𝐁𝐚𝐬𝐒𝐜𝐬 𝐨𝐟 πƒπžπ«π’π―πšπ­π’π―πžπ¬ - 𝐏𝐚𝐫𝐭 𝐈𝐈

β€’ How options can be used

β€’ How to trade in options & exit strategy- buyers

β€’ Imp of theta decay

β€’ How to trade in options & exit strategy -sellers

Time for a Thread🧡

Curated in collaboration with
@AdityaTodmal
β€’ The lame textbook def of right but not the obligation etc is simply confusing

β€’ This is how you can remember, by understanding the logic of the instruments with your view on the market
β€’ In a nutshell: Options are instruments used to express your view on the market

β€’ The view could be same but the instruments played by the buyers and sellers could be different
β€’ For Option buyers:

β€’ Its imp to set a price target

β€’ and to set a time target as well
β€’ Time is an important factor to be considered

β€’ Movement should outweigh the time decay
β€’ Remember option is a wasting asset

β€’ Time decay always works against option buyers

β€’ Time decay is the highest when the option nears its expiry
β€’ Stock moved up but my CE dint move up 😭😭😭

β€’ Buying too early in the series means paying higher prem for an OTM option

β€’ Remember, OTM option only has time value
β€’ Exit conditions are very crucial

β€’ Evaluate your position everyday whether the theta decay is eroding your option premium faster than the movement you are waiting for

β€’ If yes have a SL
β€’ Option selling :betting where the market wont go

β€’ Need a broader view over a precise view
β€’ Draw a mental probability distribution chart

β€’ Theta decay is a friend of option sellersπŸ€πŸ‘¬
β€’ Exit conditions for option sellers

β€’ Time to expiry is less: theta decay will bail you out, ceteris paribus

β€’ If its breaking a major support or resistance: exit

β€’ Meanwhile: adjustment is the name of the game, to protect from huge MTM swings
β€’ This was a part II Thread on derivatives

β€’ You can check out the 1st part hereπŸ‘‡


β€’ If you ❀️ this, why not share?

β€’ Retweet the first tweet and help others find this 🧡

β€’ Happy learning πŸ€“ to everyone!
β€’ I curate threads on trading & financeπŸ“‰πŸ“ŠπŸ“ˆ

β€’ You can check out other threads πŸ“Œ on my profile πŸ˜ƒβœŒοΈ

Follow us:

@AdityaTodmal

&

@niki_poojary

for more such interesting Threads!

Have & happy πŸͺπŸ§΅ & a safe 😷 weekend!
Please refer to this chart over the aboveπŸ‘‡

Sorry for the typo

β€’ β€’ β€’

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

Keep Current with Nikita Poojary

Nikita Poojary 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 @niki_poojary

8 Jan
𝐁𝐚𝐬𝐒𝐜𝐬 𝐨𝐟 πƒπžπ«π’π―πšπ­π’π―πžπ¬

β€’ What is a derivative

β€’ Various derivative products

β€’ Participants in derivatives market

β€’ Uses of derivative instruments

β€’ Beta & hedge ratio

β€’ Option Greeks

Time for a Thread 🧡

Curated in collaboration with @AdityaTodmal
β€’ What is a derivative?

β€’ Which assets can derive the value from its underlying
Various products in the derivatives world

β€’ Forwards

β€’ Futures

β€’ Options

β€’ Swaps

β€’ Exchange Traded

β€’ OTC
Read 24 tweets
31 Dec 21
There are some years that become a dividing line⭐️

2021 is one of the most incredible year of my life, worked on so many new stuff and I'm glad & grateful that I found a great friend and a business partner @AdityaTodmal 🀠

Also, Thank you ❀️to everyone who has joined meπŸ™
As we look forward to 2022, let’s do a quick round up of all the threads 🧡 for the year 2021

Curated these threads with @AdityaTodmal

Have covered concepts on trading & finance

Excited to continue learning πŸ€“alongside all of you. The future is so bright!🀩
@Mitesh_Engr Sir's Positional Option Selling 101 made in collaboration with

@AdityaTodmal

Read 15 tweets
26 Dec 21
Learnings from one of my favorite Trader & Youtuber Mr. Subasish Pani @subasish_pani of π—£π—Όπ˜„π—²π—Ώ 𝗼𝗳 π—¦π˜π—Όπ—°π—Έπ˜€ fame from the F2F interview conducted by @Vivbajaj Sir of @elearnmarkets fame

Time for a thread 🧡
β€’ After being a successful in cash, futures & option buying in intraday Subasish is currently a Positional Option Seller
β€’ Probably an only option seller who sells Deep ITM options
Read 28 tweets
12 Dec 21
#BANKNIFTY

Outlook for the week Dec 13, 2021

Nov Monthly: Bearish Engulfing (BE) formation done however confirmation would be once it starts trading below 35695

Weekly: There are no lower lows, however we need a higher highs in weekly to change the stance from neutral to +ve
#BANKNIFTY

Daily: Bullish structure, BO of rectangle or W pattern and since past three days 36800 zone is where buyers are active

BNF after making an upmove of 1700 points, remained sideways for past two days
#BANKNIFTY

Hourly: Clear formation of bullish flag, awaiting a BO

Strong upmove followed by sideways consolidation in the upper one third area of the upmove
Read 6 tweets
20 Nov 21
#PAYTM IPO Fiasco

Will cover the following:

β€’Issue Size πŸ’²
β€’Business Model
β€’Shareholding Pattern
β€’Financials πŸ“Š
β€’Strengths πŸ’ͺ
β€’Issues ⛳️
β€’Chart check for traders πŸ“‰

Time for a Thread 🧡
β€’ Issue Price: 2150

β€’ Issue Size: Rs. 18300 crs./85,116,279 equity shares

β€’ Fresh issue of Rs.8300 crs. + offer for sale (OFS) of 10000 crs.
β€’ OFS: The proceeds goes to the existing shareholders who are taking an exit & not to the company

β€’ Fresh Issue: Proceeds goes to the company of which Rs. 6300 crs. to be utilized for inorganic growth i.e. acquisitions & balance Rs. 2000 crs. for General corporate purpose
Read 17 tweets
14 Nov 21
#BANKNIFTY

Outlook for the week Nov 15 - Nov 18, 2021

Weekly: Confirmation of Bearish Engulfing as BNF started trading below 39115

Tgts for the same are: 37665 & 36383
#BANKNIFTY

Daily TF:

BNF is at support at 38350 zone & immediate resistance basis Daily TF is 39350.

Also after a6 consecutive days of red coupled with a steep 90 degree fall from Nov 9 to 11, a small bounce is expected.
#BANKNIFTY

Hourly TF:

Immediate resistance works at 38900-39k from where the fall accelerated on Nov 11, 2021 expiry
Read 7 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

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!

:(