NIFTY Options Trading by RAJ

[soumanag]

@12:45

Markets opened gap up and rallied due to global sentiment. Intra day signal was bullish and 8700 8800 saw short covering. Bulls added substantially @ 8700 PE.
As I promised myself, I closed all my positions booking my losses of about 15 pts. No trades till 19th Morning
Markets trading with week bullish sentiment. May see further bullishness after Europe opens (judging by yesterdays trend)

Long term trend remains bearish with Max OI @ 8500 - 9000
Max Pain Back to 8800
VIX reversed from mornings fall and now @ 15.35

 

[soumanag]

Soumanag ji,

Yes based on US market we rallied, but as per yesterday's OI data market should fall further.

How can we avoid this sort of spike?

Markets do not follow any logic. Markets are driven by sentiments... which changes mind mindbogglingly frequently :lol:
This tells you clearly that the strategy discussed in this thread is not for day trading and making quick return. I am not aware of any members using this tool to day trade. Basically you are making a profit by eating into the time value of the options. You need to sell an appropriate pair and sit tight and have the stomach view your trade book showing losses (which I am still developing :lol: )

 

[nepolian]

8700 CEs and PEs both are now being add.... may be this will be a centre of gravity..

 

[nepolian]

Now MAX OI is shifted from 8500-9000 to 8400-9000.
and MAXPAIN at 8800..
Raj ji.. and Soumanag ji... how you consider this shifting?

 

[badarivt]

Saw some short covering after 3.00 PM. Expecting fall to 8500 in the next few days

 

[foruamit2004]

U r correct... seems that like US market Indian markets assumed no rate hike from FED. Monkey see monkey do :lol: our markets are closely correlated to DOW which rallied by 1.29% last night. Might be a bull trap though weekly trend remains bearish..... so be careful about any fresh long positions

As per rule number 2 in first page, if

PE MAX CHG OI > CE MAX CHG OI,then market is bullish for intraday, which is correct according to this chart?

 

[SexyTrader]

Best is to start short-selling 8700 CE March & April and just let the profits roll in

 

[kcsusha]

Dear Raj Sir,
How to calculate Max Pain Strike for Mar15 Series? I have no tool or any software.
I have to manually.

 

[soumanag]

As per rule number 2 in first page, if

PE MAX CHG OI > CE MAX CHG OI,then market is bullish for intraday, which is correct according to this chart?

Yes, think of it this way if I am bullish I would buy future and or sell puts because I am confident that market will not come down below the strike I am writing the put at ditto for future sell / call writing.
So if the market is trending up / down increasing OI in futures tell us the trend is strong.
If more people start buying future and sell puts then market would go up and vice versa..
Hope this helps

 

[kcsusha]

Dear Sir,
Rule says we should not select a pair where there is MAX OI or MAX COI.
Then what is the criterion sir?
Please also help me to download your OTA tool by providing link/page no etc
alongwith steps.