Aditya Trivedi Profile picture
Dec 10 11 tweets 3 min read
POWER OF COMPOUNDING IN OPTION SELLING

Compounding can turn 20 lakhs into 2449 crores!

And the best part is you don't have to make big Roi.

Find out how
1: The first goal is to have a longer time view and also the long term mindset.

Because the real power of compounding is only felt in a longer time period as opposed to a shorter timeframe.
2: Target only 2% roi in a month.

This is something which most of the guys on twitter laugh at because it seems small but over a longer term , Just 2% roi compounded can do wonders.

I'll explain how.
3: Example : Let's say you start with 20 lakhs capital and only make 2% a month.

In 20 years, you will end with 23 cr if you keep on compounding it.

That's 100 times return in 20 years. But hedge funds would kill to make this much.
4: Even if we deduct taxes and brokerages, still we end up with a very handsome figure.

Making 2% a month in option selling consistently is very much possible. In fact, even if you trade only intraday it's possible. You don't even have to take overnight risk to make 2% a month.
5: Now let's say after a few years your trading skills improve and you are able to make 4% a month consistently.

Starting capital is 20 lakhs.
In 20 years, the final amount will be more than 2449 crores.
6: I might trigger some people after saying this, but of course after reaching a certain stage you can always withdraw some part of your capital.

You don't have to necessarily wait for that long. Even getting half or 1/4 of this is amazing.
7: To experience the full benefit of compounding, Avoid withdrawing your money your account in the early stages.

If you start to withdraw your profits , then compounding won't take place. Only withdraw as little as possible.
8: It won't be a cakewalk.

Even making 2% a month consistently will require hardwork and efforts in the longer run. This is not a get quick rich scheme because 20 years is also a long time.

But surely it's worth it and the way to grow your capital to a larger size.
9: If you've liked this thread then do "RETWEET" and "FOLLOW ME" for more such threads.

You can also follow "Inner Circle" on instagram for more trading related content instagram.com/innercirclepro
For the naysayers, I will provide 15% discount to join Inner Circle and exprience the power of compounding themselves.

Use the code "COMPOUND15" to get 15% off. Valid only till tonight.

rigipay.com/g/CKKzgZr7QI

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More from @itsAdityaT

Dec 11
"INVEST 10k every month and in 20 years you will have 1cr" - Standard Mutual fund Pitch

I'VE NEVER SEEN ANYONE GET RICH FROM BUYING MUTUAL FUNDS!

You're being scammed into buying mutual funds in majority of the cases

Find out how and what's the alternative?
1. Fixed management fees

You have to pay fixed fees of 2-4% of your capital in mutual fund and it automatically gets deducted from your capital.

You have to pay these fees regardless of whether you make a profit or loss which makes it the worst ever investment possible.
2-4% fees might seem small in the beginning but on a larger capital it does make a significant difference.

And why do you want to even pay 4% a year just to buy hdfcbank, reliance,tcs, infy etc?
Read 10 tweets
Dec 3
Most of the successful traders here are option sellers.

Ever wondered why?

Why we have chosen option selling?

Find our below
1: Being wrong and still making money.

We as option sellers can be wrong with our market view and still end up making money because of the power of theta decay and adjustments to some extent.

Adjustments work better as get closer to expiry since decay is the highest.
2: Theta decay

The biggest reason and one of the prime reasons is the theta decay.

Option sellers always have an advantage because the as time passes, the option premium falls even if the underlying instrument doesn't move.
Read 20 tweets
Nov 26
Are you afraid to sell options with low premiums and low vix?

Calendar Spread is one such strategy which is designed to make good money in low vix.

It has very low risk and is easy to execute.

Plus anyone can follow it with few basic rules and adjustments.
I had made a view on @ITRADE191 's calendar spread strategy and will explain it here in the simplest words so maximum number of people can benefit.
1: What is a Calendar spread?

It involves selling and buying options in different expiries.

Eg: You sell options in current month and buy options in next month or you sell options in current week and buy options in next week expiry.
Read 13 tweets
Oct 30
HOW TO SAVE TAXES IN TRADING?

Many are still not aware of the immense tax benefits of a corporate account for trading hence I'll write a comparison for Individual vs Corporate Account.

A Thread🧵
1: Flat tax

For a Corporate account( pvt ltd) you have to pay a flat tax of only 25% no matter what your income is.

For an individual taxes have to be paid as per their respective slabs. It can be 30% or even 42%.
2: Surcharge

Surcharge on a corporate account is (7-12%) while an individual has to pay a surcharge of more than 30%.

That itself is a huge benefit of of a corporate account.
Read 12 tweets
Oct 22
Many beginners are not aware of the most basic yet the most favored option strategies by top traders.

50K Workshop for free!

Here are the basic option strategies used by top traders.

A thread🧵
1: Short strangles

This is my personal favorite strategy and is the most favored by the best option sellers.

This involves selling one otm call and one otm put.

You will make money if market expires inside this range.
2: Short straddle.

Short straddle involves selling one atm call and one atm put.

It makes money if the market expires within the range.

However, they are high risk high reward, meaning the reward is much higher than short strangles but so is the risk.
Read 9 tweets
Oct 2
DARK SIDES OF OPTION SELLING

We have seen why option selling is good but also there are 2 sides of a coin.

Listing down some of the most common mistakes people make in Option Selling that results in huge losses.
1: Not having a direction.

Most of the people get involved purely in neutral strategies and lose heavily when market starts to move as they are not experienced enough to carry out the adjustments.

Having a slight sense of direction increases your odds of winning.
2: Keeping hard and tight stoplosses.

Keeping very tight and hard stoploss in your system will result in even a small spike throwing you out quickly.
Read 11 tweets

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