Nifty Futures Trading

[coolboy007]

Sunil: Thanks for correction ...yup copy paste mein locha kar diya

Trendplayer,

Bhai hamaari tarah Bausch and Lomb Contact Lenses lagaa lo aap bhi
You keep doin small cute mistakes. keep posting.

 

[TrendPlayer]

Trendplayer,

Bhai hamaari tarah Bausch and Lomb Contact Lenses lagaa lo aap bhi
You keep doin small cute mistakes

CIP: yar DIL tumharey thread mein hota hai aur copy paste yahan pe to galtee to hoge na..maf kar do sir agey se dhayan rakhunga!

 

[arnav_rulz]

arnav,
Kindly elaborate your views on Shorting Calls or Put to the Library thread.

Asish

Sir i would love to Elaborate my views on Selling/Buying Options ... But im not a Very good presenter .. And im not sure what all to write there.

For me its easier to Answer all kinds of Queries regarding Options... rather than Post in the set-up thread...

Ill be very happy if some1 can edit my posts according to library thread and post it there ... Till then ill try and give different types of views about Options here...

 

[arnav_rulz]

Something more about Options from 1 of my threads started way back in July...

Extra Info:

Many People Who trade in Puts & Calls generally dont realise 1 thing...


CALL is SAME AS PUT.

Its never that puts have more premium(than calls) during a bear market and calls have more premium(than Puts) in Bull market.


Generally ppl tend to buy a stock/nifty say @ 3100 and sell its 3200 Call, Whereas what they are simply doing is Selling a naked Put of 3200 !!

Buying a Future(Y price) + selling a Call(X strike price) = Selling a Put(of X strike Price)

Similarly

Selling a Future(Y price) + Buying a Call(X strike price) = Buying a Put(of X strike Price)

Buying aFuture(Y price) + Buying a Put(X strike price) = Buying a Call(of X strike Price)


FOR EXAMPLE

**If say Nifty Future is @ 3000 and 3200 Call is @Rs 50 then 3200 Put has to be @ 250,

If Put is more than 250 then...
Sell the Put , Buy the Call & sell the Future ( and there and there @ the end the month you will 100% earn the extra amount (ie value of Put sold - 250)

**Here the Value of Put is calculted as ---> Difference of strike price of Call and Future rate (3200-3000) + Premium Received from call = 50 ie 200+50=250..

 

[arnav_rulz]

Is Nifty Just Filling up all the gaps these days ?

I have now been noticing this for more than past 1 month and let me tell you... I have been very Successful in this.. even though this may later prove to be true.. but atleast for now it is working ..


Since Nifty Touched the Lows of 2200... I have noticed 1 thing that.. All the Gap up/Gap Down Openings have been Filled by the Nifty 1 day or another..

Here the Gap is difference of last days closing and the Next Day's Opening price..

Normally i think by Rule a gap is filled even if Nifty opens a gap Up/down and then comes back to atleast the previous days high/low ... But For a long time now ... it tends to atleast come back till the previous Day's Close ..(Its not necessary that it comes the next day.. But it sure fills up that gap..)

I think I May not sound very Clear here .. Cause im still fully trying to Work on it and trying to understand it ..
Still i have two charts to try and elaborate my point ..

In This Chart we can Clearly See the Circles are nothing but Gap-ups and Gap-downs being filled by nifty 1 day or another ...

To trade with These What i have experienced is that ... When any previous left Gap is filled...We can then Buy/Short the Nifty @ that time and our Stop is the Low/high of the last 60 minute candle of the of the day of which the gap is filled up..

When Nifty went down till 2500(2nd time) again.. it actually filled a previous left gap for me which had a stop around 2490 and the Low made was around 2495!!

This can be seen in various other cases as well ..But as mentioned in the chart .. only the gap of close of 5th Dec and open of 6th Dec Is left to be filled for me.. though again as mentioned .. these are really not Considered as Real Gaps caz nifty retraced back till the high of 5th Dec atleast ..


Now the next Chart is About the reason for Yesterday's Sharp Fall and then the sudden rise back..

Well i would love to hear Sunil's comment on this and if he thinks this is just a co-incidence or is this also some kind of methodology which is followed which i didnt know about ..

Every1 else's comments are also Appreciated ...especially those who have a keen interest in Gap up/down openings !!

 

[arnav_rulz]

settlement close will be in red...
outside day is already confirmed as per fut chart...

even yesterday, as per exchange (but not as per charts), SPot's low was 3056!!!

