Discover and read the best of Twitter Threads about #optionstrading

Most recents (24)

📈SUPPLY & DEMAND ZONES (Thread):📈

Supply and demand zones are the periods of sideways price action that come before explosive price moves. A supply zone forms before a downtrend, a demand zone forms before an uptrend
$SPX $SPY $ES_F $TSLA $LCID $GME $AMC #OptionsTrading
Let’s think about the three simplest concepts in trading financial markets

1. When demand is greater than supply, the price goes up

2. When demand is equal to supply, the price goes sideways

3. When supply is greater than demand, the price goes up down
Types of supply and demand patterns:

There can be several periods of accumulation during an uptrend and several periods of distribution during downtrends. This means that there are supply and demand reversal patterns and supply and demand continuation patterns.
Read 15 tweets
🧵Hilo con mis videotutoriales explicando el funcionaminto del TWS de @IBKR #interactivebrokers
📊Explico en cada Tweet que trato para que puedas ir al grano.
💕Si te va el contenido me puedes apoyar solo pinchando en este link:👇
interactivebrokers.ie/mkt/?src=david…
Sigueme:👇
👣Primeros pasos.
⚙️Configuración inicial
Watchlist+ordenes básicas+gráficos

#OptionsTrading #optiontrading #options #vsa #trading #TRADINGTIPS

Tipos de ordenes.
De una manera un poco más detallada.

Ordenes stops limit
#OptionsTrading #optiontrading #options #vsa #trading #TRADINGTIPS

Read 19 tweets
How do #Options work? How to include options into your strategy? Why do we need options products in #DeFi?

We cover all of the basics you need in our latest visual guide, decentralized options.

(1/17)

#Cryptocurrency #Bitcoin #Ethereum #AVAX #BNB #Derivatives
An option is a #contract giving the investor the right, but not the obligation, to buy or sell an underlying asset at a specific price on a certain time period. Investors must pay a premium to get the contract.

(2/17)

#Cryptocurrency #Bitcoin #Ethereum #AVAX #BNB #Derivatives
The option writer is the seller of an option who opens a position to collect a premium payment from the buyer of the options contract.

(3/17)

#Cryptocurrency #Bitcoin #Ethereum #AVAX #BNB #Derivatives
Read 19 tweets
Understand Delta and Delta Hedge

A Detailed Thread 🧵

#OptionsTrading #StockMarket
After reading this thread you will come to know:

What is Delta
How to read Delta
Calculating the option's price from Delta
What is Delta hedge
Basic Delta hedge strategies
The price of an option does not move up or down in thin air rather there are various factors that determine the price of an option.

These factors are quantified into certain parameters known as Greeks.
Read 50 tweets
As a true believer in the power of @unusual_whales and the tools they provide for the everyday person.

This thread will contain links to all my Unusual Whales videos, walkthroughs, filter settings, guides, and a how I ultimately use this tool to enhance my trading abilities.
In my first video, I discussed the main flow filter settings that I use on a daily basis to find amazing opportunities. Including a 2800% play. And the strength of @unusual_whales tools.

In my 2nd video, I break down how to read the flow provided by @unusual_whales. What the Buys and Sells mean. How to interpret the information you are viewing.

Read 7 tweets
📚Options Rule of 16

A thread on the Must Know "Rule of 16"

✅ What is it?

✅ How can I use it?

✅ How can I use it to buy favorable contracts using @unusual_whales

#OptionsTrading #UnusualWhales
No matter how you utilize options, the “Rule of 16” is critical for analyzing volatility, particularly for short-term options. Volatility is at the root of all options pricing. It is based on the statistical concept of standard deviation.
Standard deviation which measures the dispersion of a security’s returns around its average. Stocks move up and down during each trading day, and one with larger up and down daily price moves would have a higher standard deviation.
Read 20 tweets
Upcoming webinars for you to master the art of Trading! sedg.in/qcez7pjr

💥Get a 20% discount on all using code WEB20💥

Keep Exploring the thread(🧵)...
A Masterclass on Crude Oil by Souradeep Dey (@Trader_souradep): sedg.in/mh6bfqgc

✅Proiftable, proven #CrudeOil strategies

✅Trade Inventory data released by EIA & API

✅Supply & Demand Dynamics of Crude Oil

✅In-depth #TechnicalAnalysis
Options Strategies for Bearish & Bullish Markets by Deepak Kumar: sedg.in/5z1n6pl2

✅Basics of #Options in Hindi

✅Trading Options based on the Market

✅Selection of the right strategy of #optionstrading based on your approach
Read 8 tweets
📊Learning Opportunity For #OptionsTrading & hunting on #unusualwhales 🐳📊

Here is $HD , I'm screening it as a possible #optiontrading play for tomorrow. I'm even including the #optionsflow

Look it up What do YOU see? Good idea? 🐂? 🐻? Neither? Dig in

#stocks #stockstowatch Image
The question being,

Would you trade this? How?
Buy calls? Puts?
ANALYSIS THREAD;

The fake FURUs don't go this deep with the calls & puts scam. But I want everyone performing a proper analysis with MULTI data points - not just flow, not just made up lines called levels or guess work.

