2 hours of non-stop Twitter space by @kapildhama
Topic - Data Points to check as a Option seller
Mega Thread 🧵 of all the data points to check as a option seller shared by Mr. Kapil Dhama is complied
Retweet to reach wider -Learning should never stop
#StockMarketindia
1/18
Topic - Data Points to check as a Option seller
Mega Thread 🧵 of all the data points to check as a option seller shared by Mr. Kapil Dhama is complied
Retweet to reach wider -Learning should never stop
#StockMarketindia
1/18
https://twitter.com/learntotrade365/status/1482342166127333377
2/18
-Make your own trading system
- First identify what suits you ?
Trend Following
Directional or Non-directional option selling
9:20straddle
Naked option buying/selling
-Never take more than 1% loss in intraday
-There is no specific trick in market only important is process
-Make your own trading system
- First identify what suits you ?
Trend Following
Directional or Non-directional option selling
9:20straddle
Naked option buying/selling
-Never take more than 1% loss in intraday
-There is no specific trick in market only important is process
3/18
-Chart & Data plays a important role ( Understand to combine to identify trades/direction )
-In all trades knowing exit point is very important
Simple target for Kapil sir in straddle is 100 points in a week on BNF & Loss exit point is 50 points after adjustment (R:R 1:2)
-Chart & Data plays a important role ( Understand to combine to identify trades/direction )
-In all trades knowing exit point is very important
Simple target for Kapil sir in straddle is 100 points in a week on BNF & Loss exit point is 50 points after adjustment (R:R 1:2)
4/18
- Simple target for Kapil sir in straddle is 50 points in a week on NF & Loss exit point is 25 points after adjustment (R:R 1:2)
Check data after 3:00 p.m Chart + Data ?
Check how is the closing ( Location of closing - Near Day high or Day low or mid of the day )
- Simple target for Kapil sir in straddle is 50 points in a week on NF & Loss exit point is 25 points after adjustment (R:R 1:2)
Check data after 3:00 p.m Chart + Data ?
Check how is the closing ( Location of closing - Near Day high or Day low or mid of the day )
5/18
Example:
-If market is near high ( Check in data whether Near ATM PE has more writing & in CE writing whether is less at higher strike price) - It is a Probability
Once Data is bullish along with the close he choose
Strangle- Rs.70 PE & Rs.40 CE or scroll down
Example:
-If market is near high ( Check in data whether Near ATM PE has more writing & in CE writing whether is less at higher strike price) - It is a Probability
Once Data is bullish along with the close he choose
Strangle- Rs.70 PE & Rs.40 CE or scroll down
6/18
Strangle - Rs.50 PE with 10 lots & Rs.50 CE with 5 lots
Data should support chart . If market closing near high but near ATM PE writing is less and CE writing is more ( Chart & Data is not matching )
He never prefer Naked option entry specially for positional
Strangle - Rs.50 PE with 10 lots & Rs.50 CE with 5 lots
Data should support chart . If market closing near high but near ATM PE writing is less and CE writing is more ( Chart & Data is not matching )
He never prefer Naked option entry specially for positional
7/18
He looks data in perspective of option seller
Data to check for Intraday: ( Avoid on friday because data is immature)
- After 9:30 a.m ( Check PE or CE writing is more)
- If Gapup & sustain for 15 minutes (Obviously More PE then CE writing - Better probability is bullish)
He looks data in perspective of option seller
Data to check for Intraday: ( Avoid on friday because data is immature)
- After 9:30 a.m ( Check PE or CE writing is more)
- If Gapup & sustain for 15 minutes (Obviously More PE then CE writing - Better probability is bullish)
8/18
-Then need to check whether aggressive PE
- Check current day data for aggressive
-Check Near ATM how aggressive writing
-Need guts to add naked writing in near ATM
-Data created by big players so understand to judge so we can take trades(Check whether data &chart match)
-Then need to check whether aggressive PE
- Check current day data for aggressive
-Check Near ATM how aggressive writing
-Need guts to add naked writing in near ATM
-Data created by big players so understand to judge so we can take trades(Check whether data &chart match)
9/18
-If CE writing take over PE writing nee to change the view for directional traders
-Always combine Data with charts because market is probability not certainty
-He never check PCR
What to check and
What not to check is important (spending time here is just wasting time)
-If CE writing take over PE writing nee to change the view for directional traders
-Always combine Data with charts because market is probability not certainty
-He never check PCR
What to check and
What not to check is important (spending time here is just wasting time)
10/18
How he initiate trade after Data check for directional trade?
-For directional go straddle or spread or strangle
Strangle -Rs.60 PE & Rs.40 CE ( If the directional move comes option price becomes half we get cushion)
How he initiate trade after Data check for directional trade?
-For directional go straddle or spread or strangle
Strangle -Rs.60 PE & Rs.40 CE ( If the directional move comes option price becomes half we get cushion)
11/18
Why he avoid MAX OI based selling on expiry?
Example 18100 MAX OI
So if price crosses 18100 panic on one leg by SL triggers as a buy order which can also lead to sudden option premium shout up ( Panic for option sellers)
Why he avoid MAX OI based selling on expiry?
Example 18100 MAX OI
So if price crosses 18100 panic on one leg by SL triggers as a buy order which can also lead to sudden option premium shout up ( Panic for option sellers)
12/18
But same problem of panic is very less in next strike like 18050/18100 during that spike
Why spike occurs? Because everyone become buyers because of option sellers SL triggers as buy order.
This is one main reason he avoid selling in MAX OI
But same problem of panic is very less in next strike like 18050/18100 during that spike
Why spike occurs? Because everyone become buyers because of option sellers SL triggers as buy order.
This is one main reason he avoid selling in MAX OI
13/18
MAX OI breach for him it is a option buying opportunity & not a option selling
Check the option premium before entering trades if it is not decent swift to next week
Better to sell next week expiry with Rs.60/70 premium than selling Rs.15/20 premium in current week
MAX OI breach for him it is a option buying opportunity & not a option selling
Check the option premium before entering trades if it is not decent swift to next week
Better to sell next week expiry with Rs.60/70 premium than selling Rs.15/20 premium in current week
14/18
-In all option selling trades placing sl is important
-Data is a reservoir like in dam. Until dam is safe it is useful for nearest village
-He believe straddle means hold both leg if one leg SL hit means exit both leg
-He do combine premium SL on 100 points away straddle
-In all option selling trades placing sl is important
-Data is a reservoir like in dam. Until dam is safe it is useful for nearest village
-He believe straddle means hold both leg if one leg SL hit means exit both leg
-He do combine premium SL on 100 points away straddle
15/18
Slow up or down move is more dangerous there are days without big candle nifty will be up/down 250 point
In this case let's say NF is at 18000 after a hour CMP -18100 nearest first resistance is 18120. If first resistance breaches check data
Scroll down to continue
Slow up or down move is more dangerous there are days without big candle nifty will be up/down 250 point
In this case let's say NF is at 18000 after a hour CMP -18100 nearest first resistance is 18120. If first resistance breaches check data
Scroll down to continue
16/18
-Whether 17900/800 PE writers are shifting higher to 18000 PE if it happens more chance of price testing next resistance ( Bullishness will continue)
Don't stay on the hope holding CE selling better to exit CE sell or shift higher
Because PE sellers will be aggressive
-Whether 17900/800 PE writers are shifting higher to 18000 PE if it happens more chance of price testing next resistance ( Bullishness will continue)
Don't stay on the hope holding CE selling better to exit CE sell or shift higher
Because PE sellers will be aggressive
17/18
Don't hope for rejection get confirmation from data & charts. Until there is not confirmation avoid entering opposite direction trades
Market is dynamic not static so we need to be dynamic
Don't hope for rejection get confirmation from data & charts. Until there is not confirmation avoid entering opposite direction trades
Market is dynamic not static so we need to be dynamic
18/18
After taking overnight option selling position if premium opens more than double he will square off at 9:16 a.m and look for other trading opportunity.
Here is the end of the Mega thread
After taking overnight option selling position if premium opens more than double he will square off at 9:16 a.m and look for other trading opportunity.
Here is the end of the Mega thread
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