#OptionsTrading thread that may save you!

Now a days we started seeing MTM for Crs & some people call it fake, but I see them as real & possible BUT its not as simple as they show it.

Simple Reason:
When asked about open risk & position sizing no one answered.

1/n Image
A friend clearly putted it saying "lot is unknown" as no one will share their pains & secrets on #socialmedia

Which lead to do some simple calculations that how things really look while writing #options using different styles.

2/n Image
Ac size 1cr
Naked positional option writing
1% risk
Qty arrived keeping total premium received as stoploss
means we are ready to lose 1rs to gain 1rs to start

Out of expiry days these guys write 25 to 30 rs options. Next day if those open as ATM then the %hit on ac👇

3/n Image
This is obvious that they are aware & willing to lose anything from 2% to 15% or even more for their reward of 1% case of an drastic event, will you do this?

Ofcourse such events may not come daily but they do come & u may lose 6m/1yr efforts. Are you ready with a mindset?

The above calculation is simply on when they have position to make just 1% profits, if they wrote targeting more then an event can wipe them out!

How? check what if on 10% gap against their direction. No both side writing save them. If they risked 5% at any distance, Burst!

5/n Image
So, What if they hedge & create credit spreads on their positional writing trades?

It's clear that further you go with strikes your RRR is lowest means if you made a 1cr then you could have risked bare min 2crs, to make 1cr at a 5% strike u may end up using entire margin.

6/n Image
This state that these guys are not in favor of credit spread all the time but hedge long distance strikes or simply depend on other side writing. Which may not be of great help if things goes wrong.

They are using LARGE Qty to earn Crs as they themself show on MTM pics

They are all making good money, over shooting others fear that they lose it all one day, that day may or may not come but wise must always prefer to survive through knowledge rather than die by experience.

Because you will have new experiences throughout your life.

8/n Image
No doubt that fortune favors the brave at #stockmarkts BUT historically it’s evident that if anyone lost all that they had or made, then it’s due to over trading & huge qty only & nothing else!

Stay within your limits when it comes to qty & let them face their MTM battles!

n/n Image

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with 🛡️InvestingCharts

🛡️InvestingCharts Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @InvestingCharts

6 Mar
Just like a person who suddenly got retired from his/her day to day Job: boredom, having nothing do, feeling empty for days are the first feelings of becoming financially free..!

It happens as every other person around u seems to be be busy with something.

Whats Next?

Give it a time!

Pick some petty work at home, do!
Wash your car!
Make your room!
Learn to cook!
Get your cloths done!
In short,
Do everything that an other person was doing it for you!

Become self-reliable!

Wake up in time.
Take your dog out, walk.
Pick up a book, read.
Think, pen down your experiences.
Pray, Meditate.
Eat healthy.
Sleep well.
Respect your body & mind.

Become self-disciplined!

Read 5 tweets
12 Aug 18
How greed and fear affect you?

People show some ponzi scheme and say monthly 10% income - Greed kicks in and people put lot of money to become rich overnight!

Society say your kid will lag behind if he is not in top school - Fear Kicks in and you pay lacks on nursery kid.

Example : Many people just reject to pay some small amount to learn about markets but get in to such schemes and lose out heavy :(

Example -FEAR :
a Private School ask you to pay 100,000 donation just to admit your 3 year kid to school and people feel and act as if its there responsibility to pay that large chunk.. imagine what kind of investment its going to be till child get a job after some 18-20 yrs

Read 25 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!