Nifty Open Interest Analysis

[vinst]

it seems aditya14 has thought that everyone is taking option.trader's analysis output very seriously and losing money.
It is not true aditya14. at least I did not take it so seriously !
option.trader himself said that it is developing method.
so don't worry, no one has taken loss by following option.trader.
you seem to have found some gap in option.trader's trades . this is perfectly understood as public forums are meant for views of public.

No body needs to use 'extra-smart' language while explaining their view.

 

[malgohft]

an option writer who has unlimited loss and limited profit shud give some importance to costs involved! hw cud u afford 2-8% (depending on ur strike i.e. ITM to OTM) as brokerage cost only while trading options? SHOCKING!!

Well usually i dont give credence to such posts... but the below picture should keep the barking dogs at bay...
I'm an option writer, trading the trends ...but since it is inherently risky, i dont advocate the same to my fellow boarders as i do know how to handle situations and will not be in a position to give updates during market hours... instead i wanted an alternate mechanism that fellow boarders could trade options and also understand the mechanism... there is still someway to go... but its worth a try

The below trade is more risky than what was suggested in earlier posts..but it did give 51 points in 2 days...i did opt out earlier than needed.. if i had stayed put even a day more, i would have got atleast 18 points more

 

[nac]

Also read the note.. i didn't indicate it to be.. we are still working out the way to trade with OI analysis.. i was just reacting to the point that i have never traded in options...

That's my mistake, then...

to the point on SL, i have repeated it before, your other strike price already provides you with an inbuilt SL.. also when the OI level does go below 70 L or changes by >12% its better to shift to the next level...

Shifting to next strike could be a good plan. But there is no built in SL in this pair. Please check it...

Thats the reason, we'll try and work out in the coming weeks if possible only on the trade side... but it would be helpful if we could concentrate on the trade on hand and not our egos.. just wastes space and time

Sorry boss! If you think I distracted you... I was just trying to say that the way you thought the pair would work wasn't correct. After all I am just on the side line.

Sorry again for wasting some more space here...

I would have PMed you, but when I clicked your Id I got landed on a BANNED MEMBER's profile.

 

[twist]

dear option.trader/jamit 5600PE crossing 70L does this mean we in short term uptrend?

 

[jamit_05]

dear option.trader/jamit 5600PE crossing 70L does this mean we in short term uptrend?

5600 seems to be the Low for the series. 10L added today, shows good confidence.

 

[anup]

5600 seems to be the Low for the series. 10L added today, shows good confidence.

5900 CE is adding more, looking for 5900 in this series..???

 

[jamit_05]

The high is open, still not decided, but low is 5600 for sure... unless it breaks on closing basis.

This gives a bullish sentiment.

 

[Option.Trader]

an option writer who has unlimited loss and limited profit shud give some importance to costs involved! hw cud u afford 2-8% (depending on ur strike i.e. ITM to OTM) as brokerage cost only while trading options? SHOCKING!!

True... have shifted to Zerodha... ICI sucks in that... just wanted to keep current financials clean before moving money

 

[moody_man]

OT can you please post the report for today? thanks

 

[Option.Trader]

Date: 1.4.2013

Here we are on the day when whole cosmos laughs at us.. including dogs and bitches

Disclaimer... I follow a more risky trade personally, i'm trying to develop a less riskier system here through group inputs... brickbats, flowers , throw all your frustrations here, atleast your family is spared of your garbage

Please do not trade on these recommendations till we can see as a group if it works out 80% of time. Time frame 1 calendar
Rules
1) We write the first strike price whose OI goes above 70L
2) Stop Loss - Whichever occurs first
- 20 points from the OPtions price at which sold. (Usually indicates strong reversal )
- 12% liquidation of the contract
- OI fall below 70L
3) Exit : Below 10

Commissions : Zerodha 20/ trade + STT etc
You take the position either during the day when you notice the build up or the next day at opening.
Pros -
OI build up indicates strong conviction of holding those levels
Decay in prices with time
Cons -
Build up if OI follows premiums coming down... no point writing at sub 20 levels
Risk is unlimited theoretically

Trade for tomorrow: Sell 5600 PE at opening. We will track the opening price for calculating profit/loss