NIFTY Options Trading by RAJ

[singlap]

So if i try to collect all the info about TCS,

MAX OI average is 2700.
Max COI average is 2650.
Overall it will come to 2675.

At present stock is at 2679.

Strikes are bullish for 2650 & below and bearish for 2700 onwards.

What will be the suggested trade and at what levels ? Raj, here your input will make things crystal clear.

 

[healthraj]

Max OI data can change but Max COI doesn't seem to change for today.

So next question for which i would like to eat head for Raj is that 7925 pivot if touched, how to decide whether we should play for 7850 or 8000.

Is it that for intraday kind of a trade, play for 7850.

For positional play, go for 8000.

Raj your comments on this will be ANMOL.

Raj bro, Same question here???????????????????????????????????????????????

Max CIO changed to 7700-7900.

Pivot became 7900 too.

On Monday why don't one of you post your views based on COI, OI and HTF. Let us see if your analysis is working...

You will need to
1. Decide if it is Rangebound or Trending
2. Find the Pivot using the COI - The initial target
3. If it is Rangebound find the next target
4. If it is Trending what is the support and Resistance.
5. You can also present your view coupled with the hourly charts...

 

[healthraj]

Max CIO changed to 7700-7900.

Pivot became 7900 too.

That means NIFTY might goto 7800 on Monday

 

[ROKU]

Please let me know your view first. So basically you will need

1. The overall Bias - UP or DOWN - How did you decide ?
2. Entry price
3. Minimum two Targets.
4. I am assuming it is a positional trade.

Mr. Raj
I use Ichimoku Kinko Hio system for my studies, it's a trend based system.
On the daily chart Base line or Kijun Sen is at 2679, it's lying flat which means that price must revolve around it for a while which is what it seems to be doing.

Trend-Bullish
On the daily,weekly and monthly chart the trend is bullish as future cloud is green.

From here on I expect the script to go up, though it can drop upto 2640 for once and then move up.

The view is for positional trade I plan on buying call for October series.

Entry-CMP:2679
Target:As long as the trend is not broken.

 

[healthraj]

So if i try to collect all the info about TCS,

MAX OI average is 2700.
Max COI average is 2650.
Overall it will come to 2675.

At present stock is at 2679.

Strikes are bullish for 2650 & below and bearish for 2700 onwards.

What will be the suggested trade and at what levels ? Raj, here your input will make things crystal clear.

Please also add your view based on the Hourly Charts...
1. What is the current direction ? UP / DOWN
2. Resistance ?
3. Pivot ?
4. Support ?

 

[healthraj]

Mr. Raj
I use Ichimoku Kinko Hio system for my studies, it's a trend based system.
On the daily chart Base line or Kijun Sen is at 2679, it's lying flat which means that price must revolve around it for a while which is what it seems to be doing.

Trend-Bullish
On the daily,weekly and monthly chart the trend is bullish as future cloud is green.

From here on I expect the script to go up, though it can drop upto 2640 for once and then move up.

The view is for positional trade I plan on buying call for October series.

Entry-CMP:2679
Target:As long as the trend is not broken.

Thanks. That means

1. Your bias is Bullish
2. Entry 2679
3. Targets - No specific Targets - Which does not seem to be good
4. Support - 2640.

As per Options Data,

The support is at 2600/50 - So your support at 2640 seems to be fine - So that would be ideal price to get in.
As per the Options data the Target seems to be 2800 - MAX OI @ CE.

Now Looking at the charts
HTF SPOT - 2627-2721-2795 - Right now SELL in progress. Buy should come around 2627/00 Levels.
Daily Futures - Minor Trend Support at 2668. Pivot @ 2742. Resistance @ 2816. Major support at 2593.

So buy around 2600/25 SPOT for Targets of 2700 spot and 2800 spot.

 

[singlap]

Please also add your view based on the Hourly Charts...
1. What is the current direction ? UP / DOWN
2. Resistance ?
3. Pivot ?
4. Support ?

Raj, if i want to analyse only options chain without using any charts ,

2. Resistance - Highest OI ce
3. Pivot - averages of COI & OI
4. Support - Highest OI pe

Hats off to your understanding of charts as well as option chain. I am not well versed with charts but good in option chain.
Can i reach some authentic conclusion without charts with this information which i get from chain only ?

 

[anilnegi]

On Monday why don't one of you post your views based on COI, OI and HTF. Let us see if your analysis is working...

You will need to
1. Decide if it is Rangebound or Trending
2. Find the Pivot using the COI - The initial target
3. If it is Rangebound find the next target
4. If it is Trending what is the support and Resistance.
5. You can also present your view coupled with the hourly charts...

Surely will try to do

anil negi

 

[healthraj]

Raj, if i want to analyse only options chain without using any charts ,

2. Resistance - Highest OI ce
3. Pivot - averages of COI & OI
4. Support - Highest OI pe

Hats off to your understanding of charts as well as option chain. I am not well versed with charts but good in option chain.
Can i reach some authentic conclusion without charts with this information which i get from chain only ?

It is always debatable whether price drives Options data or Options data drives Price. Since Futures and Options is Secondary instrument, I would like to believe that it is the Price that drives the Options data.

So my opinion would be that trading with only Options Data would be dangerous. You will have to use it in conjunction with some other thing.

If you want to Trade only with Options data, then the only trade you have to Take is

SELLing at the MAX OI @ CE for Positional or SELLing at the MAX COI @ CE for Intraday
OR
BUYing at the MAX OI @ PE for Positional or BUYing at the MAX COI @ CE for Intraday.

This normally works with Stocks. Index is normally speculated or manipulated so you get only few chances.

 

[Somatung]

@Healthraj

Your series of above post in which you explained in a simple way to the questioners how to do a mix with option data and the chart is simple and is absolute useful. :thumb: I some times feel that people try to read out too much of option data and get lost with all that. I recently received a request from a very friendly trader and he showed me all his tools he uses and has paid for, but clearly told that he is not able to make money with options as he doe's not know how to value all this informations. I then requested him to show me in what way he makes any decision to get to a conclusion which option he now should trade. Till today he was not able to do that. If he would have told me that, next then I would have pointed him into the direction of using less tools on options and include the chart in his trading system with only little tools, as other wise he will get killed with ten TA indicators and ten different tools in options. Hope he is reading this post and all of yours, as what you posted above will not need any more explanations from my side into his direction. :clapping::clapping:

Wish you a nice weekend / Dan