Yesterday was 5th Jan .. Nifty had a Gap up.. thus as per exchange the low of spot is almost same as previous days close ie 3056

As on 5th Nifty Actually didnt come back till 3056.. thus a small gap was left ? Today's Low was also 3056.. Meaning... what it did today was just FILL UP THAT GAP?

 

[rajuwaste]

Is Nifty Just Filling up all the gaps these days ?

I have now been noticing this for more than past 1 month and let me tell you... I have been very Successful in this.. even though this may later prove to be true.. but atleast for now it is working ..


Since Nifty Touched the Lows of 2200... I have noticed 1 thing that.. All the Gap up/Gap Down Openings have been Filled by the Nifty 1 day or another..

Here the Gap is difference of last days closing and the Next Day's Opening price..

Valid point arnav thanks for sharing.

 

[Sunil]

Yesterday was 5th Jan .. Nifty had a Gap up.. thus as per exchange the low of spot is almost same as previous days close ie 3056

As on 5th Nifty Actually didnt come back till 3056.. thus a small gap was left ? Today's Low was also 3056.. Meaning... what it did today was just FILL UP THAT GAP?

Arnav,

Very Good observation...
I used to follow this INTRADAY gap-filling exercise before 3800 broke & it reached 2250. At that time, Nifty was going through tight-ranges (like it is doing now) and such intraday gaps used to be handy.

Renu was very co-operative & supportive with me in this regard. We even had sort of our personal gap-filling theory/experiment...


some posts during August 08

gap closed at 4535 on EOD basis
but if u take 5 min intraday charts since yesterday, acc. to me, gap closes when CLOSE value is touched ie FUT 4560
(spot has still not touched 4552 yet)
that's what i was discussing with renu yesterday

missing renu here about gap filling exercise

No one is sure when will that gap be filled, but yes, we know what will happen when that level comes near...


Please continue posting your such handy observations...

(PS: what u posted about options day before, is very well presented. u may copy & paste the whole thing again along with today's post in our Library thread... we don't want such jewels to be lost in such massive thread)

 

[uasish]

Something more about Options from 1 of my threads started way back in July...

Extra Info:

Many People Who trade in Puts & Calls generally dont realise 1 thing...


CALL is SAME AS PUT.

Its never that puts have more premium(than calls) during a bear market and calls have more premium(than Puts) in Bull market.


Generally ppl tend to buy a stock/nifty say @ 3100 and sell its 3200 Call, Whereas what they are simply doing is Selling a naked Put of 3200 !!

Buying a Future(Y price) + selling a Call(X strike price) = Selling a Put(of X strike Price)

Similarly

Selling a Future(Y price) + Buying a Call(X strike price) = Buying a Put(of X strike Price)

Buying aFuture(Y price) + Buying a Put(X strike price) = Buying a Call(of X strike Price)


FOR EXAMPLE

**If say Nifty Future is @ 3000 and 3200 Call is @Rs 50 then 3200 Put has to be @ 250,

If Put is more than 250 then...
Sell the Put , Buy the Call & sell the Future ( and there and there @ the end the month you will 100% earn the extra amount (ie value of Put sold - 250)

**Here the Value of Put is calculted as ---> Difference of strike price of Call and Future rate (3200-3000) + Premium Received from call = 50 ie 200+50=250..

Refering the Red coloured portion,
Is it 3 jobs ?
a) Buying Call
b)Writing the Put
c)Shorting Fut
If so then is not 1 directional side kept open (for many Weeks Satyajit is trying to explain this to me but unable to fathom this kindly elaborate this further after Mkt Hrs)

 

[Sunil]

It's really amazing that the people, with whom I spend most of my day time, i have not even seen them (& met them)..
aur mano ya na mano, these interactions do lead to a "star parivaar"..
after all, man is a social animal - though he works like a dog, he need to connect/interact with other dogs to see where he stands.
And sitting here in my computer room/work room, all ALONE, I feel the need to interact & share/get some ideas which otherwise due to myopic views (sometimes) get missed - and are SINCERELY/SELFLESSLY pointed out by others -
recent case in point - Czar's & learn2's inv H&S, renu's TL support, satyajit da's intime hourly & trendy charts, etc

A HEARTFELT THANKS & LOVE TO MY VIRTUAL PARIVAAR

Came across this "Star Parivaar" post!!! (Asish Da, sorry for using that term)
Those were the days I could actually feel the bonhomie & stuck with this forum only because of this one reason.