NIFTY Options Trading by RAJ

[ritesh.bafna88]

as per OAT max pain changed to 6300.

regards
Ritesh

 

[ritesh.bafna88]

in the above image the Green box are marked for reference.

in the upper Green BOX

the Weekly cell K4 shows a sell

in the lower Green Box

the OI of OPEN INTEREST (WEEKLY) shows a BUY

which stand is to be taken?

most likely i m reading the OAT wrong.

can anyone please clarify the above scenario!!

Thanks

 

[healthraj]

Since the Trend seems to be Bullish, Those Who want to Trade the Pair can Sell the Pair at the MAX COI. 6400PE-6600CE @ 127. Keep the Stoploss as 6325 SPOT

6400-6600 Pair is now trading at 121.7 - with 5 points profit. But today after the GAP UP opening, even though as per Price action the Trend is DOWN, it is not moving anywhere. So as mentioned in the morning if 6325 support holds, hold this position. Otherwise close it. Since the premium in the PE is huge compared to CE, it is better to close the position with whatever profit you have today itself. The Trend is UP but since the MAX OI has changed from 6000-6400 to 6200-6400, NIFTY can Test 6200 Levels before moving UP. So let us not take any risk.

 

[healthraj]

ICICIBANK

ICICI has run upto 1200 without any major correction. The breakout happened at 1100. As per the Price action it has generated a SELL today. As per OAT just now the OI also indicates a 1100-1200 and ICICI is trading at 1200 with MAX Pain as 1140. So we can expect some correction till 1140. Risky can SELL ICICIBank. Those who want to Trade options can Buy 1160PE @ 21

 

[healthraj]

Since the Trend seems to be Bullish, Those Who want to Trade the Pair can Sell the Pair at the MAX COI. 6400PE-6600CE @ 127. Keep the Stoploss as 6325 SPOT

The Pair is now trading at 119.6 with 8 points profit. You can wait till tomorrow or Can close today.

A Per Price Action Nifty is moving Down and Trading below the Resistance. The Support is at 6314 in lower time frame and 6294 in higher timeframe.

Not even made an attempt to go beyond 6382 also today, which indicates that may be for now the top may be 6415 SPOT, which is also inline with the MAX OI of 6200-6400. So I am not sure whether it will go ANY FURTHER UP now. Better to close the Longs and Trade as per the Trend in Shorts Or buy 6250 PE @ 50.

Those who want to Trade pairs Can Buy the 6250PE-6500CE Pair @ 99.

I hope some profit booking will Take place till 6200.

 

[Neo_trader]

The Pair is now trading at 119.6 with 8 points profit. You can wait till tomorrow or Can close today.

A Per Price Action Nifty is moving Down and Trading below the Resistance. The Support is at 6314 in lower time frame and 6294 in higher timeframe.

Not even made an attempt to go beyond 6382 also today, which indicates that may be for now the top may be 6415 SPOT, which is also inline with the MAX OI of 6200-6400. So I am not sure whether it will go ANY FURTHER UP now. Better to close the Longs and Trade as per the Trend in Shorts Or buy 6250 PE @ 50.

Those who want to Trade pairs Can Buy the 6250PE-6500CE Pair @ 99.

I hope some profit booking will Take place till 6200.

Bought 6200 puts at 40. Stop loss is at 35.

 

[healthraj]

sgx nifty giving an indication of openning around 6450

any suggestion for those holdingthe sold pair of 6100PE and 6450 CE

thanks

Avny,

I missed your post. Hope you have closed with Handsome profit

 

[avny]

Avny,

I missed your post. Hope you have closed with Handsome profit

yes, it proved to be a good trade

though was bit worried,in the morning,due to a big gap up opening

but the trade never was under pressure

thanks

 

[gargindia]

So here we go on the understanding of the Options Chains data for those who were not following my Previous thread. For the Experts it might see as baby steps. So the experts please forgive.

Understanding the Options Chain Data correctly : Forget what you know already about the market and the Option Chains data. The Future and Options are traded in the Secondary market. So the primary market is Equities. So without equities(cash market), Futures and Options do not exist. So for those who are trading purely in F&O, Look at the Futures and Options as someway to Protect your Stocks (Cash).

For the F&O market to exist, we need the Market Makers. And Market makers are also here to make some money.

Now going to Options Chain data. Let us take the Options Chain of NIFTY. Hope there are so many links for getting the Options Chain data. But I use the following link

http://www.nseindia.com/live_market/dynaContent/live_watch/option_chain/optionKeys.jsp?symbol=" & NSECode & "&date=" & ExpiryDate

For example to get the NIFTY Options data for the month expiring Jul-13, the link would be

http://www.nseindia.com/live_market...in/optionKeys.jsp?symbol=NIFTY&date=25JUL2013

So there are so many Columns and Values. What we are interested is the Following

OI - Open Interest
Chng in OI - Change in Open Interest
IV - Implied Volatility
Volume - Volume and Of course the
Strike Price

What do we need to make the decisions

1. Find out the Strike Price and OI, where we have the MAX OI in PE - MAX_OI_PE
2. Find out the Strike Price and the OI, where we have the MAX OI in CE - MAX_OI_CE
3. Find out the Strike Price and CHG in OI, where we have the MAX Change in OI in PE - MAX_CHGOI_PE
4. Find out the Strike Price abnd CHG in OI, where we have the MAX Change in OI in CE - MAX_CHGOI_CE

Intraday day trading would be based on Change in OI
Positional/Swing trading would be based on OI.

Resp. Sir

please help me to understand below sentances

1. Find out the Strike Price and OI, where we have the MAX OI in PE - MAX_OI_PE
2. Find out the Strike Price and the OI, where we have the MAX OI in CE - MAX_OI_CE
3. Find out the Strike Price and CHG in OI, where we have the MAX Change in OI in PE - MAX_CHGOI_PE
4. Find out the Strike Price abnd CHG in OI, where we have the MAX Change in OI in CE - MAX_CHGOI_CE

In
1. MAX OI in PE - MAX_OI_PE ----------becomes '0' zero
2. MAX OI in CE - MAX_OI_CE ----------becomes '0' zero
3. MAX Change in OI in PE - MAX_CHGOI_PE ----------becomes '0' zero
4. MAX Change in OI in CE - MAX_CHGOI_CE ----------becomes '0' zero

Thanks and waiting for reply

 

[RavishReport]

Raj good analysis