OPTION SELLING USING VIX : A THREAD
I am sharing my learnings of calculating my weekly and monthly range. Making a thread and tagging few famous traders' for wider reach if it could help anybody in anyway.
1/n
@Abhishekkar_ @ST_PYI @ITRADE191 @PRSundar64
I am sharing my learnings of calculating my weekly and monthly range. Making a thread and tagging few famous traders' for wider reach if it could help anybody in anyway.
1/n
@Abhishekkar_ @ST_PYI @ITRADE191 @PRSundar64
DURING crash of last week of March 2020, my inquisitiveness led me to carry out a thorough research on the functioning parameters of #Nifty50. With the help of #research papers available on Nifty50 on #internet , i came across a detailed probability derivation of Volatility.
2/n
2/n
for option selling.
Any #newbee in #StockMarket has the biggest question of defining the range of #market, up to which it could scale or correct. Predicting/guessing this range requires a lot of experience which cost a lot of time and studies. Since, as per my observation...
3/n
Any #newbee in #StockMarket has the biggest question of defining the range of #market, up to which it could scale or correct. Predicting/guessing this range requires a lot of experience which cost a lot of time and studies. Since, as per my observation...
3/n
contd...
market is made of numbers derived by sentiments. It is primarily governed by #probability which could be calculated to certain extent using mathematical equation with the help of certain constants and....
4/n
@RajarshitaS @niki_poojary @CaVardhanCa @TheVivekSinghal
market is made of numbers derived by sentiments. It is primarily governed by #probability which could be calculated to certain extent using mathematical equation with the help of certain constants and....
4/n
@RajarshitaS @niki_poojary @CaVardhanCa @TheVivekSinghal
daily changing variables.
On this data, I applied certain modifications as per my requirement, back tested it on past data and applying it since 01 Jan 2021. I was surprised to see getting 1 to 1.5% weekly returns with accuracy of more than 80%. It was unbelievable but ...
5/n
On this data, I applied certain modifications as per my requirement, back tested it on past data and applying it since 01 Jan 2021. I was surprised to see getting 1 to 1.5% weekly returns with accuracy of more than 80%. It was unbelievable but ...
5/n
contd/
Logs are available on my twitter page since April 21 which were given two days in advance and can be verified. Out of 30 weeks logged till date, it worked rightly 26 times.
Though, risk management can not be negated in any kind of trading with pre..
6/n
@SarangSood
Logs are available on my twitter page since April 21 which were given two days in advance and can be verified. Out of 30 weeks logged till date, it worked rightly 26 times.
Though, risk management can not be negated in any kind of trading with pre..
6/n
@SarangSood
contd/
determined stop loss.
I can share the research paper studied by me with those interested, however, my modifications need a detailed conversation for understanding.
@elearnmarkets @DillikiBiili @TraderHarneet
7/n
determined stop loss.
I can share the research paper studied by me with those interested, however, my modifications need a detailed conversation for understanding.
@elearnmarkets @DillikiBiili @TraderHarneet
7/n
This strategy is purely formula driven and i admit that it requires no special skill. I do not have much experience of markets as other traders' have but this strategy can be very beneficial for new entrants in the initial phase for confidence building and limited returns.
8/n
8/n
Concept used -
"Volatility Index is computed using the order book of the underlying index options and is denoted as an annualized percentage."
and "India VIX indicates the investor‟s perception of the market‟s volatility in the near term i.e. it depicts the expected market..
9/n
"Volatility Index is computed using the order book of the underlying index options and is denoted as an annualized percentage."
and "India VIX indicates the investor‟s perception of the market‟s volatility in the near term i.e. it depicts the expected market..
9/n
......volatility over the next 30 calendar days."
A monthly range can easily be find out using these two concepts with the current value of VIX. This range can also be broken into weeks and days with personal understanding.
10/n
A monthly range can easily be find out using these two concepts with the current value of VIX. This range can also be broken into weeks and days with personal understanding.
10/n
I am a learner and understanding markets in my own way. If anyone finds this tweet useful, kindly retweet. Please DM me for calculations. These views are my personal views and i am not a trainer or analyst. 🙏🙏🙏
• • •
Missing some Tweet in this thread? You can try to
force a refresh
