NIFTY Options Trading by RAJ

[jetking]

COI at 8050 and 8100 PE is increasing steadily

but 8100 CE is not unwinding

till this happens,range is 8025--8075

 

[healthraj]

NIFTY

Today the MAX COI is at 8050-8000. MAX COI PE @ 8050 and MAX COI CE @ 8000. It is something unusual. Meaning normally the PE strike will be lower than the CE strike. So it seems that there is a heavy SELLing in 8050PE and most probably NIFTY will expire above 8050.

Since the MAX OI is 8000-8100, IT is a SELL around 8100 and BUY around 8000. MAX Pain is at 8050.

At the end of the Expiry for direction it is better to look at the COI and OI of next month. Accordingly the Resistance seems to be at 8200 and Support is at 7700.

So from a positional perspective, it is better to hold on till 8200. May be 8200 will be met on Friday.

As per HTF the Range is 7982 - 8136. Daily Futures Minor Trend Range is 8000-8200.

 

[healthraj]

COI at 8050 and 8100 PE is increasing steadily

but 8100 CE is not unwinding

till this happens,range is 8025--8075

That is Right, the COI is concentrated at 8050 and it is better to Trade the Range 8025-8075. 8075 might be broken only after expiry. So it is very difficult to trade with a small Range. It is a market for Positional traders.

 

[healthraj]

Those who want to Trade the Pair can SELL the Pair 8050PE-8300CE @ 126 in the NOV-14 Series.

 

[healthraj]

Those who want to Trade the Pair can SELL the Pair 8050PE-8300CE @ 126 in the NOV-14 Series.

The Pair is now trading at 115 - 11 points profit

 

[hardik229]

Hi Raj,

First of all Happy Diwali to you.

Can you please guide me for the positional trading? I could not find time to trade intraday.

The same technique if I want to use for positional trading, then what should I look for? OI for PE & CE?

How to make decision? Do i go for pair trading or buying plain vanilla options.

If pair trading how to decide the pair?

Thanks..!!
Hardik

 

[healthraj]

Hi Raj,

First of all Happy Diwali to you.

Can you please guide me for the positional trading? I could not find time to trade intraday.

The same technique if I want to use for positional trading, then what should I look for? OI for PE & CE?

How to make decision? Do i go for pair trading or buying plain vanilla options.

If pair trading how to decide the pair?

Thanks..!!
Hardik

Yes for Intraday use COI and for Positional use OI to make your decisions.

 

[hardik229]

Hi Raj,

How to make decision? Do i go for pair trading or buying plain vanilla options.

If pair trading how to decide the pair?

Thanks..!!
Hardik

Yes for Intraday use COI and for Positional use OI to make your decisions.

 

[healthraj]

Hi Raj,

How to make decision? Do i go for pair trading or buying plain vanilla options.

If pair trading how to decide the pair?

Thanks..!!
Hardik

If you want to go for Pair Trading SELL the MAX OI pair.
If you want to Go for Naked Options Buying, Buy the Strike where the MAX OI is present.

For example for the NOV-14 Series, the MAX OI is at 8000-8200. So ideally NIFTY should test 8200. Yesterday it was at 7700-8200. Today moving to 8000-8200 is a bullish signal.

When NIFTY is around 8200,

If you want to do Pair trading, you can sell the Pair 8000PE-8200CE.
Or if you want to do Naked Options Trading, you can buy 8200PE.

 

[healthraj]

NIFTY For Today.

Using NOV-14 Options Chain data, MAX COI is at 8000-8300. So the Target seems to be 8150. If you get NIFTY around 8075, Buy for a Target of 8150 and a positional target of 8200 or Higher.

As per OCT-14 Options data,

As per COI the Range is 8100-8150. Combining OI and COI, from 8150 it can goto 8087.5. So the Range for today is 8087 - 8150