Nifty Intraday Pivot Points

[hills_5000]

Hey Kumar,

The broker i use gives one the option of calculating the premium.. but the system asks for interest rate and dividend... which i am not quite sure of how to input, thus cannot use the options calculator... Would you know what values are to be entered / where does one get these values..


regards

amit

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

 

[hills_5000]

Hey Savant ,

Crude was still down when the US markets opened.. how'd it go for you ?

Is there any way of figuring these things out.. the only thing i have noticed is that $ v/s INR up => NSE down and vice versa , plus that when gold is doing well markets normally are bearish , though this time it isnt quite playing out like that .. so is something cooking ?... china doing an Austral Coke and US also upto something ?.. cos sure as hell they ( US) have a rebound from lows .. but people are still not having jobs , unemployment about stagnant , so who's buying the goods that they are producing [ except arms sales to India ]that's making their stocks are going up ?

Just a novice point of view..

regards

amit

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

 

[talisman]

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.

Hi Enygma,

I am long on nifty 4700 CE @ 168 which is now somewhere around 112 odd. Could you suggest me which option would be appropriate for me that could offset my premium in downward bias? Also, if you could suggest R/S level where I should get that?

Regards,

 

[SavantGarde]

Hi Amit,

Dividend Yield @ Todays EOD Is 1.10
Interest You Calculate For Number Of Days Left To Expiry Based On 9% Per Annum...You May Not Be Required To Calculate Interest For Number Of Days Left To Expiry....For Some Option Calculator, In That Case Just Input Interest As 8.5 Or 9.0

Dividend Yield You Wil Find On NSE Website...

On The HOMEPAGE, Bottom Left Corner You Will See Various Details, There You Click 'S&P CNX NIFTY'.....Thereafter, Another Page Opens Where On The Top Right Corner You Will See 'Market Watch'...Once You Click, It Will Take You To Another Page With Various Details, Where You Will See Dividend Yield Value On The Left Hand Side.

Happy & Safer Trading

SavantGarde

Hey Kumar,

The broker i use gives one the option of calculating the premium.. but the system asks for interest rate and dividend... which i am not quite sure of how to input, thus cannot use the options calculator... Would you know what values are to be entered / where does one get these values..


regards

amit

 

[SavantGarde]

Hi Amit,

Crude Was Squared Off Before The U.S. Markets Opened...Couldn't Resist Taking Profit.....Since It Went Up....Thereafter, A Little While Back Had Re-Entered & Booked Profit On All The Lots....Now Nothing Just Sitting Short On USD/JPY...Will Cover That In A Little...While..Considering Sitting On Very Good Profit...On That...Then I Shut Shop...

U.S. & China Is A Very Longggggggggggg Story.......Not In The Mood Of Writing A Thesis.... At The Moment

Happy & Safer Trading

SavantGarde

Hey Savant ,

Crude was still down when the US markets opened.. how'd it go for you ?

Is there any way of figuring these things out.. the only thing i have noticed is that $ v/s INR up => NSE down and vice versa , plus that when gold is doing well markets normally are bearish , though this time it isnt quite playing out like that .. so is something cooking ?... china doing an Austral Coke and US also upto something ?.. cos sure as hell they ( US) have a rebound from lows .. but people are still not having jobs , unemployment about stagnant , so who's buying the goods that they are producing [ except arms sales to India ]that's making their stocks are going up ?

Just a novice point of view..

regards

amit

 

[SavantGarde]

Hi Talisman,

No Hedging The CALL Tomorrow...Will See About It In The Second Half Session, If Required.....

R/S You Can Check The Pivot Levels Posted Here, For Tomorrow It Is Already Posted...But May Have Got A Little Buried...But Won't Be Difficult To Spot...

Happy & Safer Trading

SavantGarde

Hi Enygma,

I am long on nifty 4700 CE @ 168 which is now somewhere around 112 odd. Could you suggest me which option would be appropriate for me that could offset my premium in downward bias? Also, if you could suggest R/S level where I should get that?

Regards,

 

[enygma]

You should just continue to do the same thing you did a few days back with your 4700 CE. Sell high, buy back low and get your average price down. I have been doing the same. Atleast for tomorrow's trade, I will not suggest buying any puts yet.

Yes, if you have margin, then you could write the 4500PE but only when NF is closer to 4600 than 4700, so that you get a good sell price. We are in a largish range of 4580 to 4730, so play that range. Sell the 4700 CE tomorrow ONLY if you sense weakness above R3/R4. Similarly, any dip towards 4580-4600 would signal a buy.

Regards,
Enygma.

Hi Enygma,

I am long on nifty 4700 CE @ 168 which is now somewhere around 112 odd. Could you suggest me which option would be appropriate for me that could offset my premium in downward bias? Also, if you could suggest R/S level where I should get that?

Regards,

 

[talisman]

Hi Talisman,

No Hedging The CALL Tomorrow...Will See About It In The Second Half Session, If Required.....

R/S You Can Check The Pivot Levels Posted Here, For Tomorrow It Is Already Posted...But May Have Got A Little Buried...But Won't Be Difficult To Spot...

Happy & Safer Trading

SavantGarde

Hi,

Oh, the pivot points & R/S thing was asked in different context as in at what resistance I should get a call or put so that would offset my downward risk in 4700 CE.

Otherwise, I do have in my mind the Intra-day pivot points for next day. Have explored so many buried things, can sure dig a thread.

Thanks a ton.

 

[SavantGarde]

Mr.E

AGGHBKK

SavantGarde

 

[talisman]

You should just continue to do the same thing you did a few days back with your 4700 CE. Sell high, buy back low and get your average price down. I have been doing the same. Atleast for tomorrow's trade, I will not suggest buying any puts yet.

Yes, if you have margin, then you could write the 4500PE but only when NF is closer to 4600 than 4700, so that you get a good sell price. We are in a largish range of 4580 to 4730, so play that range. Sell the 4700 CE tomorrow ONLY if you sense weakness above R3/R4. Similarly, any dip towards 4580-4600 would signal a buy.

Regards,
Enygma.

Gosh, You remember that! *appreciation*

Got the point. Will try to play accordingly.

Thanks for replying.