Overnight risk will be always capped
Limited Risk will keep you cool
Hedge our position
Strictly not to do for margin, as that will lead to overleveraging.
Traders Sell option for 100 and buy 10 rs option.
That is for margin reduction, not a spread.
The best spreads trader on Twitter: @Ronak_Unadkat
He trades in Nifty & Bank Nifty via spreads majorly.
In the Jainam Broking Speech, he shared how he trades debit and credit spreads:
Here's a breakdown of his 10 step method: 🧵
Collaborated with @niki_poojary
Overnight risk will be always capped
Limited Risk will keep you cool
Hedge our position
Strictly not to do for margin, as that will lead to overleveraging.
Traders Sell option for 100 and buy 10 rs option.
That is for margin reduction, not a spread.
If the market opens at the lower circuit or upper circuit, then our loss should be limited.
Eg - Expiry Trading on the 24th Feb Expiry
The market gapped down & traders lost huge sums of money.
Some lost 15% or 20% of their capital in a 4% index move.
If India-Pakistan tension news comes again we will open at a lower circuit.
In a 4% index move, people lost 10%, so in the case of a circuit, they will lose 50%.
In these cases, spreads cover your risk.
Even he lost 3-4% of capital on 24th but it is easy to recover in 1-2 months.
Shouldn't lose more than 15% of your capital in case of a lower circuit. (Worst scenario)
Adjustments become easy if the risk is capped.
Doesn't care for greeks but you should know if delta or gamma impacts you, what is our risk we should always be aware of it.
If the market goes against you in a debit spread, you can adjust by selling more options to make it a ratio spread.
Debit Spreads adjustments he does by converting it to a ratio.
Credit spreads no adjustments only stop loss.
If you trade in debit spreads, your 100 comes down to 60 but the 40 rs sold one will come down to 25.
If you bought naked options, then your 100 rs when it comes to 50, you will get out due to 50% capital loss.
After some time it goes back to cost. (regret)
Selling naked options at 100, you will get out when it becomes 200.
Imagine you've sold the 100 rs option and bought a 40rs one for 60 rs credit.
If the 100 becomes 200 then 40 will become 80 so you can hold.
The worst-case loss is fixed.
If you have an index level stop loss, you will get out in naked option s if it doubles without it even touching your level.
They will double and then come back to the price you sold it at.
Whereas in spreads, you can wait out the moves.
In credit spreads, you will sell high premiums and buy lower premiums.
To counter this some people think to sell naked options whatever the credit you received in the credit spread.
But the overnight risk is huge in that case.
Risk reward is not in your favor in such trades.
But the probability is always there. So you will win 8/10 times.
This win rate ensures we make money.
During Breakout/Breakdowns go for debit spreads.
You'll get quick money in such trades.
For reversal trades, use credit spreads.
Premiums vanish very quickly in this case.
When PDH breaks trade a call debit spread, keep the current day low as stop loss and trail via swing lows.
When PDL breaks trade a put debit spread, then keep the current day high as stop loss and trail via swing highs.
Sell Credit spreads during reversals as they help you in case of IV spike
You are protected from IV spikes if you play reversals.
Debit Spreads won't make sense in reversals due to IV crush.
Watch out for @niki_poojary's thread on Mitesh Sir, which she will post today.
If you found this useful, please do RT first tweet.
Follow to never miss them.
See past threads here:
@AdityaTodmal & @niki_poojary
More from Aditya Todmal
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
• 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
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
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.
A THREAD ON @SarangSood
Decoded his way of analysis/logics for everyone to easily understand.
Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen
1. Keeps following volatility super closely.
Makes 7-8 different strategies to give him a sense of what's going on.
Whichever gives highest profit he trades in.
2. Theta falls when market moves.
Falls where market is headed towards not on our original position.
3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result
He believes in a market operator, if market mover sells volatility Sarang Sir joins him.
4. Theta decay vs Fall in vega
Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
Decoded his way of analysis/logics for everyone to easily understand.
Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen
1. Keeps following volatility super closely.
Makes 7-8 different strategies to give him a sense of what's going on.
Whichever gives highest profit he trades in.
I am quite different from your style. I follow the market's volatility very closely. I have mock positions in 7-8 different strategies which allows me to stay connected. Whichever gives best profit is usually the one i trade in.
— Sarang Sood (@SarangSood) August 13, 2019
2. Theta falls when market moves.
Falls where market is headed towards not on our original position.
Anilji most of the time these days Theta only falls when market moves. So the Theta actually falls where market has moved to, not where our position was in the first place. By shifting we can come close to capturing the Theta fall but not always.
— Sarang Sood (@SarangSood) June 24, 2019
3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result
He believes in a market operator, if market mover sells volatility Sarang Sir joins him.
This week has been great so far. The main aim is to be in the right side of the volatility, rest the market will reward.
— Sarang Sood (@SarangSood) July 3, 2019
4. Theta decay vs Fall in vega
Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
There is a difference between theta decay & fall in vega. Decay is certain but there is no guaranteed profit as delta moves can increase cost. Fall in vega on the other hand is backed by a powerful force that sells options and gives handsome returns. Our job is to identify them.
— Sarang Sood (@SarangSood) February 12, 2020
Twitter is like a free university.
However, 98.8 percent of users missed out on the best content on this platform.
Here are the Top 52 threads from the past 52 weeks of 2022: 🧵
Collaborated with @niki_poojary
(1) Topic: 5EMA Setup of Subhasish Pani by
(2) Topic: Using Volume the right way by
(3) Topic: Python Courses to learn from by
(4) Topic: A list of the top screeners by
However, 98.8 percent of users missed out on the best content on this platform.
Here are the Top 52 threads from the past 52 weeks of 2022: 🧵
Collaborated with @niki_poojary
(1) Topic: 5EMA Setup of Subhasish Pani by
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!
5EMA set-up: \U0001f9f5!
Collaborated with @AdityaTodmal
(2) Topic: Using Volume the right way by
VOLUME is the ultimate Trading cheat code.
— Indrazith Shantharaj (@indraziths) August 6, 2022
But, most people never use it in the right way \u2013 because no one ever taught them how.
Here are 10 psychological triggers to knowing Volume in a better way :
(3) Topic: Python Courses to learn from by
I am learning python from the past 45 days. Recently I built some programs for very simple trade automation.
— Saketh R (@saketh1998) November 3, 2022
Here are some courses which helped me learn and do it!
Like and Retweet if you find it Useful
(4) Topic: A list of the top screeners by
Stock Screeners is an integral part of doing homework post market hours.
— Yash Mehta (@YMehta_) August 5, 2022
Most of us use screeners to filter buzzing stocks out of 1000+ stock and it saves lot of times.
Here is the list of top screeners:
Also, last screener is one of my favourite to pick early momentum stocks.
