NIFTY Options Trading by RAJ

[healthraj]

daer raj,

would like to know,if mkt start going up from here,than how to protect the sold pair?
because the 7300CE is at 108 and 6800PE is at 12,so very little protection is there,if mkt start moving up
what adjustment you suggest in this case?
thanks

I think, the Way to Protect a SELL is to BUY.
There are two options.

1. When you have a Bias - Take A Long Call or Put. For example if now you think the market will go up, then Buy 7250CE @ 132 - The Price slightly more than the combined premium for 6800PE-7300CE

2. When you do not have a Bias - BUY A Strangle (Buying a Pair) - I have not tried this. For example - BUY 6850PE-7250CE. Once again the BUY Price should be more than the Combined preimum of SELL. Because we want to the SELL Premium to come down and BUY Premium to Go UP

 

[healthraj]

If the rate cut sentiment based buying comes in today or Monday, 7500 will come pretty fast. The sentiment is positive so buying will happen. Currently 7400 CE is available lower, is this a good price to buy at ?

When is the RBI Policy ?

Is it on 02-Jun or 03-Jun ?

In Both the NIFTY and BANKNIFTY, it is trading near the Daily PIVOT. So market can go down or UP.

The Expectation is a no Change ie remain at 8%. With Modi government putting pressure for Growth, there might be a Ratecut and the market might go UP.

 

[msa5678]

When is the RBI Policy ?

Is it on 02-Jun or 03-Jun ?

In Both the NIFTY and BANKNIFTY, it is trading near the Daily PIVOT. So market can go down or UP.

The Expectation is a no Change ie remain at 8%. With Modi government putting pressure for Growth, there might be a Ratecut and the market might go UP.

RBI Interest rate decision will be @ 11:00 am on 03-Jun.

 

[healthraj]

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

6800-7300 Pair is with 11 points profit.

The MAX OI has become once again 7000-7500.
But 6800 and 7000 Strike has more or less the SAME OI.

As per the Lower timeframe if there is BO at 7260, will close this position and go for a different pair. If there is a BD at 7225 then will hold this position

15:30 PM : 6800-7300 Pair closed with 25 points profit and the position is still open

 

[new2trade]

When is the RBI Policy ?

Is it on 02-Jun or 03-Jun ?

In Both the NIFTY and BANKNIFTY, it is trading near the Daily PIVOT. So market can go down or UP.

The Expectation is a no Change ie remain at 8%. With Modi government putting pressure for Growth, there might be a Ratecut and the market might go UP.

Since the RBI Policy is on Tuesday 3rd June, I too expect the markets to go UP.
FIIs today have bought huge quantities in the cash segment, approx 3000 crores today!!!!
Do you feel we can cross 7400 on Monday itself ?

 

[BabaMagic]

Upmove as anticipated on last Friday. Time to press the short button.

Nifty spot might drag below 7200 today.

Stay cautious on the longs now.

 

[trump]

today!!!! 150 points of down move
or you meant 7300?

 

[new2trade]

6800-7300 Pair is with 11 points profit.

The MAX OI has become once again 7000-7500.
But 6800 and 7000 Strike has more or less the SAME OI.

As per the Lower timeframe if there is BO at 7260, will close this position and go for a different pair. If there is a BD at 7225 then will hold this position

15:30 PM : 6800-7300 Pair closed with 25 points profit and the position is still open

I bought 8000CE Jul at 23/- today. Do you think I can get some profits tomorrow or in the week? Thanks

 

[prabhsingh]

I bought 8000CE Jul at 23/- today. Do you think I can get some profits tomorrow or in the week? Thanks

Absolutely.You will get handsome returns.What i would suggest is wait till end of June.

 

[new2trade]

Absolutely.You will get handsome returns.What i would suggest is wait till end of June.

This should make good the remaining loss (recovered some from 50k earlier with help from Raj and stock72) Thanks
I'll hold this 8000CE July as I got it at a good price of 23/- today.