NIFTY Options Trading by RAJ

[healthraj]

It is based on the MAX CHG in OI and the Weighted average on OI and the Strike price.

For Example, Today the MAX CHG in OI at 5900-6000. So you can say the pivot could be 5950. But if do some customization using the OI, I think you will get a customized value. Otherwise you can simply take the average of the MAX CHG in OI Strike prices...

similarly for BNF the MAX CHG in OI 10500-10900. 10700 is simply an average.

So when you have the Options Chain data, You don't even need to see the charts or need not know what was the previous close etc... I hope there are more hidden secrets in the Options Chain data... We need to discover them

 

[healthraj]

For 25-Jul-13
I normally do not trade on the last day of Expiry. It is best do some pair trading so that we can eat some premium.

Today it would be Rangebound between 5962 to 6022.

Option Traders, Trade only Shorts. The Volatility is very low.

The 6000 Pair is trading at 47. Now the Premium for CE is more or less gone to 8. Then they would try and do the same for 6000 PE. So the risky players can Sell the 6000 PE. You might get some 25 points if market touches 6020. Now the premium is around 38

The August 5800-6200 pair that I Sold Yesterday at 102.75 is now trading at 85.5 with 17.25 points profit

Market is trading more or less at the same place as in the morning. But the premium has come down to 39 from 47. 6000 PE premium has come down from 38 to 31.3. So you can imagine what will happen to 31.3 if market makes sudden UP move.

 

[gmt900]

Just to keep a Tab on the August Series...

MAX OI at 5900-6100 Pair.

5900 PE @ 32.9L 6100 CE @ 26.4L - The Reason why I sold the 5800-6200 pair. So Market might even test 5900 Levels before going UP.
6100 is already tested... Just keep a check on the MAX OI.
Today the MAX CHG in OI 5800-6000 pair. So today the 6030 might not be crossed, unless the MAX CHG in OI changes. So I think market is more set for a DOWN move.

Does it mean one should sell a pair at one strike away from max OI for put and call?

 

[manishbaba]

Sir,
But 6000 put has OI down by 4.5 lac. Should not market go down

Regards

 

[healthraj]

Does it mean one should sell a pair at one strike away from max OI for put and call?

Not necessarily. But the magic Pair value for me is around 95+. The 5900-6100 was at 150. So I choose one OTM strike above so that I can get it around 95-105

 

[healthraj]

Sir,
But 6000 put has OI down by 4.5 lac. Should not market go down

Regards

Yes you are right. But the range given was around 5960-5720. So if one wanted to buy or sell should trade near the bottom or top of the range.

 

[healthraj]

Got it all wrong today. The MAX CHG in OI was at 5900-6000. But then was sticking the MAX Pain at 6000. Anyway as told earlier, normally on the expiry day I do not trade. So that saved my day.

 

[healthraj]

Aug-13 NIFTY MAX CHG in OI at 5500-6000 Pair.

I closed the 5800-6200 Pair and taken the 5500-6000 Pair because market could head southwards to 5800 and the 5800-6200 Pair would come to loss. So selling the 5500-6000 Pair for 108. It is still a Risky but the August CHG in OI indicates a Strong Bear.

 

[healthraj]

Trying my luck in INFY. INFY has gone up like anything in the last month. Before going further up, it needs to correct a bit. So I am taking a chance and buying the 2800 PE at 31.25. THE MAX OI 2900-2900.

The world markets are in Red. So If 2900 breaks tomorrow 2800 PE could give some profit. The Volatility is low. So selling now would not work.

Taking lots of Risk month

 

[timepass]

Trying my luck in INFY. INFY has gone up like anything in the last month. Before going further up, it needs to correct a bit. So I am taking a chance and buying the 2800 PE at 31.25. THE MAX OI 2900-2900.

The world markets are in Red. So If 2900 breaks tomorrow 2800 PE could give some profit. The Volatility is low. So selling now would not work.

Taking lots of Risk month

Infy July ?? Or August ??