NIFTY Options Trading by RAJ
- Thread starter healthraj
- Start date
- Tags nifty options chain raj oat
I have lost a lot of amount trading OTM options. So I don't recommend OTM Options. Better to target 10%-20% per month, which you normally get by Selling OTM Options and coupling with LONG ATM/ITM Puts or Calls.
To my point of view, Buying OTM options is like gambling.
If you want to trade naked options Calls or Puts, My recommendation would be to Buy 7200/7250 CE now, since NIFTY is trading around the Support levels
To my point of view, Buying OTM options is like gambling.
If you want to trade naked options Calls or Puts, My recommendation would be to Buy 7200/7250 CE now, since NIFTY is trading around the Support levels
NIFTY Stategy.
The MAX OI changed from 7000-7500 to 6800-7500 - Indicating Bearishness.
In the Lower timeframe there is a Buy signal Generated below 7242 (R2)
In the Hourly SPOT chart, The R1 @ 7275 was broken and it might either test R2 @ 7185 or Reverse from here and Test 7280 and 7330 again.
In the Daily Futures chart, NIFTY Pivot is at 7266. Today JUN-14 NIFTY Futures closed at 7277 (Made low of 7241).
The 20 Day EMA is at 7200, which also might act as the Support.
So it would be good to Buy around 7200 Futures.
So my strategy would be as follows.
SELL 6800-7500 Pair - Today the value is 56.
Buy 7400CE - Closing value is 72.
I have not yet taken these positions. I will be taking these tomorrow when NIFTY Futures is around 7200.
Until then it is better to remain on the Short side. So in the mean time I am planning to SELL the pair 6800-7300 Pair for around 125. If there is a Reversal then I will close 6800-7300 and go for the Above strategy
The MAX OI changed from 7000-7500 to 6800-7500 - Indicating Bearishness.
In the Lower timeframe there is a Buy signal Generated below 7242 (R2)
In the Hourly SPOT chart, The R1 @ 7275 was broken and it might either test R2 @ 7185 or Reverse from here and Test 7280 and 7330 again.
In the Daily Futures chart, NIFTY Pivot is at 7266. Today JUN-14 NIFTY Futures closed at 7277 (Made low of 7241).
The 20 Day EMA is at 7200, which also might act as the Support.
So it would be good to Buy around 7200 Futures.
So my strategy would be as follows.
SELL 6800-7500 Pair - Today the value is 56.
Buy 7400CE - Closing value is 72.
I have not yet taken these positions. I will be taking these tomorrow when NIFTY Futures is around 7200.
Until then it is better to remain on the Short side. So in the mean time I am planning to SELL the pair 6800-7300 Pair for around 125. If there is a Reversal then I will close 6800-7300 and go for the Above strategy
My Excel Tool Files OTP, MTP and OAT - Request for those who downloaded
I am getting personal messages to share the tools that I had developed and uploaded earlier in the last two years. I had deleted all the files and you can also see my signature that I no longer provide those excel tools. I stopped developing any new tools and I want to concentrate on the trading with whatever knowledge I have. If any of the new members need those tools, you can post the query here and those of them who had downloaded already can help. I am no longer providing support or advice for the tools.
When I deleted those files, I have seen that there were around 2800 downloads for OAT and around 3200 downloads for MTP.
That means the OAT tool was downloaded by 2800 people and MTP was downloaded by 3200 people. So I hope there would be at least one soul who would like to volunteer to help the new members. In fact to be honest I don't even have a copy of the MTP or the OTP tools because my laptop harddisk crashed and i lost all those versions. Now I have only OAT.
I purposefully deleted the files because I was spending too much time in developing new tools... So it was time for me to pause and apply the knowledge that I already had instead of modifying my tools again and again... So for last 30 days as some of you might have noticed in the thread, I follow a simple option strategy and that is it... I don't need any fancy chart or tool...
I am getting personal messages to share the tools that I had developed and uploaded earlier in the last two years. I had deleted all the files and you can also see my signature that I no longer provide those excel tools. I stopped developing any new tools and I want to concentrate on the trading with whatever knowledge I have. If any of the new members need those tools, you can post the query here and those of them who had downloaded already can help. I am no longer providing support or advice for the tools.
When I deleted those files, I have seen that there were around 2800 downloads for OAT and around 3200 downloads for MTP.
That means the OAT tool was downloaded by 2800 people and MTP was downloaded by 3200 people. So I hope there would be at least one soul who would like to volunteer to help the new members. In fact to be honest I don't even have a copy of the MTP or the OTP tools because my laptop harddisk crashed and i lost all those versions. Now I have only OAT.
I purposefully deleted the files because I was spending too much time in developing new tools... So it was time for me to pause and apply the knowledge that I already had instead of modifying my tools again and again... So for last 30 days as some of you might have noticed in the thread, I follow a simple option strategy and that is it... I don't need any fancy chart or tool...
First of all i never said the June would clse between 7250 and 7400. The levels were looking at the Hourly chart.
1. For Selling in NIFTY I have some magic Premium numbers. Otherwise I don't sell. The magic number is around 120.
When we sell at 120, normally the Reversal will happen around 90 (30 points), If there is no reversal then the next target would be 60 (another 30 points from 90).
So sometimes when you don't get a pair for 120 in the second or thid week, Look for a pair with a premium of 90 points... But you have to keep watching the pair.
I will sell only when the combine premium of the Call and the Put is around 120. IF ALL is WELL, it will surely give 30 points.
For example today the MAX COI was in 6800PE-7300CE and the Combined premium is 126. So it is a candidate for Selling.
