BC OPTIONSLEARNINGS
Saved by @SAnngeri

THREAD: 14 of the best resources/topics for anyone who wants to start option selling as a career. ๐Ÿงต

Collaborated with @niki_poojary

 1. Best Sources of knowledge for a beginner in option selling?

Zerodha Varsity from @Nithin0dha's team & the @tastytrade financial network.

Links:
https://t.co/iYpilaaaoV

https://t.co/iooGW9CrCZ
2. Top YouTube Channel for Options Learning?

Power of Stocks - Subhasish Pani

What you'll learn:
1. How to form a trading plan.
2. How to scale an account with risk-reward in option selling.
3. Technical analysis logics you can use daily.

15 Learnings:
https://t.co/bv2mbiajZv
3. What are the preconditions to start option Selling:

You should know technical Analysis basics like:
- Support/Resistance
- Chart Patterns
- Candle Patterns
- Dow Theory (HH, LL)

This will help you start taking high probability trades.
4. Risk Management is a must for option selling

If you don't learn to manage your risk, making money in trading is going to be an extremely difficult endeavor

Have some rules:
1. Risk no more than 0.25% per trade as a beginner
2. Risk no more than 2% in a day for the first year
You have to decide how much you're willing to lose in a day.

Whatever the amount, divide it by 3. Just risk that amount in 3 trades in a day. Stop trading if you lose 3 times.

This prevents us from overtrading and losing more.
5. Minimum Capital requirement for option selling.

Beginners can learn and practice option selling with 5L capital.

You'll be able to trade 5 lots with this. If you're doing well can take leverage by buying options and selling more quantities.

(Only if you're doing well)
5. Safest way for beginners to start:

Target options that have over 90% probability of going to zero.

As a beginner target only 0.5% per week.

If you've been profitable for 6 months, try for targets like 0.75% to 1% a week.
6. When to follow Directional strategies and when to follow non-directional strategies?

If the market is in a range, can sell options on both sides outside the range and make a profit. (strangle)

If the market has given a breakout or breakdown then avoid non-directional trading
7. How to select the strike price for selling options.

I started selecting strikes initially which were very low premiums. But had a higher probability of going to zero.

In order to become a really good trader, you need to have "profit cushion".
Once you get the profit can sell strikes based on:

- Support/Resistance
- Premium Based Strike Price

Get a sense of when and how to do adjustments.
8. Stock Options or Index options which one is good for a beginner-level person?

I personally found trading in stocks is totally useless. Not worth the effort you put in.

Unlike an index, stocks can move > 10% and beyond in the F&O segment

Not worth the stress they cause
Beginners should concentrate on index option selling.

Find your comfort whether it's Nifty or Bank Nifty. Personally, I have seen the switch from Nifty to Bank Nifty being quite difficult for some traders.

Might as well start practicing Bank Nifty from the get-go.
9. Top 3 mistakes we made trading.

- Not building a portfolio when the market corrects 30%
- Venturing in stock options due to their luring premiums
- Intend to recover all losses from the same stock thereby ending up marrying a stock
10. What % of return one should expect on a weekly or monthly basis?

Beginners would be doing great if they just manage to even break even after their first year.

Most people are wiped out in the initial years.

Later on, one can gradually move from 2-4% per month returns.
11. How to maintain Good Risk Reward in option Selling

This is an area which we want to learn the most and focus upon in the next 2 years.

However, a simple rule to follow, if you're making 4% a month, don't lose more than 2% in any single week.
12. Is knowledge of Option Greeks is really Important?

Big no! We are aware of greeks and have spent time learning them, but they have not helped us in a single trade.

If you know your support & resistance and when to exit, then no need to know Greeks.
13. Website to analyze Option Chain Data

Although we don't give much importance to option data as it doesn't work nowadays.

Opstra & NSE websites are enough, additionally, our friends really like Icharts and trading tick.
14. How to be prepared for every week?

Learn to create a weekly trading plan. Here's a thread on creating one after analyzing @niki_poojary's account.

https://t.co/aVh21muOYi
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

Aditya Todmal
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The absolute best 15 scanners which experts are using.

