NIFTY Options Trading by RAJ

[adg123]

Those who want to Take a Gamble, can buy some OTM 5200 Puts which are available at 1.5. This is purely a Gamble and if it works out you could become a Millionaire in a Fortnight. The Same opportunity was available when the market was around 5100. Let us Try this time. My suggestion is based on the Huge Bid at the 4850, 4950 and 5050 Strikes.

1) Huge Bid at PE5500 (1.48L) & PE5600, although Market Range is 6100-6300. Moreover, almost all Bid Qty. of lower Put strikes are greater then Calls. (November Series also). Does it signaling to further Lower VIX?

2) OI in PE5700 is 59.04L, whereas OI in PE6100 is 60.76L - not a huge gap (may change anytime to PE5700 again).

3) Max profit booking (Square off) in Put Side (today & yesterday).

4) Trading Range is still in 5700-6200 (November Series).

Does it indicates any DOWNSIDE at the expiry of this series/ very beginning of next series?

 

[pictforu]

Just watched SGX Nifty.. its around 6290. So can we expect 6300 tomorrow?

 

[trader15]

1) Huge Bid at PE5500 (1.48L) & PE5600, although Market Range is 6100-6300. Moreover, almost all Bid Qty. of lower Put strikes are greater then Calls. (November Series also). Does it signaling to further Lower VIX?

2) OI in PE5700 is 59.04L, whereas OI in PE6100 is 60.76L - not a huge gap (may change anytime to PE5700 again).

3) Max profit booking (Square off) in Put Side (today & yesterday).

4) Trading Range is still in 5700-6200 (November Series).

Does it indicates any DOWNSIDE at the expiry of this series/ very beginning of next series?

Also there is very little square off @ 5700 pe

 

[healthraj]

1) Huge Bid at PE5500 (1.48L) & PE5600, although Market Range is 6100-6300. Moreover, almost all Bid Qty. of lower Put strikes are greater then Calls. (November Series also). Does it signaling to further Lower VIX?

2) OI in PE5700 is 59.04L, whereas OI in PE6100 is 60.76L - not a huge gap (may change anytime to PE5700 again).

3) Max profit booking (Square off) in Put Side (today & yesterday).

4) Trading Range is still in 5700-6200 (November Series).

Does it indicates any DOWNSIDE at the expiry of this series/ very beginning of next series?

For October Do not Expect below 6000

 

[varesh.et]

OCT MAX OI at 6100-6300
NOV MAX OI at 5700-6200
DEC MAX OI at 4500-6500

Can we plan any Trades based on the above? The Long timers who have been trading options, Have you seen this kind of OI in the past?

In October can the market make high of 6300/6400. Expire around 6100.
November starts with Diwali Weekend. So possible take the market to 6200 again and then to 5700. Expire around 5900/6000.

In December take the market to high of 6500 and Start Selling from 6500 to 4500.

Summary - 6500 or 4500 could be on the cards from now.


So possible Positional Trades.

Take Short in Nov-13 Series when the market is around 6300 for Target of 5700
Take Long in Nov-13 Series When the market is around 5700 (Possible in Nov-13)
Take Long in Dec-13 When the market is around 6000 (in Nov-13)
Take Short in Dec-13 when the market is around 6500 (in Dec-13)

Looking at the NOV-13 and DEC-13 Volumes / OI, it seems to be a SELL on High.

NOTE: This is not for any Prediction but for just Discussion purpose because there might be a Once in Lifetime opportunity in DEC-13 To become a Millionaire

Hi Raj,
If I am reading OAT correctly it is currently showing 6300CE and 6100PE with max pain at 6100 so it means for positional traders E.G. for one week trades I will be buying both 6300CE and 6100PE expecting market will end up around 6100 at expiry.

There are other terms like VOLT how effectively we can utilize it in option trading ? Do you have any write up about how effectively we can utilize OAT tool ?

You help on this will be highly appreciated ...

 

[healthraj]

Hi Raj,
If I am reading OAT correctly it is currently showing 6300CE and 6100PE with max pain at 6100 so it means for positional traders E.G. for one week trades I will be buying both 6300CE and 6100PE expecting market will end up around 6100 at expiry.

There are other terms like VOLT how effectively we can utilize it in option trading ? Do you have any write up about how effectively we can utilize OAT tool ?

You help on this will be highly appreciated ...

Since 6100-6300 is a narrow range, I would suggest to Buy 6100PE when the NIFTY is at 6300. No need to buy both 6100PE-6300CE

 

[varesh.et]

Since 6100-6300 is a narrow range, I would suggest to Buy 6100PE when the NIFTY is at 6300. No need to buy both 6100PE-6300CE

Thanks Raj.

Do you have any material or write up how effectively we can use OAT ?

 

[healthraj]

Thanks Raj.

Do you have any material or write up how effectively we can use OAT ?

No I don't have any

 

[premkumartalreja]

Raj,

I have been following your thread from some time. You have done a great job. I have shorted strangle on nifty based on the OI.

Sold 6100 PE - 4 lots @ 36
Sold 6300 CE - 2 Lots @ 36

Hoping to eat all the premium.

 

[ananths]

Raj,

I have been following your thread from some time. You have done a great job. I have shorted strangle on nifty based on the OI.

Sold 6100 PE - 4 lots @ 36
Sold 6300 CE - 2 Lots @ 36

Hoping to eat all the premium.

Hi,

Do you have plans, what if NIFTY breaches 6300 tomorrow or day after?
I believe you chose 4 lots of put and 2 lots of call..thinking market will move upside....

IV is very low now..so there wont be much benefit if market moves either direction immediately eventhough expiry is next week. Since you have sold both options, just checking whether you planned your trades....Eventhough max OI in 6300, if it breaks it may act as support!! and Max pain can change in a day!