Discover and read the best of Twitter Threads about #ExpiryTrading
Most recents (5)
#orderflow can help make a reasonable guess if markets will remain in range or find potential strong break out points. This then helps build context to take positions on either range reversals or range breaks.
So today markets opened lower. Question- Break lower or pullback?(1/n)
So today markets opened lower. Question- Break lower or pullback?(1/n)
#banknifty as an eg., assuming first scenario as a potential pullback into yday range. This is stopped out by large limit sellers near 42500, this coupled with large OI increase and aggressive selling at 42500CE adds credence to a downside theory. 150K+ traded in 2 candles (2/n)
With large absorptions at top ,about 35K & 30K at tops. This and the OI change should had led to a downside. What we are looking for is a sharp rejection and continuation. This is stalled with poor downside follow through delta and then large absorption of sellers at 1:!5. (3/n)
#Quora Question: How can 20X or 10x leverage for Option Selling be a risk If I follow Risk Management?
So this is about #Intraday #ExpiryTrading #OptionsTrading
This is inspired from traders with 70k+ followers. These traders and trainers recommend selling dirt cheap options. 1/n
So this is about #Intraday #ExpiryTrading #OptionsTrading
This is inspired from traders with 70k+ followers. These traders and trainers recommend selling dirt cheap options. 1/n
These traders started trading in expiry weekly options when volatility was less. Now the volatility is extreme.
You are asked to follow a portfolio stoploss of 1% so I suppose that is fine.
You are asked to sell cheap options of #Nifty 1 -2 rupee and #BankNifty 5-6 rupee 2/n
You are asked to follow a portfolio stoploss of 1% so I suppose that is fine.
You are asked to sell cheap options of #Nifty 1 -2 rupee and #BankNifty 5-6 rupee 2/n
You will sell in small lots so that is fine too. Consider this scenario.
On 26 September 2019 at around 10 am I sold cheap options of #BankNifty at ₹6/- only 20 lots which was i think 4 to 5% of my capital. What bad can happen. When I was putting stoploss at ₹15/- 3/n
On 26 September 2019 at around 10 am I sold cheap options of #BankNifty at ₹6/- only 20 lots which was i think 4 to 5% of my capital. What bad can happen. When I was putting stoploss at ₹15/- 3/n
#Quora Question: Why do some people prefer not trading on expiry days?
Because there is no set by the books way to do expiry day trading. See my screenshot of Intraday Net Positions from yesterday. After brokerage, I made a loss of ₹35k. Thread coming. #BankNifty #Nifty 1/n
Because there is no set by the books way to do expiry day trading. See my screenshot of Intraday Net Positions from yesterday. After brokerage, I made a loss of ₹35k. Thread coming. #BankNifty #Nifty 1/n
Retail participation through leverage has increased in Thursdays Expiry #OptionsTrading. Everybody cannot be a winner. One's gain is others loss. Hence market makers have made Thursdays #BankNifty move extremely volatile. It is normal for a ₹10 option to hit ₹200 & 0 again. 2/n
I have been trading options as bread and butter, despite the fact that OTM options goes to 0, I prefer not to indulge in Expiry trading. I have tried:
1. Selling Option with proper signal with SL almost always hitting 0. Probability because of Index Management and Volatility 3/n
1. Selling Option with proper signal with SL almost always hitting 0. Probability because of Index Management and Volatility 3/n
Don't create focus on return in trades.
3/n
3/n
1/n
A lot of chatter on my TL about the #edge in #OptionsTrading, specifically #OptionSelling.
A lot of good information but some mis-information being spread as well.
A #thread.
A lot of chatter on my TL about the #edge in #OptionsTrading, specifically #OptionSelling.
A lot of good information but some mis-information being spread as well.
A #thread.
2/n
First off, #OptionSelling by itself is NOT an edge.
Simply by selling an instrument that decays in value over time, doesn't give one an edge towards profit. It is accompanied by short gamma and rising #volatility working "against" you.
#OptionsTrading
First off, #OptionSelling by itself is NOT an edge.
Simply by selling an instrument that decays in value over time, doesn't give one an edge towards profit. It is accompanied by short gamma and rising #volatility working "against" you.
#OptionsTrading
3/n
The #volatility #edge or premium expresses itself when the underlying moves "less" than the move that is priced in the options.
#OptionsTrading
The #volatility #edge or premium expresses itself when the underlying moves "less" than the move that is priced in the options.
#OptionsTrading
