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

[columbus]

 

[columbus]

To early to take a call from the effective region of 4600~4800.
On call side ,we have 2 more strikes on 4800.
On put side ,we have 5 more strikes on 4600.
So as on today,there is likely hood of DOWN direction.

 

[columbus]

Hardly 64 points movement today.For most of the morning session PUTs
had added value but in the closing session CALLs added small value.

 

[columbus]

Today's up move made the effective region to expand from 4600~4800 to
4600~4900.
On call side ,we have 2 more strikes over 4900.(5000 & 5100)
On put side ,we have 3 more strikes on 4600.
The overnight decision to postpone the petro-hike might be trigger to lift UP in
market.Anyway imminent decision will have to be taken, which may prove BAD
in taste.

 

[columbus]

Today's UP move saw CALL options adding more than 50% in the effective zone
whereas PUT option lost around 50%.

 

[LivetoTrade]

Today's UP move saw CALL options adding more than 50% in the effective zone
whereas PUT option lost around 50%.

Trading is generally in Futures, with Options being used as a Hedge.

So, if Calls are building up, then, are shorts piling?

 

[DanPickUp]

Trading is generally in Futures, with Options being used as a Hedge.

So, if Calls are building up, then, are shorts piling?

Not necessary.

Any time frame in your mind as you did not mention any?

Any other indicators you looked at as you did not mention any ?

Any math's in your mind as you did not mention any ?

 

[LivetoTrade]

Not necessary.

Any time frame in your mind as you did not mention any?

Any other indicators you looked at as you did not mention any ?

Any math's in your mind as you did not mention any ?

Dan, mine was a question

Anyways, please see this image, market has moved up in the last 2 days, and so has PCR -

 

[manoharpillai]

4700.00 50 84.50 85.00 3,950 -64.40 84.00 26.77 271,514 1,904,300 4,326,600

4700 PUT has largest OI 4700 should be good support for Nifty

 

[DanPickUp]

Dan, mine was a question

Anyways, please see this image, market has moved up in the last 2 days, and so has PCR -

Hi LT

Your screen shot is what I meant. Add some more information to what ever information you have and combine it. Uprise of the calls in price is one information and now comes the combination of information:

Put Call Ratio is one way to do so through an other option indicator. You also can use option volatility as an indicator. If there is a change in Implied Volatility in the calls, this also can give some hints about what may comes next.

As indicators on the chart and time frame you trade, you can use Pivot levels or Standard deviation or Fibonacci and compare this levels with the option strike levels which have changed the most in price.

As told: Combining information to have some kind of a better chance to be right in what we plan to do.

Further good trading

DanPickUp