#TCS
#Earnings

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.

Did trades in 3 stocks so far this month.

M&m
TISCO
HINDALCO

After long time did so much adjustments in my trades. M&m

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

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.

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

(1/n) What does inside bar means?

- Inside bar is when current candle high < previous candle high & current candle low > previous candle low.

(2/n)

Today morning

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.

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.

(1/n) 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.

(2/n)

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.

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.

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.

(1/n) 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.

(2/n)

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.

(1/n) 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.

(2/n)

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.

So decided to only focus on trading.

#TCS #BAJFINANCE

So today we will discuss two more price action setups to get good long side trade for intraday.

1. PDC Acts as Support
2. PDH Acts as Support 1. PDC Acts as Support

In this setup after gap up, in first our of trading session price approaches PDC but fails to break below PDC convincingly.

Good example of position sizing overnight.

Let's assume opening of nifty is 500 points up from close.

There are 2 non directional traders who trade with straddle/strangle. Both has 20L capital.

(1/n) Mr. A has taken overnight short straddle of 9200 at close at 240. He can take 15-17 lots overnight using full capital but he used just 25% of margin and sold 4 lots straddle.

Mr. B had same position but he used 50% of margin and sold 8 lots straddle.

(2/n)

Long thread on my training history

First i have started training in sep 2018 when everyone i was seeing was doing off market training. Me & @Stockengg decided to train people in live market for 3 days with live trades.

Trained almost 30 traders. Then we did similar webinar for 3 days in oct 2018 in live market.

Trained 25 traders.

Then I did live market training for 4 days in jan 2019 including expiry.

Trained 10 traders.

When i started trading Expiry on BNF I use to sell 3 ATM straddles and was keeping stoploss of 2% on portfolio rather than stoploss for trade.

Worked very well for couple of months Before volatility got increased in month of april 2019.

(1/n) After may 2019 I have moved to NIFTY for expiry to be with well diversified index.

I use to do only short straddle with stoploss on trade now. As Volatility was high i was getting good premium to short so that worked well for couple of months until volatility went down.

(2/n)

What next trade will be here!!

Pullback short trade or possible false breakdown!!

Watching👀👀 For pullback moving on to smaller time frame. Rejection candle under formation.

Wait for 8 PM to complete current candle.

As a trader, we work for 5 days in a week. 6 hours we spend in live market and atleast 2-3 hours more on analysis after market.

Our family and friends doesn't get required attention on weekdays from ourside. Even we don't even get time to look after ourselves on weekdays.

(1/n) So on weekends we need to spend some good time with family & friends. Also spend sometime to look after ourselves.

So i never miss to watch movie on every Saturday, also go out and spend sometime with your family and friends.

(2/n)

One year is about to complete.

Capital : 18.6L

P&L F&O : 7.51L
P&L Equity : 30.6K

Total P&L : 7.816L

ROI : 42% Per annum (3 weeks left)

Consistency is the key ✌️✌️ 4 Quarterly Earnings Season of 2019.

Net P&L during earnings season : 623170

80% of overall gains came during Earnings season.

Note : There were expiries as well inclusive in this p&l during that period.

#Reliance

Wait full green candle for pullback entry near breakout zone.

Pullback zone 1390-1415. #Tcs

Strong support zone of 2060-2030.

Wait for long opportunity (either rejection candle or bullish candle).

Weekend views on all my 35 f&o stocks will be given on this thread.

Stay connected😊😊 #Reliance
#weekly

Demand zone 1220-1180.

Look for bullish candle formation from demand zone. And go long above bullish candle formation.

View gets neglected with close below 1170 on weekly TF.