Advantages: 1. Quantitative Analysis in one place 2. Easy to find stocks where action taking place 3. Find the exact price levels at which OI is being added.
Beautiful explanation on positional option selling by @Mitesh_Engr
Sir on how to sell low premium strangles yourself without paying anyone. This is a free mini course in itself.
Read the thread to know why one is clearly better than the other.
A THREAD ...
Too many people are getting scammed into per lot broking. There are offers anywhere between 6 rs per lot to 25 rs per lot. It's financial suicide to opt for this kind of broker compared to the per order ones.
Let's have a look at why PER ORDER is OBVIOUSLY the better choice.
1. How many lots do you sell at a time?
The majority of the people must be at least selling 2-3 lots in one go. (Assumption)
Per lot brokerage (10 rs per lot) you'll be charged 30 rs buy-side and 30 rs sell-side (as we sold 3 lots), overall 60 rs plus other charges.
How @ITRADE191 selects strikes to trade in and how he follows risk management.
Short thread explained via pictures with the help of @niki_poojary.
1. At the start of the week
i.e. on Friday and Monday, DJ Sir prefers to sell OTM options of 50 rs premium in Nifty.
- ATM options won't decay a lot at the beginning
- With this premium reward is good
- Since these strikes are 4-5 strikes away they are relatively safer
2. On Tue/Wed/Fri
He prefers to trade in ATM or near OTM options.
- ATM options have the highest theta decay
- Since there are only 2-3 days to expiry options sellers by default have a higher probability of winning
- Huge reward if market stays flat