NIFTY Options Trading by RAJ

[healthraj]

TATAMOTORS

TATAMOTORS is in a OVERSOLD stage trading around 369 with the MAX OI at 380 and 400. Risky Traders can Buy TATAMOTORS around the current Levels for Target of 400 At least.

Those who want to Trade Options Can 400CE @ 2.45

 

[knarendra]

I think BNF premium is more than NF.

Eg: BNF - 11700 CE- 304/- ( CMP : 11700, BNF: 11750)

NF - 6250 CE- 106/- ( CMP : 6260 , NF : 6300)

Both are around cash market strike price. Is it possible to sell BNF and Buy NF? or Buy NF and sell BNF?

What is your openion about it Raj?

 

[premkumartalreja]

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

Squared off my strategy with a 20 K profit. Investment was about 2 Lac ( 10 % Return )

Shorted a Straddle on 6300 as I am expecting the expiry around this

Strike Price Instrument Action Quantity Premium
6300 Call Sell 200 76.7
6300 Put Sell 200 83


Please let me know your feedback.

 

[knarendra]

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

Strike Profit/Loss

5500 -61550
5550 -59050
5600 -56550
5650 -54050
5700 -51550
5750 -49050
5800 -39050
5850 -29050
5900 -16550
5950 -4050
6000 8450
6050 20950
6100 33450
6150 38450
6200 43450
6250 35950
6300 28450
6350 20950
6400 13450
6450 5950
6500 -1550

what is the stratagy name? How to find the profit / loss calculation ?
Any free tool is available ?

 

[healthraj]

I think BNF premium is more than NF.

Eg: BNF - 11700 CE- 304/- ( CMP : 11700, BNF: 11750)

NF - 6250 CE- 106/- ( CMP : 6260 , NF : 6300)

Both are around cash market strike price. Is it possible to sell BNF and Buy NF? or Buy NF and sell BNF?

What is your openion about it Raj?

I don't follow very much on the BANKNIFTY. But the Premiums in NIFTY Futures Looks fine to me. The Premium is just 30 points.

The Implied VOLT is also Relatively LOW compared to AVG IV.

The ITM / ATM options are normally Very high because of the DELTA Value. So the Risk is also High. Or one more reason could be the Speculation for 6250CE since NIFTY is Trading below the Support in 60 min charts and so Traders are willing to BUY 6250CE even if the Premium is High because the Traders think that 6250 would be surely crossed and so 6250CE could be in profit. The IV for 6250CE is just 17.8 and INDIAVIX is at 17.79. So my opinion is that 6250CE is not overly priced. There is also the Time value which is built in the Premium.

 

[healthraj]

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

Squared off my strategy with a 20 K profit. Investment was about 2 Lac ( 10 % Return )

Shorted a Straddle on 6300 as I am expecting the expiry around this

Strike Price Instrument Action Quantity Premium
6300 Call Sell 200 76.7
6300 Put Sell 200 83


Please let me know your feedback.

NIFTY Range indicates 6000-6500. So the AVG is 6250 and market could expire around 6250 or in between 6200 and 6300.

So I think your assumption is right.

 

[healthraj]

Those who bought around 6250, I am 80% probable that the NIFTY will move UP from here. But 20% could also be a BREAKDOWN. So do not forget your Stop loss.

 

[premkumartalreja]

Thanks Raj !!

 

[knarendra]

what is the stratagy name? How to find the profit / loss calculation ?
Any free tool is available ?

I need your reply, pl Mr.premkumartalreja

 

[premkumartalreja]

knarendra,

The Strategy I entered can be called as a modified Strangle. I had sold 6100 Call and Sold 6200 Put on the start of the series. The Profit made is purely due to Time Decay ( Theta ).

I use excels which I have developed to calculate payout compare strategy etc. You can download Optionsoracle which is a great tool.