NIFTY Options Trading by RAJ

[stock72]

If the hourly charts are showing SELL signal, I expected some good correction to 6900-7000 considering markets reached at lifetime highs and no one should be buying at these levels. Confusing!

Why u think market to correct ? ..on the side ism betting like market going to reach 7800 soon ...

 

[new2trade]

Why u think market to correct ? ..on the side ism betting like market going to reach 7800 soon ...

Because why would anyone buy at such high levels. Buying possibly works better if it corrects to 6900-7000 and then gets higher. At current levels, its pretty risky to buy as we do not know whether it would sustain there.

 

[toughard]

Because why would anyone buy at such high levels. Buying possibly works better if it corrects to 6900-7000 and then gets higher. At current levels, its pretty risky to buy as we do not know whether it would sustain there.

your logic is correct... but not for buying options, that too this month options...

 

[stock72]

Because why would anyone buy at such high levels. Buying possibly works better if it corrects to 6900-7000 and then gets higher. At current levels, its pretty risky to buy as we do not know whether it would sustain there.

the change happened in political in India is something a new to its kind .. market must and definitely will react ... it will run to very high level before any crash / meaningful correction of 5 to 10% .

 

[healthraj]

Today another ~20% drop in VIX and IV. Overall drop of ~50% in IV in the last two trading days. My Pair of 6500PE-7250CE Sold on 12-May @ 259 is now at 119 with 140 points profit. Closing the pair and will switch to JUN-14 Series.

In JUN-14 the MAX OI is at 6700-7500.

SELLING the pair 6700-7500 @ 110. Will add Long Call or Put Later when the Trend is clear. Right now in the hourly charts it is Trading near the Pivot @ 7240. And the Current Trend is DOWN. The Support will come at 7140/7058/6920.

NIFTY has already bounced from the Support of 7140, which was hit on last Friday.

So if 7260 SPOT is broken then it might confrm an UP Move (till 7425, 7550) or if it breaks 7182 it might goto 7053.

I think it would be better to wait for IV to go up before selling pair. Last time, I burnt my fingers by selling pair at low IV.

Since 7260 was broken, Bought 7400 CE @ 130.

6700-7500 Pair sold at 110 is now at 77. So there is a 33 points gain. But the 7400 CE Bought at 130 is now at 96.3. So overall the position is at 0.6 point loss. In the Lower timeframe today there was a BUY at 7207 SPOT. In the Hourly chart there is no BUY signal Yet... But it has closed above S1 @ 7240The BUY Signal will probably come tomorrow below 7190.

Since the Major Pivot in the hourly chart is around 7390 and the minor Pivot is around 7290. the expiry for MAY-14 could between 7290 to 7390 Levels. So IF I Get NIFTY Around 7190, I will Close the SELL of 6700-7500 and would be taking a Fresh SELL of say 7200-7600 in JUN-14 series

 

[stock72]

6700-7500 Pair sold at 110 is now at 77. So there is a 33 points gain. But the 7400 CE Bought at 130 is now at 96.3. So overall the position is at 0.6 point loss. In the Lower timeframe today there was a BUY at 7207 SPOT. In the Hourly chart there is no BUY signal Yet... But it has closed above S1 @ 7240The BUY Signal will probably come tomorrow below 7190.

Since the Major Pivot in the hourly chart is around 7390 and the minor Pivot is around 7290. the expiry for MAY-14 could between 7290 to 7390 Levels. So IF I Get NIFTY Around 7190, I will Close the SELL of 6700-7500 and would be taking a Fresh SELL of say 7200-7600 in JUN-14 series

Me too waiting :thumb::thumb:

 

[gmt900]

6700-7500 Pair sold at 110 is now at 77. So there is a 33 points gain. But the 7400 CE Bought at 130 is now at 96.3. So overall the position is at 0.6 point loss. In the Lower timeframe today there was a BUY at 7207 SPOT. In the Hourly chart there is no BUY signal Yet... But it has closed above S1 @ 7240The BUY Signal will probably come tomorrow below 7190.

Since the Major Pivot in the hourly chart is around 7390 and the minor Pivot is around 7290. the expiry for MAY-14 could between 7290 to 7390 Levels. So IF I Get NIFTY Around 7190, I will Close the SELL of 6700-7500 and would be taking a Fresh SELL of say 7200-7600 in JUN-14 series

Max Pain is at 7100. With 6 more sessions before expiry, expiry could be between 7100-7200. 7300-7400 levels look unlikely.

 

[healthraj]

6700-7500 Pair sold at 110 is now at 77. So there is a 33 points gain. But the 7400 CE Bought at 130 is now at 96.3. So overall the position is at 0.6 point loss. In the Lower timeframe today there was a BUY at 7207 SPOT. In the Hourly chart there is no BUY signal Yet... But it has closed above S1 @ 7240The BUY Signal will probably come tomorrow below 7190.

Since the Major Pivot in the hourly chart is around 7390 and the minor Pivot is around 7290. the expiry for MAY-14 could between 7290 to 7390 Levels. So IF I Get NIFTY Around 7190, I will Close the SELL of 6700-7500 and would be taking a Fresh SELL of say 7200-7600 in JUN-14 series

The minor Trend Resistance is at 7330. So if there is a breakout at 7330 it can goto 7390. The breakdown can happen at 7295 and can goto 7133.

The MAX OI for MAY-14 Series is change from 7000-8000 to 7000-7400, which is in line with my above Levels.

The MAX COI is at 7150-7400. So 7400 Seems to be the top for this expiry and the bottom could be 7150. The expiry could be between 7150 to 7400

 

[new2trade]

The minor Trend Resistance is at 7330. So if there is a breakout at 7330 it can goto 7390. The breakdown can happen at 7295 and can goto 7133.

The MAX OI for MAY-14 Series is change from 7000-8000 to 7000-7400, which is in line with my above Levels.

The MAX COI is at 7150-7400. So 7400 Seems to be the top for this expiry and the bottom could be 7150. The expiry could be between 7150 to 7400

My 50,000 is stuck in the 6500 PE May position and thats 33% of my capital. I have additional 1 Lac that I can buy something that will nullify the 50,000 loss and also get me a profit.
So what do you think is a good buy for 1 Lac and has the potential to nullify the loss too ? Thanks

 

[prabhsingh]

My 50,000 is stuck in the 6500 PE May position and thats 33% of my capital. I have additional 1 Lac that I can buy something that will nullify the 50,000 loss and also get me a profit.
So what do you think is a good buy for 1 Lac and has the potential to nullify the loss too ? Thanks

Unfortunately i dont foresee your 50K getting recovered in this series.Instead of playing in options use 1lakh to buy some quality stocks and dont have desire to get rich overnight.