Butterfly strategy:
This is my favorite strategy due to its risk reward Ratio

✍️What is butterfly 🦋:
The option butterfly strategy is a unique approach to trading that involves buying & selling options at different strike prices, creating a profit zone with limited risk

[1/n] butterfly strategy consists of 3 legs:

↔️buy ITM / ATM call 1 lot
↔️sell OTM calls 2 lot and
↔️buy far OTM call 1 lot

✍️Pay off graph:

[2/n]

Took this trade yesterday.
Tata motor Call butterfly but with some tweak. offering almost 1:10 RR.

does it mean am i going to realise 10R?

Answer is no.

What i like most about butterfly is risk part.
(1/n) does all butterfly offer this high RR?

answer is no.

This is pay off as per yesterdays closing prices of tatamotors - butterfly 460 - 475 -490.

if taken as per yesterday closing prices RR was 1 : 3.3.

so how to increase RR?

(2/n)

As we already discussed Auto and FMCG were first movers in this recovery
M&M was leader in this recovery today also up 5%
in hindsight its all good but identifying those few stocks from the basket of hundreds of stocks is herculean task
lets try to simplify the process
[1/n]
🧵

https://twitter.com/yogeshnanda1/status/1550738129841422336

One approach is:
1. identifying a leading sector
2. identifying a leaders within those sectors.
3. Analyzing individual charts for detailed view and finding entry & SL levels

step 1 could be easy as we have to just scan 8-10 sector charts and can find the leaders.but part
[2/n]

Where i find my winners?
ok, nice question. let me start with example - from these two on whom you bet your money?

answer is obvious right?

but while trading... many people do otherwise
(1/n) now same question for stocks..
where you bet your money?

When we have comparable option side by side - our answer will change.

but in live trading our we gets kick in finding a bottom and we love to boast about that.
(2/n)

Thread on budget day nifty movement:
Few data points for budget day.
1. Average range for day 2.4% - can use this range of intraday strike selection.
2. When nifty fell >1.5% before budget - post budget nifty rises >2% in next 4 days -
@jitendrajain @yogeeswarpal
(1/4) can use this data for taking a risk defined bullish position.
3. If we compare low post event and high post event.. On majority of occasions nifty has seen a recovery in next 4 days [average low is -1% and avg high 2.7%] - this also indicates on bullish side…
(2/4)

Thread on USDINR Trading:
Part of my capital i trade in USDINR - non-directional.
Past few months it traded in very narrow band - which is paradise for non-direction trading.
check chart.. last 3 months in just 2 Rs. Range
Today will share my December 2020 trade in USDINR

(1/4) Entry Date: 8th December [normally i take position 40 - 45DTE]
Trade: iron condor
Strikes: sold 74.5 Ce and 73.5 PE [Jan 21 expiry]
Hedge: bought 75.5Ce and 72.5PE [Jan 21 expiry]

qty: for illustration shown 100 lots..
margin needed : 1,81,000

(2/4)

Trending markets are very tough for the option seller. So working on something which could find calmness in chaos. what I realised solution to this could be your Risk management [Mathematics for me]. (1/n) scenario 1:
with 60% success Rate on wining day you gain 30 points and on losing day you lose 30 points. so monthly you can make 4%. (2/n)

For pivot point enthusiast:
Have done some data analysis on where nifty opens and where it closes in terms of pivot points. Have used 2 parameters
Where nifty opens-[above pivot, above R1, below pivot, below S1]
Where nifty closes-[abv pivot, abv R1, below pivot, below S1] (1/5) example looking at open location data : -
Opened above pivot - 44%
Opened below pivot - 30%,
Opened above R1 - 18%
Opened below S1 - 8%
If we further breakdown each category in to where nifty closed that day for each category [where it opened] we get few datapoints.. (2/5)

INFY result Trade: Sold 1160CE & 1120PE for combined premium of 80 points.. Result is overnight so will hedge this position with 1220Ce & 1060PE at 3PM today.. Idea here is being ready with plan.. how i think in such trades.
1) entry in trade...
2) hedge for the trade...
3) Plan to reduce the hedge cost..
4) Exit target [in profit] in case of Small move..
5) adjustment plan in case of bigger move..
and most important part is point 5

Thread on pre-earning trade:
Purpose : Earn from IV crush post result as uncertainty is over.
Which stocks: stocks with higher IVP(Iv percentile) and historical volatility lower then IV
Strategies: can do straddle or strangle / low risk iron fly or iron condor (1/n) How i play? : iron fly for overnight results (save from gap up like wipro/infy) and
straddles for results during market hours
This all is available if you google it : but key is how you manage post result.
no standard way to react so have your plan ready before trade.(2/n)

Have been using ichimoku for sometime and this is very useful tool fir swing tradin. I use it for swing trading. Will share few tricks which i use.
Ichimoku cloud [Span B] breakout and retest of cloud level are two great tool
given below are few recent examples
@jitendrajain Zee- recent cloud breakout its retest and how trade entry taken on hourly chart.

How to trade based on multi-time frame analysis and make a simple system. Have observed that in sideways market index oscillates between upper and lower band of bollinger band.
big question is how we can trade it. can be done by borrowing view from daily time frame (1/4)

https://twitter.com/yogeshnanda1/status/1262607122409246720

and execution based on hourly time frame. have tried to explain through attached chart. I know sample size is less but this is just and idea - pls do back-test on larger sample size

(2/4)@jitendrajain