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.

Listing all scanners from @Pathik_Trader Sir first.

1. Open

2. 80-20 Reversal Setup


3. Fake

4. Trapping Inside Bar (Positional Setup)
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DJ SIR THREAD

Great video with points helpful for beginners.

Made 4 threads on DJ Sir with the help of @niki_poojary

1. Selecting strikes to trade in with risk management.
2. How he took some aggressive trades.
3. Multiple charts analysis for intraday trading.
4. Trade Setup


Attaching all threads made on DJ Sir. After watching the video you can refer to this tweet for notes about his strategy and learn a few other ideas.

Compiling these together for easy access to his knowledge.

1. Selecting strikes and risk


2. Going aggressive with help of data and


3. Intraday
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Aditya Todmal
Aditya Todmal
@AdityaTodmal
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 Straddles

Share if you find this knowledgeable for the benefit of others.

1. Straddles explanation from the boss himself.
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Aditya Todmal
Aditya Todmal
@AdityaTodmal
Technical Analysis and 3 Strategies to deploy for Aggressive, Moderate, and Conservative Traders.

๐Ÿงต Weekly Bank Nifty Analysis for 8th December Expiry:


To form a view, let's have a look at:

1. Multi-timeframe Technical Analysis
2. Option Chain Data

Also, 3 strategies to deploy for:

1. Aggressive Traders (2.6%)
2. Moderate Risk Traders (1.3%)
3. Low-Risk Traders (0.8%)


1. Technicals

Let's start by doing some basic technical analysis.

We'll look at:

โ€ข Weekly charts.
โ€ข Daily charts.
โ€ข Hourly / 60 min charts.
โ€ข 15 min charts.

1. Weekly-

โ€ข The market has given 4 continuous green closes, so not expecting a big momentum on upside.

โ€ข This week my view is that it can take a pause.

โ€ข Longer term trend is super bullish.

โ€ข Any dip will towards 41800 will be a retest, and should be used to go long.


2. Daily:

โ€ข Candlestick patternโ€”Hanging Man

โ€ข Chart Patternโ€”Breakout Failure

โ€ข A pin bar candle is very powerful but only after a downmove.

โ€ข Here it forms near the top of upmove.

โ€ข Means some sellers are present. Below 43000 can sell calls above 43600 for the week.
TRADING
Aditya Todmal
Aditya Todmal
@AdityaTodmal
Stop wasting hours choosing platforms to use.

Charting: @tradingview
Strategy Builder: @opstra
Historical Data: @iChartsIndia
Basics: @ZerodhaVarsity
Scanners: @ChartinkConnect
Events: @Investingcom

Start working.
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Subhadip Nandy
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@SubhadipNandy16
Since 99% of my own trades are in options, the calls I give are also on options. I am of the firm belief, that a basic knowledge of option greeks is necessary for any trader aspiring to trade options. For this, there are numerous books and even more resources on the net/youtube

However, a trader trying to learn Greeks face the problem of information overload. The problems are mainly 3
1. Either the text is too mathematical
2. Or the explanation is too simple just skimming the surface
3. In some cases, outright wrong info ( specially on youtube)

I have decided to make a video on options greeks in which I will try to explain simply ( without the maths ๐Ÿ˜€) but will go a bit more in-depth so that the info is usable by traders doing actual trades

Spent the major part of today designing the ppt ( 40 slides), hope to upload the video in the next few days. I will also provide the names of other resources which I have referred in making the video so that viewers can refer those texts for a more comprehensive understanding.

The video will be from the view of a trader/practitioner and not just a theoretical discussion.

