@VohiCapital's Threads
The next two weeks will be about holding fort to attempt getting past the trading errors of this week.
Bad trades, bad decisions.
#trading #markets
Bad trades, bad decisions.
#trading #markets
The thing with bad decisions in trading or any other endeavor is that it begets other bad decisions.
The first thing is to get back to the basics and put things straight.
/2
The first thing is to get back to the basics and put things straight.
/2
The simple things go out of whack with these bad decisions.
#process
#positionsizing
#riskmanagement
/3
#process
#positionsizing
#riskmanagement
/3
Sharing some thoughts on beginners who start trading short options.
Previously shared this on a closed WhatsApp group of friends.
#optionstrading
(1/n)
Previously shared this on a closed WhatsApp group of friends.
#optionstrading
(1/n)
Short option structures like Straddles and strangles have a high win rate.
A 15 delta Short strangle will end up with typically higher than 85% of trader's as winners.
This is the biggest attraction for traders new to #optionstrading
(2/n)
A 15 delta Short strangle will end up with typically higher than 85% of trader's as winners.
This is the biggest attraction for traders new to #optionstrading
(2/n)
This is also how a lot of options trading trainers sell to their prospective clients on the effectiveness of their #optionstrading systems.
But this high win rate comes at a cost.
(3/n)
But this high win rate comes at a cost.
(3/n)
As simply as this.
Using options over Futures doesn't allow you any additional edge in your directional Trade.
The Market doesn't pay for choice of traded instrument when the trader idea is Directional move of underlying.
(1/n)
Using options over Futures doesn't allow you any additional edge in your directional Trade.
The Market doesn't pay for choice of traded instrument when the trader idea is Directional move of underlying.
(1/n)
The only difference comes from government mandated costs for the different instruments.
(2/n)
(2/n)
Unless you are trading extrinsic Value, which in essence is a trade now not on direction but on volatility, there is no difference between using an option or future.
(3/n)
(3/n)
2018 Year in Review - The Personal Edition.
Met some fantastic traders and thought leaders.
You know who you are.
(1/n)
#2018YearinReview
Met some fantastic traders and thought leaders.
You know who you are.
(1/n)
#2018YearinReview
Grew the #OptionsTrading book despite some tough months.
February and November were the best.
September the worst.
(2/n)
#2018YearinReview
February and November were the best.
September the worst.
(2/n)
#2018YearinReview
Got on stage to share some ideas on how I approach #OptionsTrading not once but twice.
Thanks, @Definedge and @quantsappsocial.
(3/n)
#2018YearinReview
Thanks, @Definedge and @quantsappsocial.
(3/n)
#2018YearinReview
@ArtemisVol "When the Shoeshine Boy Is
Shorting Volatility..."
buildingarks.files.wordpress.com/2014/06/artemi…
Ring a bell for the Indian markets?
Shorting Volatility..."
buildingarks.files.wordpress.com/2014/06/artemi…
Ring a bell for the Indian markets?
@ChessbaseIndia just got into #SunwaySitges to cover the @SunwayChessOpen.
Watch out for the Indian contingent led by veteran GM Sasikiran and the young pack - GM @NihalSarin, GM @rpragchess and IM Gukesh D.
Gukesh, (ELO 2490) will be hunting for his 3rd GM norm and GM title.
Watch out for the Indian contingent led by veteran GM Sasikiran and the young pack - GM @NihalSarin, GM @rpragchess and IM Gukesh D.
Gukesh, (ELO 2490) will be hunting for his 3rd GM norm and GM title.
@ChessbaseIndia @SunwayChessOpen @NihalSarin @rpragchess The Indian contingent is the 2nd largest at the @SunwayChessOpen this year with 40 players out of a total 288 participants.
Here is an interactive map.
#SunwaySitges
sunwaychessfestival.com/contenidos/inc…
@ChessbaseIndia
Here is an interactive map.
#SunwaySitges
sunwaychessfestival.com/contenidos/inc…
@ChessbaseIndia
@ChessbaseIndia @SunwayChessOpen @NihalSarin @rpragchess Here is the full list of participants at the @SunwayChessOpen. Registration commences 13-Dec with a simul exhibition by GM Oleg Romanishin in the evening.
Games begin on 14-Dec-2018.
sunwaychessfestival.com/en/list/2018_0
#SunwaySitges
@ChessbaseIndia
Games begin on 14-Dec-2018.
sunwaychessfestival.com/en/list/2018_0
#SunwaySitges
@ChessbaseIndia
If you haven't felt this, you haven't traded.
Just got hold of @markminervini's 2nd.
Great intro, Mark. Looking forward to getting into it.
Just got hold of @markminervini's 2nd.
Great intro, Mark. Looking forward to getting into it.
A number of times when I started #trading I would read about common trading errors but then land up making the exact same errors.
I still do. It is a difficult process.
