NIFTY Options Trading by RAJ

[healthraj]

6000PE now at 65L - 10K from 5700PE. So we should see a JUMP of another 50 points in NIFTY anytime now when 6000PE becomes the MAX OI.

MAX OI changed from 5700PE to 6000PE

MAX OI has changed back to 5700PE. that way it leaves the Option open to Test 5700 again.

 

[healthraj]

If you study the OI data on OPTION CHAIN of NSE site, then you can observe that all volumes are in multiples of 50 only.==> so volumes are not in lots.

Please provide the link. In the Options Chain it is in Lots

 

[mohan.sic]

Mohan,

The Rule is basically to see how we can use Volume for our decision.

I feel it is not concluded.

Raj Sir,

A request from my side: can u please post all rules at once with your modifications. In the process of real time trading based out of your rules you might have simplified or added many points.

You deserve my a BIG THANKS
You Thought and Ignited Thoughts.

Thanks.

 

[trader15]

This Rule is for those who want to Trade naked Options and what Strikes to Choose. The Rule is very simple. Choose the Strike where the Volume is Greater than COI. Make sure the Volume and COI is positive.

For Example if you look at 15-OCT-13 Data, you will notice that 5900 PE had two times volume than the 5900 PE COI. And when the market came down yesterday, 5900 PE would have given the MAX Profit. On the CE side 6200CE had 110% volume compared to COI and it would have given more profit compared to any other strike in terms of SELL.

So on 15-OCT-13, the ideal Candidate for BUY was 5900PE and the ideal candidate for SELL was 6200CE. So when there is not candidate with Volume greater than 100% of the COI, indicates that it is a FLAT market and it is better to avoid any naked options.

This is great one. Can u help understand by taking Fridays option data.

Secondly one doubt : not sure if I understand it correctly due to lack of view of 15 oct data, but why would u sell ce and buy pe in above case described, when both of them have same rule matching I.e. Both ce and pe have. Volume greater than oi

May be if u can give example from today's data it can help understand

Thanks once again for having wonderful thread and sharing and spreading knowledge

 

[trader15]

This is great one. Can u help understand by taking Fridays option data.

Secondly one doubt : not sure if I understand it correctly due to lack of view of 15 oct data, but why would u sell ce and buy pe in above case described, when both of them have same rule matching I.e. Both ce and pe have. Volume greater than oi

May be if u can give example from today's data it can help understand

Thanks once again for having wonderful thread and sharing and spreading knowledge

With this rule I could see two candidates 6300 ce and 6000 pe, also one more 5800 pe

Please validate and how to determine whether to buy ce or sell it and same for pe

 

[trader15]

I dont think people are writing 6500 CE. Usually FII write the CE/PE which is of high price.. What will they get by writing 6500 CE which is 11rs.It might go down to zero but their return will be very less....

If you have observed, the 6500 ce high volume was squared off on Thursday. Implying it was call writers which squared off in large volumes, as they knew this move was coming.

 

[Option.Trader]

Tried out call at yesterday support of 6030, let's see where it takes us (6200 ce @35)

Let me go by disclaimer... covered my longs in yesterday's trade. Looking at FII data, it looked more of short covering trade than anything... shorts got squeezed out to the point that there are no more shorts to take the nifty up.
150 point rally and no longs added!!. I would be very skeptical of longs and would look to book profits due to multiple fibo and resistance points... 6190, 6230... Correction should take this to 5870 if it happens.
My trades: Squared off 6200 Ce.. build up of 6000PE

 

[arcus]

Let me go by disclaimer... covered my longs in yesterday's trade. Looking at FII data, it looked more of short covering trade than anything... shorts got squeezed out to the point that there are no more shorts to take the nifty up.
150 point rally and no longs added!!. I would be very skeptical of longs and would look to book profits due to multiple fibo and resistance points... 6190, 6230... Correction should take this to 5870 if it happens.
My trades: Squared off 6200 Ce.. build up of 6000PE

Its unlikely that Nifty will cross 6357 (all time high) which is around 2.5% from here without at least a 38.2% retracement of this rally from 5100 levels.

Even if we make new lifetime Nifty highs, it will most likely be after a minor correction to 5700-5800.

 

[DanPickUp]

Its unlikely that Nifty will cross 6357 (all time high) which is around 2.5% from here without at least a 38.2% retracement of this rally from 5100 levels.

Even if we make new lifetime Nifty highs, it will most likely be after a minor correction to 5700-5800.

@Arcus

Do not say that. We never know where market can go. Last Wednesday I placed an order with a few lots in the S&P500 in the USA at the level of 1720.00. Unreachable at that time. That was before the official announcement from the government that they now will work again. We are now at 1738.00. So what?

Take care / DanPickUp

 

[manojborle]

Its unlikely that Nifty will cross 6357 (all time high) which is around 2.5% from here without at least a 38.2% retracement of this rally from 5100 levels.

Even if we make new lifetime Nifty highs, it will most likely be after a minor correction to 5700-5800.