NIFTY Options Trading by RAJ

[healthraj]

Raj,
For positional trade we should select a pair with MAX OI. That happens to be
6000/5800.
MAX OI is as follows:
6200 C 29.67 L

6000 C 41.67 L

5800 P 41.88 L

Why 6200 / 5800 for positional trade then?

If you are bearish as you said, why go for 6200 C instead of 6000 C ?

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[healthraj]

5945 was given as the pivot. 30 points above @ 5974 was made. Now market will try to make 30 points below 5945.

Sum of OI and CHG in OI inidcates SELL

So the levels worked on Dot. Low of 5912 was made. It is a Range bound market and so we cannot expect more than this I hope.

 

[healthraj]

You are right. Hope it changed during the lunch time. Super now we have a pair to trade. It is now available at 91.85. But I will try to get this pair for 95+ when there is a bounce back. Thanks GMT (Difficult to spell this kind of names)

Sorry for another confusion. Not concentrating at all. Yes the MAX OI is at 5800-6000 Pair. But the Price is around 150. So i think it is a bit risky. Instead of that why don't we sell one OTM stike above which would be 5700-6100, which is now available at 87.

Let us see if we can get it at around 95.

 

[healthraj]

To avoid all this confusion. We can also sell one each from 5700Pe, 5800Pe, 6100CE and 6200CE.

The total premium would come to 177. If we get 10 points we might get a profit of Rs 1000 for a lot.

What do you guys Say? Because the OI range is very small.

 

[vnk2000]

Raj,
What is the target of 5500-6000 pair?
I sold pair yesterday at 102.

 

[gmt900]

To avoid all this confusion. We can also sell one each from 5700Pe, 5800Pe, 6100CE and 6200CE.

The total premium would come to 177. If we get 10 points we might get a profit of Rs 1000 for a lot.

What do you guys Say? Because the OI range is very small.

One more idea ( suggested by DanPickUp in his thread) :
Sell 6000C/5800P for @150
Buy 6100C / 5700P for @ 72
Net premium collected 78 points and risk over the week end is hedged.
Take action on revesing 6100C and 5700 P on monday after reviewing the situation.
I guess the investment doesn't go up substantially since you don't need to pay margin for buying options to hedge.

 

[healthraj]

Raj,
What is the target of 5500-6000 pair?
I sold pair yesterday at 102.

It depends on your risk. Hope now it is trading 91 with 11 points profit. So you might want to wait till Monday to gain some more points. Since the pair is close the 6000, I would suggest to close now and find another pair. Why to loose 11 points profit?

 

[healthraj]

One more idea ( suggested by DanPickUp in his thread) :
Sell 6000C/5800P for @150
Buy 6100C / 5700P for @ 72
Net premium collected 78 points and risk over the week end is hedged.
Take action on revesing 6100C and 5700 P on monday after reviewing the situation.
I guess the investment doesn't go up substantially since you don't need to pay margin for buying options to hedge.

Ok Let me try this.

 

[Option.Trader]

Ok Let me try this.

All these are exotic animals, butterflies, condors which are difficult to explain and execute

 

[gmt900]

Ok Let me try this.

Correction :
Premium earned : 145
Premium Paid : 85
Net inflow : 60
You can sell 6100C/5700P pair next week. Probably, the time value you earn on Premium got may be offset by the loss on selling the 6100 C/ 5800 P.
I agree with our friend that these are a bit difficult to execute, but one may have to weigh the advantage of doing this manouever .