Few things to consider that I'm not seeing discussed $HD
Read 7 tweets
🚨MY SIMPLE APPROACH TO USING UW🚨

1. Scan the hot chains list to see what’s, well, hot in volume and OI… Usually it’s $SPY, $AAPL, $QQQ and $TSLA, but always looking for that “unusual” ticker.
2. Use the settings pinned to my profile to see what’s hot just like in step 1, with slightly altered premium ($30k - $1 mil) and DTE just to see what sticks out in order size and OI.
3. Go to historical flow of ticker to see what volume and OI came in for the day or previous day, depending on expiry.
Read 5 tweets
📰Why do "FURUs" prop up & recommend other FURUs?

- Because they all profit off you. If one started exposing others, they'd all suffer. I have dirt on you, you have dirt on me.

- But propping each other up creates an "impression" of legitimacy.

Marketing 101

#optionstrading
Go ahead. Ask technical and detailed questions. Ask about bad plays.

1) They'll ignore your response if its not easy to answer.

2) If its an early response & they're worried others will see it, they'll hide it.

3) If you keep it up, they'll block you.
Should I just save these all up and include them in a master thread on FURU scams?

The person in question has 25k+ followers and recruits for a $1k group / organization. Saw screens.

I don't name names out of principal & the off chance someone is being malicious / deceptive.
Read 3 tweets
1. WTF are options?
An easy to understand thread on options🧵⬇️

#ZetaMarkets #Solana #DeFi #OptionsTrading
2. The tldr definition is ⬇️

Options: are contracts that allow you to buy (or sell) the underlying at a predefined price and time.
Now let’s break that down 🕺🏻
3. Options are contracts that:

Let the buyer of a call (or put), choose whether they want to buy (or sell) the underlying asset at a pre-set strike price at a pre-set expiry.
Read 13 tweets
A thread on "Option Greeks"
This is one of many that i'll be posting over the course of time.
Will be a long thread but trust me it should be worth your time.
Also: If you like it then do like and retweet it
#stockstowatch #OptionsTrading #StockMarketindia
GREEKS
Delta
Gamma
Theta
Vega
These are 4 important factors which decided the value of the premium of an option strike. For example, a stock option of abc limited of strike 105 call is trading at Rs 10/-
You would want to know that what will be the price of the 105 call option in near future and what can be the possible value of this stock option. This is determined by “OPTION GREEKS”
Read 24 tweets
#Straddle Explained

This #strategy involves two options of same strikes price & same expiry, A long straddle is created by buying a call and a put of same strike & same expiry whereas a short straddle is created by shorting a call & put option of same strike & same expiry

1/n
Let us say a #stock is trading at Rs 6,000 and premiums for ATM call and put options are 257 and 136 respectively.
Long #Straddle
If you buys both a call & a put at these prices, then his maximum loss will be equal to the sum of these two premiums paid, which is equal to 393

2/n
And, price movement from here in either direction would first result in that person recovering his premium and then making profit. This position is undertaken when trader’s view on price of the underlying is uncertain but he thinks that in whatever direction the market moves

3/n
Read 11 tweets
How To Manage Bull Put Spreads:

A bull put spread involves selling an out-of-the-money put and buying a further out-of-the-money put.

The sold put provides the income, and the bought put provides the protection in the event of an adverse move in the stock. #OptionsTrading

1/9
It is always nice when a trade goes your way, so let's talk about a couple of simple rules for taking profits.

Firstly, if the trade has achieved a profit equal to 50% of the premium received, that can be a great time to take profits and move on to the next opportunity.

2/9
This is particularly true if the profit comes in the first half of the trade.

Taking profits is nice, and winning trades are much easier to manage than losing ones. So, let's review some rules when a bull put spread moves against us.

