Discover and read the best of Twitter Threads about #Option

Most recents (20)

Many who became a Full-Time #Trader in the last two years would be in a dilemma because of the volatility in this market.

Be a part-time trader instead of leaving it.

This #thread 🧵will be on what all #strategies, I personally use to generate active #income in the market.
We will discuss positional trading and investing in stocks and then about option trading.

In #Stocks, we don't take any leverage, so risk is lesser, whereas in #Options it is a leverage instrument, so risk is high and it can wipe out your capital.
#Investment #Portfolio:

This is basically my long-term portfolio, which I create for a horizon of more than 5 years.
There are certain criteria which I use to filter stocks in #Investment.

Mostly look for the sector where you know something.
Read 20 tweets
Sur les #pénuries & blocages, quelle option choisir?
1) soit une #vraie pénurie avec des milliers de morts de faim (embêtant pour les dîners au Palais Vivienne)
2) soit une "#pseudo pénurie /famine" où on aura juste des rayons de biscottes vides filmées en gros plan? (suite⬇️)
Le #Covid a bien sûr malheureusement tué beaucoup de gens, mais le taux de mortalité était relativement bas.
Les protocoles (criminels), le non-traitement des gens fragiles et le #Remdesivir ont largement contribué aux décès. On a vu comme les médias ont juste contrôlé la trame⬇️
Alors si tout est faux par les médias, dans quelle proportion faut-il une "vraie" #pénurie pour avancer la suite? Faire fermer les rayons biscottes à Leclerc, puis envoyer les acteurs-manifestants-casseurs dans les rues, pour prétendre à une insurrection à mater par l'armée?
Read 7 tweets
The cash strategy 👇☢️👇

1⃣ #stock selection process - always choose that stock which are consolidating near all time high.

(Because whenever stock will give all time high breakout then it will easily give 20/30% return in 1/2 months

U can use trading view scanner for that.
2⃣volume analysis - In that consolidating period volume should be high of up move days then down move days. And last 3/4 month volume of accumulation is much higher.
3️⃣ fund diversification - always deploy your capital in 3/4 stocks, not more then that or not less then 3.

And, your 3/4 stocks must be from different different sectors.
Read 9 tweets
Want to understand what makes #USDINR interesting from an individual #option trader perspective.

Let's try to understand this in this thread. USDINR has both weekly and monthly options contract which are fairly liquid. Today was weekly expiry.
Weekly options expire every Friday at 12:30 pm and monthly options at 2 days prior to last working day of the month. Margin applicable in USDINR is normally between 2.5% to 3% depending upon volatility.
Margin for one lot of USDINR #straddle (74.50 July 30 expiry - weekly contract) is roughly Rs. 2600/2700 and premium received is around 35p, which on one lot comes to Rs. 350 ($1000*0.35).
Read 8 tweets
A Thread 🧵#Option Terminologies for Beginners ...

Must read for beginners in #StockMarket.

(RT to maximize reach.)

#Options #CallOption #PutOption #StockMarket #Trading
🌟Definition of Option 🌟

#Option is a #derivative product. It gives the buyer of an option the right, but not the obligation to buy or
sell an underlying asset at a set price on or before a certain date.
There are two types of Option contracts - #Call and #Put.

A call option gives the holder the right to buy a stock.

A put option gives the holder the right to sell a stock.

👇(Both call & put are explained in detail below)👇
Read 20 tweets
1- Options & Earnings - A new thread!

Every option rises in price in anticipation of earnings. This is related to the increase of anticipated volatility (yo vega, she's back).

#fintwit #mintwit $option $AG #option #optiontrades
2 - But why?

Actually it's simple: earnings are a casino event for the stonk. Nobody knows what will happen, will the stonk crash or rise? Earnings are thus binary, it's a yay or a nay (UK ref. for you @BuyingMyFreedom). Movements post earnings are stronger as well.
3 - Here comes Mr. Market Maker. Mr. MM knows this, and they want more money for these call/put options, since they have to secure themselves against more risk.

Makes sense, in classic markets, I sold options on my underlying stonk for premium (#coveredcall).
Read 9 tweets
I hv seen ppl telling subjective about firsy 15 days buy Option last 15 days sell option etc.
This is actually not a proper way of doing.
Implied Volatility (IV)
Historical volatility (HV).

