Discover and read the best of Twitter Threads about #options

Most recents (24)

"Be in the game to win the game."

Do you know who'll enable you to be in the games of #Stock #Markts for long?
It's not me, not you, not your studies, nor the #Nifty itself.
It's ...
...the only and only our beloved SL which'll protect you.

Always put hard SL, and that too in a place where if it gets hit, the logic with which you initiated the trade gets negated and you move on from that #stock or #index.

You must've seen in my telegram calls that...
... I often ask you guys to move the SL to cost, that's because capital protection is our main aim. Also the nature of #Options buying #trade is such that we can't hold the trade for long. Decay will kick in and even if we get the direction absolutely right we won't get benefit.
Read 5 tweets
Read 14 tweets
#Knowledge
#Options
Ever wondered y gamma is the enemy of straddle / strangle sellers and what it means?

Presume readers are aware of option Greeks meaning...

To understand , first ...

Relationship between delta, gamma, theta and option premium.
....
....

Theta + (int Rate x Underlying price x Delta) + ( 0.5 x variance of underlying x Underlying price x Underlying Price x Gamma ) = Int rate x Option premium.

Strangle and straddles are delta neutral setup;For a delta neutral setup, the second term becomes zero; Hence,
...
....

Theta +
(0.5 x variance of UL x UL price x Underlying price x Gamma)
= Int rate x option premium

Straddle and strangles have typically zero delta at initiation; they also have positive theta, meaning they gain over time assuming other components of option r constant ..
Read 4 tweets
Friends here we go 🗝️

12 solid videos each 1 HR long teaching you all I know on #Options and day trading 🚀

This is my gift to the world ❤️

All of your questions have been answered here 👇👇👇

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Read 6 tweets
1) @solana's lightning-fast environment makes on-chain derivatives/options protocol interesting. A thread on the Solana on-chain derivatives protocol.
2)@SoteriaCurrency is a P2P perpetual swap protocol uses @PythNetwork oracle to access index prices and SPL standard for long/short positions. It leverages pool-based AMM for better liquidity and market accessibility, liquidation is handled through 3rd party liquidators.
3) @ZetaMarkets and @MoetFi is an under-collateralized options trading protocol on @solana. It uses a hybrid CLOB and vAMM model that allows for efficient pricing and deep liquidity, achieving under-collateralization.
Read 7 tweets
‼️more education on stuff i look for‼️

✍️📚📖✍️

day like yesterday, market was super red and turned super green

before any of this i will say, WAIT FOR CONFIRMATION, don’t try to catch exact top or bottom

days like this i watch for, strength against the market

for example
if market is ripping and super green, look for put setups on tickers that are weak or red

when market turns back other way, those weaker stocks should die much faster

additionally, finding bearish setups while market is bull ripping can provide nice entries
if market is dying, search for some overall bullish setups on stocks that are still green/strong

again, when market turns, they should rip

a red day in a bullish overall trend can be a nice dip buy!!

again WAIT FOR CONFIRMATION don’t try to guess top or bottom of reversal!
Read 4 tweets
🔥INFORMATIONAL THREAD🔥

CRITICAL to my style + always useful!
‼️📝‼️

lots of my plays deal with resistance/support breaks

-what happens after that is what is most critical for my style, this is how i choose my triggers

-when a stock breaks a resistance it’ll basically either
1) just moon and form a big green candle followed by another

2) it’ll form a red candle right after...seeing if the previous resistance now holds as a support

in #2, if the previous res. successfully holds as a new support, the stock should take a leg up
if it doesn’t hold as a new support, then it is a fakeout

in #1, and a successful support hold of #2, both are safe to hold long

if it fails to hold in #2, gotta cut

the same is true for the opposite way when going short...also true for most time frames
Read 5 tweets
Forex Live 1/5: FX #options expiries for 14 Apr 10am NY cut
There are some sizable ones layered for #EURUSD closer towards 1.1900 but also near current levels, even for tomorrow, so that might attract price action with key resist seen closer towards 1.1990-00 region at the moment
Forex Live 2/5: That said, the dollar looks vulnerable across the board with 10-year #Treasury yields also sitting on the cusp of a soft bottom closer to 1.60%, so there's that to consider.

