NIFTY Options Trading by RAJ

[healthraj]

One of the Top Traded Stock in Options seems to be HCLTECH, apart from SBIN and JP.

HCLTECH does not have a greate volume in Options but the MAX and CHG in OI is at 840-980. The VOLT is high and so it could be good for Shorting. The Pair is available at 24. The signal indicates a FLAT BULL. 840 PE are heavily shorted. So it might go up a little bit. Wait for the VOLT to come take the Reverse direction. Watch the IV for HCLTECH

 

[healthraj]

Will you please explain how you decide the range by looking at the option chain ?
Sorry, I have missed it if you already explained it.
The pivot, I suppose, is calculated as per the standerd formula.

GMT,

I use either the MAX OI or the CHG in OI. Since the COI is all over the places, I take the OI. OI is at 5800-6000. Average of 5800 and 6000 is 5900. And so calculate 30 points below 5900 and 30 points above 5900. If the COI is trading in a tight range we could have a more accurate Range.

 

[healthraj]

So Today I have gone for a little bit of Risk in NIFTY looking at the Bullish Signal

Open positions

SBIN 1700PE-1900CE Pair - Sold at 92.75 - The Trend is indicating a Bear. But the MAX OI and MAX Pain is at 1800. So I am hoping for a Rally tomorrow.

INFY - 2800PE - Bought at 31.25 on 26-Jul-13. EOD Price is 31.45.

NIFTY - Today instead of Pair I have bought 5900 CE @ 105.9 and 6100CE @ 34.8 - NIFTY Closed with a Bullish signal

How many times ever we get hit we never learn. Today in the morning my naked calls were trading with 15 points loss and I was having a bit of ache . But the 5800-6000 Pair is trading with 10 points profit. So it is always better off trading the pair. Neverthless I am still holding my CE positions.

 

[healthraj]

30-Jul-13

The Range for today is the same as Yesterday. 5870-5930 with 5900 as the pivot. If 5930 breaks then you can look for another 50 points.

Options update @ 9:30 AM
MAX CHG in OI in all over the places...
Overall CHG in OI indicates a BULLISH .
MAX OI still 5800-6000.
Today it would be very volatile.

Our Pair positions 5800-6000 - Did not move anywhere. Same at 148. For the positions to be in profit either the market need to move or the VOLT needs to come down

SBIN 1700PE-1900CE - Opened at 92.75. now trading at 87.15. - 5 points profit because the VOLT has come down from 42 to around 40. Just 2% drop 5 points profit. If it further comes down and if the SBIN moves UP then the profit will be maximum. So keep a check on the VOLT.

BANKNIFTY - Which is the focus for today. The PEs are getting squared off and still indicating a WEAK BEAR. So still not OK to buy.

Since 5863 is the Low, We will keep the initial Range as 5863+60 = 5923. So please keep the Top as 5923. Play for breakout above 5923

 

[healthraj]

The BULLishness is loosing and becoming WEAK. So do not trade huge quantities. Trade huge only for breakout above 5930.

 

[healthraj]

Today it would be great test of Nerves. At 11:15 AM after the RBI Policy is OUT, everybody those who have open positions will feel the Adrenaline flowing and the heart pumping heavily.

 

[gmt900]

Today it would be great test of Nerves. At 11:15 AM after the RBI Policy is OUT, everybody those who have open positions will feel the Adrenaline flowing and the heart pumping heavily.

It is best to stay out or take positions which will not make one's heart pump heavily.
I have often thought about the difference between gambling and speculating.
At times like this, the thought resurfaces
Raj, you recommend that one should not watch TV during trading hours. What do you do on days like these?

 

[Option.Trader]

Just for fun, seeing options table I feel we are on Verge of breakdown, puts getting unwound. 5900 call has 100 points premium built in, I would short it with 20 points stop loss. Don't trade, just watch.

 

[Option.Trader]

Raj what are your stop loss on infy puts?

 

[healthraj]

It is best to stay out or take positions which will not make one's heart pump heavily.
I have often thought about the difference between gambling and speculating.
At times like this, the thought resurfaces
Raj, you recommend that one should not watch TV during trading hours. What do you do on days like these?

I learnt from the last one month that it is best to trade the Pairs. But I myself not following my own rules. so today I have closed the Naked CEs at cost and shorted 5800-6000 Pair