A short strangle is a position where you sell an OTM call and an OTM put both to receive some credit. The trade will benefit from either of the two — a) the range bound movement of the underlying and you get the daily theta burn and b) the volatility decreases in which case the option premiums will go down resulting in profit. On the flip side, the trade will turn a loser if the opposite happens i.e. either there is a one directional move or there is an IV expansion. As the underlying moves in one direction, it is…


I have one word answer to all the people who ask me about how to become a full time trader — Don’t. If I am pushed on it the response becomes a little more elaborate, from one word to two — Fuck no!
Throughout this blog I will refer to these two answers as Ans.1 and Ans.2.

The motive of this blog is not to demotivate you to take up full time trading but to prepare you for what lies ahead should you decide to go for this particular form of self torture. Say you joined twitterand started following the…


If you are following me on twitter, you would already know that I pay a lot of emphasis on position sizing and I believe it to be the single most important thing to be kept in mind if you are selling options. It doesn’t matter what trading style you have — whether you are buying options or selling options, follow a trend or play mean reversion — position sizing is important for all of it. However, in case of option selling it is even more important because of the tail risk associated with option selling. One should not blow up…


Breakouts happen all the time and there are many ways to trade breakouts like buying equity or future, selling put or put spread, buying call or call spread. Every trader has their own approach. Usually when stocks are breaking out or are trading higher, the calls are in demand resulting in a skew on the call side (also known as reverse skew). In order to take advantage of rise in IVs and call side skew, the way I trade this is by shorting a bullish bias strangle. The trade can be intraday or positional based on one’s personal comfort. How…


‘Analysis’ ka Nanga Naach

In my last part (read here) I talked about the fascinating journey of con artists that are twitter ‘traders/trainers’ and how they use MTM screenshots to dupe retail/ traders new to the scene. In today’s part I want to talk about another tactic they use a lot — ‘Analysis’ and predictions. Before I begin let me be very clear about the fact that I am not against technical analysis in general or forming a view and taking a trade based either or both. What I have a serious problem with, is these twitter ‘traders/trainers’ who, like the astrologers on television…


MTM Screenshots

After my last blog on how some twitter ‘trainers’ were conning traders who were relatively new to the scene, I have been meaning to write about some of the tactics these people use to bait and reel their ‘marks’ in. TLDR for those who missed my earlier blog (Link) — I got conned myself by these ‘trainers’. Shelled out 50K for one such training workshop to get strategies which I painstakingly back tested to find that they didn’t work. Since then, I have found myself observing these ‘traders/trainers’ very closely. Not just to answer the question — How could I…


I was not surprised by the inadequate and deflecting replies that I got from Subhadip Nandy on my back-test results. (For people who missed my previous blog on the subject, read here: Previous Blog )

Except for one system, no data was given to support or refute any of the back tests! I am certain he wouldn’t even have done any back tests on the systems he is ‘teaching’. Before I get into specific replies, some general observations about Subhadip Nandy’s disposition towards this enquiry:

- No data whatsoever! Like I mentioned earlier, this is my biggest problem with his…


Money control churns out 52 stock market trainers a year — someone jokingly said to me the other day commenting on the fame the site is giving some traders by selecting one almost every week. While publishers like them might feature a trader (not even sure if they do a thorough check on their numbers), publish a story and disappear from their lives forever, but what ends up happening is the fame these so-called successful traders get gives them an opportunity to open up their ‘training shops’. I have been actively trading for the last 4 years and I started…

Ashish gupta

Full time trader | Long Distance Runner

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