NIFTY Options Trading by RAJ

[healthraj]

The MAX Pain for this month was remaining at 5500 for most of the time, then it went to 5400 and today it is at 5300.

When the market was at 5250, the market went to 5500 (When the MAX Pain was at 5500). There was a breakout at 5300, (MAX OI which was at 5300-5600) and the breakout gave 200 points. So when there is a Breakout the MAX Pain also will change.

This triggers a good observation. When the MAX OI is at say 5300-5600, normally 50 points movement is accepted below or above the range. But when there is a more than 1% movement you have to consider that as a Breakout. Yesterday 5270 was a big resistance and when 5250-5270 was broken it gave 200 points from 5300. I have observed this in Stock Futures also. So people looking for Breakout trades can also observe the MAX OI. I would suggest that more than 1% movement on the MAX OI should be considered as Breakout.

 

[healthraj]

5195 SPOT is an important PIVOT. Almost all the Resistance and Support lines meet here. So breakout at this point will give at least 50-100 points.

 

[Option.Trader]

This triggers a good observation. When the MAX OI is at say 5300-5600, normally 50 points movement is accepted below or above the range. But when there is a more than 1% movement you have to consider that as a Breakout. Yesterday 5270 was a big resistance and when 5250-5270 was broken it gave 200 points from 5300. I have observed this in Stock Futures also. So people looking for Breakout trades can also observe the MAX OI. I would suggest that more than 1% movement on the MAX OI should be considered as Breakout.

Interesting, but we need to realise that end of day, option position exists due to Nifty movement and not the other way round. The draw down gets huge in volatile times. Maybe there exists a case for combining all the three technical, oat, Fii, in a way that it does not lead to analysis paralysis.

 

[shiv2012]

It seems LIC is buying shares. So this support can only be a temporary one!

 

[whisky]

US$ is cooling down from highs & if sustain below 68, market can start positive correction.

 

[whisky]

This triggers a good observation. When the MAX OI is at say 5300-5600, normally 50 points movement is accepted below or above the range. But when there is a more than 1% movement you have to consider that as a Breakout. Yesterday 5270 was a big resistance and when 5250-5270 was broken it gave 200 points from 5300. I have observed this in Stock Futures also. So people looking for Breakout trades can also observe the MAX OI. I would suggest that more than 1% movement on the MAX OI should be considered as Breakout.

Excellent catch, Raj:thumb:

 

[healthraj]

5195 SPOT is an important PIVOT. Almost all the Resistance and Support lines meet here. So breakout at this point will give at least 50-100 points.

Hope 50 points made above 5195. The next major resistance would be around 5280 and if crossed can make 5340.
On the downside If 5220 is broken then can goto 5100 once again

 

[healthraj]

Due to High Volatility the Target is met today itself. The combined Premium is now 42. 20 Points profit. Call closed. Close both the positions.

I closed the Put at 38 and Carrying the Call. Even if the Call expires to Zero I will still make profit

Closing the 5900CE At 8. So overall made 38+8 - 20 = 26 points profit.

Market is around 5250. 250 points from 5500.

 

[prabhsingh]

Near to 5270 is 0.38 fib value so i think its good to go Short around that levels.If not then next level is 5320.

 

[healthraj]

Market is once again at the same place where we took the strategy last time. the only thing is that the VOLT is high now. So those who want to play the 250 points once again can trade

5600 CE @ 41 in SEP-13 series
4700 PE @ 42 in SEP-13 series

Once again play with caution because next month the VOLT will not be high. The market can also be rangebound.

We will exit if one of the positions become 3 times the premium.