๐—ง๐—›๐—˜ ๐—ข๐—ฃ๐—ง๐—œ๐—ข๐—ก๐—ฆ ๐—ง๐—›๐—ฅ๐—˜๐—”๐——-๐Ÿฎ
So we had discussed a few pointers in the previous thread about options,its time now we discuss further implications and applicability in this thread which will help you in NEW YEAR.
Letโ€™s go and dive into the world of options trading.

-The amount of decay can be measured by theta. This is why you can be right on stock price direction and still lose money. The time decay portion of the option price overpowers the directional move in the underlying stock price.
-During result days due to the heightened uncertainty, there is opportunity for options sellers because of the expensive premium. When entering into an earnings trade, it is optimal to initiate the trade as close in time to the event as possible.
-Keep some cash on sidelines. This would help in adjustments,margin expansion,face losses and also during new opportunities which suddenly arise. A lot of people do the mistake of going all in and regretting later.

-Everything in trading has a trade off.
Unlimited profit comes at the expense of low probability of profit. Give up some profit potential, and you gain a higher probability of profit.
-By using portfolio beta weighted delta, you can accurately gauge your overall portfolio risk. If your portfolio is leaning too far in..
one direction (bullish or bearish) you now have the information to add offsetting trades to reduce your overall directional risk
-Iron condors & credit spreads are two defined risk short premium strategies
These strategies involve both selling a closer to the money option..
& buying a further out of the money option.
-When you place our options orders, you need to go in at mid price to get a fair price on your positions. As a retail trader, you never will be able to buy on the bid price or sell on the ask price. That is the job of the market maker
-In options with a market order, you are allowing your broker to fill your trade at whatever price someone is willing to give you. This is often not a fair price and using market orders is a great way to get ripped off.
-Hope you gained some insights.
Here is the link of previous thread. If you wish more informative threads which ofcourse dont cost anything but add value,dont forget to retweet on this post. I am certain you can do that to spread learning.
https://t.co/AV8EPWM2Uf
Keep learning
Keep sharing
Keep growing

More from Abhishek Kar

๐“๐จ๐ฉ ๐‘๐ž๐š๐ฌ๐จ๐ง๐ฌ ๐ฐ๐ก๐ฒ ๐“๐ซ๐š๐๐ž๐ซ๐ฌ ๐…๐€๐ˆ๐‹!!
This thread is about the top reasons why most traders fail. If you want more finance and business related threads on regular basis,don't forget to retweet and share with your friends.

1. Negligence of risk management
While we can't foresee what the business sectors will do before long, hours, or days, however we do have full power over our danger levels at some random time. Risk management not just includes stop loss but also avoiding unnecessary trades.

2. Not having it planned out
A philosophy, or set of rules, is necessary. The business sectors can be tumultuous and confounding, particularly for somebody without a particular game plan that can be utilized over and over. Hence,planning essentially is going to help in any case.

3. Wanting to be always right
Numerous unpracticed informal investors center a lot around their triumphant rate. There will be times when you'll question your trading abilities, or even think whether trading is the correct occupation for you. No one is right always,cut losses.

4. Bad risk-to-reward ratio
There are two reasons traders end up with a poor risk-to-reward ratio:
a. They don't have an exit plan and rather essentially respond to the market without doing maths.

b. They can't hold their winnersโ€ฆ yet they hold their losers.
๐‚๐จ๐ฏ๐ข๐ ๐š๐ง๐ ๐ข๐ญ๐ฌ ๐ข๐ฆ๐ฉ๐š๐œ๐ญ ๐จ๐ง ๐ˆ๐ง๐๐ข๐š๐ง ๐ž๐œ๐จ๐ง๐จ๐ฆ๐ฒ
The entire thread will talk about covid and it's effect on our economy. The data will be backed by facts. If you want more informative threads in the future,don't forget to RT and share with friends.

1. The worst affected sector:
The worst affected of the lot will be travel industry. The incomes produced by movement and the travel industry, which contributes 9.2% of the GDP, will negatively affect the GDP rate. UNWTO assessments portray a fall of 20โ€“30%in global travellers.

2. Positive replacement from China:
A chance to partake in worldwide stockpile chains, multinationals are losing trust in China. In'Make in India', a few changes are required,and if that takes place, manufacturing and API base companies will shift to India giving a growth blast.

3. Construction sector can see loss of revenue :
We saw an appalling mass migration of such coasting populace of travelers by walking,amidst of countrywide lockdown. Wage workers specially working in construction,may not turn back so quickly. Many have preferred farming too!

4. Bankning and Finance sector
For a moment stop comparing ground realities with stock market action. Nonperforming credits relating to retail and MSME sections are on the ascent. In its Financial Stability Report,RBI has also said it fears defaults of many loans in next 2yrs!

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