Day Trading Stocks & Futures

[boarders]

re: Day trading Nifty & Banknifty Futures

looking to short around 6170 spot levels
intraday pain at 6200
50:50 level at 6130
max pain at 6100
bears 3.45 times stronger than bulls
6100 could be the bottom max today
6200 could be top max today
above 6180 and below 6127 not much impediments
bears seem to have upper hand

 

[HEM]

re: Day trading Nifty & Banknifty Futures

Again this niftyben opened in yesterday's range

very disappointed

Dear Trader PK,

Don't be disappoint and be happy and be ready for every situation of the market........... after all we are professional trader....:thumb:


HEM

 

[trader15]

re: Day trading Nifty & Banknifty Futures

Option waloo... Today the IV has spiked from 18 levels on friday to 24.

The IV for calls has spiked more than puts...

 

[anup]

re: Day trading Nifty & Banknifty Futures

Option waloo... Today the IV has spiked from 18 levels on friday to 24.

The IV for calls has spiked more than puts...

What does it indicate?

 

[trader15]

re: Day trading Nifty & Banknifty Futures

What does it indicate?

higher iv means higher delta being build in the option price above its intrinsic price.

So say if 6300 PE intrinsic value is : Rs. 7, Rs 2.75 is value due to other components, out of which iv is major component

Higher IV would mean the 2.75 is priced on higher side due to volatility.

Big players write such options : To consume this higher delta due to variations in iv. So say tomorrow iv drops back to 18 from current 24, the value of 2.75 may drop to 1.5 (for exact figures there are nice calculators already), assuming everything else remaining same.

So how it impacts retailer: As retail investor, you may look at 6300 Ce and say wow seems it has shot up today 9.75 and market moved up only 30/40 points... So you will jump in thinking markets may move up.

But actually the iv has pumped the value up, trapping the retailer and feeding the big sharks : writers

See the VIX today morning also jumped more than 5%.

Simply put IV is what allows you to have fair valuation of option.

 

[STRATEGICINVESTMENTS]

re: Day trading Nifty & Banknifty Futures

I am also attaching the chart of Nifty with some markings to understand why I said about bearishness. I may be wrong so I request everyone to use their judgement also.

I have entered short at 6164 (at 9.52 one minute bar) with initial stop loss at 6177 (Above the high of 9.23 bar of 6175). Then trailed my sl to 6166 at 10.30.

I have marked the down bars in chart because they had the longest range as well as supporting volume and also in volume check that up bars had very less volume (I marked them with horizontal line just above the volume) in comparison to previous down bars as well as the range of green bars were less.

I am not able to upload image as clearly as by other members. Please tell me what I am missing.

Keep discussing as it is the best way of learning.

Regards

Strategic Investments

NIFTY 5 MIN CHART

 

[prabhsingh]

re: Day trading Nifty & Banknifty Futures

It seems today Nifty can skid 40 odd points.

 

[stock72]

re: Day trading Nifty & Banknifty Futures

It seems today Nifty can skid 40 odd points.

if so that is the best time to buy call ....

 

[prabhsingh]

re: Day trading Nifty & Banknifty Futures

if so that is the best time to buy call ....

It might be today or tomorrow.

 

[stock72]

re: Day trading Nifty & Banknifty Futures

It might be today or tomorrow.

if not today then NOT tomorrow for sure .... that much i know ...