Since IRONFLY is the flavour these days, sharing my own thread. It has GREEKS incorporated which automatically reduces wing size & risk.

P.S. No one specifically invented ironfly & it's adjustments. A good trader can figure it out on his own. I've been doing it on & off for yrs.

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.

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.

@javia_savan You answered it yourself 🙂
Adjustment cost is way too high for bnf. Sometimes bnf does exceed nifty in vol crush, but nifty overall is more consistent.

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)

🚨SWING TRADE CRASH COURSE🚨

Beginners Guide to Swing Trading
✅How to find setups
✅How to use @unusual_whales to build conviction
✅Which Options Strike to Choose

Please ❤️Like, 🔁Retweet & ✅Follow if you want more videos!

Part 1

Part 2

Part 3

Part 4

https://t.co/av7mZ6uc8a

The logic of Directional and Non Directional Option selling is explained in Video.
Please take Efforts to watch this

In this thread, I'll walk you through my set up, absorb it as much as you can.
The instrument that I trade in are Nifty (NF) options
Thanks to @AdityaTodmal @niki_poojary for contributing in making this

How to set your charts:

Lets try to understand what to sell when 50EMA, VWAP & RSI works in different scenarios

What options to sell and how to place the SL

Important to have a birds eye view when trading in NF options as many stocks influences its movement

🔫🚨MY EDUCATIONAL CONTENT IN A THREAD🚨🔫

Here's a little thread I put together with some of the strategies I utilize every day in my trading.

1. @unusual_whales Intraday Analyst
2. Scalping
3. Scaling Out
4. Watchlists
5. Indicators

(1/5) This is a PowerPoint presentation I put together using @unusual_whales intraday analyst to find trades.

(2/5) My Scalping Strategy

(3/5) Scaling Out

(4/5) Building Watchlists