NIFTY Options Trading by RAJ

[healthraj]

NIFTY Levels

MAX COI @ 7900-8000

MAX OI @ 7600-8000. Yesterday it was at 7700-8000. Today came back to 7600-8000.

From the Options Chain data, Till 7950 it is bullish. Above 7950 it is Bearish
From a overall COI perspective it is still Bullish. 14L in CE. 25L in PE.

MAX Pain at 7800.

In HTF, R2 @ 7916. R1 @ 7827. Pivot @ 7733. S1 @ 7640. S2 @ 7550.
Channel Support @ 7835. So only below Say 7800, one can confirm a Strong SELLing and some panic will SET in the market. Otherwise the Sentiment will be Bullish.

The Daily Futures Pivot is @ 7944 and the Daily Channel Resistance is at 7917, Which is today's High (7916.9)

 

[healthraj]

Dear Raj Saheb,
The formula of 120 is as per yr thread. I m choosing strike price near supp.or resistance and with one option price min.at 90 and other strike price such that total becomes 120 or more. Kindly give yr comments on precautions I should keep in mind.
Regards,
abb

All the best. As long as you are selling near the Resistance or Support it should be fine. The only challenge would be to find the Support and Resistance .

The only major enemy for SELL is the VIX : So have an Eye on the VIX. If VIX jumps UP too much then the SELL will not work and so always trade with a Stoploss. D

Do not SELL the strikes which very close to each other. If you are not getting the right premium in the current month, Switch to the Next month.

 

[lamerider]

In the hourly charts, Yesterday the Resistance was at 7910 and Support @ 7510. So I had sold the Strikes away from the Support and Resistance.

7950 is away from 7910 and 7450 is away from 7510. Plus I also need to get a Premium of 120+ and so I chose SEP-14 Series instead of AUG-14 Series.

Raj sir, I have been following your strategy for some time now, and have got good results. more to say this strategy has actually helped me gain lot of confidence in trading.

Following this, i have sold 7950CE and 7550PE in sept series for 138.5 :thumb:

 

[healthraj]

Raj sir, I have been following your strategy for some time now, and have got good results. more to say this strategy has actually helped me gain lot of confidence in trading.

Following this, i have sold 7950CE and 7550PE in sept series for 138.5 :thumb:

All the best. Good to know that it has helped gain confidence. It was the same with me also. After trying so many strategies, SELLing pairs have given me the confidence. I had done the same strategy for almost last 5 months. So it works when the Volatility not going here and there. It works best in the BULL markets.

 

[healthraj]

NIFTY Levels

MAX COI @ 7900-8000

MAX OI @ 7600-8000. Yesterday it was at 7700-8000. Today came back to 7600-8000.

From the Options Chain data, Till 7950 it is bullish. Above 7950 it is Bearish
From a overall COI perspective it is still Bullish. 14L in CE. 25L in PE.

MAX Pain at 7800.

In HTF, R2 @ 7916. R1 @ 7827. Pivot @ 7733. S1 @ 7640. S2 @ 7550.
Channel Support @ 7835. So only below Say 7800, one can confirm a Strong SELLing and some panic will SET in the market. Otherwise the Sentiment will be Bullish.

The Daily Futures Pivot is @ 7944 and the Daily Channel Resistance is at 7917, Which is today's High (7916.9)

As per the MAX COI, the SELL is confirmed now, with Support at 7800.
As per the Four quadrants Rule also it is a SELL
Strike+ CE Quadrant - Bearish - 24L
Strike + PE quadrant - Bearish - 1L
Strike- CE quadrant - Bearish - -3L
Strike - PE quadrant - Bullish - 12L
Strike-PE quadrant (12L) is also < Strike+CE (24L).

Sum of COI also indicating a SELL with CE vs PE at 27L Vs 27L. This morning it was at 14L vs 25L.

So per the MAX COI it is SELL 8000CE @ 20 and BUY 7900PE @ 58

 

[healthraj]

In the LTF, NIFTY formed a Channel and trading near the Support. So for the DOWN MOVE there needs to be a BD @ 7875.

If there is a BO @ 7900, it is better to Close the SELL and Look for Highs to Enter the SELL.

 

[coolbull]

As per the MAX COI, the SELL is confirmed now, with Support at 7800.
As per the Four quadrants Rule also it is a SELL
Strike+ CE Quadrant - Bearish - 24L
Strike + PE quadrant - Bearish - 1L
Strike- CE quadrant - Bearish - -3L
Strike - PE quadrant - Bullish - 12L
Strike-PE quadrant (12L) is also < Strike+CE (24L).

Sum of COI also indicating a SELL with CE vs PE at 27L Vs 27L. This morning it was at 14L vs 25L.

So per the MAX COI it is SELL 8000CE @ 20 and BUY 7900PE @ 58

truly said......

Now bearishness is reflecting in some pairs of other month as well....

what do u think of volatility as of now?

 

[HBG]

.............................

 

[healthraj]

truly said......

Now bearishness is reflecting in some pairs of other month as well....

what do u think of volatility as of now?

NIFTY VIX has been between 12 and 16 for a while now.

Breaking this Range would lead to some Panic moves especially if VIX Moves above 16.

 

[healthraj]

As per the MAX COI, the SELL is confirmed now, with Support at 7800.
As per the Four quadrants Rule also it is a SELL
Strike+ CE Quadrant - Bearish - 24L
Strike + PE quadrant - Bearish - 1L
Strike- CE quadrant - Bearish - -3L
Strike - PE quadrant - Bullish - 12L
Strike-PE quadrant (12L) is also < Strike+CE (24L).

Sum of COI also indicating a SELL with CE vs PE at 27L Vs 27L. This morning it was at 14L vs 25L.

So per the MAX COI it is SELL 8000CE @ 20 and BUY 7900PE @ 58

The COI has once again changed to indicate an UP Move. But as per the quadrant it is a DOWN Move.

We have to wait and see. As per LTF only a BD @ 7885/75 only will confirm a DOWN move.