Thread by @AdityaTodmal

A THREAD ON @SarangSood

Decoded his way of analysis/logics for everyone to easily understand.

Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen

1. Keeps following volatility super closely.

Makes 7-8 different strategies to give him a sense of what's going on.

Whichever gives highest profit he trades in.

https://twitter.com/SarangSood/status/1161236801580703744?s=19

2. Theta falls when market moves.
Falls where market is headed towards not on our original position.

https://twitter.com/SarangSood/status/1143069907346587649?s=19

3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result

He believes in a market operator, if market mover sells volatility Sarang Sir joins him.

https://twitter.com/SarangSood/status/1146319882436280320?s=19

4. Theta decay vs Fall in vega

Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.

https://twitter.com/SarangSood/status/1227470588186419201?s=19

5. Monitors the Delta movement every minute to deal with fast moves.

Tries to be Delta neutral all the time through adjustments.

https://twitter.com/SarangSood/status/1159039174822916097?s=19

6. Free Workbook he uses to track greeks.

https://twitter.com/SarangSood/status/1207642602893275136?s=19

Excel workbook for learning.

https://twitter.com/SarangSood/status/1243792999517020161?s=19

7. Next time there's a long weekend, don't sell options purely to get theta decay, you might make loss as market has discounted all holidays.

Rather there should be a strong reason to sell options.

https://twitter.com/SarangSood/status/1159700037548425217?s=19

8. Expiry days premiums don't fall in the middle period.

He trades after 2 a lot.

https://twitter.com/SarangSood/status/1172019254255710209?s=19

9. Most powerful trading book he's ever read.

https://twitter.com/SarangSood/status/1172075393307705344?s=19

10. He has created a software which tells him if the adjustment cost is high/low.

https://twitter.com/SarangSood/status/1207927725177991168?s=19

11. Adjustment costs explained.

https://twitter.com/SarangSood/status/1214845924297437184?s=19

12. How to foresee volatility?

Trick to find out is when OTM options don't fall more percentage wise compared to ATM options.

That's a bad sign.

https://twitter.com/SarangSood/status/1231815309809442817?s=19

13. Signs of volatility in the markets

1. Gap openings
2. High premiums not falling systematically

https://twitter.com/SarangSood/status/1232694155744284673?s=19

14. Volatile week DOES NOT mean a volatile expiry will take place. The expiry can be calm.

https://twitter.com/SarangSood/status/1232905364691148805?s=19

15. What does vega reliasation mean?

https://twitter.com/SarangSood/status/1276086898251816961?s=19

16. How he starts selling options for the week.

Fridays 0.1 Delta (OTM)
By Thursday 0.5 Delta (ATM)

https://twitter.com/SarangSood/status/1209444192432185344?s=19

17. What's his edge in trading?
Keeps gradually scaling up his positions when in profit. This way when he wins he wins on maximum quantity.

When he loses, it's on minimum quantity.

https://twitter.com/SarangSood/status/1228634441033011200?s=19

18. Different category of days for Delta neutral option sellers.

One might know what type of day it is by identifying one of the following scenarios.

https://twitter.com/SarangSood/status/1244877985934495749?s=19

19. Good trading template for Sarang Sir.

https://twitter.com/SarangSood/status/1250300541684473856?s=19

20. How options react and what the movement of prices tell us about what's going to happen.

Important tweet, go through this.

https://twitter.com/SarangSood/status/1255011001071570944?s=19

21. His explanation to me regarding why ratio spreads should have a debit and the benefits of them in different scenarios with examples.

https://twitter.com/SarangSood/status/1264064621670879232?s=19

22. Super thread on options adjustments

https://twitter.com/SarangSood/status/1269875757398069249?s=19

23. His reply to whether greeks are necessary?

They're an intelligent way of looking ar options and also enable traders to trade complex scenarios/strategies easily.

https://twitter.com/AdityaTodmal/status/1307559093721133056?s=19

24. His master thread.

Lovely threads on ratios/iron flies/adjustments etc are there.

You'll love this thread.

Others jargons in case you don't know.

AKBC - Aise kaise bc
NBN - Naach b******* naach 😂

THE END

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https://twitter.com/SarangSood/status/1355407279680409600?s=19