NIFTY Options Trading by RAJ

[healthraj]

putting it in other words, we are good for another short entry here. Target 100 points approx...

I am not too sure about that. Since the MAX OI is at 5300-5700 Yes we should see 5300. But we have to remember that the Series itself opened at around 5350. Try shorting around 5420-5440

 

[healthraj]

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

The question was, Has anybody seen this behavior of around same OI in all the Top 3 strike ie around 38L in 5500CE, 5600CE and 5700CE. I think it is to make people think that 5700 could also be the Top. So has anybody experienced this before?

 

[Option.Trader]

The question was, Has anybody seen this behavior of around same OI in all the Top 3 strike ie around 38L in 5500CE, 5600CE and 5700CE. I think it is to make people think that 5700 could also be the Top. So has anybody experienced this before?

May be a factor of intermediate levels opening up. Interesting that 5300pe didn't unwind one bit, in fact it has added and OI has breached 70l. I'm shorting the same with 20 points stop loss

 

[healthraj]

May be a factor of intermediate levels opening up. Interesting that 5300pe didn't unwind one bit, in fact it has added and OI has breached 70l. I'm shorting the same with 20 points stop loss

OT, Now with XX50 Series introduced, You might have to rethink on this magic OI number of 70L

 

[whisky]

I am not too sure about that. Since the MAX OI is at 5300-5700 Yes we should see 5300. But we have to remember that the Series itself opened at around 5350. Try shorting around 5420-5440

US$ is also supporting the Nifty downside, but US$ high volatility can do anything so strict SL in Nifty is must.

 

[Option.Trader]

There is a rumor of Ballistic Missile being fired upon Syria... this would mean the strikes have begun.. leading to crude prices going up.. $ appreciating... but still early days

 

[Option.Trader]

The Positional Trading in this Volatile and Wide range market seems to LESS Stressful and profitable and so I am thinking of focusing on Positional Trades.

How about this for a positional trade.. its 100% risky..but trying to play out the Sept 18th FOMC meeting
Assumptions
- Nifty is in a trading range between 5300-5550.. also indicated by Options data
- Options being bought into heavily by FII's
- Sept 18 event may lead to a break out of the range

Strategy
Execute a time series strangle to be closed by 2 weeks from now.. time series because nifty being volatile does give rise to opportunistic trade
Two legs in the strangle. .you can choose any
- I chose the first leg as 5300PE and had begun accumulating from 2 days.. average was about 75... i got lucky there..
- 2nd leg... was thinking of 5500 or 5600CE... Nifty @ 5360 gave good opportunity to buy... maybe wait for the down turn to play out a bit to approach 5300...
This is a fully risk blown stragtegy...assuming Nifty will break out of the range... ways it may fail

-- breaks out of the range immediately as seen today... then you are left with peanuts on the call side
-- remains in the range.. you still end up with peanuts

Only saving grace.. we still have 2 weeks of trading before the FOMC meeting

Exit...
Strategy if all goes according to plan is have free options on Sept 18th.. i.e you book out half when it doubles and play out sept 18th with free options

I must admit.. i got lucky with 5300PE.. but you never know if call could be proven lucky.. 5700 from 30 could easily go to 60 if rumor on gulf news is just a rumor...Comments/brickbats welcome... but just trying to see if we could play out the range breakout

 

[healthraj]

Today if we get 5350-60, Close the Rest 25% of the Positions taken from 5525. Normally it would be difficult to get the Last 50 points. Our Target is 5300. At 5300 we would close 100% and take Fresh Positions.

Risky can wait till 5300 to close the Rest 50%.

With all the Volatile news around Syria and World in Green now, We might also see a positive bounce of 100 points from the current levels. So why to let go the Winning positions.

Also this downside movement seems to be more related to USDINR, which if gives a Strong Pullback might bounce back also.

 

[healthraj]

How about this for a positional trade.. its 100% risky..but trying to play out the Sept 18th FOMC meeting
Assumptions
- Nifty is in a trading range between 5300-5550.. also indicated by Options data
- Options being bought into heavily by FII's
- Sept 18 event may lead to a break out of the range

Strategy
Execute a time series strangle to be closed by 2 weeks from now.. time series because nifty being volatile does give rise to opportunistic trade
Two legs in the strangle. .you can choose any
- I chose the first leg as 5300PE and had begun accumulating from 2 days.. average was about 75... i got lucky there..
- 2nd leg... was thinking of 5500 or 5600CE... Nifty @ 5360 gave good opportunity to buy... maybe wait for the down turn to play out a bit to approach 5300...
This is a fully risk blown stragtegy...assuming Nifty will break out of the range... ways it may fail

-- breaks out of the range immediately as seen today... then you are left with peanuts on the call side
-- remains in the range.. you still end up with peanuts

Only saving grace.. we still have 2 weeks of trading before the FOMC meeting

Exit...
Strategy if all goes according to plan is have free options on Sept 18th.. i.e you book out half when it doubles and play out sept 18th with free options

I must admit.. i got lucky with 5300PE.. but you never know if call could be proven lucky.. 5700 from 30 could easily go to 60 if rumor on gulf news is just a rumor...Comments/brickbats welcome... but just trying to see if we could play out the range breakout

OT,

Can you please be specific on whether to Buy or Sell and Which strikes to Buy / Sell ?

What is the Risk Reward ? You can use the Trade Analyser in the OAT tool ?

 

[healthraj]

There is a rumor of Ballistic Missile being fired upon Syria... this would mean the strikes have begun.. leading to crude prices going up.. $ appreciating... but still early days

Yes. I also saw that in the Reuters.com

Here is the link

http://uk.reuters.com/article/2013/09/03/uk-syria-crisis-russia-defence-idUKBRE9820AA20130903