Going over to #USDJPY, that has seen the pair fall below 109.00 - where there are some
Forex Live 3/5: modest and chunky expiries seen this week.
Technically speaking, the break below 109.00 also sees the pair likely to push lower to test the 23 March low @ 108.40 so this just adds to the conviction.

All of that ties together with general dollar sentiment and how
Read 5 tweets
#AMC #GME #TSLA #KOSS #OCGN #MEMESTOCK #MOONING #L2BU Part 2 Skin In The Game - We were talking about the importance of the clearing fund...here is what it is used for "The Clearing Fund may also be used to make good losses or expenses suffered by the Corporation or losses
suffered by the Clearing Fund resulting from borrowings pursuant to the authority in Rule 1006(f): (i) as a result of the failure of any Clearing Member to discharge duly any obligation on or arising from any confirmed trade accepted by the Corporation, (ii) as a result of the
failure of any Clearing Member (including any Appointed Clearing Member) or of CDS to perform its obligations (including its obligations to the correspondent clearing corporation) under or arising from any exercised or assigned option contract or matured future or any other
Read 25 tweets
#AMC #GME #TSLA #KOSS #OCGN #MEMESTOCK #MOONING #L2BU Alright folks, so the moment you've all pretty much been waiting for the the SR - OCC - 2021 - 801 rule as it stands IF THEY HAVE "SKIN-IN-THE-GAME"
There is so much to unpack here and I'm going to solely cover one part of the rule. I will also post the video on this after this is posted. So here we go. Basic Structure we need to understand is that the SEC is at the Head of the two organizations sitting underneath it.
On one side you have the OCC and the other side you have the NSCC. We've talked about and discussed for months the NSCC rules and how they apply to securities. We've gone through the NSCC 801, 005, 004, and the 003 rules. Now we're getting to the point that the other branch of
Read 25 tweets
1/
 
It is quite profitable to sell put #options for income. It is fairly passive, and if done correctly, there is actually very low risk. Here is how I do it.

#NotInvestmentAdvice

$TSLA $MSFT $SE $CRWD $BABA $FB
2/
 
Rule #1: Only do this for the companies I want to own, at a price I am willing to pay, and without blowing up the position size if assigned.

So I continuously do this on highest conviction #stocks, eg: $TSLA, $MSFT, $SE, $CRWD

Or the stocks at great value: $BABA, $FB
3/

Strike price: Informed by valuation. Try to sell ATM for maximum time value if price is great. Otherwise 10% OTM. Do nothing if the stock price is rising.

Expiration: On average 4 weeks out. Longer expiry during market correction, shorter when the stock is consolidating.
Read 6 tweets
@AutusInvestment With your permission sir ji, for learning, Based on your SG levels, making thread for April expiry, copying the levels from your daily tweets. Will cover Day candle, positional and intraday. Will keep updating everytime when there is a change in SG levels. 🙏💐
#positional "Live SG Level":- SPOT
#BANKNIFTY SSG level is 33156,SG Level is 33447 & Resis level is 33466
#Nifty SSG level is 14458 SG level is 14558 &Resis level is 14555
110% rollover in #BNF 21.28Lakh with 275 points & #Nifty with 125 points premium
Diff in SSG/SG increasing
Day Candle "Live SG Level":- SPOT
#BANKNIFTY SSG level is 34327,SG Level is 34580 & Resis level is 35940
#Nifty SSG level is 14745 SG level is 14782 &Resis level is 15281
Proper crossover of SSG/SG is DONE
In #Nifty, it is 1st time after 26Feb 2020 @ 11733 breakdown of big fall
Read 20 tweets
Heading into the quarterly options expiration there are several dynamics at play in $BTC.

Pay attention to Max Pain (sort of), compressing ATM vol, and a tightening range below S2F.

