NIFTY Options Trading by RAJ

[healthraj]

I got the OAT thanks to you. I see the Max Pain is showing as 7300. So does that mean 7300 is major support for current trend ? Tomorrow can we buy 7300PE or 7400PE to get the benefit of some correction ? Thanks

As for as my observation goes, MAX Pain follows the Pivot. In the Daily and hourly charts the Pivot is at 7375. Market is now at 7475. So yes 100 point correction is certain. So around 7500, one can definitely play for 100 points towards 7375.

 

[Options_Trader]

In the hourly charts, As per the minor Trend, there is a SELL Triggered above 7412 SPOT. But the R2 is at 7491. So market can test 7500 Levels also. The MAX OI is also at 7000-7500. So the Stoploss should be above 7500.

I have been observing options OI intraday and it doesn't seem to give any meaningful information. E.g. when Nifty went below 7400 yesterday 7400 CE OI increased, however, as Nifty crossed 7400 again, it decreased. So it seems options OI just follow prices and cannot be understood as support or resistance.
BTW can someone explain the criteria for generating the buy and sell signals.

 

[healthraj]

In the Lower Timeframe and Hourly charts NIFTY triggered a SELL signal above 7530 SPOT. MAX OI still 7000-7500.

I have sold 7000-7500 @ 125. Bought 7600PE @ 135. Net outflow of 10.

 

[lemondew]

Man you trust your numbers like anything. I dont ve that guts. Checking the ema chart for any kind of cross. Might buy a put on cross.

In the Lower Timeframe and Hourly charts NIFTY triggered a SELL signal above 7530 SPOT. MAX OI still 7000-7500.

I have sold 7000-7500 @ 125. Bought 7600PE @ 135. Net outflow of 10.

 

[Options_Trader]

In the Lower Timeframe and Hourly charts NIFTY triggered a SELL signal above 7530 SPOT. MAX OI still 7000-7500.

I have sold 7000-7500 @ 125. Bought 7600PE @ 135. Net outflow of 10.

Hey Raj,

what is the criteria for generating the signals

 

[healthraj]

I have been observing options OI intraday and it doesn't seem to give any meaningful information. E.g. when Nifty went below 7400 yesterday 7400 CE OI increased, however, as Nifty crossed 7400 again, it decreased. So it seems options OI just follow prices and cannot be understood as support or resistance.
BTW can someone explain the criteria for generating the buy and sell signals.

If you do not understand the OI, Please follow what you understand. It is never proved whether Price follows Options or Options follows Price.

For Example the MAX OI has been at 7000-7500 for the past 20 days in the JUN-14 Series. So it indicates the support at 7000 and the Resistance at 7500. So when the RESISTANCE is at 7500, you have to expect NIFTY To Test 7500.

So it depends what you are watching.

You can watch MAX COI to play for Intraday. Now the MAX COI is at 7400-7550. Which indicates for today 7550 might act as the Resistance and 7400 will be support.

On Wednesday for example the MAX COI was at 7400-7400 indicating a breakout at 7400.

MAX does not mean the Greater positive value. MAX means where the MAX Addition or subtraction is happening. Today for example @ 7550 the value is Negative.

 

[healthraj]

Hey Raj,

what is the criteria for generating the signals

It is based on my Excel charts. I have posted those charts earlier. It is based the Standard deviation and Trend. Based on the Trend and Standard deviation I calculate the Support and Resistance line

 

[new2trade]

As for as my observation goes, MAX Pain follows the Pivot. In the Daily and hourly charts the Pivot is at 7375. Market is now at 7475. So yes 100 point correction is certain. So around 7500, one can definitely play for 100 points towards 7375.

I see the Max Pain shifted to 7400 today ? That means 7400 is support right? I bought 7400PE July thinking if 7375 spot comes, we can book profits at 170/ ? Thats a good 60 points from current level

You mean the pivot remains at 7375 but Max Pain keeps shifting around ?

 

[healthraj]

I see the Max Pain shifted to 7400 today ? That means 7400 is support right? I bought 7400PE July thinking if 7375 spot comes, we can book profits at 170/ ? Thats a good 60 points from current level

You mean the pivot remains at 7375 but Max Pain keeps shifting around ?

MAX Pain will finally catch up with the Pivot

 

[new2trade]

MAX Pain will finally catch up with the Pivot

Oh ok For knowledge sake, why does Max Pain catch up with pivot ? Is it a rule or based on other factors ? Thanks