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Yash Mehta Profile picture
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Sep 25 • 7 tweets • 3 min read
Option Trading is very difficult to master as there are so many things to understand.

Here is a master thread related that will help a beginner to understand about Options Trading.

A complete course worth Rs 50K for free.
1/ A detailed thread on basics of Option Greeks and how it impacts Options prices:

2/ Basic Option Trading Strategies:

There are many option strategies to trade. But keeping your strategy simple is the key.

In this thread, all the basic option trading strategies are being listed.

3/ What are the things that you should look at before taking any Option Trades?

4/ Is Option Selling Possible with Rs 1 Lakh Capital?

Even a beginner can start trading in option selling with capital as low as Rs 1 Lakh.

What are the techniques one can use and how to mitigate the infinite loss risk is shared in this thread.

5/ Positional Option Trading Strategy:

Share a positional option trading strategy for #Nifty. It is purely based on technical analysis and doesn't require you to check Option Chain, OI, etc. It requires Rs 50,000 margin after hedging your position.

This is a complete digest and a course for anyone who is interested in Option Trading.

If you found this useful, please RT the first tweet.

Follow @YMehta_ for more such learning.

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More from @YMehta_

Yash Mehta Profile picture
Sep 23
People say that Part Time Trading is not easy.

I am a Part Time Trader for more than 7 years and I have been using most of these tricks in my own #trading.

Here are some free hacks for a Part Time Traders to generate additional returns along with their Job/Business 🧵:
1/ First select in what instrument you will trade or invest:

This question can be answered depending on the skills and your edge in trading.

I have my edge in Option Selling and Positional Trading.
So divided my capital in half in these two.
Note: It is not necessary to jump into Futures and Options Trading just looking at lucrative profit screenshot.

Always protect your capital and don't take huge risk.

Generate returns that give you peace of mind.
Read 9 tweets
Yash Mehta Profile picture
Sep 18
Most of the beginners don't know the actual meaning of various corporate action in the stock like Dividend, Bonus, Split, Rights, etc.

Let's decode meaning of all these corporate action and what implication it has on company's stock price and valuation in this thread 🧵:
1/ Cash Dividend:

A cash dividend is the distribution of funds or money paid to stockholders generally as part of the corporation's current earnings or accumulated profits.

Stock price also goes down in same Dividend value as on Ex-Dividend Date.
2/ Stock Dividend:

A stock dividend is a dividend payment to shareholders that is made in shares instead of cash. The stock dividend has the advantage of rewarding shareholders without reducing the company's cash balance.

So far, no Indian company has given stock dividend.
Read 11 tweets
Yash Mehta Profile picture
Sep 16
Screeners helps trader in saving lot of time in filtering best stocks out of 1000+ stocks listed.

Here is the list of top 9 Free Price Action based screeners that I use:

Also, last screener is my favorite to pick early momentum stocks.
1/ Bullish Engulfing:

The bullish engulfing pattern is a two-candle reversal pattern and it is a strong bullish candle that a trader uses to take reversal trades.

chartink.com/screener/bulli…
2/ Bearish Engulfing:

The bearish pattern is a two-candle reversal pattern and it is a strong bearish candle that a trader uses to take reversal trades.

chartink.com/screener/beari…
Read 11 tweets
Yash Mehta Profile picture
Sep 4
There are various Options Greeks like: Delta, Gamma, Vega, Rho, Theta.

A complete guide on how these #Option Greeks impact option price.
1/ Delta:

Delta is a measure of the sensitivity of an option’s price changes relative to the changes in the underlying asset’s price. In other words, if the price of the underlying asset increases by 1 points, the price of the option will change by delta amount.
Call option has positive delta, and put option has a negative delta.

As the options become ITM, the value of delta tends towards +1 for call and -1 for put.

Delta is important greeks to determine the hedge ratio for investors who want to hedge their portfolio.
Read 12 tweets
Yash Mehta Profile picture
Sep 2
Here is the list of Top 5 Free Advanced Technical Indicators that you can use in @tradingview for your trading 🧵:

Few of these indicators are designed by me.

Also, the last indicator is one of my favourite to pick early momentum stocks.
1/ CPR:

It is a popular indicator of the trading community. One can try it for Nifty and Banknifty futures and options trading.

in.tradingview.com/script/eqObwaW…
2/ Relative Strength (RS):

This indicator helps in identifying stocks that are showing strength against benchmark (Nifty or any Index). It can help you to hold and ride the winners.

in.tradingview.com/script/OhSlks3…
Read 7 tweets
Yash Mehta Profile picture
Aug 28
Here is the top seven #thread 🧵that I have shared in 2021:

Second thread is my favourite of all.
1/ Option trading strategy:

Share a positional option trading strategy for #Nifty. It is purely based on technical analysis and doesn't require you to check Option Chain, OI, etc. It requires Rs 50,000 margin after hedging your position.

2/ Volatility Contraction:

It is an amazing strategy for positional trading and most of the trades have a high reward:risk ratio.

In this thread, I have shared screener and indicator which you can use to trade on Volatility Contraction effectively.

Read 9 tweets

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