3/9
Read 9 tweets
Trading is a marathon, not a sprint. A thread:

#StockMarket #Tradingtips #OptionsTrading #tradingpsychology #FollowTheMagician
Mental vs financial capital. ~80% of trading is mental, ~20% is charts. Have rules and do NOT break those rules for one trade.
A lot of people blow up their accounts because they attempt to 10x their entire portfolio in one week or worse in one single trade. Don’t treat market like a casino. It may take few weeks to couple month so build up. “Pay”tience is a virtue.
Read 12 tweets
With #NakedShorting trending today, it may be useful to brush up on the mechanics of how #shorts work.

First, a refresher on how #ShortInterest can grow to extraordinarily high levels, even greater than the float. And yes, it's legal (1/)

tradersinsight.news/traders-insigh…
I watched @MelissaLeeCNBC's discussion with @timseymour and @GuyAdami on @CNBCFastMoney. Blurting "naked short" is hardly evidence that a conspiracy of #NakedShorting exists. It's illegal, and as a result most firms go to great lengths to prohibit their customers from it (2/)
Obviously because something is illegal and discouraged doesn't mean that it isn't going on somewhere. I can't prove that #NakedShorting isn't going on. But I suspect that some are confusing naked short sales (illegal) with naked options writing (legal but risky) (3/)
Read 11 tweets
$AMC #GME #TSLA #OCGN alright folks. Good morning everyone I hope and trust you all are well. Before I pass on the Ortex info for this morning I’d like to say this - remember why you are in this journey as the road ahead is not easy find the strength n courage you need to push
Forward to our goal. We are all onto something big. Oh I almost forgot... be careful of folks interpreting rules that are not researched and vetted thoroughly. Lol ok on to more important news pay attention to AMC and GME over next few days I have a feeling we are gearing up for
Another show down. Good or bad just know I’m on the front lines with you and I’m rooting for us all to win. Have a blessed and beautiful morning. Ortex data is below. #AMC #GME #TSLA #OCGN #stonks #mooning #OptionsTrading oh and just so you know we’ve had a crap ton of weird
Read 4 tweets
Look at change in OI, including highest change in OI both sides to see where new support/ resistance levels are being formed #nifty50 #NIFTYFUTURE #Nifty #daytrading #Sensex #NSE #tradingtips #banknifty #StockMarket #StocksToWatch #investing #NSE #stocks #StocksToBuy #forex
Read 9 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
I have a pretty good record of placing highly profitable trades. The market is dominated by HFT and algos that both start and extinguish trends. I'm successful bc I have the same algos so I have a better idea of when trends are starting and when they're weakening.

1/x
I place mostly swing trades with naked calls in bull markets, that typically take a few days to a few weeks to play out. While the algorithms show pretty accurately when a stock is peaking and getting ready to correct...

2/x
in this kind of market the bulls can keep pushing the price higher than anyone expects, so its very difficult to time tops -- and much of the time the correction is smaller and slower than expected, which makes it difficult to profit with puts.

3/x
Read 9 tweets
1. Thread on CONDITIONAL BUY:
Purpose is to catch trending moves once it is confirmed.
Plot the most important support and resistance on the chart such that violating those levels will lead to a trending move in all likelihood.
#OptionsTrading #markets
2. Eg. Banknifty is at 36000. Support at 35500 and Resistance at 36500.

Place buy orders in the system such that 35500PE is bought if 35500 is violated.
36500CE is bought if 36500 is breached.

#OptionsTrading #markets
3. What should be the limit price order for the two contracts (35500PE, 36500CE)?

Ideally, the price of an ATM contract should be same keeping everything else constant ( Days to expiry, volatility, interest rates etc.)
#OptionsTrading #markets
Read 11 tweets
Thread.

As Nifty crashed today VIX shot up by almost 25% intraday I would like to share some of my views.

1) In the year 2020 Vix shot up 20+ a few times which resulted in a downward fall for the coming few days and weeks.

#nifty50 #Nifty #NIFTYFUTURE #OptionsTrading

(1/6) Image
2) First time it happened was on 24th Feb.

3) As you can see just after few days VIX again shot up on 28th Feb and again on the following days which resulted in the March Crash.

4) Here is the Nifty Chart to see what happened on 24th Feb.

#nifty50 #Nifty #NIFTYFUTURE
(2/6) Image
5) As a non-directional trader trading only on Iron Condors my crash started from 24th February itself. Hence I would book whatever positions I have even if in loss and wait for a few weeks for VIX to cool down.

6) Sudden upmove in VIX again happened on 4th May.

#nifty50

(3/6) Image
Read 6 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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