Why adjustment is not recommended in option selling ?
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- Опубліковано 20 жов 2021
- This video will explain about:
Why adjustment is not recommended in option selling ? #ITJegan #Capitalzone #AlgoTrading
1. Short Strangle
2. Inverted Strangle
3. Break-even, pay-off
4. Long term options
Stream it fully, to know all info in detail.
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DESCRIPTION
Mr. Jegathesan Durairaj (itjegan) is a professional Option trader, strategist, Expiry trader, Trainer, and Investor. He is a mathematician by qualification, an Ex-software professional, and now a full-time Risk Defined Option Writer. With his Open Book Strategies, he is the most known identity on Twitter as IT Jegan, with huge followers. He has won 12 times on the Zerodha platform. He founded his own firm CapitalZone in the year 2018.
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Portfolio -
95% through training
5 % through trading
Ha ha ha super
@Jack sparrow he is genuine no doubt about that. Just criticizing training costs
Correctly said.
Super..
Ha ha
Ur experience is ur best teacher...dont depend on people like this who only look to sell their webinar and add to their trading capital
Absolutely correct....I noticed it this month. More adjustments eat way my profits and and less adjustments gave more and desired profits this moth. I think one should identify support and resistance levels correctly and take positions accordingly and stick to it with stop loss or do little adjustments or exit the positions if B/evens are tested
I divided my amount into 2 categories for trending strategies and range/ consolidated strategies
@16:25 My system is (WIP) going to resemble much like yours in coming months. Watching this video was productive. Thanks.
Dear Jegan,
Maybe what you told is correct in case of non directional strategies such as short strangles and straddles adjustments may not cut down your losses, but if you are doing directional strategies (like Bull PUT spread) adjustments can cut down your losses. Additional capital is required.
According to me, market always outsmarts market participants. You bring the new things and market knows what most people are doing and it does the exact opposite.
thats where new traders are born
Can i do Adjustment trade without hedging since i have done my positional sizing with hedging?
Amazing jegan.. wake up call for all option sellers.
Thank You so Much Sir.... A very clear informative video....
So disappointed... i got introduced to options seeing your traders carnival presentation 3 years ago.... and this video seems to be a precursor for you plugging your algo system. Long term straddles dont work ( yeah i know).. lol your mentor PR Sundar will balk to hear you say this.. Its the main strategy in the BS course that he peddles
Please stop ruining whatever credibility you have built over the years. This kind of talk makes you seem like a snake oil salesman..... which i know you are not... Pause and rethink, and stick to trading
See i gave the same argument to another person who does not agree. Lets think logically. Compare your average monthly return on deployed capital and average monthly return on your total capital to his returns and you can deduce which system is better. I think there is no right or wrong in trading. Its a business, whatever gives higher returns is to a better strategy in long run. Otherwise, like he said, its just for satisfying one's ego. No offence to anyone.
@@Subhradeep1234 Yes sir, i meant you.
Sir,
Which type of account your using fro option selling.
U r absolutely right.
I have small doubt sir, put sell itm illqudity stock option, if physical settlement I don't have money , what will happen if action get the settlement and benefits?
I think, that is a fair point.
Clever Marketing . Share some info and to know the Rest and Complete Details ,pls join the webinar ....
Agreed..I have same experience...
In case of rising vix it is better to adjustment and end up with more profit than earlier
Tq for sharing💐💐
Great 👌🏻👌🏻👌🏻..Jaganbhai🙏👍
Opened my eyes
Nice explanation and a true fact. But Jagan I want to ask why u nowadays do not trade put calendar as said in a video. But for trader with less capital like me the put calendar may be useful for 3 to 4 PC return per month. I am doing it for last six months with the same result ( I prefer monthly put calendar ). When my trade goes to cross the BE in any direction I close the trade with minor loss or profit and open a new one ATM put calendar. Thus I am moving according to the market. Am I doing anything wrong? Moreover it may be mentioned that I started this strategy after inspired by one of your videos for put calendar.
Actually what intraday strategy jegan using.. I know he do straddle with fixed SL. But he mentioned uncorelated strategy s1, s2, S3 etc. So what are those strategies?