When IV less than HV go for buying option
When IV greater than HV go for selling
For iv observation keep tracking any Option related websites.

But my simple suggestions dont do it complex simply use spread. Its reduced theta and iv issues almost and also easy to adjust.
For adjustment see Long call repair article tree.
Now spread also hv 2 types either credit or debit one. If ur view sideways to Directional better go credit one. If u r looking purely directional then debit is best.
Note: otm credit hv big risk than Reward but otm debit spread hv low risk setup in Option Strategy.
#option
Read 6 tweets
Mostly i hv seen people do calendar incorrect by doing both call put sell at atm and buying long straddle next expiry.
There is no need to place 4 leg which can happen only by 2 leg either by call calendar or put calendar.
If u see both example exact same payoff. ImageImage
But i prefer put calendar due to its less sensitive to delta and more effective on vega as we know put side more premium mostly available and they decay slow and near to end of day/near to expiry.
Calendar is neutral payoff but its harsh move resistance power.
So if ur view sideways to bearish then only use it.
Its normally give 1sd breakeven but with time n vega payoff keep changing.
Even in sharp correction like march its useful and profitable if u follow proper guidelines.
Read 10 tweets
People do itm put calendar instead of otm call calendar. Why give big slippage and stt. Any benefit with it. Just reviewing one adjustment technique.
Views most welcome, also giving free one way of adjustment.
#adjustment #option ImageImageImageImage
One diffence i can see fut to fut arbitrage pts difference. Rest everything almost same for me.
For any short strike we can manage it net debit otm calendar. Atleast 3x to multiple offset calendar required. But its helpful on downside adjustment than upside bcoz of downside iv shift up helpful than upside tent going to shift small with iv erosion.
Read 7 tweets
The #deficit #myth #deficitmyth by @StephanieKelton #MMT modern monetary theory
Myth N. 1: The #state should budget like a #household
#RealityCheck : unlike a household, a #SovereignNation, which owns its national #centralbank, issues the #currency it spends
Myth N. 2: #deficit is evidence of #overspending
#RealityCheck: look to #inflation for evidence of over spending
The purpose of #taxes is not to pay for #government expenditures but to help rebalancing the #wealth distribution #MMT
Read 56 tweets
#Option Chain
#Option trading

# ATM CE position built up... Strong resistance
# ATM PE position built up... Strong support.
# Far OTM position built up on call side...Strong bullish
# Far OTM CE position built up... Strong bearish....

I couldn't find it so simple.
Mostly, what I learned is this presumption is a very easy way to misguide the masses by using the option chain.

On many occasions I have taken absolutely opposite stand and got good hit ratio.
Apart from the position built up, if one pays attention to futures position, traded value in cash and delivery% along with the traded value at the each strike price of respective option, this may give much stronger insight of bias, since, bigger money at stake.
Read 10 tweets
Biggest issues i had seen in option writer they fear with gapdown only. But in reality mkt nature atlast go up and iv construction such u can escape n manage easily in fall also downside limited loss. Only issue is u r taking high leverage position. Only God can save u. #option
Downside u can roll position without management until mkt recovery (only for index). But in other hand upside unlimited losses, low iv and very hard to roll bcoz no one can say mkt when crash or come down next time only range extension n stop work.
Thats why i hv seen ppl Trading reverse jade lizard (few say twisted sister) but mostly option writer trade normal jade lizard. Nowadays happy to see ppl started shorting put which is good investment plan.
Read 3 tweets
#option game of IV
need to understand why so? Image
I went long in 20500 yesterday and short in other two--
bnf down by 600 point and see premiums Image
deep neck shorted 😑
Read 3 tweets
#Options vs #Futures

Although both are #derivatives, Futures and Options are entirely different in terms of their potential #risk and #return , #leverage and how they work.

How different are futures and options?
#Rights vs #Obligations

In #Futures Trading, both the buyer & the seller are #obligated to settle the contracts on or before expiry ie cover shorts or longs or rollover to next contract, regardless of how the underlying asset price moves.
With #Options the buyer has the #Right, but not the #Obligation, to buy (call option) or sell (put option) on underlying asset. The option seller is #passive and must comply with whatever the option buyer does.
Read 13 tweets
#Option #Greeks Simplified

#Options are definitely more complicated than equity or futures.

Their prices don’t just go up and down.

