109. #Options #Notes
A quick update on a few stuff.
For a conservative, low margin money person(low money at hand), the best option in credit spreads is about 25-30 delta. You are looking for risk reward 1:0.5 to 1:0.25.
You can manage at 1:1 by being more active.
A quick update on a few stuff.
For a conservative, low margin money person(low money at hand), the best option in credit spreads is about 25-30 delta. You are looking for risk reward 1:0.5 to 1:0.25.
You can manage at 1:1 by being more active.
110. #Options #Notes
It’s better to have all spreads at 1/3rd the width of strike.
That gives us a 1:0.5 RR ratio. Ex: trade with max profit of ₹1k has max loss of ₹2k.
You can’t have a low probability trade unless you are damn sure about it.
It’s better to have all spreads at 1/3rd the width of strike.
That gives us a 1:0.5 RR ratio. Ex: trade with max profit of ₹1k has max loss of ₹2k.
You can’t have a low probability trade unless you are damn sure about it.
111. #Options #Notes
If you are going to be directional, be directional.
I had tried both ATM bullish put spread and 35 delta put spread on SBIN. I got more out of former because i got the direction right and i used closer to 50 delta.
In directional, do it 💯 or don’t do it.
If you are going to be directional, be directional.
I had tried both ATM bullish put spread and 35 delta put spread on SBIN. I got more out of former because i got the direction right and i used closer to 50 delta.
In directional, do it 💯 or don’t do it.
112. #Options #Notes
With respect to condors, i am not so certain yet.
The ones that made more sense was the one collecting 1/3rd of strikes. RRR was going up to 1:1.
Sadly, i could only place one trade and i had to close it early.
With respect to condors, i am not so certain yet.
The ones that made more sense was the one collecting 1/3rd of strikes. RRR was going up to 1:1.
Sadly, i could only place one trade and i had to close it early.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