2. And the other point is the difference between the strikes should be around 500 points. Last week I sold 7000-7500 and the difference is around 500.
The difference between 6800 and 7300 is once again 500 points.
3. The Last point is when the MAX OI pair is not at 120 or 90. Find a COI pair so that the combined premium is around 120...
Some simple number crunching to show the profits one can get in SELLING and those who believe that Selling options will not give a HUGE Profit.
There are 4 weeks in the Expiry.
The combines premiums starts at 120 and roughly there are 20 trading days. Since we are selling we are looking for some 120/20 = 6 points to erode every day. And Ideally if you have chosen the right pair in the beginning of the month, you should get the Full 120 points.
At the end of the first week, the 30 points would be lost and 120 will become 90
At the end of the second week another 30 points would be lost and 90 will become 60.
In the third week 60 will become 30
And on the dayy of expiry 30 will become 0.
So Ideally if somebody has a Capital of 1 Lakh then they can SELL 200 quanities and ideally they can get a profit of around 200 * 120 = 24000 in a month. Even if one gets 10000 then it is a huge profit. On top of this if one can intelligently combine it with a Long Put or Call then they can make more profit.
I have been observing the Premiums and this is how it happens.... You can take a pair and watch the Premiums before you believe
For example take the Pair 6800-7300 and See the Pair's value on 26-Jun-14.
So how do we find the pair for Stocks.
For NIFTY it works like these and it should work in a similar fashion for Stocks also.
For NIFTY since you need minimum two strikes to SELL the Difference would be 100 points. Add 20% (NIFTY Historic Volatility). that would be 120 points. So ideally on Week 1 of Expiry you should be able to find a Pair with a Premium of around 120.
Let us take SBIN.
SBIN Strike is 20 points. And the HIST VOLT is now at 60%.
So we would need to find a pair whose value would be 20+20=40 + 60% * 40 = 40 + 24 = 64.
The MAX OI is at 2500-2700 with a combined premium of 120. But we would need only 64 points. So we can choose outside 2500-2700. Say 2260-2760 with a comined premium of 68.
So everyday you should get around 3.2 points.
By the end of First week 64 should become 64-16 = 48
Second week 48 should become 32 and so on ...
Please observe and take your own decision to trade... I might be wrong... But these are some of my observations and Tips to Enter the SELL positions for PAIR trading.
1. For Selling in NIFTY I have some magic Premium numbers. Otherwise I don't sell. The magic number is around 120.
When we sell at 120, normally the Reversal will happen around 90 (30 points), If there is no reversal then the next target would be 60 (another 30 points from 90).
So sometimes when you don't get a pair for 120 in the second or thid week, Look for a pair with a premium of 90 points... But you have to keep watching the pair.
I will sell only when the combine premium of the Call and the Put is around 120. IF ALL is WELL, it will surely give 30 points.
For example today the MAX COI was in 6800PE-7300CE and the Combined premium is 126. So it is a candidate for Selling.
2. And the other point is the difference between the strikes should be around 500 points. Last week I sold 7000-7500 and the difference is around 500.
The difference between 6800 and 7300 is once again 500 points.
3. The Last point is when the MAX OI pair is not at 120 or 90. Find a COI pair so that the combined premium is around 120...
Some simple number crunching to show the profits one can get in SELLING and those who believe that Selling options will not give a HUGE Profit.
There are 4 weeks in the Expiry.
The combines premiums starts at 120 and roughly there are 20 trading days. Since we are selling we are looking for some 120/20 = 6 points to erode every day. And Ideally if you have chosen the right pair in the beginning of the month, you should get the Full 120 points.
At the end of the first week, the 30 points would be lost and 120 will become 90
At the end of the second week another 30 points would be lost and 90 will become 60.
In the third week 60 will become 30
And on the dayy of expiry 30 will become 0.
So Ideally if somebody has a Capital of 1 Lakh then they can SELL 200 quanities and ideally they can get a profit of around 200 * 120 = 24000 in a month. Even if one gets 10000 then it is a huge profit. On top of this if one can intelligently combine it with a Long Put or Call then they can make more profit.
I have been observing the Premiums and this is how it happens.... You can take a pair and watch the Premiums before you believe
For example take the Pair 6800-7300 and See the Pair's value on 26-Jun-14.
So how do we find the pair for Stocks.
For NIFTY it works like these and it should work in a similar fashion for Stocks also.
For NIFTY since you need minimum two strikes to SELL the Difference would be 100 points. Add 20% (NIFTY Historic Volatility). that would be 120 points. So ideally on Week 1 of Expiry you should be able to find a Pair with a Premium of around 120.
Let us take SBIN.
SBIN Strike is 20 points. And the HIST VOLT is now at 60%.
So we would need to find a pair whose value would be 20+20=40 + 60% * 40 = 40 + 24 = 64.
The MAX OI is at 2500-2700 with a combined premium of 120. But we would need only 64 points. So we can choose outside 2500-2700. Say 2260-2760 with a comined premium of 68.
So everyday you should get around 3.2 points.
By the end of First week 64 should become 64-16 = 48
Second week 48 should become 32 and so on ...
Please observe and take your own decision to trade... I might be wrong... But these are some of my observations and Tips to Enter the SELL positions for PAIR trading.
Last edited:
In the Honor and respect or RAJ Sir.............:clap::clap::clap::clap:
http:// www.4shared. com/file/YvBoxCP9ce/RAJ_MTP_FOR_NSE_NIFTY_BANKNIFT.html
please remove the spaces...
http:// www.4shared. com/file/YvBoxCP9ce/RAJ_MTP_FOR_NSE_NIFTY_BANKNIFT.html
please remove the spaces...
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