They also fluctuate based on things like #time, #implied #volatility and #underlying stock movements.
#Options #Greeks Are Simply Mathematical Shortforms

Most of you would remember from school that mathematical formulas sometimes were #Greek letters like Pi and #Delta. The same is true for options.

Don’t let them overwhelm you or scare you.
They’re simply #mathematical words to explain some very basic principles.

#Greeks Describe the Behavior of #Individual #Options

Each #greek can help predict how it will behave under different circumstances and how options prices would change.
Read 22 tweets
#ITM Vs #OTM #Options Which to #BUY?

When selecting the right #option to #buy, a #trader has several choices to make. One is whether to purchase an in-the-money (ITM) or out-of-the-money (OTM) option.
While the goal for "#vanilla" #buyers is to have the option be in the money at expiration, the selected option depends on the amount the trader wants to spend and their risk tolerance, as well as their specific expectations for the underlying stock.
UNDERSTANDING #ITM Vs #OTM

Before delving into the pros and cons of each, let's look at what it means to be itm or otm.
A #call is ITM when the underlying stock is trading above the strike price.
Conversely it is OTM when the underlying stock is trading below the strike price
Read 16 tweets
Tomm we start a journey at @ZuckerSoM w/ 3rd yr #MedicalStudents to enhance #Awareness #Education #Skills #Comfort #Hope re: #OpioidCrisis

13.5 hours - "#OpioidEpidemic" themed week (3rd iteration)

Follow/RT as Students, Colleagues, & I tweet - #OURcrisis

#MEDeD #RecoveryMonth
1️⃣0️⃣0️⃣ MS3 #Students

6️⃣0️⃣ Faculty/Facilitators

3️⃣0️⃣ Clinical/Non-Clinical Depts

#OURcrisis @ZuckerSoM

@GIMaPreceptor @DrYili @MartinsWelchMD @JoeCMD @medicmin911 @ektrenchard @ethanfried @ginofarina @LindaWDeMasi @AFornari1 @joemd @DrAhuja @santhoshpaulus6 @TomMcGinn4
#Strategic Full Circle
1. from Health System (need)
2. to School of #Medicine (access)
3. to Health System (access/mission)

Our #OpioidEpidemic themed week is part of a 30+hour 4-yr longitudinal 'Addressing #SubstanceUse' curriculum
#OURcrisis #MEDeD
🔗: sgim.org/File%20Library…
Read 28 tweets
Theoretically, #VIX and Implied Volatility tends to go down with a rising #Nifty in case when there is no known event. Nowadays there are many #traders writing #options #strangles etc. I doubt many have seen the 2010 move or 2009 election day.
#Nifty went up from 5600 to 6000 + in 2-3 weeks and #VIX went up from 16 to 24. #IVs for #OTMs would have gone bonkers in Sept 2010. #Nifty #Options #Strangles. If somebody can put up actual price moves of #Option #Strikes Image
forbesindia.com/article/boardr… The Mumbai-headquartered Aditya Birla Money had lost Rs. 103 crore on its Options Maxima strategy. A lot of other prop desks got hurt real bad... Disclosure - Not targetted against anyone. #NotTrolling
Read 3 tweets
The God of #Options #Greeks is often disregarded and has no mercy, especially on #Options #expiration day.

A #Thread on #Gamma.

#OptionsGreeks
1/n
The primary feature of #Options is their non-linear payout.

Most traders understand that #OptionsPricing is dependent on the price of the underlying, but the response is non-linear. #Gamma is the variable that describes this non-linearity.

#OptionsGreeks
2/n
Loosely, if #Delta is the speed of the #Options position, #Gamma is the acceleration.

#OptionsGreeks
3/n
Read 15 tweets
Except you don't have the consciousness to do that- only what you've, perhaps, been programmed to register, process, or maybe transmit/emit. Here in #Ireland on the other hand there are 💚s everywhere hoping to #repealthe8th #LISTENUP #Focus on #Caring #Now to ensure #legislation
2/ to #repealthe8th or/& make #abortion in #Ireland a #legal #safe #clinical #option for women, regardless of socio-economic circumstances.
3/ Think you want to **Repeal the 8️⃣️th** 💚s? This is a sane quote from here, Ireland, today:"The dissolution of the Dáil would see the simultaneous dissolution of all Oireachtas Committees. ---
Read 12 tweets

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