NIFTY Options Trading by RAJ

[soumanag]

Supports broken... Though slightly recovered. Tomorrow sell off will take nifty to 7950. OI changed from 8200 to 8100 and now 8000. OI changing very frequently. No hopes for recovery.

US market is up & SGX NIFTY up by 75 puts. If this sustains tomorrow we may see a green day. I however agree with your basic premise of longer term bearish trend. Option data yet to suggest testing 7800 but this may change very soon. No bullish positional trade for next few sessions

 

[soumanag]

Raj,

today morning MAX_OI @ 8100-8600 which was trading near 136, now MAX_OI shifted to 8000-8500 pair which is trading near 141.

can be 8000-8500 now sell or not ?

angira...

Seems Raj is away, even I was waiting for his reply to your query.
IMO it is always risky to execute short straddle in a trending market. Best option would be to sell slightly OTM call & deep OTM put so that we are with the bearish trend of the market. We may find a pair which have a premium of 120.
Would like to get your & other member's opinion on this strategy.

 

[Anand_1986]

Hi Raj the thread seems to be more informative and I have read your threads for past three to four days. I have observed huge change in OI of 7800 PUT and high OI in 8000PE and 8500CE. How to interpret this

 

[healthraj]

Hi Raj the thread seems to be more informative and I have read your threads for past three to four days. I have observed huge change in OI of 7800 PUT and high OI in 8000PE and 8500CE. How to interpret this

COI should be used for that day only.

Looking the MAX OI at 8000-8500, 8000 should act as the support.

See the Daily Futures chart

 

[soumanag]

COI should be used for that day only.

Looking the MAX OI at 8000-8500, 8000 should act as the support.

See the Daily Futures chart

Raj is back :clap: thanks for the chart post boss!!!

 

[NoviceStockTrader]

Dear friends,

I have a small question. Let us suppose that i buy a call option at 10 rs and it goes to 48 rs. On expiry day it is trading at 48 rs and i put a square off order at 50 rs. but the best bid is at 45 and my order of 50 rs doesnt get executed. My question is if I let it just expire like this then what price/value will i realize for my call?

will be happy if someone can answer

 

[rahulmalik]

COI should be used for that day only.

Looking the MAX OI at 8000-8500, 8000 should act as the support.

See the Daily Futures chart

Dear Raj, would you please throw some light on these dotted lines, which technical indicator is this ?

 

[jagankris]

Dear friends,

I have a small question. Let us suppose that i buy a call option at 10 rs and it goes to 48 rs. On expiry day it is trading at 48 rs and i put a square off order at 50 rs. but the best bid is at 45 and my order of 50 rs doesnt get executed. My question is if I let it just expire like this then what price/value will i realize for my call?

will be happy if someone can answer

Say you have bought 8300 CE at 10 rs.
Say on expiry Nifty spot closes at 8350.
Then 8350 - 8300 - 10 = 40 rs will be your profit.
If Nifty spot closes below 8300 then your call will expire worthless.
Hope this helps.

 

[healthraj]

Dear Raj, would you please throw some light on these dotted lines, which technical indicator is this ?

Red line - Major Resistance (1)
Dotted Red Line - Minor Trend Resistance (2)
Dotted Yellow Line - Average of Major and Minor Resistance (3)
Green Line - Major Support (4)
Dotted Dark Green Line - Minor Trend Support (5)
Dotted Light Green Line - Average of Major and Minor Support (6)

So Ideally it would be Good to
BUY - When the stock / index goes below 4 or 6
SELL - When the stock / index goes above 1 or 3

 

[NoviceStockTrader]

Say you have bought 8300 CE at 10 rs.
Say on expiry Nifty spot closes at 8350.
Then 8350 - 8300 - 10 = 40 rs will be your profit.
If Nifty spot closes below 8300 then your call will expire worthless.
Hope this helps.

Thank you very much sir.