Discover and read the best of Twitter Threads about #optionstrading

Most recents (21)

#Election2019 result to announce soon. A quick #OptionBacktesting of past elections throws some interesting data

Result Date : 13-May-04,16-May-09,16-May-14
Entry Date: 2 days prior to result
Exit Date: 1 day after result
Lot size: 75

#OptionsTrading (1/9)
Strategy #1 Long Straddle : Buying ATM Call and Put
Total PNL : Profit 18559

@shubham_quant @BHVN153 @Tinagadodia

#Optionstrategies #DataAnalytics ...(2/9)
Strategy #2 Long Strangle: Buying 1st OTM Call and Put
Total PnL: Profit Rs.16838
#OptionsTrading #OptionStrategies #OptionBacktesting ...(3/9)
Read 9 tweets
Sharing some thoughts on beginners who start trading short options.

Previously shared this on a closed WhatsApp group of friends.

#optionstrading

(1/n)
Short option structures like Straddles and strangles have a high win rate.

A 15 delta Short strangle will end up with typically higher than 85% of trader's as winners.

This is the biggest attraction for traders new to #optionstrading

(2/n)
This is also how a lot of options trading trainers sell to their prospective clients on the effectiveness of their #optionstrading systems.

But this high win rate comes at a cost.

(3/n)
Read 11 tweets
As simply as this.

Using options over Futures doesn't allow you any additional edge in your directional Trade.

The Market doesn't pay for choice of traded instrument when the trader idea is Directional move of underlying.

(1/n)
The only difference comes from government mandated costs for the different instruments.

(2/n)
Unless you are trading extrinsic Value, which in essence is a trade now not on direction but on volatility, there is no difference between using an option or future.

(3/n)
Read 14 tweets
2018 Year in Review - The Personal Edition.

Met some fantastic traders and thought leaders.

You know who you are.

(1/n)

#2018YearinReview
Grew the #OptionsTrading book despite some tough months.

February and November were the best.

September the worst.

(2/n)

#2018YearinReview
Got on stage to share some ideas on how I approach #OptionsTrading not once but twice.

Thanks, @Definedge and @quantsappsocial.

(3/n)

#2018YearinReview
Read 8 tweets
BankNifty – RBI Policy Week of 06Dec vohicapital.com/trading/bankni…
Concepts of "probability of touch" are used in trades like the one mentioned in this post.

When touch happens, there is no need to stay in the trade anymore.

The $BankNifty Hive of Flies taken off today with a touch of spot to 26650
Usually no need to look for re-entries, but with the spike up to 26750, took a re-entry into a lower #HiveOfFlies trade on $BankNifty for #RBIPolicy day.

Payoff on 05-Dec.

Nothing to do on these unless 26850 is breached tomorrow before event.

