Discover and read the best of Twitter Threads about #optionstrading

Most recents (24)

A brief thread 🧡 about a $JNJ Covered Call

It almost went out of hand but stayed patient with it

In the end it worked out

I created $263 of my own dividends in April and May πŸ”₯πŸ”₯πŸ”₯

Initial call sold on April 3:

- 4/14 $160c
- Premium: $44

#OptionsTrading #Optionselling
Soon after selling that call the price of $JNJ spiked up

It reached $166+ before the expiration date

$6+ more than my strike price

I wasn’t ready to lose my shares

So I rolled to same strike of $160 a week forward to 4/21

Added premium: $47 Image
$JNJ stayed relentless and didn’t budge much

It closed at $162.5+ by the 21st

So I had to roll the option forward again

Again a week forward and same strike price

4/28 $160c

Added premium: $55 Image
Read 9 tweets
I always wondered which stock/index to select for trading.
@DestinedMusk gives us his insights on the criterias to select an underlying for trading in the YT video
#OptionsTrading #Nifty #banknifty #finnifty #TradingSuccess #wealthcompounders #trading

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Read 4 tweets
I started trading 4 years ago by buying options.

Had I known this intraday sell strategy by Vishal Mehta, I would have avoided the loss that I faced in my 1st year.

Don't do the same mistake that I did!

#OptionsTrading #tradingstrategy
#nifty #banknifty #finnifty

Let's go πŸ‘‡ Image
The logic behind this strategy is to wait and sell that leg of straddle/strangle first that is decaying fast.

Basically follow the trend. Image
2. If the market is going down, the CE leg will get executed.
3. If the market is going up, the PE leg will be executed.
4. If the market reverses the other leg is also executed. Image
Read 6 tweets
Did you know ?

You can earn monthly rental income(between 1%-2%) from share market just like any house owner earns rent.

I have been doing this for last few years.

#OptionsTrading #Optionselling #coveredcallstrategy #stockmarkets #StockMarketindia #Nifty #Banknifty
Read on πŸ‘‡
The strategy is Covered call strategy

Pre-requisites for the covered call strategy
1. You need to own a house. (Let's take #Nifty index for an example)
2. You need to own the complete house.
In our case, we need to own atleast 1 lot of Nifty.

How do we do that ? Read next
3. #Nifty is currently at ~18000 & it has a lot size of 50.
We need to own Nifty ETF worth 18000 * 50 = 9,00,000

Nifty Bees is the most liquid ETF & we get 90% amount after pledging as collateral margin.
So you get 8,00,000 back as collateral as well if you need more margin. Image
Read 9 tweets
10 tweets that will teach you more than a 49,999 course.

#TradingSuccess #tradingpsychology #OptionsTrading #nifty #banknifty #finnifty
1. Technical indicators are overrated, Market doesn't care about them.

Price action and volume is what feeds into indicators.
2. Stick to 1 strategy. Don't do strategy hopping.

Successful trading is all about doing the same thing over and over again.
Read 13 tweets
Selling Cash Secured Puts are not without risks

A hidden risk is LOST OPPORTUNITY

An example:

I had sold a $129 CSP on $AAPL in December that I rolled down a couple of times to $126

A brief thread 🧡


#OptionsTrading #Optionselling Image
I received $220 in premiums

In 4 weeks

I never let the $AAPL shares get assigned to me at $129

I rolled down to $126

$AAPL then went up beyond $129 and never came down to $126


#OptionsTrading #optionselling
Today $AAPL is above $165

I made 1.7% in premiums in 4 weeks

$220 on $12,900 collateral

But that’s nothing compared to the lost opportunity in Capital Gains in $AAPL

Maybe $AAPL comes back down to the $120s again?

