BC TRADING
Saved by @vsamk

Traders often overlook the SHORT STRADDLE due to its simplicity.

It remains the TOP strategy to make money when the market is not trending.

Here's how you can make money using only the short straddle
in various market conditions

⬇️ A comprehensive thread🧵

 A short straddle is the most basic neutral options strategy.

Where a call option and a put option are sold at the same strike price.
Max profit = Total premium received ( call leg + put leg )

Max risk = Unlimited

(using SLs would be wise)

Upper breakeven = Strike price + Total Premium received

Lower breakeven = Strike price - Total Premium received
Essentially short straddles are initiated when the trader is confident about the market staying in a certain range (between the breakevens of the straddle)

Long-term short straddles usually require fewer adjustments since the range is wide.
Since unlimited loss is a component of the strategy, the trader has to adjust the strategy to increase profit/ mitigating risk
• ADJUSTMENTS

You will have to define your criteria based on your risk appetite and the gap between the breakevens.

Ex:- gap between the breakevens is 360 points, so I would prefer making adjustments on every 50-point move.
NOTE - one shouldn't enter short straddles with all their capital. Some capital should be allocated only for adjustments
1. Creating a second straddle

Suppose the straddle is initially made at 18700 strike price, then,

NIFTY moves up to 18794 ( 94 points from our strike price/ max profit point )

The trader can now create a new straddle at 19000 strike price.

Which provides a larger range
If one wants to have equal space for movement on both sides, he can sell the new straddle at,

Initial strike price ± 2*(Movement)
2. Adding 3rd position in the direction of the trend

In the given example,

NIFTY has shifted to 18499 from our strike price of 18600 (101 points)

The trader can sell a call option for wider range
3. Shift the straddle

If the underlying moves drastically in any direction,

The trader can book his profit/loss in the straddle and initiate a new one after the market is relatively calm
In the given example, the NIFTY has moved from 18600 to 18412
(188 points from the strike price)
4. Exit the losing leg and create a strangle

NIFTY has moved up by 86 points

We can keep the square off the short call option(at a loss)

and we can
1) Put an SL on the put leg (this would make it a directional trade)

or

2) We can sell a 18850 CE to create a strangle
5. Buying in the direction of the trend

In the below example,

NIFTY has moved 92 points from our strike price

We can buy 18850 CE to reduce the risk on the upper side.
We can also bring the buying side closer to make the upper side loss-free.
TERMINATING THE STRATEGY

• For profit booking, trailing stop loss is suggested so that maximum points can be extracted from the straddle
On the other hand,

• If one has lost over 2% of his/her total capital, he/she should probably terminate the strategy and book the loss.
That's all for this thread. If you like this, I'm sure you would also like my telegram channel. ❤️

Where I share live trading and market-related updates, you can join my FREE TELEGRAM CHANNEL by clicking on the link below. 👇

https://t.co/GHfoJevtw1
I hope you've found this thread helpful.

Follow me @mohitsharmadl for more.

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Collaborated with @niki_poojary

Here's what you'll learn in this thread:

1. Capture Overnight Theta Decay
2. Trading Opening Range Breakouts
3. Reversal Trading Setups
4. Selling strangles and straddles in Bank Nifty
6. NR4 + IB
7. NR 21-Vwap Strategy

Let's dive in ↓

1/ STBT option Selling (Positional Setup):

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Check Bank Nifty at 3:15 everyday.

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I have to wear shoes? ...
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A thread about GameStop:

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James Mishra
@rishmishra
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despite the warnings of top law enforcement officials

and NOBODY is talking about this.

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After I'd speak to the victim, they'd receive a medical exam from a Sexual Assault Nurse Examiner (SANE).

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As part of our Knowledge sharing initiative by @FinnacleAcademy and @Investmentbook1, here we are on our post 2 with some of the most important key takeaways of the book “Masterclass with super investors” by @vishalmittal22 & @basrars

Here we go! (1/n)


Masterclass with super investors is one of the best books covering the investment strategies & journey of renowned domestic investors. Our summary has been segregated in 2 parts, A) Common traits in investment ideologies of these stalwarts B) Investor specific key takeaways (2/n)

A)Let's look at a few common points in these Stalwarts' investment ideologies 1)Invest (higher % of portfolio) when you have conviction backed by sound logic 2)You need to be bullish on India to make investments in Indian cos. bcoz majority of Indian cos. are domestically focused

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@JayneshKasliwal
𝗡𝗶𝗳𝘁𝘆-𝗕𝗮𝗻𝗸𝗻𝗶𝗳𝘁𝘆 𝗢𝗽𝘁𝗶𝗼𝗻 𝗕𝘂𝘆𝗶𝗻𝗴 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆

Complete Backtest and Indicator link

🧵 A Thread 🧵

𝗦𝗲𝘁𝘂𝗽:
🔸 Monthly Option Buying
🔸 50 ema on 3 min timeframe
🔸 Supertrend 10 , 3
🔸 Chart : Banknifty , Nifty Futures as we backtested on futures
🔸 Entry 9:20 to 3:00
🔸 Max 3 Entries per day
🔸 Premium nearest to 200 Rs only

[2/18]

Why Monthly Option buying ?
🔸 Less theta decay compared to weekly options
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🔸 Supertrend and MA Settings
[3/18]


🔸 Indicator Link
🔸 Click on the below 𝘭𝘪𝘯𝘬 -> 𝘈𝘥𝘥 𝘵𝘰 𝘍𝘢𝘷𝘰𝘶𝘳𝘪𝘵𝘦𝘴 -> 𝘈𝘥𝘥 𝘰𝘯 𝘊𝘩𝘢𝘳𝘵 from favourites and start using it !

🔸 https://t.co/zVXavqLBto
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𝗜𝗻𝗱𝗶𝗰𝗮𝘁𝗼𝗿 𝗦𝗲𝘁𝘁𝗶𝗻𝗴𝘀 :
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