Options Scalping Stratgeies

1.  2 Candle Strategy
2. Open And High
3. 3:20 Strategy
4. Golden Crossover -- Candle crosses VWAP and Super Trend with > 50k volume

Options Strategies Details with data

Short Straddle

1. https://squareoff.in/short-straddle-intraday-strategy/
2. Short Straddle by Optionables

Risk Management

Risk Management is very important in trading. Today (2nd Nov 2020) i will loss 1 month+ profit in a single day. This is a horrible thing. One should manage the risk appropriately and have a limit on no of trades and maximum loss per day.

Setting for myself the limit to 3 trades max per day and 2000 Rs as the loss limit. 

BankNifty Intraday Trading Strategy

This post details about a intraday trading strategy for Banknifty. There are below things we need to observe to get the direction of the index.

1. SuperTrend (10,2) at 15 min time interval, Green UP, Red DOWN.
2. VWAP, Price > VWAP UP, Price < VWAP DOWN.
3. ADX(14,14) RED line above DOWN, GREEN line above UP
4. RSI(14), <50 DOWN, >50 UP
5. PSAR(.02, .2) above price DOWN, below price UP.
6. PCR ratio (on Analyst tool) rising UP, falling DOWN.
7. OI change, More calls written DOWN, more puts written DOWN.
8. Volume, is very important.
9. VIX, mostly falls when market going UP and rises when market going DOWN.

Some Observations

1. DOWN movement stops most of the time once PCR ratio goes near ~.5-~.6 or RSI near 18.
2. UP movement stops most of the time once PCR ratio goes near ~1.5-1.6 or RSI nears 85.
3. Most of the days market goes in one direction or remains sideways, very rarely it swings on both sides. 
4. If the market has lot of shorts or longs in both futures and options and it goes in opposite direction it generally swings big as there is lot of short covering or long liquidation. 
5. When the market closes at day high or day low with a big move, generally it continues in the same direction next day.
6. VWAP acts as a good support and resistance when data is clearly bullish or bearish.
7. In case of confusion between Data and technical's check data of current strike and 1 strike above and below.
8. Use Butterfly spread on expiry day based upon the point where market may end. Has a very good risk reward ratio.

Exit Strategy

1. 10:30 to 12:30 market slows down and does not moves, good time to exit half position.
2. End of the day. Generally market moves in 1 direction only.
3. When we see a large candle with big volume.
4. Stop Loss hits.
5. There is a shift in the data to the other side.
6. On Expiry day book profit around 10:30 AM, 1:00 PM, 2:00 PM and then according to above rules.

Things which can cause loss

1. Playing against the trend. (Should never happen)
2. Market goes both sides. (Happens 20% days, book profit regularly)
3. Wrong stop loss. (Will get better with experience)

Reversal Pattern

Pramod Rao Options Strategies

1. http://optionsnext.com/buying-options-trade-selection-process-explained/

2. http://optionsnext.com/the-lazy-trader-august-2019-series/

3. http://optionsnext.com/a-new-series-rs-2000-options-june-2019/

4. http://optionsnext.com/bucking-the-trend-new-series-september-17-2020/

5. http://optionsnext.com/weekly-warrior-strategy-12-weeks-review/

6. http://optionsnext.com/money-in-the-bank-the-journey-so-far/

BankNifty Strategy Details

1. Concept is good stocks always perform better than index.
2. Sell HDFCBANK, KOTAKBANK, ICICIBANK Puts 2% away.
3. Hedge by buying Banknifty monthly options at 3.5% from spot.
4. Net credit at start of the series is around ~30k mostly.
5. In the mid of the series net credit goes down to ~15k mostly.

Economics And Finance Videos

1. How the economic machine works by Ray Dalio
2. Managing Money in a zero interest environment by Ray Dalio

Stock Market Books

Trading

• Varsity by Zerodha
• Mastering the trade by John Carter
• Trading in the Zone by Mark Douglas for Trading psychology
• Disciplined Trader by Mark Douglas for Trading psychology
• Definitive guide to position sizing by Van Tharp for Money management
• Market Wizards by Jack Schwager
• Trading for a living by Alexander Elder