Most of it clicks when you figure out that what you are really trading is risk not return.
I still do. It is a difficult process.
Most of it clicks when you figure out that what you are really trading is risk not return.
You cannot just become a good trader by wanting to become one. Just like any other skill set, it takes time, errors, disappointments, emotional fatigue and plenty other undesirable feelings to get there.
I haven't gotten over several disappointments yet.
#tradingpsychology
I haven't gotten over several disappointments yet.
#tradingpsychology
BankNifty – RBI Policy Week of 06Dec vohicapital.com/trading/bankni…
Concepts of "probability of touch" are used in trades like the one mentioned in this post.
When touch happens, there is no need to stay in the trade anymore.
The $BankNifty Hive of Flies taken off today with a touch of spot to 26650
When touch happens, there is no need to stay in the trade anymore.
The $BankNifty Hive of Flies taken off today with a touch of spot to 26650
Usually no need to look for re-entries, but with the spike up to 26750, took a re-entry into a lower #HiveOfFlies trade on $BankNifty for #RBIPolicy day.
Payoff on 05-Dec.
Nothing to do on these unless 26850 is breached tomorrow before event.
#OptionsTrading
#RiskDefined
Payoff on 05-Dec.
Nothing to do on these unless 26850 is breached tomorrow before event.
#OptionsTrading
#RiskDefined
Out of the Hive of Flies with the first short covering of the day.
Done for the week.
Have a good 22Nov BankNifty expiry!
Done for the week.
Have a good 22Nov BankNifty expiry!
You cannot just "will" good performance.
No substitute for deliberate practice.
Thread.
👇
No substitute for deliberate practice.
Thread.
👇
A great book I'd suggest for those looking to engage in enhancing their learning is Josh Waitzkin's "The Art of Learning"
joshwaitzkin.com/the-art-of-lea…
joshwaitzkin.com/the-art-of-lea…
Deliberate Practice involves practice in a systematic manner targeted towards specific goals related to performance.
(3/n)
(3/n)
Selling puts unnecessarily scares a lot of options traders.
If done correctly, selling cash secured or slightly levered puts is one of the most lucrative and simplest of options trading strategies.
A thread on Cash Secured Put selling.
(1/n)
If done correctly, selling cash secured or slightly levered puts is one of the most lucrative and simplest of options trading strategies.
A thread on Cash Secured Put selling.
(1/n)
The value of puts is derived from what the marketplace assumes is downside risk of any underlying.
ATM puts make up their premium from in part the equity premium and partly the volatility premium.
(2/n)
ATM puts make up their premium from in part the equity premium and partly the volatility premium.
(2/n)
For those underlyings where and when the volatility premium is a positive number, selling these puts can be an enriching endeavour.
The equity premium is simply the premium you get paid for holding the stock for long periods of time.
Puts marry these together.
(3/n)
The equity premium is simply the premium you get paid for holding the stock for long periods of time.
Puts marry these together.
(3/n)
Don't create focus on return in trades.
3/n
3/n
When you sell options, you want to profit from erosion of option extrinsic value.
This is the highest, the further away you are from expiration.
#OptionsTrading
This is the highest, the further away you are from expiration.
#OptionsTrading
Instead if you want to profit from a move in the underlying price, you simply buy or sell the underlying.
Or buy the option with high intrinsic value and low extrinsic value.
A lot of option buyers will prefer to buy a 60-70 delta option for trend following.
#OptionsTrading
Or buy the option with high intrinsic value and low extrinsic value.
A lot of option buyers will prefer to buy a 60-70 delta option for trend following.
#OptionsTrading
$Nifty almost takes out the ATM straddle in one session.
Are we in for a slow grind up like 2017.
$Nifty and $BankNifty IVR almost at all year low levels.
Interesting to see Twitter folk still trying to sell index volatility.
Are we in for a slow grind up like 2017.
$Nifty and $BankNifty IVR almost at all year low levels.
Interesting to see Twitter folk still trying to sell index volatility.
As for my book, apart for some #putcalendars got a couple short vol trades that are setup to flip to long volatility by mid September series. These are going to need some dynamic delta adjustments.
Short vol candidates remain in single stock Sep series.
#OptionsTrading
Short vol candidates remain in single stock Sep series.
#OptionsTrading
Just for reference, the $NIFTY ATM straddle is now less than 0.8% of the spot.
Last week of expiry.
Last week of expiry.
Traders need to check their ledger not daily MTM PNL statements.
Selling of deep ITM options to hide and carry forward losses is a common practice amongst unscrupulous "sub-brokers" illegally managing others money in #OptionsTrading.
Selling of deep ITM options to hide and carry forward losses is a common practice amongst unscrupulous "sub-brokers" illegally managing others money in #OptionsTrading.
There are no mandates from @SEBI_India on allowing "sub-brokers" or any party to trade and manage client funds in #OptionsTrading.
