NIFTY Options Trading by RAJ

[dprikka]

What's the logic ?

Even if you sell 6000 pe and 6400 ce, total premium per combination is 125 x 50 = 6250. for 5 lots it is 31250 and you will not make any loss till 5875 and 6525.

How u get 5875 nd 6525, pl explain

Thanks

 

[healthraj]

Entered the following strategy

Strike Price Instrument Action Quantity Premium
6100 Call Sell 150 209
5850 Put Buy 50 33
5750 Put Buy 150 20
6200 Put Sell 250 127

Investment is 1.6 lakh. Payout as follows

Hi,

On what basis you have chosen the Strikes ?

What is your view / direction of the market to take this strategy ?

I heard you saying bearish Stategy. If it is bearish, Why are selling 6200 Put.

 

[healthraj]

Based on the 240 Points, If NIFTY sustains above 6153 then BUY for Target of 6213. Otherwise SELL below 6153.

In 30 minutes I had to change my mind between BUY and SELL all because of the 240 points rule. Let us see if it works:thumb:

Please do not get Lost in my explanation. Ultimately it is a SELL because it is Trading above the RESISTANCE of 15, 30 45 and 60 min Charts. I am only trying to Capture the Extra VOLT, where it can Test that 6213 levels. So those who want can take Sell 50% positions now. We will add the other 50% if it goes to 6210 or when it goes below 6140.

In other words I think it is a Risky business to BUY now

Those who are Taking Put Options, Please hold ON until we get to 240 points.

 

[srinivas.vrv]

hai raj ...do you observe? nifty up by more than 80 points, 6600CE premium doubled but there is no change in 5500PE premium. what does this indicates?

 

[healthraj]

hai raj ...do you observe? nifty up by more than 80 points, 6600CE premium doubled but there is no change in 5500PE premium. what does this indicates?

May be the Operators are Selling Calls at a Higher Price and Buying Puts a Lower Premium. SELL High and BUY Low strategy which only Institutions have the Luxury to Execute

 

[premkumartalreja]

December series has two crucial events one is State election results which will be declared on 9 Dec and 18 Dec RBI policy. From Historical Data only 3 Years ie 2000,2001 and 2011 has given negative returns highest being 4.3% in December month rest 10 years have been positive 0.4-4% so except positive closing on December series. I am slightly bullish and expect expiry between 6100 and 6300. I will modify the strategy as we go if required by adding selling calls or puts.

 

[dprikka]

Raj sir can I backtest pivot chart for 3 month or 2 month intra and positional TF.
Is it possible in OAT

Thanks

 

[anup0212]

December series has two crucial events one is State election results which will be declared on 9 Dec and 18 Dec RBI policy. From Historical Data only 3 Years ie 2000,2001 and 2011 has given negative returns highest being 4.3% in December month rest 10 years have been positive 0.4-4% so except positive closing on December series. I am slightly bullish and expect expiry between 6100 and 6300. I will modify the strategy as we go if required by adding selling calls or puts.

Hi Prem,

Do you use any pattern analysis tool to reach to your decision for slight bullish view ? Even in cyclical matters it is needed.

 

[shivan]

Can anyone please tell how is nifty rollover calculated.

 

[premkumartalreja]

I don't use any tools. I have another 50 % cash which I will use to tweak my strategy as time passes. Say if nifty goes up 100 from now will sell 6200 put 2 lots in profit and balance it by selling 6300 call. Usually I prepare to sell call on bullish day and sell on bearish. It's a dynamic strategy. Not sure how it will go but will keep u posted. Intraday and positional trading has not worked for me. Also this strategy needs only 30 mins of my time on daily basis with a possibly of 20 % returns.