1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures - Bac

[jamit_05]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Options update at 9:45 AM

MAX CHG in OI at 5800-6200 Pair. At 9:30 it was at 5900-6300.
Which indicates profit booking or Operators taking positions and premium eating...

All the CALLs are getting squared OFF. 11L

And there is Heavy SHORTs getting created. 21L
So unless positions get created in CE, this market is set for another big correction. But we have to see the positions at later part of the day.
But it is better to be Cautious on LONGs above 5930-5940.

Lately, there is no standard procedure or logical trendiness. Due to currency threat GOI is taking measure to boost rupee... as per orders from higher up GOV agencies hv to inject money in any amounts.

In the morning I was reluctant to go long, but still did. Anything may happen. Times are such.

@Prabhsingh

For my long position I am hoping 60K will liquidate as price reaches the level. Anything can happen... times are such.

 

[jamit_05]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

5800 PE is firming up
6000 CE is losing ground... down 10L OI... thats noticeable.

Display of upside strength.

 

[healthraj]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Looking at Aug series,it seems 6000 is the MAX market can go hence it might be worth writing 6000 call.

Very early to look at Aug Series

 

[healthraj]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Tomorrow after the INFY Results and IIP data we will take our third position for the month. Please close the positions taken in the last Friday by Today.

So far we have made some 50 points. Somebody trading with 200 poistions would have made Rs 10000 in two weeks.

 

[healthraj]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

For INFY, the MAX CHG in OI at 2000PE-3000CE. This is an early indication of a Reversal or a move to 3000. We will monitor, the strikes and see If the CHG in OI is all over the places. 3000 cannot be target because the MAX OI still 2200PE-2700CE.

so I think it indicates a Reversal. So need to be cautious on LONGs.

For INFY, the MAX OI has shifted from 2200PE-2700CE to 2200-3000CE, indicating probably an UP move tomorrow. If by EOD today if the MAX OI remains at the same level, then

1. HIGH RISK Traders can Try Naked Call at 2600, 2700, 2800 depending on the premium - Today
2. LOW Risk Traders can SELL 2200PE-3000CE Pair - Not Today - Probably tomorrow or next week. We have to take this call when we see the Volatility going down.

 

[healthraj]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

For INFY, the MAX OI has shifted from 2200PE-2700CE to 2200-3000CE, indicating probably an UP move tomorrow. If by EOD today if the MAX OI remains at the same level, then

1. HIGH RISK Traders can Try Naked Call at 2600, 2700, 2800 depending on the premium - Today
2. LOW Risk Traders can SELL 2200PE-3000CE Pair - Not Today - Probably tomorrow or next week. We have to take this call when we see the Volatility going down.

MAX CHG in OI at 2200PE-2800CE Pair - changed from 2200PE-3000CE

Monitor the pair 2200PE-2700CE - Whether the prices are going UP / DOWN. If towards the end of the Day if the Premiums are going down, then you can confidently SELL Any pair, 2200-2700 OR 2200-2800 OR 2200-2900 OR 2200-3000 based on your premium

 

[healthraj]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Options update at 9:45 AM

MAX CHG in OI at 5800-6200 Pair. At 9:30 it was at 5900-6300.
Which indicates profit booking or Operators taking positions and premium eating...

All the CALLs are getting squared OFF. 11L

And there is Heavy SHORTs getting created. 21L
So unless positions get created in CE, this market is set for another big correction. But we have to see the positions at later part of the day.
But it is better to be Cautious on LONGs above 5930-5940.

One important Observation to Remember :

If CALLs are getting Squared Off across the strikes then it indicates a Strongly BULLISH Signal - This morning we were able to see this.
IF PUTs are getting squared OFF across the sTrikes then it indicates a STRONG BEARish signal - Yesterday Afternoon We were able to see this.

So Squaring OFF takes precedence over the MAX CHG in OI at any particular strike.

Today the MAX CHG in OI 5900PE - 14L
MAX CHG in OI (Negative) is at 6000CE - 8L

Total CHG in OI across strikes
PE @ 33L
CE @ -24L

Right now it is Strong BULL - Avoid Shorts for now and Buy on Dips around 5945-5955 with Stoploss as 5920.

 

[prabhsingh]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Raj,

Is it not profitable to sell far Out-Of-Money Put at this point?For e.g sell 5500PE and collect the premium.We know chances of money coming to 5500 in this series are very rare so why not collect as much premium as we can by selling max lots.Thoughts welcome.

 

[jamit_05]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Raj,

Is it not profitable to sell far Out-Of-Money Put at this point?For e.g sell 5500PE and collect the premium.We know chances of money coming to 5500 in this series are very rare so why not collect as much premium as we can by selling max lots.Thoughts welcome.

It is not free-money... you are taking on proportionate risk.

In other words, if you take 10 (or 30) such trades then you will not make "exciting" amount of money.

 

[prabhsingh]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

It is not free-money... you are taking on proportionate risk.

In other words, if you take 10 (or 30) such trades then you will not make "exciting" amount of money.

Well number of trades depends on individuals risk taking capability.What my point here is there are very remote chances of Nifty going to 5500 still risk is there but very less.So if particular person can keep good amount of Margin money then he can earn good amount because close to expiry this 5500PE will come close to 0.Currently its trading at 7 suppose you write now with 1000 lots you earn 7000 premium and for rest of series you have to just sit idle.