NIFTY Options Trading by RAJ

[healthraj]

Dear Raj,
Where is this fig in OI mini utility?or is it manually calculated?

In the original version it was in Cells M8 and M9. I had probably removed it in Mini. I will include in the next version

 

[healthraj]

18650 Reached, the Resistance level in LTF. Now either it will take some time and BO or it has to go down. Better to Book Profits on Long and Wait on the Sidelines and watch for some time.... As I had told on Wednesday, After jumping from 18400, The first target of 18600 is met... As per Hourly charts, the next target should be 18800. But Let us give it some time...

MAX COI also now changed to 18000-18600. But the Trend in Both COI and OI is UP....

Hope Consolidation is done at 18650. Since now the MAX COI changed to 18000-19500. We should now expect 18800.

 

[superandroid21]

Sir, in the OAT mini tool there are volatility values for PE,CE and Average volatility. Today the Average Volt>PE VOLT, CE VOLT. Few days ago PE VOL> AVG VOLT and in the last 3-4 days CE VOLT< AVG VOLT. How to interpret this? In one of the pages in the beginning of this thread I read if Avg Volt>PE,CE Volt it is good for writing calls. Could you explain how to interpret this? Sorry if I am asking the same question that someone may have asked earlier.
Thanks in advance.

 

[healthraj]

IF NIFTY Goes down from here, 8463 should act as the Support. If it does not hold then it can goto 8420. If it holds then 8500 and above.

COI indicating FLAT now. OI is indicating UP. Overall it is UP.

Let us see what the Europe Says...

 

[healthraj]

Sir, in the OAT mini tool there are volatility values for PE,CE and Average volatility. Today the Average Volt>PE VOLT, CE VOLT. Few days ago PE VOL> AVG VOLT and in the last 3-4 days CE VOLT< AVG VOLT. How to interpret this? In one of the pages in the beginning of this thread I read if Avg Volt>PE,CE Volt it is good for writing calls. Could you explain how to interpret this? Sorry if I am asking the same question that someone may have asked earlier.
Thanks in advance.

First of all it is the not Average VOLT. We have something called the FOVOLT which you can download from the NSEIndia.com. This can be downloaded in Mini OAT by using the button "GET FAO VOLT, VOL, OI".

For a Particular it would be shown in the OAT as "AVG VOLT".

So when you want to SELL a Pair, it would be Good if "AVG VOLT" is less than the "CE VOLT" and "PE VOLT". "CE VOLT" and "PE VOLT" are the Average Volatility of the Call options and Put options respectively.

 

[superandroid21]

Thank you for the explanation. