My analysis on Hikal stock..if any one is holding the stock in your portfolio, can be useful
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Do share your feedback. Let me know if you'd like me to analyse other stocks. You can whatsapp at 9717791544
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Let me show you a system, which I run for myself where I keep my risk at 4–5% of the overall capital, and aim to make returns around 3% monthly. (Shown for different amounts of capital deployed and monthly income earning potential accordingly).
The key is consistency and not to chase high returns, else your risk will also go higher.
Now you may be interested to see what have been the results of this system for me, so here is my PnL statement for last one year: (you can observe number of greens vs reds) Image attached below
Option premiums have 90% chance of decaying, so as an option seller, your probability of making profit is close to 90%.
The system works on 5 major pointers, using which I take a trade:
1. Candlestick Pattern
After doing strict backtesting for last 17 years of data for Nifty and Bank Nifty, have come up with 12 patterns, which I use to take a trade. Only when any of these 12 patterns are formed, then a trade decision is taken.
2. Domestic news with DI Position
I strictly do not trade into domestic news of any kind. Whether any announcement from Fed in US, or FM in India or RBI meet, I am strictly out of markets in all these cases. Also monitor domestic buying via institutions like mutual funds and HNIs
3. Foreign news with Foreign Position
I strictly do not trade into foreign news of any kind. Whether any announcement from Fed in US, inflation numbers announcements, or any other global event . Also monitor global buying via institutions like FII and hedge funds.
4. OI Chain & Money Flow
I observe OI of various strike prices and generally a trade that’s taken is usually for a strike price that’s about 800-1000 points away from the spot, which means a very small but sure premium capture.
5. Statistical Distribution Curve Model
This is more a technical aspect which deals with complex option data
So I only take a trade when all these 5 parameters are strictly satisfied. As a result, I hardly trade 1-2 days in a week and probably 7-9 days in a month, but ensuring the trades thus taken are highly accurate with a winning probability of more than 95%.
Here are some features of option selling:
Risk management is most important. Have that in place and you can use this system to create an income for years.
The capital requirement is higher, usually > 20L
Chances of losing are less as hedging gives opportunity to adjust trades
Chances of winning higher as most times (as shown above), option expires worthless.
These plans are for someone who:
If you are a retiree or about to retire and want to create a pension income
If you want to create a secondary source of income
If you have money lying in bank/FD, not getting much returns and want to put it to good use
If you have stocks/Mutual funds and want to pledge it to earn monthly income.
Hope this helps.
If you need help to manage your account to make money using options selling for your own capital, please drop me a WhatsApp text at: 9717791544
The key is consistency and not to chase high returns, else your risk will also go higher.
Now you may be interested to see what have been the results of this system for me, so here is my PnL statement for last one year: (you can observe number of greens vs reds) Image attached below
Option premiums have 90% chance of decaying, so as an option seller, your probability of making profit is close to 90%.
The system works on 5 major pointers, using which I take a trade:
1. Candlestick Pattern
After doing strict backtesting for last 17 years of data for Nifty and Bank Nifty, have come up with 12 patterns, which I use to take a trade. Only when any of these 12 patterns are formed, then a trade decision is taken.
2. Domestic news with DI Position
I strictly do not trade into domestic news of any kind. Whether any announcement from Fed in US, or FM in India or RBI meet, I am strictly out of markets in all these cases. Also monitor domestic buying via institutions like mutual funds and HNIs
3. Foreign news with Foreign Position
I strictly do not trade into foreign news of any kind. Whether any announcement from Fed in US, inflation numbers announcements, or any other global event . Also monitor global buying via institutions like FII and hedge funds.
4. OI Chain & Money Flow
I observe OI of various strike prices and generally a trade that’s taken is usually for a strike price that’s about 800-1000 points away from the spot, which means a very small but sure premium capture.
5. Statistical Distribution Curve Model
This is more a technical aspect which deals with complex option data
So I only take a trade when all these 5 parameters are strictly satisfied. As a result, I hardly trade 1-2 days in a week and probably 7-9 days in a month, but ensuring the trades thus taken are highly accurate with a winning probability of more than 95%.
Here are some features of option selling:
Risk management is most important. Have that in place and you can use this system to create an income for years.
The capital requirement is higher, usually > 20L
Chances of losing are less as hedging gives opportunity to adjust trades
Chances of winning higher as most times (as shown above), option expires worthless.
These plans are for someone who:
If you are a retiree or about to retire and want to create a pension income
If you want to create a secondary source of income
If you have money lying in bank/FD, not getting much returns and want to put it to good use
If you have stocks/Mutual funds and want to pledge it to earn monthly income.
Hope this helps.
If you need help to manage your account to make money using options selling for your own capital, please drop me a WhatsApp text at: 9717791544