NIFTY Options Trading by RAJ

[healthraj]

I would look at the values in 5900PE and 6000CE COI and as long as 5900PE < 6000CE, Stay Short. Once 5900PE COI is greater than 6000CE Go Long. When I gave the call at 5885, I have also given this extra info to be looked into.

Right now 5900PE @ 3.8L UP from 2.8L
6000CE @ 5.23L.

5900PE @ 4.45L
6000CE @ 5.61L

Still some more catching to do for 5900PE to confirm the Long.

 

[healthraj]

Premiums coming down in the last two days.

All the pairs 5300-6000, 5600-6100 which were trading around 120 have been brought down to our magic level of around 95-97. Hopefully there will not be more premium eating. I bought the pair at 118, then averaged to 112 and then today once again to 108. Now I have put all my money. So it is a Do or DIE situation for me. Let me see If I win or loose. I will be happy even If I breakeven

The Lesson is that I am buying Too early. So need to work on the Right time and Entry. May be I can use the INDIAVIX for Breakout

 

[sabhlok_r]

5900PE @ 4.45L
6000CE @ 5.61L

Still some more catching to do for 5900PE to confirm the Long.

COI in 5900PE now nearly equal to COI in 6000CE.....can we see a u turn from 5870 ?

 

[healthraj]

The Option Experts out there, Any best practice on what is the best entry time for the Debit Spreads and Credit Spreads?

 

[healthraj]

COI in 5900PE now nearly equal to COI in 6000CE.....can we see a u turn from 5870 ?

Hopefully I am very eager to see some breakout on the UP side :thumb::clap:

 

[pictforu]

The Lesson is that I am buying Too early. So need to work on the Right time and Entry. May be I can use the INDIAVIX for Breakout

Raj,

Some strange move for INDIAVIX for last couple of days. When market was going up VI was also moving up and now that the market is coming down VIX is also coming down.

 

[healthraj]

Raj,

Some strange move for INDIAVIX for last couple of days. When market was going up VI was also moving up and now that the market is coming down VIX is also coming down.

May be you interpreting wrongly. IF VIX is going DOWN then that means market will go UP. But the only problem is that VIX is stuck in between 26.5 and 31. No Wild moves in VOLT.

So that means for any Breakout, VIX need to either break the Range of 26-31

 

[pictforu]

May be you interpreting wrongly. IF VIX is going DOWN then that means market will go UP. But the only problem is that VIX is stuck in between 26.5 and 31. No Wild moves in VOLT.

So that means for any Breakout, VIX need to either break the Range of 26-31

So if the VIX breaks down below 26, then can we expect our spread in profit? or for that it should have the upper breakout ?

 

[healthraj]

Preparation for the Fed Tapering Event.

Some people are hoping too much in this Fed Tapering Event. So some of the indicators that you could watch out for is the INDIAVIX and IV. Within the next four trading days, if the IV or the INDIAVIX does not cool down then do not expect anything on next week Event. So what could happen is that the IV would be pumped up to HIGH levels before the event and on the day of the event the IV could be dropped to eat premiums.

The other indicator is the MAX Pain. The MAX Pain is now at 5900. It has moved UP 400 points in this month, one of the fast movement in the last three months. So if there is no significant move in MAX Pain on the downside, do not expect the market to move anywhere in this month. The last 5 days could be very well used to eat premiums or Create positions in next month. So if at all people are trading for BIG correction it could happen in OCT-13 series. So if you are buying naked options Buy the OCT-13 series.

Just my opinion though.

Recording the INDIAVIX and IV for reviewing on next week @ 11-SEP-13 2:00 PM

INDIAVIX @ 30.69
Average CE VOLT - 28.68
Average PE VOLT - 34.74
NIFTY Historic VOLT - 39.08

Just a check on how the Preparation is going on for the Fed Tapering event...

So we said if the IV or VIX does not cool down in the coming days then that means the next week would be a non event.

So as on 12-SEP-12 2:00 PM
INDIAVIX @ 29.74
Average CE VOLT - 26.91 (come down from 28.68)
Average PE VOLT - 31.8 (Come down from 34.74)
NIFTY Historic VOLT - 37.98 (Come down from 39.08)

So that means there is a heavy consolidation going on and we should see a Breakout hopefully on the downside.

We will once again look at this on Friday and Monday. Hope the Fed Tapering is on Tuesday

 

[healthraj]

So if the VIX breaks down below 26, then can we expect our spread in profit? or for that it should have the upper breakout ?

Either way it should be give profit. If it breaks 26 that means market will go up. If it breaks 31, the market should go down