#optionBasics

#Weekend #homework
Will post few
#52W high or near #52W High ,
#ATH stock in this thread
#strength
#momentum
#Blacksmith #stocks to

#52W High Count

#Compare 52W
So we inline with last week
some increase in 100+ price of stock 23 compare to last week
so some good momentum there look like

#Trend

#Graphs

#Weekend #homework
Will post few
#52W high or near #52W High ,
#ATH stock in this thread
#strength
#momentum
#Blacksmith #stocks to watch

@YouTube

#52W High Count
so we have 484
125 around list in 100-500 price stock which is quite higher side

#Compare last week data was not given
so comparing with previous saved data
and we see increase in stocks 55 stock more than last data and
41% contribution by 100+ price stock now

#Trend

#GRAPHS

#Weekend #homework
Will post few
#52W high or near #52W High ,
#ATH stock in this thread
#strength
#momentum
#Blacksmith #stocks to

#52W high Count

#Compare
So we have below 300
Around May we where having 300 under numbers
So Shifting of fund and profit booking happening
100 stock less in 100+ price stock

#Trend

#Graphs

#Deepak 🧐🧐

A THREAD

Topic: HOW TO TRADE IN RISING PREMIUMS SCENARIO

Option sellers specially Straddle sellers feel that rising premiums give them excellent opportunity to make easy money. So what they are seeing is the theta aspect of options & ignoring the delta/gamma/vega forces.

1/

With rising premiums come high delta moves. There is a reason why premiums are all increasing up in the first place. High uncertainty & fear is what's controlling the markets during such times. So a volatile 200 point move in nifty is always on the cards.

2/

Adjusting during such delta moves involves high slippages. Such costs go in our system & are irrecoverable. So if the ATM straddle is around 400 & after 200 point downmove, the next straddle is at 450 & the loss is not just 50points but compounded much more.

3/

Also there are chances that there is no decay throughout the day. So a straddle seller has to take that heavy risk of carrying it forward & chances of gap openings are high during such times. If converted into Ironfly, then the cost of the wings is too expensive.

4/

Thus cutting down the initial credit significantly.

There will also be very few instances when premiums don't fall till expiry day. So with each delta move the cost of holding a straddle gets accumulated & pressure keeps mounting for the stubborn option sellers.

5/

Today trade

@Ronak_Unadkat Sir has more than 100 videos on his Youtube channel.

He mainly focuses on the same few concepts to take a trade.

I can teach you those in the next 5 minutes:🧵

Collaborated with @niki_poojary

1/— OI unwinding for Aggressive trades

Okay, so you must begin your search for these type of trades "ANYDAY AFTER 1 PM".

For eg:

If the market is going up and you spot some large unwinding on the call side.

Sell the immediate puts from where the market reversed to go up.

Where option sellers are trapped no need to check the support resistance as a big directional move is going to happen.

Just aggressively sell puts straight up, pocket the higher premiums and make high returns.

Explaining the logic in the next tweet.

Logic:

Simple, option sellers are tapped. In this case on the call side.

When a seller is trapped he will buy his option back.

Option buyer will not be in a hurry to square off as he is in profit.

This will result in a huge spike in calls.

A call option seller cutting his position means he is not confident that the market will go down or sideways.

We take a hint from him and sell puts to make a profit.