Nifty Futures Trading Part 2 (Positional)

[Sunil]

DAMMMMMMNNN

czar, i m really kicking myself...
check out NTPC - +9%...
i SHOULD have bought its call too...

 

[Sunil]

czar, my wife is not believing that i just doubled my money in 1 day....
i m trying to show her CALL 4600 & 4700 rates...

 

[uasish]

Unable to trade to-day,squared off 50 % of my position @ 4560.

 

[cheeku]

nice to see your post Asish da. How are you now?

 

[orderflow13]

i hope u guys seriously reconsider ur plans for shorting...
one more BIG news is out, which the financial seems to celebrate:

Bailout of Fannie & Freddie by US Govt.

Keep your eyes focussed on 4650 SPOT now.

and alex, one thing about OPTIONS: how can u be so sure that OI is due to option writing & not option buying. In Futs, we can say that if OI increases & FUT price is in discount, it means more shorts, etc.
But, how can one come to know the same about OI in options...

What i do (& this really comes handy in expiry time also):
Compare the price of both Call & Put of ATM (at the money) Option. So for example, if closing on friday was around 4350, then the closing price were:
Call 4350: 143
Put 4350: 132

The premium for calls is more than for puts; that's when I came to conclusion & discussed with czar that bias is more towards Calls side.
Ofcourse, u cant take OPTIONS as THE indicator, as options can also be used for hedging, etc...

hi sunil there is anather indicator put call ratio ( not open interest put call ratio ) i believe its 0.4 or somethng , i didnt check last ) , wt u sayin that indicator, shows, if now its 0.4 means call value more than put, but i felt this is very treaky indicator didnt give reliable signs, we will discuss on this healthy discussion as i hv also sum positions , n congrats for calls ...mind sharin vth czar n me

 

[orderflow13]

wrote the 4500 cal around 149, any development on horly chart czar,sunil?

 

[Sunil]

actually czar, she was sitting with me for the first time, and she was wondering (on seeing the mkt watch window) how come those scrips (Calls 4600 & 4700) are up 90-95%...
& now even she's interested in "investing"...!!!

thank god, that movie is coming (not mine & SatDa) - "SAAS, BAHU & SENSEX"...!!! (on 19/9)


Alex, what i had posted was the layman explanation of PCR at strike price level...
it comes very handy ahead of such market-moving events...

 

[orderflow13]

sunil eh it comes handy indeed ...ok about our open interest put calll discusson, if theer r byers then some one must be selling, in us there r market makers( of stock xchange) also actively write options , so vol tend to more n options liquid, here no such active market makers, so its considered that player with big pocket wrote options ( as writing options require more margin, and writing options is limited profit unlimited risk in theory,so lots of brokers also dont allow write options with modest account ) n buyers suppose to be retail ppl , though many times fii hedge by buying options, but we cant cut out huge retail partcipation in option buying, thats why open interest in put call sometimes help but as u said it can be treaky to identify,
p.s.no intention to offend ,just for sake of healthy discusion m writing here through keeping eye on my open positions

 

[Sunil]

no buddy, not at all offensive... i m open to such healthy discussions in options; and i m happy to find one more member here besides czar..
but we'll continue after EOD
ur work is pretty impressive, along with your late hours' study (sometimes i find ur posts at 2am & even 4am!!!

 

[myvineet]

Sunil if I am correct IIP are coming on 12 of this month....