NIFTY Options Trading by RAJ

[arcus]

I have been pretty quiet because I haven't been trading. There is nothing to trade for me right now.

As the famous speculator Jesse Livermore in his book "How to trade in stocks" once said

One cannot be successful by speculating every day or every week; that there are only a few times a year, possibly four or five, when you should allow yourself to make any commitment at all. In the interim you are letting the market shape itself for the next big movement.

Remember this: When you are doing nothing, those speculators who feel they must trade day in and day out, are laying the foundation for your next venture. You will reap benefits from their mistakes.

 

[arcus]

Yes I know, there is no such strategy as Caterpillar. It is just a name I have given to the NIFTY movement in the last 3 trading days. The way it has moved up and down looks more like a Caterpillar rather than a FLAG or channel.

So for Caterpillars I am suggesting OTM Credit spreads

Not sure if the caterpillar has started to crawl yet. I still see a channel on my charts, albiet a weakened one.

 

[bapu4]

Dear Raj ,
I see a lot of efforts are been put in for this beautiful thread !! A small but important input from my side may help u reaching better pairs is as follows :
Mainly the Indian market is being ruled by USA, I dont know but there is a strange but magical figure of '8' which u can keep in mind and verify at all times ! The Nifty moves 80 , 160 , 240 , 320 , 400 , 800 , and so on in the multiple of 80 ! U can see crude, the movement is always in multiple of 4 dollars which is again '8' !! Few years back ,i had read an article also in an American journal which had brought out this fact (sorry , i am unable to give the link because i never thought i may need it ) !
Also see the nifty has turned from 5125 and is facing stiff resistance around 5925 ! If u study this and if if appeals to u ,the boundaries of nifty will become more prominent for u !!
I will welcome ur comments on this !!

*I have downloaded OAT from 4shared !! Should i download the other links also that u have given ?? Are they interlinked ??

God bless u !!

 

[drenukadas123]

Rule 4: Does Volume in the Options Chain data play any role in our decision making?.

Yes. Use the Volume data to decide whether it is STRONG BULL or a STRONG BEAR.

Let us say at 6100 we have the MAX CHG in OI @ CE - Say 6L Postions
Let us say at 6000 we have the MAX CHG in OI @ PE - 11L Positions

Now 11L > 6L and PE > CE, so it is a BULL.
Now let us look the Volumes @ 6100CE and 6000PE

Volume @ 6100CE - 5.5L
Volume @ 6000PE - 17

Now compare the CHG in OI and Volume @ 6100CE.
Volume (5.5L) < 6L - So it is not a Strong BULL. Had the Volume been greater than the "CHG in OI" then it would have been a STRONG BULL.

And same logic for the STRONG BEAR also....

Another Observation : So go for Naked Long in CE/PE only when the Volume at the Strike Price > CHG in OI.

What if the Volume does not indicate like above?
Then most probably the market is Range bound.

hello raj,

thanks for your valuable tips

I have few questions in my mind.
can I ask to you?


rd

 

[Option.Trader]

Max pain still @5700.. a good 200 points from here... will this give the reward as before? .. lets see

 

[adg123]

6000CE & 5700PE pair @Rs.128 would work ?

 

[healthraj]

Those who are using OAT might see a Positional Sell of NIFTY between 5950-6000. So those believe in MAX Pain theory can take this call. The MAX Pain is still at 5700

 

[sabhlok_r]

Those who are using OAT might see a Positional Sell of NIFTY between 5950-6000. So those believe in MAX Pain theory can take this call. The MAX Pain is still at 5700

Raj, sorry for missing it out. But I do no see bank nifty max pain in OAT. Could u tell the current level?

 

[healthraj]

Raj, sorry for missing it out. But I do no see bank nifty max pain in OAT. Could u tell the current level?

BANKNIFTY MAX Pain at 9800

 

[healthraj]

Those who are using OAT might see a Positional Sell of NIFTY between 5950-6000. So those believe in MAX Pain theory can take this call. The MAX Pain is still at 5700

Nearly 100 points profit for the positional trade