NIFTY Options Trading by RAJ

[healthraj]

MCDOWELL-N : RISKY Call with a Small throw away Premium

MCDOWELL MAX Pain at 2500. Right now at 2660/50. I think it will goto at least 2600 tomorrow. So those who want to Trade SHORT. Pivot is at 2550. So I think we should get 2550-2600 tomorrow.

Bought 2550 PE @ 3.5

I will post the EOD charts for MCDOWELL-N and NIFTY in the evening.

 

[TraderRavi]

Booked 50% of 6050CE @ 40 and 6100CE@ 16

I will Close all the Positions today itself. Why to carry the Positions in profit to tomorrow. Will Close around 3:15 pm with whatever value it has.

@ 3:05 PM: Could not cross today's Resistance of 6070. So booked the Rest of the Positions 6050CE @ 42 and 6100CE@ 17

:clapping::clapping::clapping:

 

[mohan.sic]

In the Charts 6035 was giving a Good support. But My major decision was due to the Premium selling. You saw that we tracked the 6050PE/6050CE/6100CE/6000PE. And all the Premiums were coming down. So normally for the premium collection game to be closed there need to be Trade on both sides. And when the Trade at one side is slow, normally the trade on the other side would be quick and fast, which normally is not easy unless. you might have noticed how the 6100CE/6050CE made quick tops and lost quickly also. So this is normally the game played during the Expiry days.

As expected Today was a Real FLAT day and NIFTY will close more or less at the same point where it closed yesterday. ie around 6055-6060.

Raj,

yes as expected it was a flat close. for me today all trades are positive making around 120 points in nifty.

your update to book profit at 6032 and go long for risky traders was superb.

thanks for the support.

 

[healthraj]

MCDOWELL-N : RISKY Call with a Small throw away Premium

MCDOWELL MAX Pain at 2500. Right now at 2660/50. I think it will goto at least 2600 tomorrow. So those who want to Trade SHORT. Pivot is at 2550. So I think we should get 2550-2600 tomorrow.

Bought 2550 PE @ 3.5

At the end of the day the MCDOWELL-N Levels have changed.

MAX OI at 2500-2700 changed from 2500-2600.
MAX Pain changed from 2500 to 2550.

So I hope the Put should work tomorrow. I hope nobody has taken any huge position. The reason for choosing a small premium was to Take a small Risk and if it does not work it will goto the Bin .

If there is GAP down opening near 2600/2550 in MCDOWELL-N close your positions immediately. Last 2-3 days MCDOWELL has been making some 100 point moves very quickly. So be quick to book your profits.

 

[healthraj]

My view on how to Set the FULL Target for a Trade and Stoploss

This is just for a discussion and debate and based on my observation. So please pass your comments accordingly.

I always notice and Read that the tips providers and the experts always provide a Target of 1% for an entry and stoploss say 20% or 40%

Why not the Target be 1.2% from the Low? Those who follow my thread will notice that I always look for say 60+ points in NIFTY. If you look at the OAT you will notice that it is 1.2%.

So where is this extra .2% or 20 basis points coming from?
Can we also use the 1.2% for other stocks?

My view is that the extra 20 basis point is basically the VOLT in FOVOLT. For NIFTY the VOLT is around 20%. so you can always set the Target for the extra 20 basis points.

Today If you look at the MCDOWELL-N, it made High of NOT 2% but 2.8%. Because the for Every 1% rise the VOLT of MCD is .44 or 44 basis points and so MCD made 2.88%.

So next time when you set the Target look at the FOVOLT and Set your Target accordingly. Why to loose the 20 or 80 basis points?

In the new version of OAT, I also use the VOLT to get my BUY / SELL signal. The VOLT would be normally used to make that extra spike and cheat the Retail traders and to make them hit the stoploss and so if keep the Stoploss as 20% for every stock, you are more likely to hit the Stoploss. So if your stoploss 20% then set it as 20% of 1.22% of NIFTY of 20% of 1.44% of MCDOWELL-N.

Try this for other stocks and Let me know If I make any sense.

 

[sach007]

My view on how to Set the FULL Target for a Trade and Stoploss

This is just for a discussion and debate and based on my observation. So please pass your comments accordingly.

I always notice and Read that the tips providers and the experts always provide a Target of 1% for an entry and stoploss say 20% or 40%

Why not the Target be 1.2% from the Low? Those who follow my thread will notice that I always look for say 60+ points in NIFTY. If you look at the OAT you will notice that it is 1.2%.

So where is this extra .2% or 20 basis points coming from?
Can we also use the 1.2% for other stocks?

My view is that the extra 20 basis point is basically the VOLT in FOVOLT. For NIFTY the VOLT is around 20%. so you can always set the Target for the extra 20 basis points.

Today If you look at the MCDOWELL-N, it made High of NOT 2% but 2.8%. Because the for Every 1% rise the VOLT of MCD is .44 or 44 basis points and so MCD made 2.88%.

So next time when you set the Target look at the FOVOLT and Set your Target accordingly. Why to loose the 20 or 80 basis points?

In the new version of OAT, I also use the VOLT to get my BUY / SELL signal. The VOLT would be normally used to make that extra spike and cheat the Retail traders and to make them hit the stoploss and so if keep the Stoploss as 20% for every stock, you are more likely to hit the Stoploss. So if your stoploss 20% then set it as 20% of 1.22% of NIFTY of 20% of 1.44% of MCDOWELL-N.

Try this for other stocks and Let me know If I make any sense.

Raj,

You have given example of 1% TGT and SL 20% or 40% .... is it correct?

I mean Suppose NF Price 6000 so TGT 1% means 60 POINTs and SL 20 % or 40% means 1200 POINTs or 40 % MEANS 2400....

So is it right... I think something is wrong.... or my understanding is wrong...

Can you PLS explain?

 

[mohan.sic]

Sorry RajBhai..

I was using...

And then CLICKING on EQUITY DERIVATIVES.

sach007,

It seems that link on nse homepage is not updating correctly.
don't know if the problem is today or everyday. because i follow only the link given by you and no other source, was never able to locate.

If Anyone here tracks different links for openchain or track oat tool regularly please update if these differences were there everyday.

Oat tool is updated from different link which was posted by raj. it seems perfect, checked it with eod options report from nse.

Raj,

Any idea why this error? Direct link for option chain provided on nse homepage is giving wrong data or am i missing something in reading this. This is not any difference due to eod adjustments. 6000 pe change in oi is shown as 946150 but actual number is 300.

And i was watching this link continuously through out trading. I saw that 6000 pe change in oi building up gradually to 9 lakh+ in second half of trading. But by eod the number is 300. Is that Oi squared off in last hour. 9 lakh oi covered in last hour ? Please comment.

I request all to post their views on this.

thanks.

 

[mohan.sic]

Raj,

You have given example of 1% TGT and SL 20% or 40% .... is it correct?

I mean Suppose NF Price 6000 so TGT 1% means 60 POINTs and SL 20 % or 40% means 1200 POINTs or 40 % MEANS 2400....

So is it right... I think something is wrong.... or my understanding is wrong...

Can you PLS explain?

May be raj was saying 2% or 4%.
I think he was just referring to how risk reward ratio doesn't match in brokers calls.

 

[healthraj]

Raj,

You have given example of 1% TGT and SL 20% or 40% .... is it correct?

I mean Suppose NF Price 6000 so TGT 1% means 60 POINTs and SL 20 % or 40% means 1200 POINTs or 40 % MEANS 2400....

So is it right... I think something is wrong.... or my understanding is wrong...

Can you PLS explain?

Let us say BUY signal Triggered when NIFTY is at 6000.
NIFTY VOLT is 20%
So we want the Target to be 1.20% of 6000 = 72 points
Stoploss let us is 20%. It should be 20% of 72 points = 14.4
If stoploss is 40%. Then it would be 28.8 points.
So if you want to Buy with 20% Stoploss then Buy at 6000+14.4 = 6014.4 with Target as 6072.
So if you want to Buy with 40% Stoploss then Buy at 6000+28.8 = 6028.8 with Target as 6072.

 

[manojborle]

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