NIFTY Options Trading by RAJ

[Option.Trader]

Those who Believe Market might GO UP from here can BUY 7800 CE @ 23 now. If you do not want to Take too much risk, you can also Buy 7250/7300 Put and Hedge your Call. Definitely Market will make another 300 points from here. 7250 PE @ 18 now. I normally do not Recommend any OTM calls. I am not saying one should Put all the money.

Why are you hung up on going long... all the indications look at further downside. The break of long term trend line along with breach of Fibo and todays massive unwinding of puts and writing calls (18L+11L) suggest larger down moves on the corner... even if we have a dead cat bounce, i think everyone will try to utilize that to create short positions..
I would be looking at any longs only at 7420

 

[healthraj]

Carrying the 7600-7800 Pair
Closed the 7800CE - Can Buy on Monday anyway
Closed the SBIN call - Will Open on Monday

 

[TradeOptions]

SBIN 2480 CE at EOD -

SBIN Options Chain -

Regards

 

[healthraj]

Why are you hung up on going long... all the indications look at further downside. The break of long term trend line along with breach of Fibo and todays massive unwinding of puts and writing calls (18L+11L) suggest larger down moves on the corner... even if we have a dead cat bounce, i think everyone will try to utilize that to create short positions..
I would be looking at any longs only at 7420

OT,

This is always the Dilemma and the reason why we are not able to Capture the BIG move. So capturing the BIG move always risky because your first trade will be against the Trend / FLOW. But for the past 4 months. I have been following only one Simple system, which is to BUY near the Support and SELL near the Resistance, Which works for the Range bound. IT does not work when it is TRENDing.

Using the same system, Recommended a SELL near 7848, which worked at 7840.
Today after the market GAP DOWN, NIFTY was Trading near the Support and so it was a BUY.

Also the MAX OI is at 7500-8000.

Technically the Daily Chart is still indicating a BUY - The channel support is at 7573 and NIFTY closed at 7593. (The Major Trend support is at 7606- Which was broken. But only when it goes below the Support, a BUY will be generated)
Weekly chart is indicating a BUY - The channel Support is at 7586 and NIFTY closed above 7586 @ 7593. R1 @ 7601.


HTF is indicating a BUY.

As I said in one of my rules, I have to first trust my system and do as it says. Otherwise I will be forced to apply my intuition and it will not work. Of course as per my Trades it has worked 87% and so it can fail 13%.

Anyways, I am not trying to Defend my system, I am only to trying to play as per my trading Rules. So my first rule is to follow my system.

Let us see what happens, next week. Even if the market goes down from here, As I said in one of my rules, I am not going to blame my system. I will have to accept the Loss.

After 5 years I think I have a system which works.

Feel free to post your opinions and suggestions.

 

[healthraj]

Since NIFTY is trading at the Crucial Support Levels, it is a Risky Trade and so I will be trading with a Strict Stoploss of 20 points

I have SOLD the Pair 7600-7800 @ 127.8 - AUG Series

The Pair closed with 4 points profit. The VIX moved UP by 5% today. Hopefully if VIX goes down on Monday then it should help the position.

 

[Option.Trader]

OT,

This is always the Dilemma and the reason why we are not able to Capture the BIG move. So capturing the BIG move always risky because your first trade will be against the Trend / FLOW. But for the past 4 months. I have been following only one Simple system, which is to BUY near the Support and SELL near the Resistance, Which works for the Range bound. IT does not work when it is TRENDing.

Using the same system, Recommended a SELL near 7848, which worked at 7840.
Today after the market GAP DOWN, NIFTY was Trading near the Support and so it was a BUY.

Also the MAX OI is at 7500-8000.

Technically the Daily Chart is still indicating a BUY - The channel support is at 7573 and NIFTY closed at 7593. (The Major Trend support is at 7606- Which was broken. But only when it goes below the Support, a BUY will be generated)
Weekly chart is indicating a BUY - The channel Support is at 7586 and NIFTY closed above 7586 @ 7593. R1 @ 7601.


HTF is indicating a BUY.

As I said in one of my rules, I have to first trust my system and do as it says. Otherwise I will be forced to apply my intuition and it will not work. Of course as per my Trades it has worked 87% and so it can fail 13%.

Anyways, I am not trying to Defend my system, I am only to trying to play as per my trading Rules. So my first rule is to follow my system.

Let us see what happens, next week. Even if the market goes down from here, As I said in one of my rules, I am not going to blame my system. I will have to accept the Loss.

After 5 years I think I have a system which works.

Feel free to post your opinions and suggestions.

Fair point, hope the levels you are talking about are all futures and not spot.
You made a point about your system working in ranges, buy support sell resistance, so would it leave out trends (agreed that only 20% trends), but that's where you can make more, like the one @7840

 

[healthraj]

Fair point, hope the levels you are talking about are all futures and not spot.
You made a point about your system working in ranges, buy support sell resistance, so would it leave out trends (agreed that only 20% trends), but that's where you can make more, like the one @7840

Yes the Daily and Weekly Levels are in Futures.

