Resistance : 3340-50
Crucial level : 3240-3250
Support : 3150-60
Structure : bullish sideways
Highest CE : 3400
Highest PE : 3200
PCR : 0.65
Current IV : 27-28
Normal IV : 22-23
last year where general market IVs were high
IVP doesn't give clarity as last whole year IV was on higher side for whole market.
Before 2020 on results TCS general IV trades near 28-30 zone.
Expected IV crush after numbers 10-15% average.
Mar 19, 2021 • 8 tweets • 1 min read
Did trades in 3 stocks so far this month.
After long time did so much adjustments in my trades.
1. 750 pe sold at 11 (1st march)
Covered at 2
Sold 800 pe at 5
Stock started falling so converted into strangle by selling 900 ce at 5
Covered 900 ce at 2 & sold 870 ce at 5
Covered 870 ce at 6.55 & 800 pe at 2
Good gains overall
Feb 9, 2021 • 7 tweets • 2 min read
As a beginner if you are starting to trade stock options selling few important points u can refer.
1. Trade only highly liquid stocks (list i have posted sometime back on my timeline).
2. First understand ur trading phychology and decide trading style (speads or naked)
3. Decide your position size ( for beginner max leverage should not be more than 2.5x would suggest prefer 2x)
Example : Trading with 20L capital
Then keep 50% capital free in begining.
Divide 50% capital into 4/5 stocks.
Feb 7, 2021 • 11 tweets • 2 min read
Outside followed by inside bar is one of the best pattern to trade.
What does outside bar means?
- Outside bar is when current candle high > previous candle high & current candle low < previous candle high
What does inside bar means?
- Inside bar is when current candle high < previous candle high & current candle low > previous candle low.
Jan 21, 2021 • 4 tweets • 1 min read
NF 14700 PE Total OI 69L fresh addition 63L
BNF 32700 PE Total 29L fresh addition 28L
There was hardly any unwinding in either 14700 CE or 32700 Ce throughout day.
In such cases when Underlying makes new low then those late writters feels the heat first and they run to cover their PE shorts asap.
And that huge OI unwinding on those puts leads to sharp falls.
Dec 18, 2020 • 4 tweets • 1 min read
Every year Lacs of people appear for MBBS exam but only 5% gets admission. Out of those 5% hardly 1% becomes expert in their field.
People still never feel that doing MBBS is risky.
Same for engineering or any field there is hardly 5% who achieves something good.
In any business there are thousands of start up businesses are happening but hardly 5-10% runs those businesses successfully.
Still people don't feel starting new business with their own investment is risky.
Nov 2, 2020 • 5 tweets • 1 min read
Many people feel scalability issue when it comes to trading.
Few steps which can help u to scale with ease.
1. Scale slowly and steadily.
Ex : trading with 20L then gradually increase to 30,40,60,100L.
Don't directly scale from 20L to 2 Cr.
2. Never see ur MTM in absolute terms , always see in Percentage terms.
Ex. : with 20L ur MTM fluctuates within 40k and when u scale to 40L fluctuation will be within 80k counting 2% MTM fluctuation.
See both in same way as 2% don't see it as 40K and 80K.
Oct 31, 2020 • 4 tweets • 1 min read
Some of the myth about naked option selling risk!
"If there will be major gap down/up account will be wiped out!!"- that will happen only when u are over leveraged. I have face 15-18% moves and still losses in trade never went above 6% in a trade.
People argue that with reduced margin requirements we can generate more return and also get ourself protected with hedge!! - To make more return you need to increase qty and indirectly u are risking more with hedge to generate more return with same capital.
Sep 27, 2020 • 4 tweets • 1 min read
One of the basic theory behind gap days.
When underlying gives gap up above yesterday's range and sustains above that for one hour+ means market participants has accepted the new range and are willing to buy at higher price. So fresh buying and short covering are likely.
If price opens gap up out of PDR but fails to hold on to hourly low which means market participants haven't accepted new range yet.
So in that case it's likely to test PDH first if that also doesn't hold then PDC and even PDC doesn't hold price then likely to test PDL.
Sep 26, 2020 • 10 tweets • 2 min read
Thread for Novice traders.
Many people asks from where do i start learning about trading?
1. Start from learning candlestick pattern.
2. Learn theories behind how demand and supply works.
3. Learn how support and resistance works.
4. Focus on larger timeframe first, never start with intraday trading.
5. Start with actual money once u understand above theories. Do infuse only 10% of ur planned capital first and practice with equity segment. Never touch derivatives atleast for first 1 year.
Aug 26, 2020 • 5 tweets • 4 min read
Many people pinged me in DM regarding next earning season training program, sorry to say that I have decided to not take up any training from now onwards.
Reason being Earnings Trading is not suitable for everyone. I have the confidence in my system but no one can replicate same confidence while trading with me.
My risk appetite and other person's risk appetite might be different.