NIFTY Options Trading by RAJ

[singlap]

MAX COI is 8300 on put side, but the value is negative. Which shows that there is a huge reduction in open interest at 8300 level. Surly this reduction at this level must have become increase in OI at other levels. Doesn't this mean that 8300 as MAX COI has lost its relevance ? Your views, Raj ?

 

[timepass]

how to interpret this volatility chart?

Hello neoplian, read the instructions in my signature about how to upload charts/images. The readers here can not access your desktop.

 

[soumanag]

@ 12:45

Markets are bearish and preparing for Mar 18th FOMC meeting.
Bulls are preparing to defend 8500 & 8400 while booking losses @ 8300. Might be a coincidence but put additions @ 8500 & 8400 = put unwinding @ 8300.

Bears have just taken over 8700 (call OI>PUT OI) thus shifting max pain to 8750 and creating another resistance at 8700.

VIX @ 15.2

Some amount of in - the - money call writing is visible where as in - the - money puts are getting unwound, which is putting further pressure.
Might test 8500 and go below it before 18th. However if FED do not increase rate (which have a strong possibility) might see another major bull rally.

My strategy for 18th event - No trade after 12pm 17th :lol: till the market ripples subside.

Sold 8400 - 8800 pair on Friday @ 66 now @ 56 will take a call on that after European markets open. FII selling might breach 8600 today.

 

[nepolian]

Hello neoplian, read the instructions in my signature about how to upload charts/images. The readers here can not access your desktop.

okey timepass ji... i have now uploading my image from imgur.com... how to read this volatility chart?

 

[nepolian]

@ 12:45

Markets are bearish and preparing for Mar 18th FOMC meeting.
Bulls are preparing to defend 8500 & 8400 while booking losses @ 8300. Might be a coincidence but put additions @ 8500 & 8400 = put unwinding @ 8300.

Bears have just taken over 8700 (call OI>PUT OI) thus shifting max pain to 8750 and creating another resistance at 8700.

VIX @ 15.2

Some amount of in - the - money call writing is visible where as in - the - money puts are getting unwound, which is putting further pressure.
Might test 8500 and go below it before 18th. However if FED do not increase rate (which have a strong possibility) might see another major bull rally.

My strategy for 18th event - No trade after 12pm 17th :lol: till the market ripples subside.

Sold 8400 - 8800 pair on Friday @ 66 now @ 56 will take a call on that after European markets open. FII selling might breach 8600 today.

Soumanag ji... the OAT is still showing Max Pain @ 8800..

 

[hardik229]

Yes, and Soumanag ji, your OI analysis sheet is showing the Max Pain as 8700.

Soumanag ji... the OAT is still showing Max Pain @ 8800..

 

[soumanag]

Soumanag ji... the OAT is still showing Max Pain @ 8800..

Because it doesn't included all the strikes in OAT for calculating MAX PAIN. The logic here is 8X50 strikes are less important compared to 8X00 strikes. When u see the OI build ups @ 8X50 you will also support the logic. I consider all of them because it helps tracking small changes in the market sentiment.

 

[soumanag]

Yes, and Soumanag ji, your OI analysis sheet is showing the Max Pain as 8700.

:lol: look at the top of my post it was for 12:45. in 20 mins the MAX Pain shifted down by another 50 pts.

 

[kcsusha]

Booked 8500-8800 pair at Rs 73 Net profit Rs7 ( Paper trade only )

 

[angira]

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

angira...

I've closed the Pair today near 75.

angira...