#OptionsTrading
#RiskDefined
Read 4 tweets
#BANKNIFTY #BANKNIFTY_EXPIRY_1NOV2018 #EXPIRY_1NOV2018 #OptionsTrading
MAXOI STRIKES 24000PE 25500CE
MAXOI ADDED STRIKES 24300PE 25700CE
SPOT 24959.7
2018-10-29 15:30:30
#BANKNIFTY #BANKNIFTY_EXPIRY_1NOV2018 #EXPIRY_1NOV2018 #OptionsTrading
MAXOI STRIKES 24000PE 25500CE
MAXOI ADDED STRIKES 24500PE 25500CE
SPOT 24922.4
2018-10-30 09:18:19
#BANKNIFTY #BANKNIFTY_EXPIRY_1NOV2018 #EXPIRY_1NOV2018 #OptionsTrading
MAXOI STRIKES 24500PE 25500CE
MAXOI ADDED STRIKES 24200PE 25500CE
SPOT 25049.8
2018-10-30 09:23:19
Read 228 tweets
#BANKNIFTY #BANKNIFTY_EXPIRY_1NOV2018 #EXPIRY_1NOV2018 #OptionsTrading
MAXOI STRIKES 25000PE 26000CE
MAXOI ADDED STRIKES 24900PE 26000CE
SPOT 25066.4
2018-10-19 09:18:49
#BANKNIFTY #BANKNIFTY_EXPIRY_1NOV2018 #EXPIRY_1NOV2018 #OptionsTrading
MAXOI STRIKES 25000PE 26000CE
MAXOI ADDED STRIKES 24500PE 26000CE
SPOT 25056.4
2018-10-19 09:22:19
#BANKNIFTY #BANKNIFTY_EXPIRY_1NOV2018 #EXPIRY_1NOV2018 #OptionsTrading
MAXOI STRIKES 25000PE 26000CE
MAXOI ADDED STRIKES 24500PE 26000CE
SPOT 25231.2
2018-10-19 09:28:19
Read 77 tweets
#MARUTI #MARUTI_EXPIRY_25OCT2018 #EXPIRY_25OCT2018 #OptionsTrading
MAXOI STRIKES 6500PE 8000CE
MAXOI ADDED STRIKES 7200PE 7500CE
SPOT 7166.0
2018-10-15 15:30:30
#MARUTI #MARUTI_EXPIRY_25OCT2018 #EXPIRY_25OCT2018 #OptionsTrading
MAXOI STRIKES 7000PE 8000CE
MAXOI ADDED STRIKES 7100PE 7500CE
SPOT 7137.6
2018-10-16 15:30:30
#MARUTI #MARUTI_EXPIRY_25OCT2018 #EXPIRY_25OCT2018 #OptionsTrading
MAXOI STRIKES 6500PE 8000CE
MAXOI ADDED STRIKES 6500PE 7000CE
SPOT 6901.0
2018-10-17 15:30:30
Read 4 tweets
#INFY #INFY_EXPIRY_25OCT2018 #EXPIRY_25OCT2018 #OptionsTrading
MAXOI STRIKES 600PE 800CE
MAXOI ADDED STRIKES 680PE 800CE
SPOT 703.5
2018-10-15 15:30:30
#INFY #INFY_EXPIRY_25OCT2018 #EXPIRY_25OCT2018 #OptionsTrading
MAXOI STRIKES 700PE 750CE
MAXOI ADDED STRIKES 700PE 750CE
SPOT 692.0
2018-10-16 15:30:30
#INFY #INFY_EXPIRY_25OCT2018 #EXPIRY_25OCT2018 #OptionsTrading
MAXOI STRIKES 650PE 750CE
MAXOI ADDED STRIKES 710PE 720CE
SPOT 705.5
2018-10-17 15:30:30
Read 4 tweets
#RELIANCE #RELIANCE_EXPIRY_25OCT2018 #EXPIRY_25OCT2018 #OptionsTrading
MAXOI STRIKES 1000PE 1300CE
MAXOI ADDED STRIKES 1000PE 1140CE
SPOT 1137.8
2018-10-15 15:30:30
#RELIANCE #RELIANCE_EXPIRY_25OCT2018 #EXPIRY_25OCT2018 #OptionsTrading
MAXOI STRIKES 1000PE 1200CE
MAXOI ADDED STRIKES 1140PE 1160CE
SPOT 1166.0
2018-10-16 15:30:30
#RELIANCE #RELIANCE_EXPIRY_25OCT2018 #EXPIRY_25OCT2018 #OptionsTrading
MAXOI STRIKES 1100PE 1200CE
MAXOI ADDED STRIKES 1080PE 1200CE
SPOT 1151.0
2018-10-17 15:30:30
Read 4 tweets
#SBIN #SBIN_EXPIRY_25OCT2018 #EXPIRY_25OCT2018 #OptionsTrading
MAXOI STRIKES 240PE 280CE
MAXOI ADDED STRIKES 200PE 270CE
SPOT 263.2
2018-10-15 15:30:30
#SBIN #SBIN_EXPIRY_25OCT2018 #EXPIRY_25OCT2018 #OptionsTrading
MAXOI STRIKES 240PE 280CE
MAXOI ADDED STRIKES 265PE 215CE
SPOT 270.4
2018-10-16 15:30:30
#SBIN #SBIN_EXPIRY_25OCT2018 #EXPIRY_25OCT2018 #OptionsTrading
MAXOI STRIKES 240PE 280CE
MAXOI ADDED STRIKES 255PE 275CE
SPOT 261.0
2018-10-17 15:30:30
Read 4 tweets
#NIFTY #NIFTY_EXPIRY_27DEC2018 #EXPIRY_27DEC2018 #OptionsTrading
MAXOI STRIKES 11000PE 11500CE
MAXOI ADDED STRIKES 9500PE 11000PE
SPOT 10458.4
2018-10-15 09:21:19
#NIFTY #NIFTY_EXPIRY_27DEC2018 #EXPIRY_27DEC2018 #OptionsTrading
MAXOI STRIKES 11000PE 11500CE
MAXOI ADDED STRIKES 9500PE 10700PE
SPOT 10447.8
2018-10-15 09:25:49
Read 78 tweets
Don't get into #OptionsTrading with less than 25L if primary engine is #OptionSelling

