Day Trading Stocks & Futures

[vikas2131]

USDINR / NiftyIT both interlinked..USDINR as written abv..poss top..but still not broken down..monthly breakdown of 68.90 then 64.50 likely medium term..maybe waiting for US FED/RBI for next move..Nifty IT reached its threshhold as far as call centers can take it... wait for INR

 

[soft_trader]

Engineer ho Kya dost...

Nah bhai. I was never that talented.
Just a casual trader.

 

[afin]

https://go.nasa.gov/2F7vAXT?fbclid=IwAR1m6VlGMpMER-nT0UtQcCWyOrdTt-pivZWyAtpTczgp-frNWkGfxBR6A9Y

 

[mohan.sic]

Kindly enlighten how else to find cheaper/expensive priced options.

You can use IV. But not the way discussed.
Don't compare iv's of different strikes. All strikes are equally priced . Nothing cheaper/costlier than other strikes. (difference in prices/iv's are due to difference in strike distance from Spot)

Compare present IV's of a particular strike to IV's of the same strike of previous day, and that will give a fair idea if options are cheap/costlier comparatively. ( of course the comparison should be on same expiry and should also count for decreasing Time value and changes in nifty as these factors also effect the iv).

For most of the traders, this iv values is not really useful. Some basics are enough to avoid getting into traps.

 

[Tejas Khoday]

Actually the earth rotates counterclockwise. From west to east.

Oops, my bad.

 

[Smart_trade]

Sir,
Is it the right time to book profit in Baj Finance ?

Also your views on Bata, pls..!

Yes one can book part profit in Bajaj Finance as it has gone up.But the stock has lots of upside left in times to come.It may give a correction till Rs 3100-3150 where one can buy again.The uptrend in the stock is not getting over anytime soon in my view.

Smart_trade

Edit :Typo error corrected.

 

[XRAY27]

Centre plans largest spectrum auction to ensure affordable 5G

 

[Trading Sag]

Yes one can book part profit in Bajaj Finance as it has gone up.But the stock has lots of upside left in times to come.It may give a correction till Rs 2100-2150 where one can buy again.The uptrend in the stock is not getting over anytime soon in my view.

Smart_trade

Thank you ST sir.

You views on Bata pls, sir.

 

[john302928]

Yes one can book part profit in Bajaj Finance as it has gone up.But the stock has lots of upside left in times to come.It may give a correction till Rs 2100-2150 where one can buy again.The uptrend in the stock is not getting over anytime soon in my view.

Smart_trade

Booking partial profit is a good idea.I feel there is a kind of spike due in bajaj finance. at the moment I dont feel it is coming down 2100 zone before the spike.3700 and 3800 need to be crossed before any meaningful correction. This is just my view. Below is just an attempt. Once green wave 2 progresses we can gain more confidence. but red wave 1 and 2 look good. we might have to witness the red wave 3,4,5. If price crosses 3555 intraday today then there needs an adjustment in green wave. but red waves still look intact.lets see

And just keep an eye on Astron paper & board mill Ltd. This stock has got wonderful structure formed in the longtermed. new all time high above 200 might happen in the next 1 year.just my view

 

[Riskyman]

You can use IV. But not the way discussed.
Don't compare iv's of different strikes. All strikes are equally priced . Nothing cheaper/costlier than other strikes. (difference in prices/iv's are due to difference in strike distance from Spot)

Compare present IV's of a particular strike to IV's of the same strike of previous day, and that will give a fair idea if options are cheap/costlier comparatively. ( of course the comparison should be on same expiry and should also count for decreasing Time value and changes in nifty as these factors also effect the iv).

For most of the traders, this iv values is not really useful. Some basics are enough to avoid getting into traps.

Obviously, you have never paid much attention to IVs. What else would you compare of different strikes if not IV? The option has only 2 things. Intrinsic value and a premium. The premium is nothing but IV along with time value for expiry for this option.

All strikes are equally priced. Nothing cheaper/costlier than other strikes. (difference in prices/iv's are due to difference in strike distance from Spot) - - - You are not correct here. All strikes are not equally priced. Options routinely get mis-priced and there will be strikes which become cheaper/expensive in a trading day. If all strikes were equally priced then we would not have any need for IVs. Moreover, you are implying that all option strikes will move the same way which is not the case.

Compare present IV's of a particular strike to IV's of the same strike of previous day, and that will give a fair idea if options are cheap/costlier comparatively. - Again you are not correct. Yesterday's IV is now HV. Cant compare today's IV with yesterdays HV. Implied Volatility is future looking and not into the past. For ex IV of 11600 put yesterday will not be the same if market today trades at 11500. So, how can you compare with yesterday's IV? Comparing apples and oranges?

For most of the traders, this iv values is not really useful. Some basics are enough to avoid getting into traps.----Again, this is not correct. IV is a very useful tool for a buyer to see how options are priced. For example. Assume Underlying is at 11880. For a 11800 strike with 14 days to expiry and an IV of 9.6, a put option will up by over 18% if IV went up by 10%. Similarly, a call option would change by close to 5%... other things remaining the same.

IV is not a single measure to determine cheap/expensive options. It has to be studied along with other greeks. However, its much easy to eye ball IV and do a quick check of option prices.