More from Swapnil Kommawar
How I trade monthly short strangles for regular income
A thread 🧵🧵
Retweet 🔃🔃 for max reach
👉Short strangle means,
Selling OTM call option and Selling OTM put option
Here is a detailed thread on short strangle
👉Generally, this strategy gives good returns when market is sideways but most trader get wrong entries and wrong exist
👉Ahead of major event option price will increase because of uncertainty. We have to take advantage of that
👉As the VIX is the derivative of option price, we have to check this parameter first
When VIX is >20, it is the right opportunity to deploy short strangle
👉If we look at the weekly and monthly candles of nifty, it is easier to identify which strikes to choose
Entry conditions:
👉VIX >20
👉Choose the strikes which are 6% above and below of nifty in next month contracts
👉Combined premium should be in the range of 160-170
👉Next month contracts should be taken at the mid of current month
A thread 🧵🧵
Retweet 🔃🔃 for max reach
👉Short strangle means,
Selling OTM call option and Selling OTM put option
Here is a detailed thread on short strangle
NEUTRAL STRATEGIES
— Swapnil Kommawar (@KommawarSwapnil) August 5, 2022
If market is sideways, These strategies can be deployed
Retweet for max reach!
A Thread \U0001f9f5\U0001f9f5\U0001f9f5
👉Generally, this strategy gives good returns when market is sideways but most trader get wrong entries and wrong exist
👉Ahead of major event option price will increase because of uncertainty. We have to take advantage of that
👉As the VIX is the derivative of option price, we have to check this parameter first
When VIX is >20, it is the right opportunity to deploy short strangle
👉If we look at the weekly and monthly candles of nifty, it is easier to identify which strikes to choose
Entry conditions:
👉VIX >20
👉Choose the strikes which are 6% above and below of nifty in next month contracts
👉Combined premium should be in the range of 160-170
👉Next month contracts should be taken at the mid of current month
More from Screener
The first half of 2022 has produced some great investing threads.
Here are 26 of them that are worth revisiting -
#investing
1. @sahil_vi's thread on how to screen for investment opportunities -
Here are 26 of them that are worth revisiting -
#investing
1. @sahil_vi's thread on how to screen for investment opportunities -
Such opportunities only come once in a few years.
— Sahil Sharma (@sahil_vi) February 24, 2022
Step-by-step: how to use (the free) @screener_in to generate investment ideas.
Do retweet if you find it useful to benefit max investors. \U0001f64f\U0001f64f
Ready or not, \U0001f9f5\U0001f9f5\u2935\ufe0f pic.twitter.com/A4VmmqJwI6