How @PRAFULKULKARN18 trades strangles & how he trades close to the expiry? 🧵
Key Takeaways. RT appreciated
Key Takeaways. RT appreciated
1. Keep it simple
▶️ He does 80% of the things which yields 80% of the returns.
▶️ Most gains on expiry days.
▶️ Theta decay component is slightly on the higher side and delta moves can be managed.
▶️ He does 80% of the things which yields 80% of the returns.
▶️ Most gains on expiry days.
▶️ Theta decay component is slightly on the higher side and delta moves can be managed.
2. Choosing Strikes
▶️ Has different approach for Wednesday and Thursday.
▶️ Has different approach for Wednesday and Thursday.
Wed: Sells Rs 25-30 strikes
Thurs: Tries to sit on Rs 15-20 options
▶️ Believes Vix doesn't have much importance on expiry days as both options have to go to zero anyhow.
Thurs: Tries to sit on Rs 15-20 options
▶️ Believes Vix doesn't have much importance on expiry days as both options have to go to zero anyhow.
3. Return Expectations
▶️ Since, he trades majorly near to the expiry. Means he is mostly trading 8 days/month. Targets 2.5-3% every expiry.
▶️ Overall, even if 2 expiries go right, he ends up making 5%. And, he tries to manage his losses on loosing expiries.
▶️ Since, he trades majorly near to the expiry. Means he is mostly trading 8 days/month. Targets 2.5-3% every expiry.
▶️ Overall, even if 2 expiries go right, he ends up making 5%. And, he tries to manage his losses on loosing expiries.
▶️ Targets 1% for Wednesdays
Even if you get 2 Wednesdays right, you can make 2%.
▶️ Believes achieving 6-8% shouldn't be that hard even by trading 8 days/month.
Even if you get 2 Wednesdays right, you can make 2%.
▶️ Believes achieving 6-8% shouldn't be that hard even by trading 8 days/month.
4. Adjusting positions
▶️ As a non-directional player, if the market starts trending, your strike which is spiking shouldn't blow up disproportionally
▶️ Focus on expiries is to maintain M2M as stable as possible.
▶️ As a non-directional player, if the market starts trending, your strike which is spiking shouldn't blow up disproportionally
▶️ Focus on expiries is to maintain M2M as stable as possible.
▶️ For instance, the market starts tanking and the calls don't loose value but puts spike a lot, one needs to observe premium behaviour and take slightly higher call credit.
▶️ Position yourself in such a way that the gamma spike shouldn't push you away.
▶️ Position yourself in such a way that the gamma spike shouldn't push you away.
▶️ His focus is on risk management(Keeping M2M stable)
5. How he punches his orders?
▶️ Wed: Enters half qualities initially. Whenever, there is a delta move and that starts premium starts to expand.That is the place he adds more quantities.
▶️ Every rise he will use that opportunity to add more quantities.
▶️ Wed: Enters half qualities initially. Whenever, there is a delta move and that starts premium starts to expand.That is the place he adds more quantities.
▶️ Every rise he will use that opportunity to add more quantities.
▶️Believes that if you are selling Rs 30-30 options on Wednesday, those premiums have to end up at 15-15 towards the end of the day.
▶️ Even if someone is able to capture 15-18 points through the day, that's great for a Wednesday.
▶️ Even if someone is able to capture 15-18 points through the day, that's great for a Wednesday.
▶️ One can't expect to capture all the points as you loose points during delta adjustments.
▶️ Thurs: Enters all his quantities in the morning itself.Starts building positions from 9:15:10 sec.Places all his orders at market and not limit.
▶️ Thurs: Enters all his quantities in the morning itself.Starts building positions from 9:15:10 sec.Places all his orders at market and not limit.
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