Thread by @Deepakdhillan

#WeekendLearning
आज का भ्रम ज्ञान
Some of my friends do back testing on Open- High-Low-Close of 10-12 years of past data to ascertain the range for options selling and come with a hypothesis.
Yeap, results seems to be good but it won’t result same when you board the same trade

Now let me share a simple Hypothesis:-
Every day EOD at 3.27 Sell ATM straddle, close next day 3.25 and sell next day & Keep on....
-> Always mind Position sizing because it’s need overnight Risk.
By doing same too, you would make good almost 80%+ days.

There is only 03 things which can go against you
-> Big Gap up /Down
-> Nirmala Candle days
-> ViX started sky Rocketing

Remedy is :-
-> Always mind Position Sizing as tomorrow itself is that क़यामत का दिन of big Gap up/Down.
-> Have sound knowledge of Technical analysis

Simply follow DOW theory HH& HL, LH & LH.
Once Price breakout a established range, Go with trend via buying of Options.

-> When Vix started increasing, Stop selling altogether.

Many are in Confusion
When to buy or sell a Options?
-> It all depends on your market view.
If you gonna stay in trade for more than 3 hrs , better sell Options.
If you gonna stay in trade for less than 2 hours, go & buy options as there would be negligible theta decay.

When VIX is rising, it is good for buyers side.
When VIX is cooling off, it is good for sellers side.

One can check , most of the days, buy selling straddle You mostly make huge returns from 2% to 8% next day.
But it’s doesn’t mean you go & Sell tomorrow, do your homework first.

There is no holy grail.
There is no short cut to success. You have to work hard a lot.
Take it as passion & love this business.
Try to be in game as long as possible.
You would do outperform your past performance .
The End.