But who knows πŸ€·β€β™‚οΈ
Read 4 tweets
I have 800 shares of $AMZN for long term

On Aug 1, 2022 I started selling Covered Calls against these shares

βœ… My objective: To get premiums without losing my shares

βœ… 9 month summary:

Premiums: $9,780
No shares lost
No active calls

A brief thread 🧡


The premiums received in the amount of $9,780 is on top of the capital gains or losses in the $AMZN stock since Aug 1

I was going to hold these shares anyway

I don’t try to time the market with my core stocks by getting in and out of the stock

#OptionsTrading #Optionselling
It wasn’t a smooth ride up in this journey of selling $AMZN Covered Calls

There were a few times where the stock spiked up beyond my strike price

I had to carefully maneuver and manage through the Rollovers

Had to stay patient a LOT

#OptionsTrading #Optionselling
Read 6 tweets
$PLTR Covered Call Update

A brief thread 🧡 on the ups and downs of $PLTR and all the maneuvering I had to do with my Call Option

Premium: $528
Risk: $9600

5.5% return in ~4 months

16.5% annualized return

#OptionsTrading #Optionselling

Sold a 1/27 $PLTR $7.5C on Jan 9

12 contracts (1200 shares)

Premium added: $72

#OptionsTrading #Optionselling

πŸ‘‡πŸ‘‡πŸ‘‡ Image
On Jan 27 I rolled over the $PLTR call

$PLTR was above $7.6 and I didn’t want to lose my shares

Rolled the call over by one week to:

- 2/3 $7.5C
- Premium: $216 Image
Read 7 tweets
πŸ”₯ $SQ Covered Call JourneyπŸ”₯

A thread 🧡 on two separate calls that I had sold against my 200 $SQ shares

Cost Basis: $69 per share

Initial calls sold on Jan 17 and 20:

1/27 $77C
1/20 $78C
Premiums: $123


#OptionsTrading #Optionselling ImageImage
On Jan 20 $SQ reached beyond my strike price of $78 expiring that day

So to protect my shares I rolled over the call

To 2/3 $80

Added premium: $111 Image
By Jan 27 $SQ was almost at $84

I could let my 1/27 $77C expire and take the capital gain loss

But I wanted to capture the upside in the stock so I didn’t want to lose the shares

No idea how far up $SQ would go

So I rolled way up and over: 6/16 $97.5

Premium: $78 Image
Read 13 tweets
Looking to sell Options?

Like Covered Calls or Cash Secured Puts?

Then knowing the Greeks can help you make more informed decisions

The Greeks are a set of metrics that measure different aspects of options contracts

A brief thread 🧡 on the Greeks


What is Delta?

Delta measures how much the price of an option changes in relation to a change in the price of the underlying asset

A high delta means the option is more sensitive to changes in the underlying asset's price
What is Theta?

Theta measures how much the price of an option declines as time passes

It's also known as the "time decay" of an option

A high theta means the option's value will decrease rapidly as time passes
Read 7 tweets
All rollovers are NOT the same when you Sell Options

What are rollovers?

You BUY back an option that you sold and then you SELL another option at a different strike price and/or expiry

Here are a few different types of rollovers



#OptionsTrading #Optionselling
Forced Rollover

Your option is already at a LOSS

Your option is about to be called or assigned

But you don’t want that

So you are FORCED to roll it over to the future at the same strike price or higher

Example: $AAPL Image
The price of $AAPL is above the strike price of the call option

To prevent my shares being called at a value below my strike price I ROLLOVER the option

I kept the same strike price and only went out by a week

I could have chosen a higher strike and more distant expiry
Read 8 tweets
A thread 🧡 about $AAPL Covered Call that didn’t work out as I had hoped

There are risks with selling options that need to be understood

As they say β€œNo Free Lunch”


Even trades that go against you can be managed and maneuvered


#OptionsTrading #Optionselling
I sold an $AAPL Covered Call on 4/10:

- 4/14 $162.5C
- Premium: $115

$AAPL was around $159 at that time so this was a higher than usual risk that I took by selecting an aggressive strike price Image
The risk materialized and $AAPL reached ~ $165.2 by expiry

I rolled over the call to 4/21 just prior to close on 4/14

Same strike price

Premium: $95

It was a risk by rolling over in the money but I was willing to be patient Image
Read 7 tweets
Option Sellers make profits more frequently but they earn small amounts every time

Option Buyers earn larger profits from each winning trade but they win less frequently

Which options camp πŸ•οΈ do you lean towards?