Certainly no mandate to take leverage of the sorts usually taken.
Certainly no mandate to take leverage of the sorts usually taken.
@SEBI_India Even AIF Category 3 norms don't allow leverage upwards of 2.
Beyond that, even an AIF cannot solicit funds from the public openly.
More on these norms here:
sebi.gov.in/sebi_data/atta…
Beyond that, even an AIF cannot solicit funds from the public openly.
More on these norms here:
sebi.gov.in/sebi_data/atta…
The kid is so excited to be paired in his next round against Carlsen, Henrik - the father of the World Champion.
#BielChess2018
#BielChess2018
The game's afoot.
Game ended in a draw.
Raahil ran into some time trouble towards the end but ended up holding the position.
Raahil ran into some time trouble towards the end but ended up holding the position.
@JainSumeetS $Nifty now getting to the top of the channel.
$BankNifty has a ways to go.
#pitchfork #markets
$BankNifty has a ways to go.
#pitchfork #markets
We are discussing $FB options on the @GreeksCap #GSRCommunity room.
Come and join us there.
greekscap.com/gsrinvite
#OptionsTrading
Come and join us there.
greekscap.com/gsrinvite
#OptionsTrading
We put on a bull put spread for Aug expiry at 160/155 on $FB for a credit of about $0.9
@Naveen_Joshi was gungho and went with a 1:2 Put Ratio with 165/160 PE $3.15 cr.
#OptionsTrading
@Naveen_Joshi was gungho and went with a 1:2 Put Ratio with 165/160 PE $3.15 cr.
#OptionsTrading
Sorry typo this was the 165/160 put spread for 90 cents.
Some answers on trading #straddles discussed in the @greekscap #ama today in our #GSRCommunity (1/n)
#OptionsTrading
#OptionsTrading
Trading #straddles involve critical factors including your DTE for the straddle, the underlying and its historical Volatility, what are 1, 2, 3 SD moves. (2/n)
#OptionsTrading
#OptionsTrading
Take $Bajaj-Auto for example. Now in last two days this underlyings has had a 6SD move followed today by a 3SD move.
You need to ask yourself if your options position and adjustment plan can handle those kind of moves before getting into #OptionsTrading.
(3/3)
You need to ask yourself if your options position and adjustment plan can handle those kind of moves before getting into #OptionsTrading.
(3/3)
The God of #Options #Greeks is often disregarded and has no mercy, especially on #Options #expiration day.
A #Thread on #Gamma.
#OptionsGreeks
1/n
A #Thread on #Gamma.
#OptionsGreeks
1/n
The primary feature of #Options is their non-linear payout.
Most traders understand that #OptionsPricing is dependent on the price of the underlying, but the response is non-linear. #Gamma is the variable that describes this non-linearity.
#OptionsGreeks
2/n
Most traders understand that #OptionsPricing is dependent on the price of the underlying, but the response is non-linear. #Gamma is the variable that describes this non-linearity.
#OptionsGreeks
2/n
Loosely, if #Delta is the speed of the #Options position, #Gamma is the acceleration.
#OptionsGreeks
3/n
#OptionsGreeks
3/n
1/n
A lot of chatter on my TL about the #edge in #OptionsTrading, specifically #OptionSelling.
A lot of good information but some mis-information being spread as well.
A #thread.
A lot of chatter on my TL about the #edge in #OptionsTrading, specifically #OptionSelling.
A lot of good information but some mis-information being spread as well.
A #thread.
2/n
First off, #OptionSelling by itself is NOT an edge.
Simply by selling an instrument that decays in value over time, doesn't give one an edge towards profit. It is accompanied by short gamma and rising #volatility working "against" you.
#OptionsTrading
First off, #OptionSelling by itself is NOT an edge.
Simply by selling an instrument that decays in value over time, doesn't give one an edge towards profit. It is accompanied by short gamma and rising #volatility working "against" you.
#OptionsTrading
3/n
The #volatility #edge or premium expresses itself when the underlying moves "less" than the move that is priced in the options.
#OptionsTrading
The #volatility #edge or premium expresses itself when the underlying moves "less" than the move that is priced in the options.
#OptionsTrading
By @madan_kumar
- Build a rock solid trading plan
- Treat trading like a business
- Limit your time spent with the trading business
- Take the extra time that trading allows you to have and spend it with your family
(2/n)
- Build a rock solid trading plan
- Treat trading like a business
- Limit your time spent with the trading business
- Take the extra time that trading allows you to have and spend it with your family
(2/n)
By @Raminations
- Use all experiences positive and negative for building future plans
- Understand the products you are trading to the smallest details
- If a position or trade is giving you sleepless nights, get out of it immediately the next morning.
(3/n)
- Use all experiences positive and negative for building future plans
- Understand the products you are trading to the smallest details
- If a position or trade is giving you sleepless nights, get out of it immediately the next morning.
(3/n)