#Bitcoin #options
Max Pain is the idea that at expiration spot will gravitate towards the strikes where long options are worth the least. It's calculated by multiplying open interest by intrinsic value.

For BTC this month, that's currently looking to be around $44k.

Given that the strike is relatively far from the money, this is going to exert less pressure. Many of these options have been held for a while and represent older positioning, mostly protective puts. (Everybody sleeps better with an insurance policy)
Read 6 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
How @HegicOptions works

In general think of it as something similar to Uniswap. In Uniswap your pool will be something like let's say ETH and USDC for example.

#HEGIC #Options #DeFi #Crypto #blockchain #economics
In HEGIC you just have one asset let's say ETH. You add liquidity into the pool and what we want to do is to get all these little smaller guys with some capital put them all together.
With Uniswap people can trade and exchange so if I have ETH and I want to change it for USDC or if I’ve USDC and want to change it to ETH.
Read 7 tweets
#OptionsTrading thread that may save you!

Now a days we started seeing MTM for Crs & some people call it fake, but I see them as real & possible BUT its not as simple as they show it.

Simple Reason:
When asked about open risk & position sizing no one answered.

1/n Image
A friend clearly putted it saying "lot is unknown" as no one will share their pains & secrets on #socialmedia

Which lead to do some simple calculations that how things really look while writing #options using different styles.

2/n Image
Ac size 1cr
Naked positional option writing
1% risk
Qty arrived keeping total premium received as stoploss
means we are ready to lose 1rs to gain 1rs to start

Out of expiry days these guys write 25 to 30 rs options. Next day if those open as ATM then the %hit on ac👇

3/n Image
Read 9 tweets
109. #Options #Notes

A quick update on a few stuff.

For a conservative, low margin money person(low money at hand), the best option in credit spreads is about 25-30 delta. You are looking for risk reward 1:0.5 to 1:0.25.
You can manage at 1:1 by being more active.
110. #Options #Notes
It’s better to have all spreads at 1/3rd the width of strike.
That gives us a 1:0.5 RR ratio. Ex: trade with max profit of ₹1k has max loss of ₹2k.

You can’t have a low probability trade unless you are damn sure about it.
111. #Options #Notes

If you are going to be directional, be directional.
I had tried both ATM bullish put spread and 35 delta put spread on SBIN. I got more out of former because i got the direction right and i used closer to 50 delta.

In directional, do it 💯 or don’t do it.
Read 4 tweets
Thread 🧵#StockMarket #Tips For Beginners 🇮🇳

In this thread find some stock market tips for beginners, especially those who have joined market recently during #COVID19 #lockdown and have only seen one-sided rally.

(If you like then please re-tweet to maximize reach)

#BSE #NSE
1⃣ Save Regularly & Initially Invest Small Amounts 👇

#Investing in #StockMarket is comparatively risky as compared to investing in other avenues. Hence start with small amount and it should ideally be the amount which you can afford to loose.

#BSE #NSE
2⃣ Initially invest via #MutualFunds 👇

It is the best thing to do initially, if you lack knowledge about #StockMarket #investing, start investing via mutual funds and only after learning the basics slowly jump to direct equity investing.

#MutualFundsSahiHai #MF
Read 12 tweets
A simple thread to help all understand ‘Futures and Options’ in an easy way. Though I would personally not recommend new investors to trade in F & O, but it is always good to know things. 👇🧵

#Investing #Investors #Options #Futures
1. What is a ‘Derivative’?
‘Derivative’ simply means a product which is derived or dependent on some asset. This asset is called as ‘underlying asset’.
Let me simplify this by putting this example.
Both ‘Coffee’ and ‘Tea’ require ‘Milk’ for their making (assuming that you drink it that way, of course) . Hence, if the price of ‘Milk’ increases, the prices of ‘Tea’ and ‘Coffee’ will also increase.
Read 28 tweets
Introducing the Dollars and Sense 3K options challenge!! 🚀🔥😎💰

Today I funded my margin account with its first 3K.

