A brief study on nifty options for intraday

[bunti_k23]

Is this the only chart on your screen ? I usually have the charts of index spot, futures, one call option and one put option.

no, i have nifty spot, CALL and PUT of strike price which i am going to trade. these premiums are behaving differently compared with spot prices. they fall more fast then rise. i am getting little confused here where to keep my eye, on SPOT chart or OPTION chart or both charts. system is running on SPOT chart.

 

[godfather]

no, i have nifty spot, CALL and PUT of strike price which i am going to trade. these premiums are behaving differently compared with spot prices. they fall more fast then rise. i am getting little confused here where to keep my eye, on SPOT chart or OPTION chart or both charts. system is running on SPOT chart.

It depends on what you are looking for, go through option Greeks, no need to have in-depth but just know how OTM, ATM and ITM prices behave especially the Importance of Delta. The system is running on the spot chart and the system will give you entry and exit.

 

[bunti_k23]

It depends on what you are looking for, go through option Greeks, no need to have in-depth but just know how OTM, ATM and ITM prices behave especially the Importance of Delta. The system is running on the spot chart and the system will give you entry and exit.

I already know option greeks in theory, but seeing it now practically. Even i am trading 2 strike ITM.

 

[timepass]

no, i have nifty spot, CALL and PUT of strike price which i am going to trade. these premiums are behaving differently compared with spot prices. they fall more fast then rise. i am getting little confused here where to keep my eye, on SPOT chart or OPTION chart or both charts. system is running on SPOT chart.

I used to look at the call, put and the index spot. Then someone in the forum advised me to link the options with the futures mainly. Then onwards I observe both spot and future.

 

[godfather]

I used to look at the call, put and the index spot. Then someone in the forum advised me to link the options with the futures mainly. Then onwards I observe both spot and future.

Oh, but option chain moves as per spot or future?

 

[bunti_k23]

I used to look at the call, put and the index spot. Then someone in the forum advised me to link the options with the futures mainly. Then onwards I observe both spot and future.

Theoretically, nifty future and options are derivative of SPOT price. but i am not sure whether to watch nifty future chart or spot chart. i heard from many people that we need to watch SPOT chart since options are derivative.

 

[bunti_k23]

DAY 2 of trading.

NO SIGNAL NO TRADE. But there was a sell signal yesterday and price moved as per the signal, i should have entered on break of swing low, but did the same mistake again. I was not sure whether to enter or not, missed again almost 50+ pts rally.

 

[timepass]

Oh, but option chain moves as per spot or future?

Theoretically, nifty future and options are derivative of SPOT price. but i am not sure whether to watch nifty future chart or spot chart. i heard from many people that we need to watch SPOT chart since options are derivative.

This is a difficult question.

On expiry day, the options are better aligned to the spot. On other days, I don't know really. It is very iffy. That's why one would prefer to look at both calls and puts.

 

[timepass]

DAY 2 of trading.

NO SIGNAL NO TRADE. But there was a sell signal yesterday and price moved as per the signal, i should have entered on break of swing low, but did the same mistake again. I was not sure whether to enter or not, missed again almost 50+ pts rally.

View attachment 49556

I have stopped beating myself about missed trades. I don't even regret those.

 

[godfather]

This is a difficult question.

On expiry day, the options are better aligned to the spot. On other days, I don't know really. It is very iffy. That's why one would prefer to look at both calls and puts.

Interesting I got this piece from ET full article link is attached...


For the benchmark indices like Nifty 50 and Bank Nifty, we have monthly options as well as weekly options that expire every Thursday. While for monthly options, we have futures but for weeklies, we don’t have any future. So, what are the weekly options based on - is it based on the spot or is it based on the monthly future? The answer is none of the two. Instead, they are based on something known as synthetic (or implied) futures. This synthetic future is something that isn’t actually traded but rather reverses calculated from options pricing.


https://economictimes.indiatimes.co...ofinterest&utm_medium=text&utm_campaign=cppst