NIFTY Options Trading by RAJ

[Relish]

Hi Raj,

What is significance of L2 & M2 cell or Indices sheet where these value came ? Recommended Strategy just below option chain table is supposed to be empty and now strategy came FIBO C16 cell and H-I 16 cell ? How can I add one more Position no 3 in TradeAnalyser sheet ?

Thank's

 

[bapu4]

Hi Raj,
can you give me the link where i can learn to use your OAT(option analysis tool)
god bless you

 

[bapu4]

Rule 1: If the MAX (CHG in OI) @ PE > MAX (CHG in OI) @ CE, then it is a Bullish market.

Why MAX (CHG in OI) PE will be a Bullish signal?
For the Market to exist we should be Have Bears and Bulls. Market is always trading in a specified range for any day. So we have to assume that BULLs will try to Protect the Bottom of the Range and Bears will Try to Protect the Top of the Range (Not let the market beyond the Range). BULLs have LONG Positions in the market. So to protect their LONGs they take the Opposite positions in the Options market by Selling the PUTS (PE) to hedge their positions, so that if the market goes in the opposite direction of their Longs they can make money using Options. But normally the market makers make money both in the Equities and in the Options market. When They build a Huge volume around a Strike Price, they are basically sending a signal to the BEARS saying "This is our area - We will not let you go below this level". So BULLs normally control a Lower Strike and BEARS normally control a Upper Strike. For a given day this Range would act as the Intraday Range.

Dear Raj ,
Understanding , MAX OI changes is getting more and more confusing !! I have a query regarding what u have explained !!

According to the 1st rule if MAX change in OI of PE > MAX change in OI of CE then mkt is bullish !!

But , the change can be -ve also , means , MAX change in OI of PE=-20 and
MAX change in OI of CE = +10 , so MAX change is in the PE , so the market should move in the direction of PE as BULLS have got out of PUTS !!
Then how can the rule 1 be interpreted !!

In the above condition the rule gives a bearish indication !!

Pls help !!

GOD bless !!
Warm regards !!

 

[Option.Trader]

Interpretation of Volatility Chart

After a long time we are seeing a crossover in Volatility charts.. just making a note if chart leads to an interpretation. Feel free to correct

The intersection of Green and Red are closer to 5850.. so this downside looks to be done with.
The green above the red indicates bulls have an upper hand
For the time being it is a SELL on HIGH because the Trend line is a Diagonal line. No sign of Bullishness till 6100
Lets see what this augurs

 

[Option.Trader]

Just looking at the intraday pivots...gave a buy @5789.. lets see

Resistance will be yesterday's close

 

[ss16021981]

sir sorry but i m not getting above chart as of u

 

[healthraj]

Dear Raj ,
Understanding , MAX OI changes is getting more and more confusing !! I have a query regarding what u have explained !!

According to the 1st rule if MAX change in OI of PE > MAX change in OI of CE then mkt is bullish !!

But , the change can be -ve also , means , MAX change in OI of PE=-20 and
MAX change in OI of CE = +10 , so MAX change is in the PE , so the market should move in the direction of PE as BULLS have got out of PUTS !!
Then how can the rule 1 be interpreted !!

In the above condition the rule gives a bearish indication !!

Pls help !!

GOD bless !!
Warm regards !!

In the rules, I have used
MAX OI - For Positional Trend
MAX COI - Intraday Trend

Accordingly for Positional Traders, it should be a Buy at 5700. The positional Pivot 5850 is also broken today.

So according to MAX COI which is at 5600-5800, the Pivot is at 5717 and so the intraday or immediate target should be around 5720.

But since the MAX OI is at 5700-6000, you can expect a bounce back from 5700 unless the MAX OI changes to 5600 or 5500.

 

[healthraj]

Do you mean 2600PE/3500CE long straddle could be bought @ around 111 and close it just before result and sell 2600PE/3500CE short strangle on the day before result?

Yes as long as the VOLT keeps Going UP for INFY the pair will keep rising. The pair which was taken at 110 is now at 123 with 12 points profit.

I am only trying to simulate the scenario which occurred the last time. So as told previously it is for risky traders because it is purely a VOLT game. But for safe traders they can wait till 10-OCT to take a safe trade.... But keep watching INFY on a daily purpose. If the VOLT keep on increasing till 10-OCT, then on 10-OCT EOD, it would be surely a game of SELL or CREDIT SPREADS.

 

[healthraj]

Just looking at the intraday pivots...gave a buy @5789.. lets see

Resistance will be yesterday's close

But the Intraday pivot is at 5720. So I think it should be a SELL till we reach 5720 (Futures price). since the Market opened at 5846, 60 points from there should be 5784. So we should at least get 5784 today. If 5784 breaks then another 60 points which will take to 5724.

 

[ss16021981]

sir i m not getting buy @ 5789 plS help