Thread by @chartians

A Mega 🧵 on @Abhishekkar_ and @abidsensibull MasterClass on Options Trading.

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The thread and video focuses on Index trading and sticking to highly liquid stocks and how OI helps in making money. Grab your coffee/popcorn 🍿

You can make massive money but if you are trading index and not gauging the Option chain then you are missing a big part/chunk of the game.

You can see charts (50-60% of the game) but he still encashes that 8-9 times out of 10 the option chain seems to be favourable.

Every Institution uses OI as he traded in the past for them. But in some stocks the underlying factor sometimes plays a big role.

Illiquid stocks are usually not traded by Institutions, surprisingly 88% of total trade volume came from Nifty. So you know where the game is.

Greeks and other factors might be very luring but real money is made by gauging the market direction.

BUT HEY ! STOP 🛑 Read this 👇

"TRADE WHERE THE CROWD IS"

We can't outsmart the Biggies so let's copy them. But hey ! Copy Karo. Par apna risk manage khud karo.

Ideally Chart + OI data can give you a superb edge.

Stock option can be manipulated. Manipulation = High buisness cost + Low liquidity + Exit window discrepancy.

Then our master @Abhishekkar_ asks "Nifty 50 par hi stick kare?"

@abidsensibull replies - Nifty 50 nai Mai toh kahunga Nifty 20 par stick karo.

Chota stock manipulate ho sakta hai, Hdfc and ICICI ka koi game nai kar sakta.

Not you not me nor ANY RANDOM GUY FROM ANDHERI 😂

Long ago his Propdesk with @iiflsecurities and he says that the only stock they traded was @TheOfficialSBI and the rest was just Index and USDINR

Kabhi kabhi Infy TCS. Warna sirf yehi 4.

Institution/Prop ke books kitne Crores ke hote hoge ?

Back in 2011-12 his total chunk was 100cr in Margin, but these days HFT funds can easily do 500cr in Margin.

The anonymous person he talked about alone handles 8% of the total liquidity in Nifty. So yeah it's a big deal.

Twitter gurus will claim that they Make the option chain. But we know the reality 😂🙌

The time in which we pop out one trade, these guys punch in and out 12 times.

But as we know @Abhishekkar_ is super quick too in his trades 🤓📍

A seller is someone who is having a big chunk of funds. These big funds are usually with the institutions.

And trust them that they know what they are doing and that is why they have the big money.

They are Tara bhai joginder in Option selling. So it's better we stay there.

The @BeSensibull Option chain is a tussle b/w two view. Bullish or bearish.

After seeing the option chain one should be able to gauge that "MARKET IDHAR NAI JAYEGA" instead of Market kidhar jayega.

Always look from sellers perspective. Because the smart & big money is there.

Always track the recent activity. Usually and majorly weekly activity is the most tracked to be. Monthly mai itna action mai hota.

So If weekly gives a picture of Bear and monthly gives a picture of Bull. Always go for the weekly structure. It is the most traded and active.

@abidsensibull says Recent trade logic on 14th Dec where nifty was in a channel and gave a BE + Doji

He saw huge Call Shorting and Put unwinding.

On FOMC meet evening, Call shorters held their ground.

Mkt went up but couldn't hold the level even after +ve data.

Friday's activity shows that 17000 CE writers were heavier than 17000 PE writers.

One possibility : From 16985 a good news and then touch channel resistance at 17200 odd level where original buyers + Put writers + New call writers will get into the game for next down move 🛑🤡

So this chart + OI can bring you a bias view where you can sell calls or else go for Put spreads. He avoids naked buying and hence advises to go for spreads.

HE IS NOT RECOMMENDING EVEN AFTER HE IS REGISTERED UNDER SEBI 💚😂

Naked option buyers with no risk management 😂 👇

While doing strangles always understand that you should know where market will give a breakeven.

If you don't have any idea then you are playing a danger game.

"Agar pata hi nai ki paisa kab aur kaha banega - toh paisa banega kaise ?"

Q1:
Is option designed for a seller ? And how can a buyer get an edge ?

A:
PEOPLE don't make money in option buying, but Option buying mai paisa banta hai (very smart sentence)

OTM is biggest tool for destruction in Option buying.

The more you go ITM/ATM the less you spend on #ummeedprice

OTM might have a 100% #umeedprice but Considering the same risk ATM/ITM option has less #ummeed and is better to go off. So kya sikha ?

❌ OTM and go with ITM/ATM so that even if your view is wrong. Kuch toh milega 😭

If you think that a massive Breakout is on cards. Then go for option buying..

But...
But...

BREAKOUTS aren't everyday things. So yeah again slims down your chances to make money.

Ride the whole breakout. Don't bailout early.

"Be brave on a winning trade, not a losing one"

One of the guys he knows was once asked what is Value at Risk (VAR)

He replied by saying "VAR wagere chodo, trade kya karna hai wo batao"
Made nearly (estimated) 5-6cr in 2008. Big deal 🙌

Gives an example where a guy -

Shorted Euro in 2011 at around 1.44 and covered ar 1.1 (33% move)
He also made a Dollar trade from 45 - 66 & made us look like idiots 😂🙌

Asks "Euro Greece ki currency hai kya?" 😂🙌

Only charts ❤️ just like us

Powell, Fed, Greeks ko choddo. Just see charts, analyse direction and make money. Rest all is waste of time....

Hope you liked our effort on making a long thread. Do share and retweet. Also @abidsensibull you were a lovely guest and as usual a lovely host @Abhishekkar_ 🙌❤️