We are pleased to announce the release of Opsta Options Simulator using which you can visually backtest, learn, develop, practice and manage your options strategies.
Youtube Link -
Finally, relocated to India after 14 years.
Awaiting to meet many of you here.
I was not able to answer DMs to many of you due to this. Will get to them soon.
I keep getting asked about what books to read to learn about Options. My compilation
Beginners Options Books:
1) The Bible of Options Strategies - Guy Cohen
2) The Financial Times Guide to Options - Lenny Jordan
3) Simple Options Trading Formulas - Billy Williams
All the information and tools needed for trading earnings results of
#Nifty
FNO stocks using
#options
Options Dashboard -
Results Calendar -
Previous Timings -
Strategy Builder -
Have been working on a new App - Options Algorithm. Its an App which calculates all best possible position combinations for each strategy and presents it as a table with Probability of Profit (POP) & Pay-off Graph.
Will come soon once final touches are done.
Have done a
#Face2Face
session with Mr. Vivek Bajaj, where I shared a risk defined options strategy & its management.
Thanks to
@vivbajaj
&
@elearnmarkets
for the opportunity to share my experience with a wider audience.
VIX is at 11.26 with IV Percentile (IVP) at a low of 1.19. The last we observed the same IVP was at the beginning of March 2023.
Usually, Low VIX environments are followed by some kind of topping in the markets. But no one knows how many days it will take to reach that stage
Here is the new Options Strategy Builder - Opstra
-Custom Build your Options Strategy
-Share Strategies
-Save Strategies
-Portfolio level tracking of Multiple Trades, PNL & Options Greeks
-More features coming
-15m delayed data
Feedback welcome.
Link:
All the information required for trading the 2018-2019 Q2 earnings results
Results Dates:
Previous Results Timings:
Options Dashboard:
Options Strategy Builder:
Announcement:
Releasing a new Opstra Options Backtesting app for NSE
#Nifty
Index and Stock
#Options
. Its in beta phase.
Existing users, please reload the opstra page for the app to appear.
#opstra
#optionsbacktesting
There was a report on
@moneycontrolcom
that SEBI might implement new margin requirements based on international standards.
If this comes true, this how it will affect the margin requirements of certain risk-defined strategies using options spreads compared to now.
Some new options traders see the options pay-off at expiry & take a trade & then get frustrated to see negative MTM despite being in profit zone as per the pay-off chart.
This thread is to clear such misconceptions and talk about t+0 line and what is its significance
A sneak peek of a brand new Options Strategy Builder App.
Will release next week.
Features:
*Futures included
*Unlimited Positions
*Position Adjustments
*Quick preview of strategy adjustment
*Share the Strategy or trade
More features in next week release.
New way of visualizing and analyzing
#options
data -
#OptionsDashboard
App.
Filter
#Nifty
FNO stocks by high IV, upcoming earnings and options liquidity
Inspired from OptionAlpha.
Still in Beta. Feedback welcome.
Link to App:
Have been working on a new App - Options Algorithm. Its an App which calculates all best possible position combinations for each strategy and presents it as a table with Probability of Profit (POP) & Pay-off Graph.
Will come soon once final touches are done.
In this thread, I will talk about common options strategies and their advantages and disadvantages in the context of the Indian market.
I will keep adding to the thread over time.
I have a 5 yrs old Laptop. Was in two minds to buy a new one or upgrade the exiting one and extend life by 1-2 yrs.
Ended up upgrading it by replacing HDD with SSD and doubled the RAM to 16GB.
Now faster than ever. SSD made huge difference.
Probability Cone Charts to project one Standard Deviation & two Standard Deviation moves into the future
Calculated using the implied volatility.
Coming soon on Opstra Options Strategy Builder.
@Definedge
A new bullish trend develops once weak hands are flushed out.
See this chart of FII/Pro and
Client Open Interest Analysis of % Net Long Index derivatives.
Are we going to see another one now? Market will confirm it on Monday.
Futures Buildup Screener - learn what's happening with your underlying of interest- Long buildup, short covering, long unwinding etc
Analysis is based on Price action and Futures Open Interest
#Nifty
FNO Stocks & Indices
Found some 100% POP risk defined strategies using options algorithm.
Caveat here is that you need to get those exact LTPs as your execution prices. Even if they are off by a bit, you could still get high POP low risk strategies.
Added some examples.
Open Interest App is now live.
You can visualize Open Interest, change in Open Interest and options greeks.
Link to App:
If you find this & my other apps useful then buy me a coffee via this link
After 6 years of service, my Lenovo Z51 is no longer keeping up with new processing requirements.
Today, got Lenovo ThinkPad P15v โIntel i7 6 core 2.6GHz processor, 1TB SSD and 32GB Ram with WWAN. Hopefully it will keep up with future processing requirements as well.
