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

[trade4joisar]

The range moved down to 5100~4500 with upper ceiling intact.CE window
expanded to 1300 points and PE window remained unchanged at 1200 points.

There is a wide disparity in OI of CE window (54 million) and PE window (45 million) .[approx]
Option players please throw some light on this disparity and its significance.

How come upper ceiling intact @ 5100, what that means?

Before expiry, it can go near to upper ceiling?

 

[VJAY]

Who is buying these 5100 [email protected] & [email protected] !!!!!!!!!!!!!!!!!!!!!!!!!!

Some thing cooking at backstage :d

 

[columbus]

How come upper ceiling intact @ 5100, what that means?

Before expiry, it can go near to upper ceiling?

Though the range is moved down, the upper ceiling is remained in tact ,
because the width of CE window has increased from 1200 to 1300 points.
There is no rule that it is necessary for the range to move UPWARDS always.
CE window and PE window move in such a manner that the range gets
reduced.Funny enough at 8 strike rates ,the options have SINGLE digit value
(CE options) and at 3 strike rates ,the options have SINGLE digit value(PUT
options). Looks like most of the CALL options will go EXPIRED.Let us see.

 

[columbus]

Who is buying these 5100 [email protected] & [email protected] !!!!!!!!!!!!!!!!!!!!!!!!!!

Some thing cooking at backstage :d

At 5100CE one lot of Nifty costs less than 170 Rs.For many losing 170/-
is not a big issue.( in case expired WORTHLESS)

 

[columbus]

The range remained 5100~4500,but after removing options whose premium is
less than ONE rupee ,the effective range is found out to be 4300~4800.
There is huge build-up in CALL window ,I think ,most of them will expire
WORTHLESS.This is long expiry month ,anything can happen.Moreover we
are on Bottom boundary of Bollinger Band.

 

[columbus]

The range remained 5100~4500,but after removing options whose premium is
less than TEN rupees ,the effective range is found out to be 4500~4900.

 

[chintan786]

thanks columbus for ur contribution to this thread.....do u know where is Linkon these days..

 

[columbus]

thanks columbus for ur contribution to this thread.....do u know where is Linkon these days..

chintan, Thanks for kind words.I am also learning a bit about Options.
I do not know ,where is Linkon these days ,but he is a good contributor
to Traderji.

 

[sunny_cool]

Very true...Missing Linkon da posts & knowledge....hope to see him soon

chintan, Thanks for kind words.I am also learning a bit about Options.
I do not know ,where is Linkon these days ,but he is a good contributor
to Traderji.

 

[columbus]

The range remained 5100~4500,but after removing options whose premium is
less than TEN rupees ,the effective range boiled down to 4600~4900.As we
approach nearer to expiry the effective range narrows down.