General Trading Chat

[lemondew]

Also RBI interest rate decision on next tuesday june 7. So will watchout for next weekly bank nifty how it pans

 

[pravi_kanth]

ok all 2 more days for first expiry of weekly banknifty.

Where do you think it is headed at 18000+ or 17000- or flat at 17500

Does weekly expiry creates lot of fuss in market by spikes and bungy jumps. I hope charts will not get distorted.

 

[lemondew]

Thats the suspense.This is the fist expiry. It will be a guess and lets see if there are swings as the monthly expiry.

Does weekly expiry creates lot of fuss in market by spikes and bungy jumps. I hope charts will not get distorted.

 

[^k^]

Does weekly expiry creates lot of fuss in market by spikes and bungy jumps. I hope charts will not get distorted.

Whats the actual reason behind spikes and bungy jumps?

 

[headstrong007]

Today Weekly option overshadow monthly bank nifty option. Good for sellers 17000pe, 18000ce.
Weekly option good for buyers tues-wed-thrs..IMO last 2-3 days... approx aveg prem diminish rate Rs 35/day for near strike..

We can see more fast action wed/thrsday...Already lot of action in 17500ce...traded... moved fast today ..intraday traders need such speedy instruments..whole month waiting for exp week now end for us....

So, experiment by NSE successful..Now may be Nifty weekly soon..This can end boring tuk tuk market...weekly option is T20...welcome to new age trading...

 

[pravi_kanth]

Whats the actual reason behind spikes and bungy jumps?

Volatility due to expiry day may always give you high fluctuations without any reason.

 

[headstrong007]

BIG NEWS..Q4 GDP 7.9,,,higher than expectation..7.3

 

[headstrong007]

An Introduction To Weekly Options///

In 1973, the Chicago Board Options Exchange (CBOE) introduced the standard call options that we know today. In 1977, the put option was introduced.
In 2005, 32 years after introducing the call option, the CBOE began a pilot program with "weeklys" options. Investor interest in the weeklys has surged since 2009

Weekly Option Advantages for sellers..

For premium sellers who like to take advantage of the rapidly accelerating time-decay curve in an option's final week of its life, the weeklys are a bonanza. Now you can get paid 52 times per year instead of 12.

The Short-Term Advantage for buyers...

In addition, during three out of four weeks, the weeklys offer something you can't accomplish with the monthlys: The ability to make a very short-term bet on a particular news item or anticipated sudden price movement.

Let's imagine it's the first week of the month and you expect XYZ stock to move because their earnings report is due out this week. While it would be possible to buy or sell the XYZ monthlies to capitalize on your theory, you would be risking three weeks of premium in the event that you're wrong and XYZ moves against you. With the weeklys, you only have to risk one week's worth of premium. This will potentially save you money if you are wrong, or give you a nice return if you are correct.

[Souce investopedia]

Finally in 2016 NSE launched it...This is blessing for option traders..
Waiting for big event days...:gunsmilie:

 

[priyaranjanpawan]

Turnover 31/05/2016

Nifty 50 Turnover: 21,491.34
FII buy Value: 18888.61
FII sell Value: 19003.13

DII buy Value: 2836.68
DII sell Value: 2776.4

Total buy Value (FII+DII): 21725.29
Total sell Value (FII+DII): 21779.53

How does total buy value or total sell value greater than turnover itself?
I expect some retail buying & selling adding to turnover as well.

What can be the possible reasons?

Besides what's the reason for such a high turnover today?

 

[blackberry]

GDP jumps shall market tomorrow!!