2/n
Don't create focus on return in trades.

3/n
Read 20 tweets
The beginning of an expiry series is a good time to sell options.

#OptionsTrading
When you sell options, you want to profit from erosion of option extrinsic value.

This is the highest, the further away you are from expiration.

#OptionsTrading
Instead if you want to profit from a move in the underlying price, you simply buy or sell the underlying.

Or buy the option with high intrinsic value and low extrinsic value.

A lot of option buyers will prefer to buy a 60-70 delta option for trend following.

#OptionsTrading
Read 3 tweets
$Nifty almost takes out the ATM straddle in one session.

Are we in for a slow grind up like 2017.

$Nifty and $BankNifty IVR almost at all year low levels.

Interesting to see Twitter folk still trying to sell index volatility.
As for my book, apart for some #putcalendars got a couple short vol trades that are setup to flip to long volatility by mid September series. These are going to need some dynamic delta adjustments.

Short vol candidates remain in single stock Sep series.

#OptionsTrading
Just for reference, the $NIFTY ATM straddle is now less than 0.8% of the spot.

Last week of expiry.
Read 3 tweets
Traders need to check their ledger not daily MTM PNL statements.

Selling of deep ITM options to hide and carry forward losses is a common practice amongst unscrupulous "sub-brokers" illegally managing others money in #OptionsTrading.
There are no mandates from @SEBI_India on allowing "sub-brokers" or any party to trade and manage client funds in #OptionsTrading.

Certainly no mandate to take leverage of the sorts usually taken.
@SEBI_India Even AIF Category 3 norms don't allow leverage upwards of 2.

Beyond that, even an AIF cannot solicit funds from the public openly.

More on these norms here:
sebi.gov.in/sebi_data/atta…
Read 4 tweets
We are discussing $FB options on the @GreeksCap #GSRCommunity room.

Come and join us there.

greekscap.com/gsrinvite

#OptionsTrading
We put on a bull put spread for Aug expiry at 160/155 on $FB for a credit of about $0.9

@Naveen_Joshi was gungho and went with a 1:2 Put Ratio with 165/160 PE $3.15 cr.

#OptionsTrading
Sorry typo this was the 165/160 put spread for 90 cents.
Read 3 tweets
Wonderful that our 29-July #Mumbai #ODAP #Workshop attendees now have access to the Platinum plan of @MyFNO, a tool that we use everyday to Assess, Deploy, Manage & Win in our #OptionsTrading

(1/n)
@MyFnO We ourselves use the @MyFnO tool to *Assess* fresh #options opportunities.

We take our underlying view and combine that with our view on #Volatility to determine the range of #optionstrading strategies that can be used.

(2/n)
@MyFnO Armed with our assessment of the underlying and volatility views, we get ready to *Deploy* our selected #OptionsTrading strategy.

We base this on our risk to reward in the trade and our individual trading plans.

There is something for every level of trading capital.
(3/n)
Read 6 tweets
Some answers on trading #straddles discussed in the @greekscap #ama today in our #GSRCommunity (1/n)

#OptionsTrading
Trading #straddles involve critical factors including your DTE for the straddle, the underlying and its historical Volatility, what are 1, 2, 3 SD moves. (2/n)

#OptionsTrading
Take $Bajaj-Auto for example. Now in last two days this underlyings has had a 6SD move followed today by a 3SD move.

You need to ask yourself if your options position and adjustment plan can handle those kind of moves before getting into #OptionsTrading.

(3/3)
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
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.
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
3/n
The #volatility #edge or premium expresses itself when the underlying moves "less" than the move that is priced in the options.

#OptionsTrading
Read 17 tweets

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