a "man" thing. Also a "man" thing: attempting to get distance from a topic, approaching it in a disinterested fashion.
Also a "man" thing—physical courage. (I guess, not quite: physical courage "co-constitutes" masculinist glaciology along with nationalism and colonialism.)
There's criticism of a New York Times article that talks about glaciology adventures, which makes a similar point.
At the heart of this chunk is the claim that glaciology excludes women because of a narrative of scientific objectivity and physical adventure. This is a strong claim! It's not enough to say, hey, sure, sounds good. Is it true?
The entire discussion around Facebook’s disclosures of what happened in 2016 is very frustrating. No exec stopped any investigations, but there were a lot of heated discussions about what to publish and when.
In the spring and summer of 2016, as reported by the Times, activity we traced to GRU was reported to the FBI. This was the standard model of interaction companies used for nation-state attacks against likely US targeted.
In the Spring of 2017, after a deep dive into the Fake News phenomena, the security team wanted to publish an update that covered what we had learned. At this point, we didn’t have any advertising content or the big IRA cluster, but we did know about the GRU model.
This report when through dozens of edits as different equities were represented. I did not have any meetings with Sheryl on the paper, but I can’t speak to whether she was in the loop with my higher-ups.
In the end, the difficult question of attribution was settled by us pointing to the DNI report instead of saying Russia or GRU directly. In my pre-briefs with members of Congress, I made it clear that we believed this action was GRU.
The story doesn\u2019t say you were told not to... it says you did so without approval and they tried to obfuscate what you found. Is that true?
— Sarah Frier (@sarahfrier) November 15, 2018
In the spring and summer of 2016, as reported by the Times, activity we traced to GRU was reported to the FBI. This was the standard model of interaction companies used for nation-state attacks against likely US targeted.
In the Spring of 2017, after a deep dive into the Fake News phenomena, the security team wanted to publish an update that covered what we had learned. At this point, we didn’t have any advertising content or the big IRA cluster, but we did know about the GRU model.
This report when through dozens of edits as different equities were represented. I did not have any meetings with Sheryl on the paper, but I can’t speak to whether she was in the loop with my higher-ups.
In the end, the difficult question of attribution was settled by us pointing to the DNI report instead of saying Russia or GRU directly. In my pre-briefs with members of Congress, I made it clear that we believed this action was GRU.