YTube income will be more than option selling for all trainers...
And workshop advertisement on UA-cam income double....
No way
It's true I think no anyone earn from this market. Tea stall is good business compare to share market..
Yes.. True..
😅😅😅
I will do adjustment and came out from the trade with minimal profit or breakeven rather than taking draw down.
very nice sir.
R u talking about intraday adjustments...or positional
I will teach the remaining in workshop
Jagan u r too good man i have become ur fan u r my best friend
You are just thinking differently. EXCELLENT SIR.👏👏👏👏
Best Video... ULTIMATE KNOWLEDGE gained with experience.
Only trading options is not going to make much money, but buying index in cash and using options as tools to maximize profits and minimise loss is BEST in long run.
Jegan thanks for this video.
⭐⭐⭐⭐⭐⭐⭐⭐⭐
Really ?.not correct though
yes the adjustment just eats up the profit. realised it long back and made a rule to to adjust till a limit. and never to go invertered it just confirms the loss. in the end options are probability what ever you do the outcome is the same . the premium are kept such a way that by notional value of the underlying it will give you slight better return interest rate.
I do only one adjustment.. That's it.. if wrong close and move to next week..
less profit is better than loss
மூச்சு பயிற்சி அல்லது உடற் பயிற்சி செய்யவும் அதிகமாக மூச்சு வாங்குகிறது.
Agree
Thanks Jegan. This video is true wisdom . It's lot simpler to close the trade if you entered it worng.
Even closing and taking new positions will reduce the profits. Weekly strategies has not much options.
Thank you for telling the truth from your experience will try in real market also.
Conclusion & summary is join my workshop..... another workshop advertisement..
Sahi bola bhai saab
I wasted 10 mins watching this video
Ha hs
🙏
👍👍👍
The Best Adjustment is NO ADJUSTMENT....
Straddle is not profitable without adjustment because in 2021 market was super bullish and too volatile. It's because of more retail participants and many are novice. So long straddle for intraday is too good esp in Banknifty. Try it...
actually
🙏🙏🙏
Sir, if I sell 16000 CE at 52 rs premium and expiry happens 17000 how much will be my loss..?
(1000-52)xlotsize=47400 loss for nifty
@@nlaad13 48 ×50×lot size
@@nlaad13 48 ×50×lot size
I think he was telling about the intraday
Thank you sir ❤
Have you come to conclusion after todays horrific day?
This is not correct, with adjustments in option selling you can save big losses, I did it from last 3+ years
Yes. last 30 days actual lose supposed to be 1.7 L in straddle but I got 25k profit due to adjustment
Ok, lets think about this logically. So in the last 3 years that you are doing adjustments, what is your per month average return on deployed capital ? and what is your per month average returns on total capital ? Just compare that to his P&L statement percentage wise and you can deduce which system is better. Because in trading, there is no right or wrong. Its a business and whatever gives higher return should be the better strategy. Otherwise, like he says, we are just satisfying our ego. No offence to anyone.
@@Subhradeep1234 Yes agree, it depends on risk appetite. But what i have seen is the system jegan is using has given a decent return with low risk. At this point, its more about psycology. He has to sometimes accept s huge intraday loss. Most of the people cannot handle that and won't trade from next day. If psycology can be conquered this is a better system for a few reasons. 1. No overnight risk, all intraday. 2. Computer controlled so non emotional trading hence efficiency improves 3. You can deploy full margin as no adjustments needed hence maximising returns. 4. Global and local ques have minimum effect as mainly gap ups and gap downs are avoided completely. 5. Can increase position size as well with hedge to further maximise returns......to name a few advantages
@@Subhradeep1234 True but only skill in positional is not enough. The was the markets have moved the last few months, you will pretty much run out of margin as well in positional trades. But in intraday, you dont have to do adjustments. You only have to keep SL to limit your drawdown. if you run out of margin, that will give you bigger loss than the drawdown even with adjustments in place. True, its skill, but market volatility sometimes out weighs skill hence eating up more margin. Plus the exposure to risk is more in positional as compared to intraday trades as once you enter, its difficult to get out until in profit. Strddles and strangles are dofficult to manage if you dont have skill which is also true, but there is another way to manage, by controlling risk and reward. Just target 2% of margin deployed and SL at 1%. still i feel you will make decent profit without adjustment. Thats winning by psycology. Just deploy a strategy which has good PoP and have SL. If SL hit at 1% exit. if target hit at 2%, also exit. with strangle, i think PoP is more than 50%. That means out of 10, more than 5 trades will work. hence giving you about 5 to 6% return. Also, limit risk by reducing exposure time of position. Hence intraday.
