Nifty Open Interest Analysis

[jamit_05]

Well if 5800 does crack, then its a clear indication of trend turning negative... you can pile up the shorts... at least Options data are not giving an indication of nifty turning bearish yet.. I would look at Nifty holding 5970 as it did today to go long... final support near 5900

Yesterday's daily bar shows cessation of a strong bearish move. Waiting for further indication.

Close on Expiry below 5800 is tough, since it is a Golden Fib Ret. Plus OI is huge. But, yes, weak hands could be shaken out.

 

[Option.Trader]

5900 put still holding up. 5800 put above 90 L. Is yesterday fall just technical? Not much delivery based selling. What I would do, Take 6000 call @ current with stop loss being immediate Nifty support of 5970 being held up till eod

I hope people who have bought would have made some money... i took around 86 levels.. and would look to exit at 6100 unless market decisively closes above 6100..

 

[sridhar]

Of what significance is the addition of 1million OI in 6200PE & 2million in 6100PE?

 

[Option.Trader]

Of what significance is the addition of 1million OI in 6200PE & 2million in 6100PE?

People are writing as they feel nifty would hold the levels.

 

[sridhar]

People are writing as they feel nifty would hold the levels.

OK. But going by 7Million rule 6200CE & 6000PE is the expected range currently or does this writing @ 6100PE & 6200PE have significant importance?

 

[Option.Trader]

5900 put still holding up. 5800 put above 90 L. Is yesterday fall just technical? Not much delivery based selling. What I would do, Take 6000 call @ current with stop loss being immediate Nifty support of 5970 being held up till eod

I hope people who have bought would have made some money... i took around 86 levels.. and would look to exit at 6100 unless market decisively closes above 6100..

Guys... earlier in this month we decided to only concentrate on strategy...we hit the jackpot in the first shot
Lets analyze how we came to this decision
The reason why we took 6000CE even after a a massive fall -
No built up in the call option open interest suggesting bears were still timid
No unwinding by bulls in Put
No huge selling in the cash market or index by FII's

We entered 6000CE @86 with stop loss being 5970 (previous resistance) acting as support for end of day

Today- we are sitting on 110 re bonus... I'm now putting a trailing stop loss at 150..with half the quantity already taken out so that my costs are covered. In essence now playing with free options

Ok.. its easy to crow when things go in your favor... and markets do humor a few of us at some time... the trick is in trying to get the reasoning right so that it is repeatable... with our lively discussion in understanding options table, we are moving in the right direction

Cheers... and keep the ideas coming

 

[DanPickUp]

Guys... earlier in this month we decided to only concentrate on strategy...we hit the jackpot in the first shot
Lets analyze how we came to this decision
The reason why we took 6000CE even after a a massive fall -
No built up in the call option open interest suggesting bears were still timid
No unwinding by bulls in Put
No huge selling in the cash market or index by FII's

We entered 6000CE @86 with stop loss being 5970 (previous resistance) acting as support for end of day

Today- we are sitting on 110 re bonus... I'm now putting a trailing stop loss at 150..with half the quantity already taken out so that my costs are covered. In essence now playing with free options

Ok.. its easy to crow when things go in your favor... and markets do humor a few of us at some time... the trick is in trying to get the reasoning right so that it is repeatable... with our lively discussion in understanding options table, we are moving in the right direction

Cheers... and keep the ideas coming

Hmm, trick?

What is a trick?

The trick is in trying to get the reasoning right so that it is repeatable

Hmm, is that a trick? Many times this will happen with not much effort of what ever. So could there be any thing else which really would be a trick?

For example to save profit we already made in such a trade? Maybe even to do something to have a god chance to even double that profit in case market does not move up any more. Would that be a trick?

Good trading / DanPickUp

 

[Option.Trader]

Hmm, trick?

What is a trick?

The trick is in trying to get the reasoning right so that it is repeatable

Hmm, is that a trick? Many times this will happen with not much effort of what ever. So could there be any thing else which really would be a trick?

For example to save profit we already made in such a trade? Maybe even to do something to have a god chance to even double that profit in case market does not move up any more. Would that be a trick?

Good trading / DanPickUp

Yes looking to write 6300ce, should help to keep my 6000 ce for longer time

 

[DanPickUp]

Yes looking to write 6300ce, should help to keep my 6000 ce for longer time

You now show a bull call debit spread. No trick.

 

[Option.Trader]

You now show a bull call debit spread. No trick.

Yes, as long as any method earns money, I'm not bothered if it's a trick or not