I sincerely hope starters will be benefitted from my effort ๐Ÿ™
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HMK alias MANOJ
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@scorpiomanojFRM
#Learning Those who are interested in options... Here is an old tweet on gamma scalping ...
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๐™Ž๐™๐™–๐™ง๐™ž๐™ฃ๐™œ ๐™ข๐™ฎ ๐™ฌ๐™ž๐™จ๐™™๐™ค๐™ข ๐‘พ๐’๐’'๐’• ๐’ƒ๐’† ๐’”๐’–๐’“๐’‘๐’“๐’Š๐’”๐’†๐’… ๐’Š๐’‡ ๐’•๐’๐’Ž๐’๐’“๐’“๐’๐’˜ ๐’– ๐’“๐’†๐’‚๐’… ๐’•๐’‰๐’† ๐’”๐’‚๐’Ž๐’† ๐’”๐’•๐’–๐’‡๐’‡ ๐’Š๐’ 50๐’Œ ๐’˜๐’๐’“๐’Œ๐’”๐’‰๐’๐’‘ ๐’๐’“ ๐’”๐’๐’Ž๐’†๐’๐’๐’† ๐’Ž๐’‚๐’๐’‚๐’ˆ๐’Š๐’๐’ˆ ๐’š๐’๐’–๐’“ ๐’Ž๐’๐’๐’†๐’š ๐’˜๐’Š๐’•๐’‰ ๐’”๐’‚๐’Ž๐’† ๐’๐’๐’ˆ๐’Š๐’„
Simple and effective way 2 make Money


Idea 1:- Use pivot level like 14800 in case of nifty and sell 14800straddle monthly expiry (365+335) exit if nifty closes on daily basis below S1 or above R1

After closing below S1 if it closes above S1 next day or any day enter the same position again vice versa for R1

Idea2:- Use R1 and S1 corresponding strikes multiple
Incase of R1 15337 take 15300ce
N in case of S1 14221 use 14200pe
Sell both and hold till expiry or exit if nifty closes below S1 or above R1 around closing
If the same bounces above S1 and falls below R1 re-enfer same strikes

Use same criteria for nifty, usdinr and banknifty

(This is must)Use this margin rule for 1lot banknifty pair keep 4Lax margin
For nifty one lot keep 3Lax
For usdinr 100lots keep 4Lax

I bet you if you do this on consistent basis your ROI will be more than 70% on yearly basis.

Couldn't explain easier than this

Criticisms are most welcomed.
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Aditya Todmal
Aditya Todmal
@AdityaTodmal
If you use it right, Iron Fly is the most solid risk-defined strategy in trading.

But most people don't know how to adjust the strategy when it goes wrong.

Here are 7 adjustments you can do to lower risk and increase profitability: ๐Ÿงต

Collaborated with @niki_poojary

0/ Who is this for?

This will greatly benefit people who freeze when it comes to managing their trades and keep booking losses.

Some trade with too much fear as well when things go wrong.

Knowing these adjustments will give you the confidence to try to manage your trades.

Most of them are to lower risk on the side the market is going in.

Some adjustments even increase the profit potential and probabilities of the trade being in profit on expiry.

Let's begin by having a look at the adjustments.

Here is the adjustment number 1 below.

1/ Don't do anything till your breakeven arrives

One reason these strategies go wrong far too quickly is due to adjusting them too frequently.

You can escape most adjustments if you simply wait for the market to arrive at your breakeven.

This will work well in monthly options.

2/ Remove Risk from Untested Side

If you've taken an iron fly and the market has gone up you can shift your put buy upwards and lock the downside risk to potentially zero.

This way you've secured one side and just need to manage the bleeding side.
OPTIONSLEARNINGS , ALL , IRONFLY RISK MANAGEMENT
Aditya Todmal
Aditya Todmal
@AdityaTodmal
DJ SIR THREAD

Great video with points helpful for beginners.

Made 4 threads on DJ Sir with the help of @niki_poojary

1. Selecting strikes to trade in with risk management.
2. How he took some aggressive trades.
3. Multiple charts analysis for intraday trading.
4. Trade Setup


Attaching all threads made on DJ Sir. After watching the video you can refer to this tweet for notes about his strategy and learn a few other ideas.

Compiling these together for easy access to his knowledge.

1. Selecting strikes and risk


2. Going aggressive with help of data and


3. Intraday
OPTIONSLEARNINGS , ALL , OPTIONSELLING

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