NIFTY Options trade : Why and what-if...

[columbus]

4700 PE addition proved totally wrong !!! But such gap up is not expected
by many ,given such a poor GDP numbers yesterday.

Today's effect saw some good addition in 5100CE options.

 

[adityasaraf007]

4700 PE addition proved totally wrong !!! But such gap up is not expected
by many ,given such a poor GDP numbers yesterday.

Today's effect saw some good addition in 5100CE options.

Hi Columbus,
Have a look at the discussion that happened on 29th Nov in this thread...... According to that, huge addition in 4700 PE yesterday indicated that 4700 has become a very Strong Support as of now.... and there was big unwinding of positions in 4900 CE (as OI was negative) which indicated that the range is shifting higher and Nifty no longer wants to remain contained within 4900....

Similarly, today we find that similar kind of position has been built in both 4900 PE and 5100 CE and change in OI in both the Strikes is very high..... What I conclude from this is that Nifty is likely to remain rangebound for 2-3 days between 4900 and 5100 and big players want to eat some premium now.....

@ Linkon Sir..... please review this post of mine.......
@ Others...... Please don't go by this post of mine until and unless its duly approved by Linkon Sir or any other Option Trader

 

[DanPickUp]

Hi Columbus,
Have a look at the discussion that happened on 29th Nov in this thread...... According to that, huge addition in 4700 PE yesterday indicated that 4700 has become a very Strong Support as of now.... and there was big unwinding of positions in 4900 CE (as OI was negative) which indicated that the range is shifting higher and Nifty no longer wants to remain contained within 4900....

Similarly, today we find that similar kind of position has been built in both 4900 PE and 5100 CE and change in OI in both the Strikes is very high..... What I conclude from this is that Nifty is likely to remain rangebound for 2-3 days between 4900 and 5100 and big players want to eat some premium now.....

@ Linkon Sir..... please review this post of mine.......
@ Others...... Please don't go by this post of mine until and unless its duly approved by Linkon Sir or any other Option Trader

Hi

As we have Thursday and if nothing special happens tomorrow, prices are already adjusted to the weekend.

This is the same case in Nifty as it is in the S&P500.

So, your outlook and idea for a range bound market is realistic as long as there no special events occur.

If you use Metastock, check your idea with the odds calculator and have a look at the range it gives.

DanPickUp

 

[columbus]

Hi Columbus,
Have a look at the discussion that happened on 29th Nov in this thread...... According to that, huge addition in 4700 PE yesterday indicated that 4700 has become a very Strong Support as of now.... and there was big unwinding of positions in 4900 CE (as OI was negative) which indicated that the range is shifting higher and Nifty no longer wants to remain contained within 4900....

Similarly, today we find that similar kind of position has been built in both 4900 PE and 5100 CE and change in OI in both the Strikes is very high..... What I conclude from this is that Nifty is likely to remain rangebound for 2-3 days between 4900 and 5100 and big players want to eat some premium now.....

@ Linkon Sir..... please review this post of mine.......
@ Others...... Please don't go by this post of mine until and unless its duly approved by Linkon Sir or any other Option Trader

Hi aditya,
I fully agree with your sentiments.The other day (Yesterday) 5100CE did not
figure at all.The range 5100~4900 in next fewdays has some thing to do with
today GAPUP. Or else 5100~4700 is another range you can have a look ,
because I do not think ECONOMY have improved globally,all of a sudden.

 

[timepass]

Yesterday, 5100 didn't figure in the talks at all.. even 5000, with maximum OI, was considered distant. Today, it seems that 4600 is out of discussion. Let's see what happens. Such a huge gap up is likely to see some dissipation of momentum. The volumes were quite poor for this to be considered a forceful upmove.

Also, BB width seems to be reducing, but it still is a huge range (4582-5394). In these volatile days, we simply can't discount any possibility, regardless of indicators or news.

BTW, what happened with inflation figures this week ?

 

[columbus]

Source:Stocksfortune

Bollingerworm

 

[columbus]

Source:Stocksfortune.com

5300CE made an entry to the list, message is quite clear looking at options
data.

 

[timepass]

5300CE made an entry to the list, message is quite clear looking at options data.

Clear ?? I wonder. Maybe there is a hidden bearish divergence in the OI data

Go figure this.

I copies the F&O data in excel and summed up the total OI in calls and puts for the current series. Total OI in calls : 44,038,100, total OI in puts : 61,147,500.

 

[columbus]

The message is quite perplexing.The other day (even today also) there was
HUGE built up in 4700PE . But next day the market went up by 400+ points.
But if you go by the option's data alone, the chances of market moving up
is bright.

 

[timepass]

hedging, maybe .........