NIFTY Options Trading by RAJ

[anup0212]

hey Raj,

Is there any problem in posting views about market with levels ? I am asking this as my thread is closed by admin mentioning it as call . I do not understand how the view become call ...Traders due to that I am not able to post my views and Raj sorry for this.

BYE FROM MYSIDE...

Thanks
anoop

 

[healthraj]

Besides NIFTY, how can we find the ideal pair value for banknifty & other stock futures?

thanks

First of all this is based on my observation and it is not a strict rule to Find a Pair @ 120. You can always find a pair with whatever value and Sell. So observe the pairs and you will understand. But I will explain my logic so that you can apply on other stocks or indices.

So how do we find the pair for Stocks.

For NIFTY it works like these and it should work in a similar fashion for Stocks also.

For NIFTY since you need minimum two strikes to SELL the Difference would be 100 points. Add 20% (NIFTY Historic Volatility). that would be 120 points.

Let us take BANKNIFTY.
BANKNIFTY Strike is 100 points. And the HIST VOLT is now at 30%.

So we would need to find a pair whose value would be 100+100 =200 + 30% * 200 = 200 + 60 = 260.

Please observe and take your own decision to trade... I might be wrong... But these are some of my observations and Tips to Enter the SELL positions for PAIR trading.

 

[healthraj]

hey Raj,

Is there any problem in posting views about market with levels ? I am asking this as my thread is closed by admin mentioning it as call . I do not understand how the view become call ...Traders due to that I am not able to post my views and Raj sorry for this.

BYE FROM MYSIDE...

Thanks
anoop

Hi Anoop,

That is a bit tricky question since there are no clear rules to identify if a post is a Call or some discussion. In principle after the SEBI order I have seen the fake calls and Call providers coming down which is good for the Retail traders. Regarding your thread I was not following. But in the last few posts in your thread you are basically saying to Buy above some level and Sell below some level. So it might be taken as a Call. So instead you can provide a Trading Range based on Hourly or Daily or Weekly charts or based on MAX OI or COI. In fact I am not following my thread also nowadays and I rarely come and comment on this thread. So please take it in the right spirit and move on.

 

[soumanag]

Hi Raj,
A couple of questions regarding your earlier post for selection of strike prices. I am sorry for asking them if you have already discussed these earlier in the thread...
1. "For NIFTY since you need minimum two strikes to SELL the Difference would be 100 points. Add 20% (NIFTY Historic Volatility). that would be 120 points. "
How to decide which side should be 30 and which side should be 90? Does this depend on the outlook of market i.e in case of bullish a Call price of 30 & Put price of 90 and vice versa?

2. "So we would need to find a pair whose value would be 100+100 =200 + 30% * 200 = 200 + 60 = 260."
Should the split between the prices be 1:3 similar to the NIFTY?

 

[angira]

First of all this is based on my observation and it is not a strict rule to Find a Pair @ 120. You can always find a pair with whatever value and Sell. So observe the pairs and you will understand. But I will explain my logic so that you can apply on other stocks or indices.

So how do we find the pair for Stocks.

For NIFTY it works like these and it should work in a similar fashion for Stocks also.

For NIFTY since you need minimum two strikes to SELL the Difference would be 100 points. Add 20% (NIFTY Historic Volatility). that would be 120 points.

Let us take BANKNIFTY.
BANKNIFTY Strike is 100 points. And the HIST VOLT is now at 30%.

So we would need to find a pair whose value would be 100+100 =200 + 30% * 200 = 200 + 60 = 260.

Please observe and take your own decision to trade... I might be wrong... But these are some of my observations and Tips to Enter the SELL positions for PAIR trading.

Thanks Raj,

angira...

 

[angira]

Agreed 8700-8800 pair isvery narrow to short. Convert to 8400 8800 pair 8500 8800 pair. Ideal pair value to short is 120. One leg should have 90 and another leg should have 30. For example 8800ce@90 and 8500pe@30

Raj,
yesterday morning pair 8500-8800 available near 125(95+30) after then I've shorted at 121.

angira...

 

[healthraj]

Hi Raj,
A couple of questions regarding your earlier post for selection of strike prices. I am sorry for asking them if you have already discussed these earlier in the thread...
1. "For NIFTY since you need minimum two strikes to SELL the Difference would be 100 points. Add 20% (NIFTY Historic Volatility). that would be 120 points. "
How to decide which side should be 30 and which side should be 90? Does this depend on the outlook of market i.e in case of bullish a Call price of 30 & Put price of 90 and vice versa?

2. "So we would need to find a pair whose value would be 100+100 =200 + 30% * 200 = 200 + 60 = 260."
Should the split between the prices be 1:3 similar to the NIFTY?

Yes you are right.

 

[sangram1705]

First of all this is based on my observation and it is not a strict rule to Find a Pair @ 120. You can always find a pair with whatever value and Sell. So observe the pairs and you will understand. But I will explain my logic so that you can apply on other stocks or indices.

So how do we find the pair for Stocks.

For NIFTY it works like these and it should work in a similar fashion for Stocks also.

For NIFTY since you need minimum two strikes to SELL the Difference would be 100 points. Add 20% (NIFTY Historic Volatility). that would be 120 points.

Let us take BANKNIFTY.
BANKNIFTY Strike is 100 points. And the HIST VOLT is now at 30%.

So we would need to find a pair whose value would be 100+100 =200 + 30% * 200 = 200 + 60 = 260.

Please observe and take your own decision to trade... I might be wrong... But these are some of my observations and Tips to Enter the SELL positions for PAIR trading.

Thanks Raj Bhai,

 

[hardik229]

Thanks Raj..!! You are a gem..!!

Hardik Shah

First of all this is based on my observation and it is not a strict rule to Find a Pair @ 120. You can always find a pair with whatever value and Sell. So observe the pairs and you will understand. But I will explain my logic so that you can apply on other stocks or indices.

So how do we find the pair for Stocks.

For NIFTY it works like these and it should work in a similar fashion for Stocks also.

For NIFTY since you need minimum two strikes to SELL the Difference would be 100 points. Add 20% (NIFTY Historic Volatility). that would be 120 points.

Let us take BANKNIFTY.
BANKNIFTY Strike is 100 points. And the HIST VOLT is now at 30%.

So we would need to find a pair whose value would be 100+100 =200 + 30% * 200 = 200 + 60 = 260.

Please observe and take your own decision to trade... I might be wrong... But these are some of my observations and Tips to Enter the SELL positions for PAIR trading.

 

[VJAY]

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