Sellers selling OTM get lured by higher premiums and sell near ATM or more than they usually do, this will burn your hand as High premiums also mean that you will end up giving higher premium back than usual as soom as it spikes.
A Thread on How to NOT do blunders while selling Options. š§µšŖ”
Sellers selling OTM get lured by higher premiums and sell near ATM or more than they usually do, this will burn your hand as High premiums also mean that you will end up giving higher premium back than usual as soom as it spikes.
Hope drives a man crazy and this is true for trading the most, hoping for a reversal to cut the pain. Humans have a tendency to avoid the pain and one does not accept the pain by not booking a loss
Tom Hougaard explains this well below.
https://t.co/zDbDT2hdej
You cannot make money long term if you donāt have a set of rules or adjustments in place already if you are trading long term. Make a plan or a system so that you always know how to survive. Your Position is non D not the market.
Many people think they are supreme because they are selling options much likely because of the Trend on Twitter in the community,
You are a trader think like one and remain one trading a certain way does not make you better.
I see people come in and Trade Straddles and Strangles just 50-100 points away on expiry to chase profits by the end, Iāve seen this happen because of low capital, please avoid it as Gamma Kills a seller
Option buyers ke kapde bikte hai
Sellers ke Ghar bikte hai
If you are not hedged properly or position size isnāt there you are one event away from going Bank corrupt or worse in Debt. ā¹2 takes no time to turn into ā¹500 :)
When selling Straddles or strangles Selling will give you a higher Probability of Profit than a good Risk:Reward and you have to adjust R:R with that
Loose one Gain 2 or 3,
doesnāt work here,
Loose 3 gain 1 does work.
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2. Positional Trading Techniques
3. Indicator Applications
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How to Filter Stocks for Intraday
How you can filter stocks for Intraday trades - \U0001f9f5
— Sheetal Rijhwani (@RijhwaniSheetal) August 15, 2021
As a kid, we would do homework before school the next day - you have to do homework here too. A specific sector performs on a particular day and studying things a day before will help you spot that particular sector. (1/11)
2/ Intraday BNF strangle based on OI data. š§µ
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(System already shared, today just share few examples)
(1/n)
3/ A few setups to make intraday trading easy.
A few setups/strategies that can make your intraday trading easy. I follow them personally:
— Sheetal Rijhwani (@RijhwaniSheetal) September 12, 2021
Add these stocks in your watchlist for next few days -
-If a stock closed exactly at resistance with good volumes or it has been consolidating near resistance for a long time. (1/10)
There are many strategies in market šand it's possible to get monthly 4% return consistently if you master šŖin one strategy .
One of those strategies which I like is Iron Flyāļø
Few important points on Iron fly stategy
This is fixed lossš“ defined stategy ,so you are aware of your losses . You know your risk ā ļøand breakeven points to exit the positions.
Risk is defined , so at psychologicalš§ level you are at peacešāāļø
How to implement
1. Should be done on Tuesday or Wednesday for next week expiry after 1-2 pm
2. Take view of the market ,looking at daily chart
3. Then do weekly iron fly.
4. No need to hold this till expiry day .
5.Exit it one day before expiry or when you see more than 2% within the week.
5. High vix is preferred for iron fly
6. Can be executed with less capital of 3-5 lakhs .
https://t.co/MYDgWkjYo8 have R:2R so over all it should be good.
8. If you are able to get 6% return monthly ,it means close to 100% return on your capital per annum.
One of those strategies which I like is Iron Flyāļø
Few important points on Iron fly stategy
This is fixed lossš“ defined stategy ,so you are aware of your losses . You know your risk ā ļøand breakeven points to exit the positions.
Risk is defined , so at psychologicalš§ level you are at peacešāāļø
How to implement
1. Should be done on Tuesday or Wednesday for next week expiry after 1-2 pm
2. Take view of the market ,looking at daily chart
3. Then do weekly iron fly.
4. No need to hold this till expiry day .
5.Exit it one day before expiry or when you see more than 2% within the week.
5. High vix is preferred for iron fly
6. Can be executed with less capital of 3-5 lakhs .
https://t.co/MYDgWkjYo8 have R:2R so over all it should be good.
8. If you are able to get 6% return monthly ,it means close to 100% return on your capital per annum.