#OptionsTrading #optionbuying #Optionselling
Agree with this assessment about option sellers and option buyers?
I am in Option Sellers camp πŸ˜€

Buying options occasionally but mostly staying with selling
Read 4 tweets
$DDD Covered Calls have been good to me

My Cost basis on 2800 $DDD shares: ~$6.5

I started selling Covered Calls on these shares on Oct 19, 2022

I earned $2296 in 6 months

$2072 out of that was in first month

A thread 🧡 on how


#OptionsTrading #Optionselling
First Covered Call sold on $DDD on 10/19:

- 10/28 $9 x 28 lots
- Premium: $420

Call expired worthless


- 11/4 $9.5 x 28 lots
- Premium: $168

Rolled DOWN to 11/4 $9
Premium: $196 ImageImage
The 11/4 $9 Call expired worthless

Sold another call on 11/7

- 11/11 $8.5 x 28 lots
- Premium: $728

By 11 $DDD spiked from $8 to $10

I rolled over the call to 6+ months out:

- 5/19 $11 x 28 lots
- Premium: $560

Total earned so far: $2072 in < 1 month ImageImage
Read 6 tweets
🚨$AMC Cash Secured Puts 🚨

Total CSPs sold: 4

A brief thread 🧡 on all:



- 3/17 $2P x 10 lots opened on 2/14
- Closed on 2/27
- Net Premium: $330 - $50 = $280
- Risk: $2000

Return: 14% in 2 weeks

Annualized: 364%

#OptionsTrading #Optionselling ImageImage
#2: $AMC

- 1/19/24 1P x 15 lots opened on 3/2
- Still OPEN
- Net Premium: $390
- 15 lots out of 20 filled (other 5 cancelled)
- Risk: $1500

Return: 26% in 10.5 months

Annualized: 31%

A long dated order risking $1500 ImageImage
#3: $AMC

- 5/19 $2P x 5 lots opened on 3/15
- Closed on 4/21
- Net Premium: $170 - $15 = $155
- Risk: $1000

Return: 15.5% in 5.5 weeks

Annualized: 146%

#OptionsTrading #Optionselling ImageImage
Read 5 tweets
A brief thread 🧡 about trades that didn’t work this week

Some were not expected to be winners right away but still counting them here

None were spectacularly bad 😎



#OptionsTrading #Optionselling
A rollover of $JNJ Covered Call

- 4/21 $160C

When that trade was made (a rollover from previous week) $JNJ was at $166

$JNJ came down after earnings but not enough

So this one remains in the rollover β€œjail” ImageImage
$AAPL rollover

- 4/21 $162.5C

$AAPL is pretty much holding the market

It did come down some this week but not enough for the sake of this call

So rolled again today ImageImage
Read 4 tweets
#NSE #Complaint #Broker #Finvasia #optionstrading

Today is one of the bad day in our trading community irrespective of the market condition due to FINVASIA Broker issue.
Many traders got struck with this issue and had lot of pain after seeing the loss in the screen, 1/n
they could not do anything, it was worst situation for any trader to face.
i am very sad to see many people lost and they shared and asked me for support, i try to help as much as i can, please follow my thread in timeline for procedure.
please keep the record of order details such as -*screen shot with timing is must(if possible use web platform to take screen shot)
*if multiple orders got rejected take screen shot of all the orders 3/n
Read 7 tweets
Everyone wants to make money while they sleep.

But most get passive income wrong. My take:

➑️Real vs fake passive income
➑️PI1: Options trading
➑️PI2: Trading bots
➑️PI3: Crypto mining groups

Let's dive in!


Technically, there is no such thing as passive income. You have to put in some effort somewhere to get it started.

So there is a gray area here granted, and up to each to make their own definition of passive income.
That being said, let's agree (or not!) that the following definition is wrong:

(Source: ) Image
Read 16 tweets
⚠️AI stocks will remain increasingly volatile and difficult to project in the near term.

