BankNifty PUTs & CALLs

[columbus]

AUG.26 AUG-series Day.17 BankNifty= 15624 (-45)

The Expected Zone has moved DOWN to (15800~15500) from (16100~15600).
(From day.15 of the series)

DAY                              LOW~HIGH						
=======                          =========      						
1  to 6                 Approx...50Rs to 500Rs						
7  to 11                Approx...40Rs to 400Rs						
12 to 16                Approx...35Rs to 350Rs						
17 to END               Approx...30~15Rs to 300~150RS						
						
This is not based on ANY formula , but on just observations of last few days.

 

[columbus]

AUG.27 AUG-series Day.18 BankNifty= 15717 (93)

The Expected Zone has moved UP to (15900~15600) from (15800~15500).

DAY                              LOW~HIGH						
=======                          =========      						
1  to 6                 Approx...50Rs to 500Rs						
7  to 11                Approx...40Rs to 400Rs						
12 to 16                Approx...35Rs to 350Rs						
17 to END               Approx...30~15Rs to 300~150RS						
						
This is not based on ANY formula , but on just observations of last few days.

 

[columbus]

AUG.28 AUG-series Day.19(end) BankNifty= 15740 (23)

Bank Nifty closed at 15740.

Sep series
=======

 

[SREENAN]

Re: AUG.28 AUG-series Day.19(end) BankNifty= 15740 (23)

Timepass and Columbus

with the same clarity and thought with which you taught me to upload in Imgur...please
unravel the expected zone and the various concepts of the option analyses...really cant makeout the process....please help

Sreenan

 

[columbus]

Re: AUG.28 AUG-series Day.19(end) BankNifty= 15740 (23)

Timepass and Columbus

with the same clarity and thought with which you taught me to upload in Imgur...please
unravel the expected zone and the various concepts of the option analyses...really cant makeout the process....please help

Sreenan

Please do a small exercise.

For NSE website ,download BANKNIFTY option chain.

On call side ,locate 500 Rs call Option ( Left side) and 50 Call option.

Draw a big box around these TWO call options.

Do the same for PUT options.

These two boxes ,gives a another small box,which nothing but EXPECTED zone.

This zone is gives active zone which is COMMON to both PUTS and CALLs.

 

[trader33]

In BANKNIFTY the open interest is low, rather very low compared to Nifty.
In nifty OPEN INTEREST used to take care in deciding the boundaries
of CALL and PUT windows.Moreover the BID-ASK rates are wide apart ,which
discourage many to go for BANKNIFTY options,so interest is low.

So we have to devise a method ,which takes care of decaying in options.
Decreasing the width of the range with time ,is one method.

On an average we have 22 trading days per month.First 7 trading days
let us suppose 40~400 decides the boundaries of PUT& CALL windows.
Next 7 days 30~300 decides the boundaries and 20~200 for the rest.
Let us see ,how it pans out !!!!

Day=1 BankNifty=10341(+337)

The philosophy is like this,if the market is bullish then the present 10100CE
trades more than the present 396.90 and CALL window will move to higher
strikes.On the other hand if market is bearish ,then the present 10500PE
trades at higher than present value of 350.00 and goes out of PUT window.
PUT window seeks lower strikes.

hi Columbus your philosophy must be upheld.its said that stock prices move in cyclical movements and here cycle is seen at every expiry all calls and all puts become .05 its cycle rotating again and again requesting one and all to explain this phenomena

 

[columbus]

hi Columbus your philosophy must be upheld.its said that stock prices move in cyclical movements and here cycle is seen at every expiry all calls and all puts become .05 its cycle rotating again and again requesting one and all to explain this phenomena

@trader33,

DAY                              LOW~HIGH						
=======                          =========      						
1  to 6                 Approx...50Rs to 500Rs						
7  to 11                Approx...40Rs to 400Rs						
12 to 16                Approx...35Rs to 350Rs						
17 to END               Approx...30~15Rs to 300~150RS						
						
This is not based on ANY formula , but on just observations of last few days.

Just like Bank nifty options loses value with TIME, the lower & upper boundaries
of both CALL window & PUT window loses value .(May not be 100% replication).

The intersection tend to be very ACTIVE because the CURRENT position invariably
falls in this zone.

This is the SIMPLE philosophy behind it, you can use it as thumb rule.

But I have not tested for STOCK options.

 

[columbus]

Sept.1 SEPT-series Day.1 BankNifty=16012 (272)

The Expected Zone is at (16400~15800) .

DAY                              LOW~HIGH						
=======                          =========      						
1  to 6                 Approx...50Rs to 500Rs						
7  to 11                Approx...40Rs to 400Rs						
12 to 16                Approx...35Rs to 350Rs						
17 to END               Approx...30~15Rs to 300~150RS						
						
This is not based on ANY formula , but on just observations of last few days.

 

[columbus]

Sept.2 SEPT-series Day.2 BankNifty=16130 (118)

The Expected Zone has moved to (16500~15900) from (16400~15800) .

DAY                              LOW~HIGH						
=======                          =========      						
1  to 6                 Approx...50Rs to 500Rs						
7  to 11                Approx...40Rs to 400Rs						
12 to 16                Approx...35Rs to 350Rs						
17 to END               Approx...30~15Rs to 300~150RS						
						
This is not based on ANY formula , but on just observations of last few days.

 

[timepass]

How can one find BNF PCR ??