Making ₹5000 on a 10L account on weekly index expiries need 200 BankNifty points.
Do it with 4 lots and one just need to make 50 points per lot in a week - 10 points per lot per day.
52 Expiries in a year and without compounding you can make 26% on your capital in a year.
Staying profitable is that simple.
But problem is we want to make 50,000 per week on 10L or 10,000 per week on 1L ... yes thats how disproportionate and illogical our expectations are about trading income.
(2/n)
Trading is a game against people who themselves are using their wit to make profits by outsmarting other people. I outsmart you to make a living and vice versa. And only the real smarts survive. We are not fulfilling any basic need that has room to grow as population grows (3/n)
Its a game where every transaction ensures that lesser amount stays on the table for the players to grab. And I grab your money, you grab mine.
The trading pie always gets smaller from where it starts - Brokerage, Taxes eat into it.
(4/n)
So, the effort to get higher and higher from the diminishing pie needs higher and higher efforts and methods which can be borderline cunning.
But generating small consistent income is not difficult. Why?
(5/n)
Because, the greed of most men to grab a larger pie compared to their efforts/capital/wit leaves a lot on the table for easy pickings.
Go for easy pickings to make a good living out of the markets. (6/6)
Depressing, right?
So, on that depressing note, let me share with you a strategy that generates 10% per week on a capital of 2L and above.
It goes as below...

At 9:20 A.M. sharp, sell ATM call and ATM Put.

#JustKidding
😉😜
Actually ask most people who have had a 1-2 years experience in the market.. what is your expectation per month. They would say 3-4%.
But the strategies they deploy defies what they proclaim. It targets 8-10% per week.
We play with much higher risk than what is needed. (2.a/6)

• • •

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

Keep Current with Vivek Thebaria

Vivek Thebaria 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!

PDF

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 @vivekthebaria

27 Jun
Overwhelming response for the previous thread. However, I think people missed a crucial point there.
The calculation I have done is for staying profitable after taking a reasonable risk.

As humans, we don’t have the tendency to stop. Growth is life. And that is desired.

(1/n)
However, you first learn to crawl. And then walk. Then run.
If you are doing 25%+ p.a. on a consistent basis - atleast for 3 consecutive years, then you are free to explore higher horizon of returns. You have capital and skills, then target higher returns by all means. (2/n)
No one is going to stop you from doing that.
But how many twitter traders (or any trader for that matter) can truthfully claim that?
Half of them are low on capital and almost other half is low on skills. But all of us want to earn 50%+ p.a. (3/n)
Read 10 tweets
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
5 Jun
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.
Read 4 tweets
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
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
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

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!

:(