Valuations & sentiment are sky high but understanding of the tech is low & calls for regulation growing.

Recipe for volatile pricing. #stocks #optionstrading #ArtificialIntelligence
➑️Even deciding what constitutes being an "AI stock" gives rise to debate as every company now mentions "AI" at every turn.

Outside of the obvious players like; $NVDA, $MSFT, $GOOGL, $TSLA etc
Very similar to the 2000 era.

Back then, every company began calling themselves an online company. Even if it meant you just had a webpage.
Read 3 tweets
This is the start of Drip Drops Knowledge!

Remember to hit that follow button if you like the content.

#SPY #SPX $ES_F #QQQ #futurestrading #OptionsTrading #options Image
The first official Knowledge Drop. $GME reported earnings last night and is up over 50% this morning. A short float of 24% (as reported by #Ortex) might have something to do with that. Breakdown in slide, follow me for weekly Knowledge Drops!

#GME #ShortSqueeze Image
Last week, I discussed the concept of a β€œshort squeeze.” This week let’s look at the dynamics of dealer hedging and the concept of a β€œgamma squeeze.”

#ShortSqueeze #GammaSqueeze #SPY #SPX $ES Image
Read 9 tweets
Here is my evening rundown of $SPX and $SPY Dealer and Dark Pool data to prepare us for #optionstrading & #futurestrading tomorrow using data from @WizOfOps and @Tradytics. Show thread to see it all! πŸ§΅πŸ‘‡
Lets start with #Vanna on $SPX & $SPY. $SPX cumulative Vanna picture still neutral in this range with positive vanna favoring downside and negative vanna hurting moves higher. $SPY is similar but with more positive vanna favoring downside should $VIX/IV continue to rise.
Aggregate #Charm up next on $SPX & $SPY. $SPX is now much more inline with $SPY with positive charm exceeding negative charm. This means dealer selling will take place as time passes on these contracts.
Read 11 tweets
Here is my evening rundown of $SPY & the overall market using data driven insights by @Tradytics. The data provided will help us formulate a plan for tomorrow to inform our #optionstrading and #futurestrading. Show thread to see it all! πŸ‘‡
We see Algoflow divergences below. These are assets where net flow is diverging from price. Finance sector and related names stand out as bearish. The bullish names like $U, $GE, $NFLX, $BA & $ENPH warrant a closer look for details. Image
The $SPY 3-day delta/price correlations show a 30% total chance of moving up to 2.7% higher and a 50% total chance of moving down as much as -3.7% over the next 3 days. Dealers are still long. Expected volatility has dropped slightly. ImageImageImage
Read 8 tweets
Here is my evening summary of dealer positioning $SPX, $SPY & $QQQ. The data is provided by, created by @WizOfOps, and will help us identify key areas tomorrow to inform our #optionstrading and #futurestrading. Show thread to see it all! πŸ§΅πŸ‘‡
Lets start with #Vanna on $SPX & $SPY. $SPX cumulative Vanna picture is neutral in this range with positive vanna favoring downside and negative vanna hurting moves higher. $SPY is similar but with much more positive vanna favoring downside should $VIX/IV continue to rise. ImageImage
Aggregate #Charm up next on $SPX & $SPY. $SPX charm is pretty neutral as well, but slightly more negative which is slightly bullish. However, $SPY is very positive which favors downside. ImageImage
Read 8 tweets
The Nifty Financial Services Index, also known as the #FinNifty, is an index that tracks the performance of the financial services sector in India. @bbrijesh explains about the index in detail.
#FinNifty is an index that tracks the performance of the financial services sector in India, which includes #banks, #insurance companies, #housingfinance, and Non-Banking Financial Companies (NBFCs). #FinancialServicesSector #India
The financial services sector in India is one of the largest and most diverse in the world, and FinNifty provides a way to track the performance of this sector. #FinancialServicesSector #GrowthPotential
Read 9 tweets

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