For the TRENDING trader - JUST For the Discussion purpose: If you are Day trader, whether something is Trending or not, does not matter. Except the Pair trading I very rarely carry open positions. (The SOLD Pairs need to be carried because they earn points using the time value. )

This is one of the Major stuff that I had to change / erase from my mind. The idea about the Trending and Trading the BREAKOUTs and BREAKDOWNs. My initial systems like MTP was based on this idea. And so instead of say buying Near the Support, I normally used to look for a Pivot to be formed and then wait for it to come down and then Buy the Above the Pivot and then find out that it was not a real breakout etc... So you are always in the BREAKOUT Mind and you always are looking for BREAKOUT. In the LTF, BREAKOUTs and BREAKDOWNs happen but not too often. in HTF it very rarely happens and the FEAR factor does not allows one to trade it.

So I decided to change my mind and nowadays do not trade this BO / BD systems. Even If I want to trade BO / BD, I would already taken a position and look for BO / BD. My entry is not based on BO / BD.

Let us take the example of Today.

In the morning, I mention that 7575 Futures will be support. Made low of 7560. And closed at 7593. So one could have bought below 7575 and kept a stoploss of 20 points.

As per the TRENDing or FLOW method if one follows LTF, then there is no Trade today or would have got chopped out.

If one follows HTF, then there was no trade on UP side, The only Trade was on the DOWNSIDE, below 7540 SPOT - which did not trigger. So no Trade today for TREND Trader. But where as for a Range bound trader there was at least 10-20 points.

Anyways my conclusion is better to have the Range bound mind set and make a few points than to look for TRENDs. This is just my view and one of the important decision in my 5 years. People can think about it.

For People Who want to Trade using Options Chain data in Futures also this stuff works. Get the MAX OI or COI. find the Support and Resistance. Buy near the Support and Sell near the Resistance.

Today SBIN is an example. MAX COI @ 2400-2500. 2400 is the support and 2500 is the Resistance. Buy near 2400 and SELL near 2500.

 

[Option.Trader]

Yes the Daily and Weekly Levels are in Futures.

For the TRENDING trader - JUST For the Discussion purpose: If you are Day trader, whether something is Trending or not, does not matter. Except the Pair trading I very rarely carry open positions. (The SOLD Pairs need to be carried because they earn points using the time value. )

This is one of the Major stuff that I had to change / erase from my mind. The idea about the Trending and Trading the BREAKOUTs and BREAKDOWNs. My initial systems like MTP was based on this idea. And so instead of say buying Near the Support, I normally used to look for a Pivot to be formed and then wait for it to come down and then Buy the Above the Pivot and then find out that it was not a real breakout etc... So you are always in the BREAKOUT Mind and you always are looking for BREAKOUT. In the LTF, BREAKOUTs and BREAKDOWNs happen but not too often. in HTF it very rarely happens and the FEAR factor does not allows one to trade it.

So I decided to change my mind and nowadays do not trade this BO / BD systems. Even If I want to trade BO / BD, I would already taken a position and look for BO / BD. My entry is not based on BO / BD.

Let us take the example of Today.

In the morning, I mention that 7575 Futures will be support. Made low of 7560. And closed at 7593. So one could have bought below 7575 and kept a stoploss of 20 points.

As per the TRENDing or FLOW method if one follows LTF, then there is no Trade today or would have got chopped out.

If one follows HTF, then there was no trade on UP side, The only Trade was on the DOWNSIDE, below 7540 SPOT - which did not trigger. So no Trade today for TREND Trader. But where as for a Range bound trader there was at least 10-20 points.

Anyways my conclusion is better to have the Range bound mind set and make a few points than to look for TRENDs. This is just my view and one of the important decision in my 5 years. People can think about it.

For People Who want to Trade using Options Chain data in Futures also this stuff works. Get the MAX OI or COI. find the Support and Resistance. Buy near the Support and Sell near the Resistance.

Today SBIN is an example. MAX COI @ 2400-2500. 2400 is the support and 2500 is the Resistance. Buy near 2400 and SELL near 2500.

True for an intraday trader, but I felt this was an all consuming affair. Being selective helps me reduce the time in front of screen and helps me sleep better. But I think you have found the right mix with your system to take care of having to be a chart watcher all the time

 

[Trader Sachin]

hi raj
r u using any specific tool for technical analysis ???

 

[healthraj]

NIFTY Charts

Weekly Futures

Channel Support @ 7574 - BELOW 7574 SELL

Daily Futures

Support 2 was 7606 which was broken on Friday. Channel Support 7573 - BELOW 7573 it would be a SELL. Above 7575 Maintain LONG