NIFTY Options Trading by RAJ

[Taiki]

There were some questions on the inter relations. 2 looks obvious, vol > (-chgoi ), unwinding taking place at that strike level as previous writers are nervous.
Volume < chgoi as pointed out indicates fresh shorting at that level

Okay,

Now at 5800 Ce

OI = 21,00,050
COI = 3,37,050
Volume = 43,475

Since COI > Vol, it means big players are having open positions as short at this strike. When COI starts decreasing and will become -Ve it will show that they are covering their shorts. Am I right in understanding this ??

Regards
Taiki

 

[gmt900]

Okay,

Now at 5800 Ce

OI = 21,00,050
COI = 3,37,050
Volume = 43,475

Since COI > Vol, it means big players are having open positions as short at this strike. When COI starts decreasing and will become -Ve it will show that they are covering their shorts. Am I right in understanding this ??

Regards
Taiki

Taiki,
I just noticed your location. With this location you will go far in trading.
All the best and good trading !

 

[Taiki]

Taiki,
I just noticed your location. With this location you will go far in trading.
All the best and good trading !

Wishing you the same brother

Regards
Taiki

 

[Option.Trader]

Okay,

Now at 5800 Ce

OI = 21,00,050
COI = 3,37,050
Volume = 43,475

Since COI > Vol, it means big players are having open positions as short at this strike. When COI starts decreasing and will become -Ve it will show that they are covering their shorts. Am I right in understanding this ??

Regards
Taiki

Yes, that's the general understanding. Especially at the extreme levels mentioned. But it's difficult to trade just on these two. Raj presents some good info on trade able ideas. On contrary, news event days provide good indicators. Based on above I shorted 5800 ce @11am for avg 160 and now it is 128 and ripe to get out

 

[prabhsingh]

Every rise should be taken as an opportunity to create Short position rather then waiting for breakout on upside.

 

[healthraj]

Okay,

Now at 5800 Ce

OI = 21,00,050
COI = 3,37,050
Volume = 43,475

Since COI > Vol, it means big players are having open positions as short at this strike. When COI starts decreasing and will become -Ve it will show that they are covering their shorts. Am I right in understanding this ??

Regards
Taiki

My view is to use the Volume to go LONG on the Option. Otherwise generally I suggest to SELL option.

So when do we go Long? When the Volume > CHG in OI.
Accordingly we could have gone Long on 5900PE or 6000PE which would have given the max profit in Long.

When choosing the Strikes for CE to Short, the best strike was 6000CE where the MAX OI and MAX CHG in OI is present.

While Volume > CHG in OI we can Go Long on the strike, If Volume < CHG in OI the Reverse of Going Short should be True ? Not necessarily. So always choose the Best strike to Go LONG or go SHORT.

General Rule

Never go LONG on the strikes where the MAX OI or MAX CHG in OI is present because they are the candidates being Short.

 

[healthraj]

Every rise should be taken as an opportunity to create Short position rather then waiting for breakout on upside.

My opinion is not to be so over Bearish when the MAX OI is still at 5800-6000 Pair. It might be True for Intraday but not for this week or Month.

With the World markets in Green, Even tomorrow we might see a Strong pull back.

 

[jamit_05]

My opinion is not to be so over Bearish when the MAX OI is still at 5800-6000 Pair. It might be True for Intraday but not for this week or Month.

With the World markets in Green, Even tomorrow we might see a Strong pull back.

I concur. It looks like its time for a pullback. Indicators are showing that the price is in the oversold region.

 

[pictforu]

@ 2.00 PM

Range changed from 5800-6000 to 5700-6000

 

[healthraj]

@ 2.00 PM

Range changed from 5800-6000 to 5700-6000

That means the 5700-6000 Pair is available for Shorting. It is now trading at 112.55