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Rohit Katwal Profile picture
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25 Oct, 5 tweets, 3 min read
#Nifty volumes were pretty low on current futures but COI buildup is 3 lakh contracts. Consolidation underway. 78 Lakh contracts added on calls vs 44 lakh on put side. Still level 4 bullish on option chain. Given monthly expiry, one needs to be cautious.
1/n
@rohit_katwal I am holding 12000 Iron Fly. Will hold it if we are sideways and by end of day will square it off. If no direction then will take directional view on Tuesday.

If we go below below spot 11908, I will exit Iron Fly and hold Bear Call Spread.
2/n
@rohit_katwal If worst case scenario of opening at 11850 or below, will square off the losing put side which by virtue of theta decay will not give adverse loss as bear call spread is also there. Looking at SGX closing, it might not happen.
3/n
@rohit_katwal #BANKNIFTY witnessed short buildup, but range is congested technically, so better wait for a breakout. Option data is sideways and can take direction post breakout. Daily charts are bullish but at double top.
4/n
@rohit_katwal Need to wait for further direction. Below 24000 one can initiate sideways bearish direction. Above 24800, new bullish positions can be added. Better hold your guns.

Also one element is unknown at the moment. Opening of Dow Futures and SGX nifty in morning.
5/5

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More from @rohit_katwal

Rohit Katwal Profile picture
23 Oct
As far as charts are considered, I do not look for Volume Interpretation when we are in a sideways channel. But once we are out of channel, I do give it importance.

Reason: Any symbol follows general rule of market. Trend>Accumulation/Distribution>Trend.
1/n
Now, this may vary from time frame to time frame and may have different interpretation when combining lower and bigger time frames. Once I spot a channel, volume and its interpretation inside it is irrelevant. Only the breakout.
2/n
Over period I have observed that a good sideways channel is with 50 to 60 plus bars with support and resistance break test of at least 3 times. Between that multiple tests will be done for a shakeout to either side. In rare cases we have V shaped or n-down movements.
3/n
Read 4 tweets
Rohit Katwal Profile picture
22 Oct
Why do only small traders lose money in the stock market instead of big traders?
Because of following reasons:
1. Under Capitalized
2. Compounding Returns
3. Seeking Paid Tips
4. Search for a Holy Grail
5. Not Understanding Reward:Risk and Probabilities
#TradingQNA #Nifty
...1/n
@rohit_katwal A good friend of mine wanted to trade in the markets for extra income. I am not against the idea. I tried putting him on the right track. I gave some basic trading books. I warned against leverage. I warned against paid advisory tips.
...2/n
@rohit_katwal I warned against trading with little capital. I tried to make him understand that it is a game of probability & risk management.

He started with Rs. 20,000/-. His idea was to make Rs. 500+ per day to call it a day. After 1 month, he had lost complete sum.
...3/n
Read 11 tweets
Rohit Katwal Profile picture
10 Oct
Part 2: Thread on #OptionBasics for #Nifty #BankNifty or #Stocks for beginners

In Part 1 we understood Intrinsic/Extrinsic Value, Theta Decay and IV.

Now we need to understand another aspect of IV. Volatility is mean reverting. It means if Volatility is high, it tends..
...1/n
@rohit_katwal to decline and if Volatility is low, it tends to rise. So when deciding on Option Strategy we should consider IV. If it is low, we should buy debit spreads so that we benefit from rise in IV. If IV is high, we should sell credit spreads so that we benefit from...2/n
@rohit_katwal fall in volatility. Lets look at IV or Nifty and Bank Nifty in the given image it is: 18 and 29 respectively. Now how do we decide which IV is low or which is high? I prefer to use IV Rank method for it.

...3/n
Read 13 tweets
Rohit Katwal Profile picture
8 Oct
#TradingQNA #Nifty #BankNifty #OptionsTrading
Q. What are some basic points that we must know before going for options trading?
Here are few pointers before you start option trading: -
1. Option Trading is a game of probabilities and money management.
...1/n
@rohit_katwal 2. There is no such thing as unlimited profit and unlimited risk in option trading. Unlimited profit is same as hitting a lottery and we all know what happens to lottery buyers. There is no unlimited risk if you know what you are doing.
...2/n
@rohit_katwal 3. Buy Calls when bullish. Sell Calls when bearish.
4. Buy Puts when bearish. Sell puts when bullish.
5. Either put a SL to your trade or do a 100% hedge for risk-management.
6. Hedging is used to save your self from potential losses. Learn it.
...3/n
Read 10 tweets
Rohit Katwal Profile picture
7 Oct
On 25 Sep we had first short covering on #Nifty and since then its long buildup everyday. Till now approx 34 lakh in COI Buildup. During selloff, we had long unwinding till the lowest point. Its starting to buildup again and rally can lead to 12000+ the way it is going. 1/n Image
On Option Chain, we are Level 4 Bullish on weekly and monthly options with bullish PCR's. if 11700 breaks we MAY get into a base formation before a next leg up till 11500 levels. Close action at previous top of 11793 is needed. 2/n
#BankNifty is still sideways and 23000 is a crucial watch point on weekly and monthly options. Below 22500 I will trade with sideways bias for some time. Lets c how tomorrow pans out. 3/3 Image
Read 5 tweets
Rohit Katwal Profile picture
3 Oct
I welcome all the first time visitors to my profile. I am posting some tweets and information which you may found useful.

My name is Rohit Katwal and I am the founder of Katwal Asset Management.

Kindly Retweet so I can reach to more fellow traders and connect with them.

1/n
You can find more information about what we do on my blog cum website rohitkatwal.com

I keep my trading journal live for fellow traders to access. If some tweet about my trade is missing, it will surely be updated in my Live Journal here rohitkatwal.com/live-journal
2/n
Whenever I close a week, trades are moved to past journal which can be accessed through the link docs.google.com/spreadsheets/d…

My Telegram Channel can be accessed through: t/me/rkatwaltradingupdates
...3/n
Read 14 tweets

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