NIFTY Options Trading by RAJ

[rajesh_]

Amazing thing, I wanted to buy puts near the previous high +- 20 points, and missed taking when it went to 8161, so at around 8151, i put a limit order to buy 7900nov pe @25 that was higher than low made @ 8161...end of day market has rallied to 8181, but put instead of decreasing has risen along with index... First time put increased 5 points with a 30 point increase in underlying asset... Looks like people are bracing for a downfall tomo

Tomorrow gap up by 40 points. I guess it will touch 8300 and bounce back.

All PEs will bleed tomorrow.

 

[healthraj]

Sir I quoting your previous post. what is your view now. We are almost at 8200. TV analysts started to give statement likes: we may see 10 % correction for further bulls run since it did't happened last august 2013.
Thank's

NOV MAX OI @ 8000-8300. So First 8300 and then 8000.

NIFTY Daily Futures Chart

 

[rajesh_]

Yes. Gud opportunity to sell @ 8300 today. If OI levels same i will sell max oi pair at 8300 level.

 

[healthraj]

Raj brother

At the start of October series,
highest OI in put was 7800 - 49.85, today it is 0
highest OI in call was 8200 - 34.9, today it is 0.

can we use any strategy to get benefit from time decay

anil negi

Yes you can develop a Strategy by observing the MAX OI. The NOV-14 MAX OI was 7500-8500. Now it is at 8000-8300. But it is more a LONG TERM positions for one month or two month. So definitely something is there for the Options Writers in the MAX OI Pair

 

[healthraj]

BANKNIFTY Daily Futures

 

[healthraj]

Yes. Gud opportunity to sell @ 8300 today. If OI levels same i will sell max oi pair at 8300 level.

Not today. May be Monday or next week.

 

[healthraj]

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.

NIFTY made 8200. But MAX OI @ 8000-8300. So if NIFTY Spot / Futures touch 8300, one can SELL 8000PE-8300CE Pair

The Range for today is 8225-8300

 

[prabhsingh]

I am expecting Relcapital to touch 504.

 

[healthraj]

NIFTY made 8200. But MAX OI @ 8000-8300. So if NIFTY Spot / Futures touch 8300, one can SELL 8000PE-8300CE Pair

The Range for today is 8225-8300

MAX OI has changed to 8000-8400

 

[rajesh_]

MAX OI has changed to 8000-8400

Do you still think we should sell pair @ 8300..?