The Goal? To use the power of #options to grow a small account into a big one 🤑

Then I thought my not share my trades and thoughts with Twitter! More info👇🏻
Ep 1

So officially I transferred 4K🇨🇦 into my US margin account which after conversion was around $3,093.34 🇺🇸 so I’m starting with a little more than 3K but I need all the help I can get 😉

Disclaimer Canadian banks suck and I still pay $9.99 commissions +$1.25/contract 👎🏻
Now enough gabbing let’s get to the first trades, and they involve when of our favorite new stocks $FEAC soon to be $SKLZ. I have been loading up the truck with $FEAC over the last few months and love the business more as time goes on ($SKLZ thread up coming). With merger set...
Read 6 tweets
#RealInvestmentReport is out!
The #bullish #bias kept #market holding above recent #breakout levels, but extensions and deviations from means remain extreme. We could see further weakness next week before the year-end "#WindowDressing" #rally.
realinvestmentadvice.com/irrational-exu…
While markets did weaken slightly over the last few sessions, the #market remained above recent breakout levels. However, with a short-term #MACD #sellsignal, and #options #expiration next Friday, we could see further weakness next week.
realinvestmentadvice.com/irrational-exu… Image
In August we laid out our year-end #target of 3750. With the #SantaClaus rally ahead, (in reality it is #WindowDressing week) we are close to our mark. 2021 will likely prove to be disappointing as we lay out the #risks.
realinvestmentadvice.com/irrational-exu… Image
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Share trading or stock market investing offers a land of opportunities for those who are willing to learn and invest their time into research. Don't take financial markets lightly and think all is going to be good by chance. Learn and experience.
investinginsight.org Image
Many people confuse stock options with binary options; they are completely different instruments and should be treated as such. Make sure you understand stock options and stay away from "gambly" binary options.
Stock options
investinginsight.org/how-do-stock-o…
#stocks #options
Always have a trading plan, don't leave it to chance.
Many rookie investors and traders underestimate the value of having a solid trading plan and sticking to it.
Successful investing requires planning and discipline.
investinginsight.org/stock-trading-…
#tradingplan
Read 5 tweets
(1) So let me try to write something down on #options, more specifically #LEAPs (Long-term options).

Options?

Options give you the 𝗿𝗶𝗴𝗵𝘁 to buy (call) or sell (put) an underlying asset (= stock/ETF) at a fixed price (= strike price) up to a spec. date (= exp. date).
(2) Premium.

Ofc. options aren't free. You'll have to pay a premium for this right. Important to keep in mind is the multiplier, which often equals to 100 (every option covers 100 of the underlying shares).

𝗣𝗿𝗶𝗰𝗲 𝗽𝗲𝗿 𝗼𝗽𝘁𝗶𝗼𝗻 = 𝗽𝗿𝗲𝗺𝗶𝘂𝗺 * 𝟭𝟬𝟬 (+ 𝗰𝗼𝘀𝘁𝘀)
(3) Pricing
Options pricing is determined by the four greeks (separate thread in the future). Important to take into account is that options will be more expensive if:
1. Your expiration date if further out (#theta).
2. The closer the strike price lies near the asset (#delta)
Read 13 tweets
1."Conditional Buy"
Aim is to capture theta on a day to day basis by selling straddles/strangles.
Instead of putting stops on the sold arms, close contracts are bought to convert naked arms into bull/bear debit spreads if the index is breaking away from a range.
#OptionsTrading
2. Sharing my strategy as I execute it. At around 9:30 AM, I would assess probable demand and supply zones on #banknifty chart. Breach of these zones would lead to quick price movements, which may or may not result in a trend.
#OptionsTrading
3. Now I choose the nearest 500 strike to write a strangle. Eg. #Banknifty closed at 29631 on Friday, 27th Nov. So I would be writing 29000PE and 30000CE Weekly contracts.
a. 29000 PE premium: 184
b. 30000 CE premium: 246
c. Total Premium collected per lot : 430
#OptionsTrading
Read 19 tweets

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