NIFTY Options Trading by RAJ

[healthraj]

NIFTY Futures Today came within our Trading range of 5900-5950. Hope you are able to take the positions.

When the market was trading around 5850 I bought the SEP-13 6200CE @ 11
And some 6050CE @ 47. This time some Deep OTM Calls and some near OTM calls

Reg. Puts I bought some DEEEEEEEEEP OTM Puts of OCT-13 4800PE @ 12, when the market was above 5900.
Also bought some SEP-13 5700PE Puts @ 40.

Taken some risk and also bought some naked puts 1 lot each in
MCDOWELL-N - 2200PE @ 5
BANKNIFTY 9000PE @ 24
YESBANK 280PE @ 5.2


.

Good morning. The market proved us Wrong once again. I think most were expecting the market to go down. So my naked positions would be gone for a toss. But my risky mind told me to go for a Safe trade with Debit Spreads. So When the market opens I will close my call and buy some Puts in OCT-13 Series. And Leave the Puts as is. Bought my CE positions at around 5850. And bought the Puts around 5900. So if the market opens at 6100 it would be 250 points move for the call, which should give a reward of 3 times, which should be enough. We have to see where the MAX Pain moves. If it remains at 5700, then we might see a downward movement tomorrow or before expiry.

 

[anup0212]

If you have downloaded the OAT tool, you can do the analysis using the "TradeAnalyser" sheet.

Good Morning Raj, the pair trade I took ,even I feel might get 3 times so I want to thank you for bringing this safe strategy...thanks alot I was also thinking to close this pair , however this new is not going to stop here might be tomorrow could be correct to close as our RBI policy is due for tomorrow , so please share your view.

Thanks,
-Anoop

 

[prabhsingh]

With just couple of days left in this series,Max pain staying at 5700 and expecting Nifty to come close to 5700 would mean Nifty loosing another 400 points (taking 6100 as upper hand).Isn't that too unrealistic?

 

[anup0212]

With just couple of days left in this series,Max pain staying at 5700 and expecting Nifty to come close to 5700 would mean Nifty loosing another 400 points (taking 6100 as upper hand).Isn't that too unrealistic?

hi prabhasingh, I guess max pain will move to 5900 after today gap up I do not think it will remian there now...again I could be wrong we all need to see in market hour and same is mentioned by Raj also...

 

[healthraj]

With just couple of days left in this series,Max pain staying at 5700 and expecting Nifty to come close to 5700 would mean Nifty loosing another 400 points (taking 6100 as upper hand).Isn't that too unrealistic?

Remember what happened in the last expiry. Market made a bottom of 5110 and closed 300 points UP, which nobody expected. So anything is possible. And the MAX Pain indicated 5400 and market expired around 5400. So let us see what the MAX Pain says and go with that for expiry. In the last 3 months, the MAX Pain was working. So let us believe that it will also work this time.

 

[healthraj]

Good Morning Raj, the pair trade I took ,even I feel might get 3 times so I want to thank you for bringing this safe strategy...thanks alot I was also thinking to close this pair , however this new is not going to stop here might be tomorrow could be correct to close as our RBI policy is due for tomorrow , so please share your view.

Thanks,
-Anoop

To be on the safe side, Close the existing pairs and Take another pair for Expiry. Why to loose money in Speculation, when you can make a safe trade. Even if the market would not correct 400 points, I hope people would agree for a 240 points correction which will take us back to 5850.

To Add here, if the CE is three times the PE price, then I would like to close only the CE and Leave the PE expecting that we would get it back at the price that we bought.

 

[anup0212]

To be on the safe side, Close the existing pairs and Take another pair for Expiry. Why to loose money in Speculation, when you can make a safe trade. Even if the market would not correct 400 points, I hope people would agree for a 240 points correction which will take us back to 5850.

To Add here, if the CE is three times the PE price, then I would like to close only the CE and Leave the PE expecting that we would get it back at the price that we bought.

closed the trade with 1:2 as opening did nt gave me 1:3 kind...but happy with whatever I get...

 

[healthraj]

MAX Pain moved to 5800. So those who believe in MAX Pain can trade for 250 points from current levels. But we have another big event tomorrow which might push the MAX Pain UP. So it is still a risky trade.

 

[guptak03]

trading @ 6100ce @ 46 + 5500 pe @ 15=61:thumb:

pair high was 125 but didnt got the chance to cover
covered 6100 ce @ 78 and pe @ 3.75 for brokerage and other charges=81.75 :thumb:

 

[guptak03]

New pair 6200 ce @ 42 and 5950 pe @ 28 tgt 100>>>120>>150:thumb: