NIFTY Options Trading by RAJ

How do you use OAT tool?

  • For Intraday Naked Options trading

    Votes: 58 37.7%
  • For Intraday Pair trading of Options

    Votes: 27 17.5%
  • For Intraday Futures trading

    Votes: 18 11.7%
  • For Positional Naked Options trading

    Votes: 35 22.7%
  • For Positional Pair trading of options

    Votes: 29 18.8%
  • For Positional Futures trading

    Votes: 11 7.1%
  • To trade in Cash market

    Votes: 13 8.4%
  • Overall trading has improved with OAT

    Votes: 27 17.5%
  • Understanding of Options has improved with OAT

    Votes: 57 37.0%

  • Total voters
    154
  • Poll closed .

anup0212

Well-Known Member
This is the screenshot at 10.27Am today.. the pivots looked whacked out.. i think you must have an updates sheet rather than machine issue. The chngOI values are correctly shown, the pivots look out of place

this is image from my side
 

healthraj

Well-Known Member
The 4700PE-5600CE bought at 83 (when NIFTY was around 5280) is now trading at 110 with 27 points profit. Asked to close 50% at 5480. Book 100% at 5225-5250. And Again trade for Shorts for 250 points on the downside.

This time we will Trade a Bear Strategy of

Buying 5300 PE @ 82 and Selling 5200 PE @ 62.

It is a Limited Risk and Limited Profit Strategy.

Per lot the Loss will be limited to around 750 even if the market reaches 6000.
The Profit at 5250 would be 1500. At 5000 the profit would be 2500
It is more or less a VOLATILE Neutral strategy.

If there is a clear Trend on the downside, then You can buy more 5300 PUT
Those who executed the strategy, now the combined premium is at 180.

The Profit would be

5300 PE - Profit is 115-82= 33 points
5200 PE - Loss is 86-62 = 24 points
So net profit of 9 points.

Try to close the Strategy around 5250-5300, where it should give the MAX Profit.

You can book 50% profit around 5420
 

healthraj

Well-Known Member
Those who want to try a more aggressive Strategy can
Buy 1 lot 5600CE @ 95
Buy 1 Lot 5400Pe @ 110

If the Market moves 200 points UP or DOWN you will make around 5000 on either side.
But if the VOLT Drops or if the market goes sideways then this strategy will make loss.
The combined premium is now at 228
So profit of 23 points. Book 50% around 5420 and Wait for 5300 to close 100%

As suggested, I don't know How many of you added more Puts to this position. I bought 5300 PE in the morning for an Average price of 85 and closed 50% at 110.
As expected the VOLT increased and helped our trade. Just thought of noting it down
 
Last edited:

healthraj

Well-Known Member
target achieved in both trades....
Hi,

did you close the trades. Or Are you still having the open positions? The idea behind OTP (One Trader Per-day) was to leave the trade open till the end of the Trading and close it. Anyway it depends on your trading plan also. But just wanted to ask this. Or you can close the position as per your plan and observe what happens around 3:15 pm. I am just asking this question so that others can learn from your trade. thanks
 

healthraj

Well-Known Member
Those who executed the strategy, now the combined premium is at 180.

The Profit would be

5300 PE - Profit is 115-82= 33 points
5200 PE - Loss is 86-62 = 24 points
So net profit of 9 points.

Try to close the Strategy around 5250-5300, where it should give the MAX Profit.

You can book 50% profit around 5420
The combined premium is now at 228
So profit of 23 points. Book 50% around 5420 and Wait for 5300 to close 100%

As suggested, I don't know How many of you added more Puts to this position. I bought 5300 PE in the morning for an Average price of 85 and closed 50% at 110.
As expected the VOLT increased and helped our trade. Just thought of noting it down
Market made low 5415. Hope you have closed 50%.

Why 5420? 5420 is 2.4% of 120 points from Previous close. A good level of positional Support where market might bounce back because of Profit booking. Plus when we are playing for 250 points 120 points is 50%. It is also 140 points from the Top of this series 5560.
 
Last edited:

sabhlok_r

Well-Known Member
Hi,

did you close the trades. Or Are you still having the open positions? The idea behind OTP (One Trader Per-day) was to leave the trade open till the end of the Trading and close it. Anyway it depends on your trading plan also. But just wanted to ask this. Or you can close the position as per your plan and observe what happens around 3:15 pm. I am just asking this question so that others can learn from your trade. thanks
Good that you brought up this question Raj.... I did close the trade at the levels mentioned. As I am new to OTP so right now I stick to the targets given in the excel (t2 in today's case). However shall start using tsl to let a winning trade run deep.
 

healthraj

Well-Known Member
At close the MAX Pain changed from 5500 to 5600. For the past 2-3 trading days the MAX Pain suddenly peeks to 5600 and disappeared. So may be the MAX Pain is at 5550. Since there are not enough positions at 5550, it is behaving so.
The MAX Pain has changed to 5500. So we can say that it is coming down. But the TOP as mentioned before is not yet decided.

Can somebody explain this ? HAs anybody seen this before? The 5500Ce, 5600CE and 5700CE are all having a OI of around 38L. Today the COI was more in 5600Ce and 5700CE and so the MAX OI has become 5300-5700. So it would be a Buy around 5270-5300. for 250-400 points now. Or the Top could be a deceptive one because the Top could suddenly change to 5500 also...

Anyways, I will once again Go for a Strategy around 5550-250 = 5300 for 250 points. Let the market go wherever it wants.

The Strategy would be to buy 5600CE and 5000 PE. We will anyway confirm this Strategy once we reach 5300

The 5300 Level would also confirm another parallel strategy if the MAX Pain remains at 5500 when the market is around 5300
 

sabhlok_r

Well-Known Member
The MAX Pain has changed to 5500. So we can say that it is coming down. But the TOP as mentioned before is not yet decided.

Can somebody explain this ? HAs anybody seen this before? The 5500Ce, 5600CE and 5700CE are all having a OI of around 38L. Today the COI was more in 5600Ce and 5700CE and so the MAX OI has become 5300-5700. So it would be a Buy around 5270-5300. for 250-400 points now. Or the Top could be a deceptive one because the Top could suddenly change to 5500 also...

Anyways, I will once again for a Strategy around 5550-250 = 5300 for 250 points. Let the market go wherever it wants.
putting it in other words, we are good for another short entry here. Target 100 points approx...
 

chintan786

Well-Known Member
The MAX Pain has changed to 5500. So we can say that it is coming down. But the TOP as mentioned before is not yet decided.

Can somebody explain this ? HAs anybody seen this before? The 5500Ce, 5600CE and 5700CE are all having a OI of around 38L. Today the COI was more in 5600Ce and 5700CE and so the MAX OI has become 5300-5700. So it would be a Buy around 5270-5300. for 250-400 points now. Or the Top could be a deceptive one because the Top could suddenly change to 5500 also...

Anyways, I will once again Go for a Strategy around 5550-250 = 5300 for 250 points. Let the market go wherever it wants.

The Strategy would be to buy 5600CE and 5000 PE. We will anyway confirm this Strategy once we reach 5300

The 5300 Level would also confirm another parallel strategy if the MAX Pain remains at 5500 when the market is around 5300
Theoritically if in falling mkt OI rise in CEs tht means shrts are building up.

As today is big move day, possibilty is next few days will be volatile
 

Similar threads