General Trading Chat

[timepass]

Sometimes Comparison with the BNF may be better - instead spot price ???

Usually, yes. But today is expiry day, the put will finally expiry @Rs. 40 if the BN SPOT price remains at 45160.

 

[travi]

Sometimes Comparison with the BNF may be better - instead spot price ???

You cant compare BNF bcos it is for a different expiry compared to the 0DTE option chain.
You can only derive synthetic futures value in 0DTE chain.

In relation, BNF will have more premium as it is 2 weeks out, and overall premium (or disc) is compared with spot anyway.

 

[tradermodified]

BN intra range in a channel - trying for a posible BrkOut ???

View strictly for STUDY PURPOSE !

exactly

staying above 45700 for around 46200/250 levels and staying above that for 46700/800 levels ltp 45379

 

[timepass]

You cant compare BNF bcos it is for a different expiry compared to the 0DTE option chain.
You can only derive synthetic futures value in 0DTE chain.

In relation, BNF will have more premium as it is 2 weeks out, and overall premium (or disc) is compared with spot anyway.

Exactly, relate with the futures if you are trading the monthly options.

 

[Nish]

You cant compare BNF bcos it is for a different expiry compared to the 0DTE option chain.
You can only derive synthetic futures value in 0DTE chain.

In relation, BNF will have more premium as it is 2 weeks out, and overall premium (or disc) is compared with spot anyway.

 

[Nish]

Exactly, relate with the futures if you are trading the monthly options.

Well , Sometimes a Desi Jugad with mthly Future prices , at-least give a hint , what can be interpreted projections in options movement !
Anyways , for intra trades all these tactics are hardly needed , as trails are much more efficient to protect profits !

 

[Nish]

Usually, yes. But today is expiry day, the put will finally expiry @Rs. 40 if the BN SPOT price remains at 45160.

With such a high volatility ? ... Hum !!!

 

[tradermodified]

exactly

staying above 45700 for around 46200/250 levels and staying above that for 46700/800 levels ltp 45379

BN did an high of 46170 and dipped.
Caution
If dips and stays below 45750/700 zone then may fall for 200/400 or more points
ltp 45795

above 45750/700 zone to move up

 

[Raj232]

With such a high volatility ? ... Hum !!!

Almost 1300 points intraday movement has been seen today on Banknifty futures

 

[Raj232]

@Raj232

Here is an example of the premium / discount

Banknifty spot @45160, the fair value of 45200 pe should be 40 Rs.

But it is trading at Rs. 150, so it has a premium of 110 Rs.

If it was trading at Rs. 10, we would say a DISCOUNT of Rs. 30.

I am not sure how to interpret it, Sometimes it shows the trend, sometimes antitrend. So at present it is just an observation.

Thanks for the explanation. My understanding of this is :

If trading at a premium, it could be the time value for the day..
If trading at a discount that means, no demand for that option