NIFTY Options Trading by RAJ

[spraviiii]

Dear Raj,

i recently see your thread and very useful information you provided..after i gone through your reply..i have some queries can please explain me...

nifty volumes

For example : 8500 nov Call has 126000 OI added and Volume is 973,316 in that case valume means (973316* 25 (nifty lost size)..

is that correct ? for valume we need to multifly with lot size ?? please give me some idea on this...

IV ; implied volatality..

which volatility is good to give entry perticular strike...please give some example for better understand...

Thank you very much in advance

 

[angira]

Today 20-Nov As per OptionData

NIFTY:-
Weak Bull

MAX_OI & MAX_CHG_OI @ pair 8300/8500.

angira...

 

[prabhsingh]

Does this means Wipro can touch close to 600 levels in month of Dec?

 

[fahadmalik]

Yesterday Prediction

like tomorrow BuyCE8400@58 and sell PE8400@49 and predict Nifty tomorrow will rise....i already wrote it down...Just a prediction and on paper trade

today at 3:20PM

CE8400@63
PE8400@37

Just a small prediction that it will rally weakly...:clap:Happy today that it work
Prediction+Calculation=Profit but its on paper trade still practising.

Tomorrow Prediction Sell CE8400@59 Buy PE8400@39
it may be range bound or fall...chances to fall before it rallies to 8500

All are on paper Trade......

 

[healthraj]

Yesterday Prediction

like tomorrow BuyCE8400@58 and sell PE8400@49 and predict Nifty tomorrow will rise....i already wrote it down...Just a prediction and on paper trade

today at 3:20PM

CE8400@63
PE8400@37

Just a small prediction that it will rally weakly...:clap:Happy today that it work
Prediction+Calculation=Profit but its on paper trade still practising.

Tomorrow Prediction Sell CE8400@59 Buy PE8400@39
it may be range bound or fall...chances to fall before it rallies to 8500

All are on paper Trade......

Why don't you start a thread and put your paper trades there ?:thumb:

 

[spraviiii]

hello Raj,

i have been waiting for you reply...please give some idea on my query...

 

[healthraj]

Dear Raj,

i recently see your thread and very useful information you provided..after i gone through your reply..i have some queries can please explain me...

nifty volumes

For example : 8500 nov Call has 126000 OI added and Volume is 973,316 in that case valume means (973316* 25 (nifty lost size)..

is that correct ? for valume we need to multifly with lot size ?? please give me some idea on this...

IV ; implied volatality..

which volatility is good to give entry perticular strike...please give some example for better understand...

Thank you very much in advance

Yes OI is in quantities and Volume is in Lots. So you need to multiply by 25 to get quantities.

For Volatility, you can take the FOVOLT as the base and compare your IV with FOVOLT Volatility. FOVOLT can be got on a daily basis for a stock from nseindia.com. And IV for a particular strike is in Options Chain

 

[spraviiii]

Thank you verymuch for your reply Raj san..i multiflied with (25) the volume of each call &put of Nifty valume...i never seen any strike volume is less than COI...i dont think Volume will be less than COI ( today traded quantity (includes new OI and square of OI)...)

forexample : 2oth Nifty Volume is > COI of any strike

can you clarify how it is possible voulme is less than COI (can you give any example)...Thank you very much in advance...


Rule 4: Does Volume in the Options Chain data play any role in our decision making?.

Yes. Use the Volume data to decide whether it is STRONG BULL or a STRONG BEAR.

Let us say at 6100 we have the MAX CHG in OI @ CE - Say 6L Postions
Let us say at 6000 we have the MAX CHG in OI @ PE - 11L Positions

Now 11L > 6L and PE > CE, so it is a BULL.
Now let us look the Volumes @ 6100CE and 6000PE

Volume @ 6100CE - 5.5L
Volume @ 6000PE - 17

Now compare the CHG in OI and Volume @ 6100CE.
Volume (5.5L) < 6L - So it is not a Strong BULL. Had the Volume been greater than the "CHG in OI" then it would have been a STRONG BULL.

Yes OI is in quantities and Volume is in Lots. So you need to multiply by 25 to get quantities.

For Volatility, you can take the FOVOLT as the base and compare your IV with FOVOLT Volatility. FOVOLT can be got on a daily basis for a stock from nseindia.com. And IV for a particular strike is in Options Chain

 

[healthraj]

Thank you verymuch for your reply Raj san..i multiflied with (25) the volume of each call &put of Nifty valume...i never seen any strike volume is less than COI...i dont think Volume will be less than COI ( today traded quantity (includes new OI and square of OI)...)

forexample : 2oth Nifty Volume is > COI of any strike

can you clarify how it is possible voulme is less than COI (can you give any example)...Thank you very much in advance...

You are may be right. Anyway this rule is only to Help you choose strike for Naked Options trading. So accordingly today the MAX Volume in CE is at 8400CE and MAX Volume in PE is at 8400 PE. So if you are bullish better to Buy 8400 CE and if you are Bearish better to Buy 8400 PE.

@9:50. MAX Volume is at 8400PE and 8500CE. But COI in 8500CE is negative. So that way 8400PE becomes a better candidate. 8400PE Now at 22.5

 

[singlap]

8400 pe becomes a better candidate to buy ? Are we here taking a bearish stance Raj ?