Over several years of reading books and articles, I have gathered several facts related to options that you may or may not be aware of.
In this thread, I will write about Options Trivia - history, events, movies, trading, etc
Let's roll the ๐งต
New feature coming to Opstra -
Implied Volatility Surface
It tells you how the volatility of options strikes across the expiries. Will be helpful in structuring calendar and volatility strategies in
#NIFTY
&
#BANKNIFTY
Another upcoming new feature in Opstra
Overall Put & Call Open Interest, Change in Open Interest, PE-CE OI & PCR of NIFTY & BANKNIFTY weeklies & monthlies with 3-min updates.
With earnings results start coming from next Monday,here are the tools useful for options traders
FNO Results Calendar:
Historical Results Declaration Times:
And Finally Options Dashboard to track IVs:
If you see a sudden jump in Implied Volatility (higher options premiums) in some stocks due to an event, don't short the volatility right away, wait for it to cool down a bit and then go for short volatility strategies.
Because you never know how high the IV can go up.
Eg. INFY
If you are wondering, why Nifty call prices are going down while the NIFTY spot price is going up in the last 1 hour or so- then you are looking at the wrong instrument.
Options pricing is linked to futures.
The Nifty futures premium to spot spread went down from 110 to 80.
Coronavirus struck a cluster of small towns some 50 kms from where I live in Italy. All those towns under lockdown.
Schools and Colleges closed for 1 week.
Instructions given to public how to handle the situation.
Weekly options buyers taken to cleaners. Huge melt-down in premiums even in puts despite a 400 point fall in
#Nifty
.
This is not getting reflected in VIX.
My niece returned last week from UK to Hyderabad and self-isolated herself.
In last 2 days, nurses and Iv guy came, checked her and then stamped on hand for home quarantine till April 3rd. Intelligence bureau is actively tracking all foreign returnees.
Good to know.
I am proud to share my wife's
@rpallavi13
research work published in Nature Communications magazine.
Basically, she showed in this work that Caloric Restriction (70% of normal food intake) has anti-tumor activity initially, but later it increases the number of Cancer Stem
With the VIX low again. It's time for some calendars now to benefit from a likely expansion of volatility in the coming days.
My favorite is a Put Calendar.
Delta (denoted as โ) is the Options Greek that tells us the sensitivity of options price in response to the rate of change in the underlying. More specifically, delta tells us about the options expected price change relative to a one-point change in the underlying.
#delta
People who think they are saving the planet by going electric should know that they are simply moving the source of pollution from the vehicle to power generation site.
Unless, your energy producers are using clean and renewable energy, all this going electric is meaningless.
Q1 Earnings results are going to start soon.
Get all the upcoming results of FNO Stocks and theri previous results declaration timings in a new easy to use format.
Bookmark this tweet or the links in it.
The real bear market in Indian markets has been hidden by HDFC twins, Reliance, TCS and Infy. If not for them we would have seen 10% more correction in
#Nifty
by now.
Great presentation by
@saketreddy
on how to use fundamental & technical analysis to find & invest in low volatility & high quality compounder stocks.
@Definedge
#EDECMA2021
Here is ATM Option Decay of
#NIFTY
based on 64 expiries data.
It takes almost 45 days for 50% decay in beginning and just 15 days at the back end for remaining 50% decay.
Now you know what is the ideal time to buy or sell an ATM Nifty option.
All the info and tools needed for earnings results oriented options trading of
#Nifty
FNO Stocks
Options Dashboard
Results Calendar
Historical Results Timings
Strategy Builder
When there is a breakout in any FNO stock, one never knows if its a real one or a fake-out.
In such case, I always go with a vertical spread. It gives me time to wait for the breakout to work.
If its a fake-out my loss is much lesser than a naked call.
Recently met a local Italian friend who bought a big house couple of years ago.
His mortgage rate is 0.5% per year, after 50% downpayment on house.
Now, some companies are being offered negative interest rates. Take 2 million loan now and pay 1.9 million after 10 years.
Upon request added 'Historical Volatility' to the Implied Volatility Charts.
HV is annualized 21 days of 1-day log returns.
You can get to IV Charts to any of the apps by clicking on the hyperlinked underlying names
New Implied Volatility & IV Percentile charts with results declaration days mapped & highlighted in a orange dotted line. Rollover the line for Date & Time.
You can go to these charts via Options Dashboard or other apps on Opstra.
So, if your ITM option strike of say 11800 gets exercised on expiry with spot at 11900- at present you would have to pay STT of
11900*75*0.00125 -= Rs. 1,115 .
But now it will be (11900-11800)*75*0.00125 = Rs 9.375 STT
Very impressive session by
@kapildhama
where he showed how to make Iron-Fly and Debit Spread opitions strategies into 'zero-loss' strategies using some very unique adjustment techniques.
