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Vivek Thebaria Profile picture
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5 Jun, 4 tweets, 1 min read
What can be a low capital, low risk, high reward strategy on ITC on the upside

And a low capital, low risk and high reward strategy on Adani Ent on the downside?

Can be a combination of Cash shares + F&O

Rollover allowed.

Share yours. Will share mine at the end.
Capital reqd. 2.87L
Actual numbers may vary a bit, but the risk: reward would be simply mindblowing! Image
Brown dotted line shows the P&L at expiry. In this case, it will be June expiry.
This strategy is strictly for super liquid stocks. Even Adani Enterprise doesnt have such liquidity to qualify. SBI, TaMo, Infy, ICICIBANK, AXISBANK may be the few names only apart from ITC.

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More from @vivekthebaria

Vivek Thebaria Profile picture
8 Jun
#BPCL : Have been running strategies on BPCL since Mid March.
Stock has been quite volatile as the news around its divestment has been volatile. But since it was certain that govt would not be selling it cheap as this is one of the better managed PSUs .. (1/n)
... And there would be several transactions to make it's structure simpler for a prospective buyer to evaluate. That would mean selling off few subsidiaries which would bring in cash and that cash would be distributed to the share holders.
(2/n)
So, I bought 1800 shares of BPCL in March and pledged them to generate margins.
Using a part of those margins sold a call to make some monthly income till the plan plays out.
(3/n)
Read 7 tweets
Vivek Thebaria Profile picture
14 May
1. Straddle vs Triple Straddle: Is there a benefit?

Data says, yes. Small benefit but there is some benefit. Especially when it comes to sharp moves on one side (Gap UP/Down) - Triple straddle stands better than a single straddle.
2. Single straddle at 32200 for May 20 expiry : 6Lots
Triple straddles at 32200, 32600 and 31700 : 2 Lots each.

At the center there is not much diff between the two. Similar Greeks (Theta & Vega mainly)

But look at the payoff profile. Triple straddle provides a much ...
3. ...Distributed profile which means the payout at expiry is not concentrated at one single point like a single straddle, but is spread over a range. Something like a strangle.

Psychologically, that gives comfort during a little extra volatility in the markets, ...
Read 9 tweets
Vivek Thebaria Profile picture
27 Mar
1. Trading a Rejection candle : One of the most enjoyable pattern to trade is a Rejection candle. I say enjoyable because it has a higher probability of success playing contrarian to the market. And who doesn't like to play contrarian and win.
#TheWittyOptionsClass
2. The typical setup is something like the one shown in the below chart:
A rejection candle appearing almost at day high, followed by a red candle is a high probability short.
3. Stoploss in such trade would be the high made on the rejection candle.
If Market comes back and takes away that stop, it would mean the market is not really in a mood to go down. Remember, I called it a High-probability short, and not a sureshot short.
#TheWittyOptionsClass
Read 10 tweets
Vivek Thebaria Profile picture
9 Feb
1. Thread on CONDITIONAL BUY:
Purpose is to catch trending moves once it is confirmed.
Plot the most important support and resistance on the chart such that violating those levels will lead to a trending move in all likelihood.
#OptionsTrading #markets
2. Eg. Banknifty is at 36000. Support at 35500 and Resistance at 36500.

Place buy orders in the system such that 35500PE is bought if 35500 is violated.
36500CE is bought if 36500 is breached.

#OptionsTrading #markets
3. What should be the limit price order for the two contracts (35500PE, 36500CE)?

Ideally, the price of an ATM contract should be same keeping everything else constant ( Days to expiry, volatility, interest rates etc.)
#OptionsTrading #markets
Read 11 tweets
Vivek Thebaria Profile picture
3 Dec 20
1. If you are reluctant to commit to any uptrend, (or for that matter even in a downtrend), yet, have to create a position, then consider bullish butterfly as your go to strategy.
Below is an example I have created for #bhartiairtel
2. Attached are the positions deployed:
3. Benefits:
a. Low capital requirement (1.3L)
b. Risk limited (~4k)
c. High Max profit potential (32.8K)

Chart is strong but has rallied alot. View is it would find strong resistance around 500 but may not fall much.
Is there any other strategy you think can be used here?
Read 6 tweets
Vivek Thebaria Profile picture
28 Nov 20
1."Conditional Buy"
Aim is to capture theta on a day to day basis by selling straddles/strangles.
Instead of putting stops on the sold arms, close contracts are bought to convert naked arms into bull/bear debit spreads if the index is breaking away from a range.
#OptionsTrading
2. Sharing my strategy as I execute it. At around 9:30 AM, I would assess probable demand and supply zones on #banknifty chart. Breach of these zones would lead to quick price movements, which may or may not result in a trend.
#OptionsTrading
3. Now I choose the nearest 500 strike to write a strangle. Eg. #Banknifty closed at 29631 on Friday, 27th Nov. So I would be writing 29000PE and 30000CE Weekly contracts.
a. 29000 PE premium: 184
b. 30000 CE premium: 246
c. Total Premium collected per lot : 430
#OptionsTrading
Read 19 tweets

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