NIFTY Options Trading by RAJ

[hardik229]

Soumanag Ji,

I understand what you are you trying to say, but based on the afternoon data it was like that market wont break 8700. But suddenly market dragged below 8700.
How can we judge it upfront and avoid this sort of situation?

I hope you understand my question (actually concern).

Thanks..!!
Hardik Shah

If u follow the change in the chart then u would have noticed 8700 put additions were at 15L and call was negative during 1st 3 - 4 hours then PUT OI started reducing that was the signal that bears were not letting go of 8700. Just check your charts now 8700 calls are more that puts. Also in the morning 8500 PUT was -Ve that should have been a signal.
Bears have too much power in this market.

 

[soumanag]

Soumanag Ji,

I understand what you are you trying to say, but based on the afternoon data it was like that market wont break 8700. But suddenly market dragged below 8700.
How can we judge it upfront and avoid this sort of situation?

I hope you understand my question (actually concern).

Thanks..!!
Hardik Shah

I am trying to say it did not happen suddenly. 8700 PE was reducing at a rapid pace before market went below 8700. Once it breached 8700 on downside bears added calls at 8700 & 8800. The price action shows that 8700 saw a strong support and NIFTY bounced back 3 - 4 times before finally giving up. Remember 8500 is downside target (now it is 8400) so any rally has been seen as a chance to go short.

 

[soumanag]

I am trying to say it did not happen suddenly. 8700 PE was reducing at a rapid pace before market went below 8700. Once it breached 8700 on downside bears added calls at 8700 & 8800. The price action shows that 8700 saw a strong support and NIFTY bounced back 3 - 4 times before finally giving up. Remember 8500 is downside target (now it is 8400) so any rally has been seen as a chance to go short.

Raj in one of his early posts in the beginning of this thread has mentioned cases of panic selling you may refer that.

 

[hardik229]

Thanks for the information. Do you know any pages reference?

Hardik Shah

Raj in one of his early posts in the beginning of this thread has mentioned cases of panic selling you may refer that.

 

[soumanag]

Thanks for the information. Do you know any pages reference?

Hardik Shah

Its in his 1st 3 - 4 posts where he explains the rules, its just couple of lines as far as I remember, dont remember the page no, sorry.

 

[hardik229]

Thanks Again..!!

Pasting the same here:

Rule 6: In the CHG in OI, what if we get Negative values? What signals does it give?

If we get the Negative values in "CE", that means Market makers (BEARS) are squaring off the Call Positions (The SHORT Positions). So heavy squaring off in CE is a BULLISH signal and we have to expect a BREAKOUT if there is a sudden spike in the squaring volume. There is a panic situation. Normally this will happen all of a sudden in say 10-20 minutes and we have to exit the Shorts immediately and can GO LONG.

It is the Vice versa if we get Huge Negative Values in "PE".

If we get Negative Values both in PE and CE, then blindly SELL the OI pair

Small negative values indicate the normal profit booking.

Its in his 1st 3 - 4 posts where he explains the rules, its just couple of lines as far as I remember, dont remember the page no, sorry.

 

[healthraj]

RAJ OAT Mini version.

I have simplified the OAT Tool and created a Mini version.

Please find below the screen shot of the tool.

The 4 shared link is as below. The tool is protected and so please do not ask for any password. You can use it as is.

http://wwwXXX4sharedXXXcom/zip/PEhXLT0hce/RAJ_OAT_OptionsChain_Analyzer_.html - Replace XXX with a . (dot)

 

[Riskyman]

Raj,

This is really selfless effort to help fellow traders. Your spirit to help others is truly appreciated.

I Had sent you a pm about the polynomials. Hope you seen it.

Thanks.

 

[VJAY]

If u follow the change in the chart then u would have noticed 8700 put additions were at 15L and call was negative during 1st 3 - 4 hours then PUT OI started reducing that was the signal that bears were not letting go of 8700. Just check your charts now 8700 calls are more that puts. Also in the morning 8500 PUT was -Ve that should have been a signal.
Bears have too much power in this market.

I am trying to say it did not happen suddenly. 8700 PE was reducing at a rapid pace before market went below 8700. Once it breached 8700 on downside bears added calls at 8700 & 8800. The price action shows that 8700 saw a strong support and NIFTY bounced back 3 - 4 times before finally giving up. Remember 8500 is downside target (now it is 8400) so any rally has been seen as a chance to go short.

RAJ OAT Mini version.

I have simplified the OAT Tool and created a Mini version.

Please find below the screen shot of the tool.

The 4 shared link is as below. The tool is protected and so please do not ask for any password. You can use it as is.

http://wwwXXX4sharedXXXcom/zip/PEhXLT0hce/RAJ_OAT_OptionsChain_Analyzer_.html - Replace XXX with a . (dot)

Thanks raj& soumanag....

 

[nepolian]

Raj,

This is really selfless effort to help fellow traders. Your spirit to help others is truly appreciated.

I Had sent you a pm about the polynomials. Hope you seen it.

Thanks.

Polynomials means Binomial Tree?