#EDECNOCH2021
A very reliable positional indicator of the market for me for a long time has been the FII-Pro/Clients 'Net Longs'.
When the FII/Pros and Client's 'Net Longs' are close to zero and continue hovering there, the bullish trend continues, and if the Client's 'Net longs' rise, it
I'm not a big fan of books when it comes to options trading because it needs good imagination to explain which the books lack. I suggest videos by TastyTrade & Project Option.
If you really like books then books by
Sheldon Natenberg
Dan Passarelli
Historical financial results declaration times of Nifty FNO stocks in one place.
Ideal for option strategies focused on earnings trades.
Feedback welcome
Now you can add most commonly used 'ready-made' options strategies from the Opstra Strategy Builder.
This will speed up the process of adding strategies.
If you don't like the selected strikes, you can change them from the drop-down.
More strategies coming soon.
Lots of Non-directional strategies have worked so well in the past few months due to continued decrease in implied volatility and realized volatility.
Now VIX at low levels and might continue for sometime.
Be ready for some volatility explosion out of the blue.
Added a all new Option Chain page in
#Opstra
.
The
#OptionChain
includes Change in Open Interest, Open Interest, LTP, Price Change, Volume, IV and Option Greeks of all the strikes for NSE FNO Stocks and Indices.
Volatility Skew App - It tells you the skew in the underlying options of stock/index.
-A high positive VolSkew value (>5) tells you that there is a Reverse Skew
-A high negative value (<-5) tells you that there is a Forward Skew
-For more, see the Info on the App.
Inspired from
@mrechenthin
IV vs IV Rank visualization chart, I made a similar chart for NSE FNO stocks.
I made both IV vs IV Rank and IV vs IV Percentile Chart.
The farther right and farther up the chart, the higher the premium in the options for that underlying.
In the last tweet thread, we talked about Option Greek Delta. In this thread, we will talk about Option Greek Gamma which is closely related to Delta (โ).
Now added
#Nifty
index &stock Futures Open Interest to the Opstra App.
It was one of the top request.
By default the chart will load the 'Combined Open Interest' of all 3 months.
Current day price & open interest is a 1 min data update.
Link:
Due to high IV, its ideal to take directional positions as spreads instead of buying plain options.
Otherwise, you will be paying for the volatility crush despite underlying moving in your direction.
If ever there was a perfect stock for doing the covered call, the top spot would go to ITC.
If anyone has been doing this on ITC for the past few years, I believe they must be holding it for free.
Long-term investors, fund managers and value investors are all seen throwing in the towel today.
You know what happens when everybody throws in the towel.
I think India is doing a better lock-down than Italy or any other western nation.
India has shutdown public transport, metro, taxis and offices. By limiting mobility, social distancing is also effectively increased and thus slowing transmission.
1/n
In
#opstra
strategy builder, now you can change IV of individual position and see its effect on the pay-off of your options strategy.
Its very useful for calendar trades and short-term trades dependent on volatility crush etc
Reload page for the update.
VIX above 20 is always a red signal for any kind of strategy due to high volatility.
Both non-directional & directional strategies are taking a hit, especially if there are SLs in the system.
Right now better to reduce position sizing & wait out the volatility.
The most I miss where I live is Dosa, Idly and Vada. So whenever I go to any other european city, I always look up for Saravana Bhavan. They maintain the same quality wherever I go, be it Delhi, Paris or London.
#OptionsAlgorithm
Beta is open again.
Earlier had to close due to heavy server load. Have done optimization of code and server for faster response.
Let me know you feedback
#Nifty
#Options
Link:
Huge!!!
New margin system is here. Lower margins for risk-defined options strategies and hedged futures.
Earlier SOM margin to be eliminated and reduced exposure margins for risk-defined strategies.
Whole options trading regime changes with this.
2020 Q1 Earnings results are starting from today.
In this thread, I will post earnings trades using options based on triggers generated by options backtesting.
All the trades are for purely educational and testing purpose.
In this thread, I will post some interesting Options Backtesting results that have worked previously. Results are for last 1 year starting from 2018 on EOD options data.
#optionsbacktesting
#opstra
Free Webinar: Options Strategy Adjustments and Repair using Options Simulator
2nd Feb 11AM IST
I will demonstrate how to do options strategy adjustments under different market conditions (even budget today) using Options Simulator.
@KatariyaPran
Apologize for the delay of Options Strategy Builder. Taking time for this exciting 'Options Portfolio' Feature. Will be great for tracking trades, paper trading, sharing trades etc.
Watch out this space this weekend.
A sneak peek of a brand new Options Strategy Builder App.
Will release next week.
Features:
*Futures included
*Unlimited Positions
*Position Adjustments
*Quick preview of strategy adjustment
*Share the Strategy or trade
More features in next week release.