NIFTY Options Trading by RAJ

[healthraj]

It means it can be treated as bullish signal or can be played for bearish signal as well.

anil

It means it is a Short term Bullish Signal - During the Profit booking the price shoots up and so Intraday traders can use to make some profits.

But ultimately it is a Bearish signal. It is definitely not a Bullish signal.

 

[parmit]

Sorry there was some mistake. Instead of 7450 I had used 7400.

At 7450 7500PE Price would be 166 and 7450PE @ 142

So it would be a Gain of 166-105 = 61 points in 7500 PE
And a loss of 142-89 = 53 points in 7450PE.
Net gain 61-53 = 8 points.

Not worth it. So I am closing the positions with 2 points.

So I am selling the Pair 7150PE-7750CE @ 122. And buying 7600PE @ 148.

So it is always Good to Calculate the Profit/Loss for the Strategy.

At 7450, with the current VOLT.

7750CE @ 53.5 - Gain of 42.5 points
7150PE @ 46 - Loss of 20 points
7600PE @ 220 - Gain of 72 points
Overall the gain would be 94 points, IF ALL Goes WELL as per the Plan

raj bro.
what is d role of volt.
how to understand it... plz explain a lil bit

 

[healthraj]

raj bro.
what is d role of volt.
how to understand it... plz explain a lil bit

Higher Volatility leads to more premium and so the Options price goes up and Vice Versa.

So for Any strategy which involves BUYing of Pairs, one should BUY around when the VOLT is low.
So for Any strategy which involves SELLing of Pairs, one should SELL around when the VOLT is HIGH.

One cannot predict the VOLT of the individual options but one can predict or Expect the trend of the overall VOLT movement by following the INDIAVIX. India VIX is calculated using the OTM Options Volatility. When the India VIX goes UP that means there is some interest created in BUYing the OTM options. It does not give the direction but it gives an indication that there is a Wide movement in waiting.
When the India VIX goes down then that means the BIG movement is over and NIFTY might go into a narrow range...

 

[parmit]

Higher Volatility leads to more premium and so the Options price goes up and Vice Versa.

So for Any strategy which involves BUYing of Pairs, one should BUY around when the VOLT is low.
So for Any strategy which involves SELLing of Pairs, one should SELL around when the VOLT is HIGH.

One cannot predict the VOLT of the individual options but one can predict or Expect the trend of the overall VOLT movement by following the INDIAVIX. India VIX is calculated using the OTM Options Volatility. When the India VIX goes UP that means there is some interest created in BUYing the OTM options. It does not give the direction but it gives an indication that there is a Wide movement in waiting.
When the India VIX goes down then that means the BIG movement is over and NIFTY might go into a narrow range...

wht should be d avg value of volt to known whether its high or low...

and IV shown in nse is volt of tht particular option ???

 

[healthraj]

You can use the F&O Volt as the Average. You can download the same from the NSEindia site.

For example you can download the Friday FOVOLT data from the below link

http://www.nseindia.com/archives/nsccl/volt/FOVOLT_27062014.csv

 

[parmit]

You can use the F&O Volt as the Average. You can download the same from the NSEindia site.

For example you can download the Friday FOVOLT data from the below link

http://www.nseindia.com/archives/nsccl/volt/FOVOLT_27062014.csv

raj bro,

plz cear one confusion..

at present 7500 ce is at 50 point gain...
but 7500 pe has lost only 30 points, y such diff is there ????

 

[healthraj]

raj bro,

plz cear one confusion..

at present 7500 ce is at 50 point gain...
but 7500 pe has lost only 30 points, y such diff is there ????

There could be many reasons. But the main reason is due to the Implied Volatility because all the other parameters are more or less constant in the Option price. Now Why would IV be more for Puts and less for Calls ? Supply and Demand. The real function of Options is for those who are holding Stocks and when they want to Finance their Risk, the only way they can do is BUYing Puts. So that means they hold the primary instrument (Stocks) and want to hedge it using Put Options. When there is a Demand for the Puts the price artificially goes up? So the simple answer to your question is, in an ideal sense there will be more demand for Puts than Calls and so the Price of Puts will be also higher than the Calls. That is also the reason, mostly the IV goes UP when the Market Goes DOWN. Those Who are trading with Stocks normally do not trade Calls.

 

[healthraj]

I am selling the Pair 7150PE-7750CE @ 122. And buying 7600PE @ 148.

So it is always Good to Calculate the Profit/Loss for the Strategy.

At 7450, with the current VOLT.

7750CE @ 53.5 - Gain of 42.5 points
7150PE @ 46 - Loss of 20 points
7600PE @ 220 - Gain of 72 points
Overall the gain would be 94 points, IF ALL Goes WELL as per the Plan

NIFTY Closed at 7611. The Strategy is at Zero points Gain / Loss.
7750CE-7150PE Closed at 114 - 8 points gain
7600PE Closed @ 140 - Loss of 8 points

NIFTY Futures Made high of 7649.9. Daily Futures Pivot at 7651, which could act as Resistance.

In the hourly charts, SELL is Still active.

Need to watch NIFTY Futures Level 7651 - What happens at 7651 Futures will decide the Next course... Looking at the hourly charts, my bias is still DOWN.

 

[anilnegi]

NIFTY Closed at 7611. The Strategy is at Zero points Gain / Loss.
7750CE-7150PE Closed at 114 - 8 points gain
7600PE Closed @ 140 - Loss of 8 points

NIFTY Futures Made high of 7649.9. Daily Futures Pivot at 7651, which could act as Resistance.

In the hourly charts, SELL is Still active.

Need to watch NIFTY Futures Level 7651 - What happens at 7651 Futures will decide the Next course... Looking at the hourly charts, my bias is still DOWN.

Raj which site is offering free chart for intraday purposes, google finance is offering but apart from them all other are paid sites

anil

 

[healthraj]

Raj which site is offering free chart for intraday purposes, google finance is offering but apart from them all other are paid sites

anil

NSEIndia offers free Intraday charts. But you can only see today's data