I received lots of DMs earlier and recently (including many today) on how I trade & do things with FnO side trades.

So here it is~

I always do hedged positions. I love playing via covered future (1/n)

(2/n)

60% of time my positions r covered future, 30% time via bull/bear call/put spreads and 10% via naked call puts(when i am very sure at first place).

Basis of taking all the trades is via Charts and Fno data together.

(9/n)~

So covered future gives you net net 0.4-0.7(difference b/w delta of Future & Call/Puts) points gains on every point movement if you go right on your direction.

Clean and easy till here ...of course yes :-)



Things will change when you go wrong in directional play.

(12/n)~

With big lot side playing long/short via BCS works v well.

Decent R:R. Safe play. Peace of mind.

This all looks very good and easy. However, things get changed when you go wrong on direction play via CF or BCS

(13/n)~

Well, best is to humbly accept that u r wrong on ur analysis about direction & take stop loss somewhere depending upon individual's R:R

OR

Manage ur positions with other legs( I prefer to do this).

You can manage when you understand FnO deeply specially options

(14/n)~

Will give gyann on how to manage positions when you go wrong some other day.

Enough for today.

@MyFnO
@vhooshh
@SethiaAtul
@insharebazaar

@threadreaderapp please #unroll

(3/n)

I do love seeing & analysing charts. And as you all know, I play cash stocks with charts & most importantly where P_V action getting v v interesting.

But when it comes to FnO scrips, nothing is more powerful than FNO....nothing. You must need to check FnO data points.

(4/n)

FnO data points give u what's going on & how big guys r positioning themselves to play the scrip.

Obviously being a small fish u can't swim upstream. You need to follow the stream, where swimming becomes v easy & there is a fair chance that u will reach towards targets.

(5/n)~
Notice the word *Towards* in my 4th tweet. That's v important, as v only need to be right on direction with proper R:R on place.

As we are playing a leveraged thing remember *Small is big Here*

(6/n)~

Now come to the original point.

Please note all Covered Futures, Bull/Bear Call/Put spreads are directional play. They are *not delta neutral*.

Intention is to make money via delta difference (Point difference b/w *+* side of your trade and *-*side of your trade).

(7/n)~

With the help of charts and FnO data points i decide the direction and then i choose the type of hedge i want to create.

Please note, as I am looking for a directional play via hedge , choosing right strikes where you can make appropriate delta difference is important.