Day Trading Futures

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after sprinting & high jumping of previous several sessions, today will most probably a sideways market due to bank holiday
3ema is at 7067, LOD is at 7096.. if the ema decides to touch the index from the bottom, then the bears could be on the mat :).. else it's the bulls on the mat if the index decides to touch the ema. sitting out.
 

TradeOptions

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Longer Term "Daily time frame" Charts of Nifty June Series of strikes 6000,6500 and 7000 in esignal. All of them are trading at their Lowest Prices, since these June Series contracts started. They might have a sudden change in fortune if the election results gives some negative surprise.

Puts are certainly seeing more and more interest. Even in the current May Series the total traded volume in the Puts is more then 3 times the volume action in the same Call strikes so far in the first half hour of trading session.


 
Longer Term "Daily time frame" Charts of Nifty June Series of strikes 6000,6500 and 7000 in esignal. All of them are trading at their Lowest Prices, since these June Series contracts started. They might have a sudden change in fortune if the election results gives some negative surprise.

Puts are certainly seeing more and more interest. Even in the current May Series the total traded volume in the Puts is more then 3 times the volume action in the same Call strikes so far in the first half hour of trading session.


people are buying more put... what does it mean r they hedging their long options or they r bearish on market
 

pratapvb

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people are buying more put... what does it mean r they hedging their long options or they r bearish on market
hedging for 16may results....

remember many people may also have to protect their portfolios against adverse move.....this helps them to take a small insurance against adverse move....but hold on to the portfolio
 

DIVYEDIX

Well-Known Member
hedging for 16may results....

remember many people may also have to protect their portfolios against adverse move.....this helps them to take a small insurance against adverse move....but hold on to the portfolio
right, market will fall if the result are as per expectation or even 5% below par result due to built up expectation.

For reference go to trading day of last 4 state election result day.
 

TradeOptions

Well-Known Member
right, market will fall if the result are as per expectation or even 5% below par result due to built up expectation.

For reference go to trading day of last 4 state election result day.
Yes, most probably the markets will fall in that scenario. So it makes sense to buy puts.

But currently the IV are shooting up again thereby making the puts more expensive. So I am not being able to decide about the correct timing for my put trade. :annoyed:

Should I wait till tomorrow, or should I just jump in right now. :confused:
One thing is for sure that I will bet on the down side by buying the puts, even if this bet goes completely wrong.

Is there some way to quantify the negative effect of crash in the put IV, versus the positive effect of crash in the nifty index, on the prices of the Put Premiums. How to quantify these 2 opposite forces and figure out the premium values by changing the IV and Underlying Index values accordingly.

If anyone is aware of such option premium calculators then please suggest.

Thanks
 
hedging for 16may results....

remember many people may also have to protect their portfolios against adverse move.....this helps them to take a small insurance against adverse move....but hold on to the portfolio
sir much more upside u see in market if NDA comes with 272 seats... ( keeping in mind tht nifty had already moved approx 500+ point since thursday, means had already discounted d news)

what should be d strategy on 16 may.. with 1 lkh investment..
plz guide
 
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