NIFTY Options Trading by RAJ

[healthraj]

Well you get to see 1 min for day not historically, but the ability to view data for 5, 10, 15, 30, hourly with the data downloaded already, would be really helpful, without pivots, just data as is

You mean the SPOT or Futures Price ? From Google Finance we will only Get SPOT Price

 

[healthraj]

hi
healthraj ji,

what are the factors we have to observe for trading nifty options... ,i have tested a technical system... on nifty future .... result is fine (2 years i have tested)... in order to trade in options what are the issue/s or fine points we have to take care...(nifty options)... please help me

There is no simple answer. If you want a simple answer or the minimum to look out is the Volatility.

Hoep you have a sense of where the market is going. If you think the VOLT will go up, then you can Buy options. If you think the VOLT will go down, then you have to sell Option. Like in today's INFY Case, Yesterday the VOLT was around 62%. The AVG INFY VOLT is around 30-35%. I thought the VOLT should drop today and so SOLD the options.

If you are not sure and want to trade safe then BUY only when the IV is near the Historic VOLT of the Stock. Like Today for NIFTY the HIST VOLT is at 28%. But the AVG IV is at 22.5%. So it is worth Buying Option or worthwhile to do a Debit Spread with the ITM Options or do a Credit Spread with the OTM options.

Buy some books on Options and understand before starting to Trade in Options

 

[healthraj]

NIFTY touched 6098 SPOT once again and now at 6065. The Next support would be 6050. If 6050 breaks can goto 5880, the Previous Decision point. If it does not break then NIFTY can goto the 6150. So let us see... But right now 5min chart it is a SELL and in the 15min Chart it is still a BUY.

Today the NIFTY AVG IVs dropped to around 22%, especially the IVs of PUTs, which was trading at around 30%. So it is a Good day to BUY Options.

Now the Real Trading opportunity for FLOW Traders in NIFTY.

BUY ABOVE - 6100 SPOT
SELL BELOW - 6060 SPOT

 

[prabhsingh]

Raj,

How about if we combine VOLT and RSI indicator and then take a position.So for e.g,If IV is down and RSI is in oversold territory then make a buy options and if IV is Up to a large extent and RSI is in overbought territory then make a sell call.What do you think?

 

[Option.Trader]

You mean the SPOT or Futures Price ? From Google Finance we will only Get SPOT Price

Only spot , futures is anyway a function of spot and can easily be derived. If you see arcus posts are all shown with these intervals. It becomes so clear on channels, patterns at these intervals

 

[shivan]

5700 put has max OI but is seeing unwinding today ,while premium is 28 any possible reason for such unwinding.

 

[singlap]

Raj , do you think the IVs for TCS options will move up significantly because of upcoming Q2 results ? Do you have any historical data before such an event ?

 

[healthraj]

5700 put has max OI but is seeing unwinding today ,while premium is 28 any possible reason for such unwinding.

When 5700 Was the bottom, 5700PE would have been sold and so now they have to reverse the Positions. And so First Square Off (BUY the Options which were Sold) and Then take the market again to High and Then Buy.

 

[healthraj]

Playing for RELIANCE Results on Monday / Tuesday.

MAX OI at 840-900. Reliance now at the middle @ 860. HIST VOLT at 35. AVG IV @ 33.33. So a debit Spread should give some good result. Choose your strike based on the Premium you can afford. Avoid buying 840 PE or 900 CE.

Or if you don't want to Trade now. Wait for the RELIANCE to reach 880 and then Buy 840 Puts - Whichever you are comfortable.

 

[Option.Trader]

When 5700 Was the bottom, 5700PE would have been sold and so now they have to reverse the Positions. And so First Square Off (BUY the Options which were Sold) and Then take the market again to High and Then Buy.

Profit booking @5700 followed by building the next base at 5900, akin to squeezing juice out of lemons, once done, move onto next lemon. Bulls want to move base higher, would think this would have contributed to iv's dropping