Time I retweeted this πŸ˜ƒ

More from Subhadip Nandy

This friend had trouble making money in options though he was directionally right. Let us see how a basic understanding of greeks would have helped him, This thread will be about two attributes of option pricing, extrinsic value and theta


An option has two parts, intrinsic and extrinsic value. Think of a pack of Lay's potato chips. When you buy and open the pack, what you find is some chips and a lot of air. Intrinsic value is the chips, extrinsic value is air


https://t.co/8ZPv4ZnCiL


https://t.co/icWmqSLENW


https://t.co/vHA6azEmbQ
The most important question now on the mind of all analysts and traders. Is this a bear market rally or is this the start of a bull move. Retweeting this as I will need a few tweets to explain my view


Everyone knows the HH-HL or LH-LL as per Dow theory. This can be a bit confusing on how one marks the Highs and Lows. Long back, I picked up this trick from one of the neo-Dow theorists on what to do in scenarios like this

Simply plot a 5 period exponential moving average on a different panel. A 5-EMA simply shows you a running weekly perspective and kind of smoothens the price where a single spike high/low is not of that much importance

You will see this 5-ema also making HH.HL.LH.LL. So now, rather than focusing on the highs/lows on the charts, focusing on highs/lows on the 5-ema gives a cleaner perspective

As per this charts, unless the 5-ema now closes above 17540 ( the ema, not Nifty price) I will not play this as a bull market. I will deal with this market as a counter move against the major bear trend
This is actually an interesting question and a correct observation. Many people before you also have made this observation, so I am going to explain this the best I can


I am trading since badla days. There being long meant you had to pay badla / interest and being short meant you received badla. Similar to an options buyer having theta burn and an options seller being theta positive. So the bias among pros were being short bit

Now, as of now I am an options buyer. All my strategies are geared towards options buying, so I have a theta burn continuosly. I do use strategies to cover that a bit, but still the burn is there

Now, let's consider how an options buyer makes money. His enemy is theta, vega can be friend or enemy ( coming to this in next tweet) , Delta is whether his view is right or wrong

Now say I am bullish on BNF and I buy calls and I am directionally correct . As BNF goes up, generally IV will decrease. This leads to a double whammy.
1. Vega hurts me
2. Theta decay increases.
So, the position does give money, but slowly

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MASTER THREAD on Short Strangles.

Curated the best tweets from the best traders who are exceptional at managing strangles.

β€’ Positional Strangles
β€’ Intraday Strangles
β€’ Position Sizing
β€’ How to do Adjustments
β€’ Plenty of Examples
β€’ When to avoid
β€’ Exit Criteria

How to sell Strangles in weekly expiry as explained by boss himself. @Mitesh_Engr

β€’ When to sell
β€’ How to do Adjustments
β€’ 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

β€’ Sold Strangles 20% cap used
β€’ Added 20% cap more when in profit
β€’ Booked profitable leg and rolled up
β€’ Kept rolling up profitable leg
β€’ Booked loss in calls
β€’ Sold only


2nd example by @Mitesh_Engr Sir on converting a directional trade into strangles. Option Sellers can use this for consistent profit.

β€’ Identified a reversal and sold puts

β€’ Puts decayed a lot

β€’ When achieved 2% profit through puts then sold
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Once upon a time there was a Raja named Uttānapāda born of Svayambhuva Manu,1st man on earth.He had 2 beautiful wives - Suniti & Suruchi & two sons were born of them Dhruva & Uttama respectively.
#talesofkrishna https://t.co/E85MTPkF9W


Now Suniti was the daughter of a tribal chief while Suruchi was the daughter of a rich king. Hence Suruchi was always favored the most by Raja while Suniti was ignored. But while Suniti was gentle & kind hearted by nature Suruchi was venomous inside.
#KrishnaLeela


The story is of a time when ideally the eldest son of the king becomes the heir to the throne. Hence the sinhasan of the Raja belonged to Dhruva.This is why Suruchi who was the 2nd wife nourished poison in her heart for Dhruva as she knew her son will never get the throne.


One day when Dhruva was just 5 years old he went on to sit on his father's lap. Suruchi, the jealous queen, got enraged and shoved him away from Raja as she never wanted Raja to shower Dhruva with his fatherly affection.


Dhruva protested questioning his step mother "why can't i sit on my own father's lap?" A furious Suruchi berated him saying "only God can allow him that privilege. Go ask him"