Nifty Intraday Pivot Points

[hills_5000]

Yes it was intra day... wanted to check how the OI was changing ..and fig out market mood ..something i think I learnt a bit of ...from SM Bhai yest ..

Enygma.. is there any way of figuring out ..this one..

1.. to hedge my longs .. if i buy a put ..at what rate will premium increase of a 4600PE v/s 4700PE .. below 4600 on nifty ?.. or is it that since the 4700 PE is far more ITM than the 4600PE.. it will rise at a greater ratio than the latter ??

regards

Amit
plus

It is too early in the series and hence I do not think that reduction in 5000 to 4800 CE really imply too much except that call writers are taking their profits off the table. The end of the day data actually showed only 4800CE OI being cut. So the numbers you mentioned must intraday changes.

Currently the following are important - 4500PE, 4600PE ,4600CE and 4700CE. And data points from these show that the trend is unclear. The put writers are playing safe and there is a 26% OI increase in 4500CE. 4600PE OI ended up actually being reduced by 1% - I will just contribute this to intra-day profit booking by put writers.

4700CE OI was down 20% early morning but closed around 11% down. At the same time 4600CE OI increased 11% - although the absolute number of lots added is much lesser.

My sense is that Smart Money is waiting on sidelines - supporting the market on dips and otherwise taking intraday profits off the table. This indicates an unclear trend. What is important is the kind of support that we are seeing from 4580 to 4620 levels.

Bears have not been able to take this market down - so positionally, it seems safer to be long than short.

Regards,
Enygma.

 

[enygma]

4700PE being more in the money will always be rise more than 4600PE in a downtrend.

By the way, I am confused about what you are trying to do about buying 4700PE and writing the 4500PE. This is a Bearish put spread - so I was confused by your statement about downside being limited. You will be paying 94 out of your pocket for this spread as per EOD prices and your loss is maximum if the market hits 4700. You gain 200 if market is below 4500.

If you are just planning to hedge your longs, buying a 4600PE is much better. Are you long on NF?


Regards,
Enygma.

Yes it was intra day... wanted to check how the OI was changing ..and fig out market mood ..something i think I learnt a bit of ...from SM Bhai yest ..

Enygma.. is there any way of figuring out ..this one..

1.. to hedge my longs .. if i buy a put ..at what rate will premium increase of a 4600PE v/s 4700PE .. below 4600 on nifty ?.. or is it that since the 4700 PE is far more ITM than the 4600PE.. it will rise at a greater ratio than the latter ??

regards

Amit
plus

 

[welcome1100]

Savantji or any other senior member,

I receive this statement frm ICICI. I m not getting a word of what they are trying to tell me..can sm1 pls help me with this.

Regards
Pooja

 

[welcome1100]

Forgot to attach the other attachment.

 

[hills_5000]

yes i am long on nifty... I was thinking that to hedge buy a 4700PE..and since my sense ( could be wrong) is that that market would not go below 4500 .. i wrote a 4500PE which in addition would also offset the premium of the CE ... havent bought the 4700PE just yet... since this nag was here in my mind about the 4600PE / 4700PE...

I even thought of buying a 4650CE , since i am bullish but then thought .. that would nt be protecting my downward interest..

thanks for the effort of explaining this..

regards

amit

4700PE being more in the money will always be rise more than 4600PE in a downtrend.

By the way, I am confused about what you are trying to do about buying 4700PE and writing the 4500PE. This is a Bearish put spread - so I was confused by your statement about downside being limited. You will be paying 94 out of your pocket for this spread as per EOD prices and your loss is maximum if the market hits 4700. You gain 200 if market is below 4500.

If you are just planning to hedge your longs, buying a 4600PE is much better. Are you long on NF?


Regards,
Enygma.

 

[kum2305]

Hi Amit:

What you are referring to is the options delta - how much the price of the option changes with the underlying asset price change (here it is NIFTY). These Zorbas are based on the Black Scholes model.

Some stockbroking sites like IndiaInfoline I have heard allow you to input the numbers to arrive at the option's premium calculation but I am not certain which sites these are - just check on the net. Specifically, for you, once your PE is in the money, i.e. NIFTY is <4600, both your 4600 & the 4700 PEs shd ideally increase by the same amount. However, practically speaking the more the option is ITM, the more 1 to 1 correlation it'll have with the underlying.

Me, I go more by touch & feel read 'Tukka'. So, for hedging purposes, since you are long, I'd go with the 4600PE as the premiums will be lesser than than the 4700PEs & you're not necessarily looking to make money on the PE itself but rather buying insurance.

Kumar

Yes it was intra day... wanted to check how the OI was changing ..and fig out market mood ..something i think I learnt a bit of ...from SM Bhai yest ..

Enygma.. is there any way of figuring out ..this one..

1.. to hedge my longs .. if i buy a put ..at what rate will premium increase of a 4600PE v/s 4700PE .. below 4600 on nifty ?.. or is it that since the 4700 PE is far more ITM than the 4600PE.. it will rise at a greater ratio than the latter ??

regards

Amit
plus

 

[enygma]

What are the transactions you did in both a/c for futures and options? If you just bought a option, then you need not worry about this. If you are holding a position in futures or have sold a call, you need to enough enough margin in your account. Otherwise, you can ignore this.

Regards,
Enygma.

Forgot to attach the other attachment.

 

[enygma]

This now tells the full story

Forget about the xx50 options - they are hardly liquid.
Buy the 4600PE on a uptrend tomorrow - ideally when NF is around R3.

Regards,
Enygma.

yes i am long on nifty... I was thinking that to hedge buy a 4700PE..and since my sense ( could be wrong) is that that market would not go below 4500 .. i wrote a 4500PE which in addition would also offset the premium of the CE ... havent bought the 4700PE just yet... since this nag was here in my mind about the 4600PE / 4700PE...

I even thought of buying a 4650CE , since i am bullish but then thought .. that would nt be protecting my downward interest..

thanks for the effort of explaining this..

regards

amit

 

[SavantGarde]

Hi Pooja,

What I Have Been Able To Figure Out From Both The Statements Are As Follows.

1st Statement Shows You Started With A Balance Of 10,000.00


2nd Statement Shows You Have Transferred 7100.00 & Now You Have Available Balance Of 9673.43 In Your F&O Ledger

Two Statements Are Different Clients



Happy & Safer Trading

SavantGarde

Forgot to attach the other attachment.

 

[SavantGarde]

Hi Pooja,

Presuming The 1st Statement Is Yours....
Where The Balance Was 10,000.00
Your Transaction Amount Was 7433.99
Therefore You Have Net Available Balance Of 2566.01 Now In The Account

Happy & Safer Trading

SavantGarde