@@Subhradeep1234 You are absolitely right sir, i trade in options but i find positional trades difficult to manage. Hence am myself shifting to directional trading from that with very little positional trades just as backup. I have realised one thing. In the market, we can run iut of margin at some point by keep on doing adjustment. but skill we cannot run out of in any market condition. Hence am trying to reduce reliance on margin and increase skill based intraday directional trading. Hence capital risk is gone and return increased. Most difficult part is the psycoligy for this type of trading.
Most of the workshops for option selling ,people are marketing as teach adjustments. If it's not worth then 😅
He also teaches adjustments only in workshops..
@@venugopal6405 😆
I think know you are confusing your followers...
true, He is confusing people
Good, but are you profitable jegan?
Jegan - Where are you these days? Very silent on UA-cam.
From past some days I am noticing that Mr Jegan and his mentor are thinking polls apart, am I the only one who noticed this?
Talking about PR right .difference is jegan is small risk taker so the adjustment won't worth it.but or does straddles and adjustment eat few pounds no issues .that's what I think
Disagree as my trading style is such that adjustments are beneficial. For eg today i am having a straddle at 76 (usdinr) and it is going down continuously. I am selling additional calls and i am still in loss but all my adjustments are in profit and loss is controlled. Further i wont book loss in PE i will rollover PE to next month with more premium and still keep selling CE in weekly and monthly getting me profit. So it depends on your *trading style* . For me adjustments are beneficial and i don't have stop loss.
Todo that, more capital and psychology is required. If we have both, it's not difficult to do what you have mentioned
Bhai saab..what ever big msg you do..isko samajna mushkil hy..he will upload sample videos to attract people to training..half knowledge person 😀
@@yadinara1 for 1 lot you need only 5000 that too you can keep 2000 in cash and 3000 in collateral (if safe player than bharatbond)
Adjustment is an innately inferior strategy when it comes to your PL potential. Espcially if you are dealing with weeklies your incremental premium becomes so small up to expiry compared to gamma risk you are taking. One wrong reversal in underlying and losses mount up so rapidly. Of course I do adjust strike price too but there has to be a strict point where / when you stop rolling down your untested leg.
@@user-gw9mh4zf2b yes premium will be small and don't worry about gamma risk as premium is small strikes are also far and and reversal would first give me profit on my initial position. For eg right now it is at 74.9 and i have solf 76 in November PE is in heavy loss but i have sold weekly 75.75 even if it reverses and comes up. I will be in profit. If it continues to fall no problem roll over puts and keep selling weekly calls. And it gives nearly 50% p.a. without adjustments it won't. Everyone has different style one should do whatever he is comfortable in.
You tubers do not misguide the traders with this kind of video, when it is not working for you does mean it wont work for all, buddy traders will fall trap of this kind of videos
I didnt knew traders like jegan who manage huge money are actually fools
You are thinking differently from your mentor!
Arrey mamu adjust Karna nahi aata to PR Sunder mama ko poocho na..kaiku loss hona har din 😜
First you need to tell in your video that you are talking about Intraday only.
I thought you are a smart trader, until I saw this video :(
UA-cam more profitable
Content is good but ur explanation seems to be always in a haste. For instance, u goofed up in ur explanation of uncorrelated strategies. That explanation was pure gibberish.
Are baba chhota Profit is always better than anyamount of loss...be sensible....be in your senses...
No it is not true in case of trading
Half knowledge
Chotaa,Badaaaa in between ....why this much scene instead u can use plain english..LOL
He is talking absolute rubbish....adjustment is the key in Option selling....I'm incurring nice profits 50000+ day for a long time without losses...by proper hedging n adjustments...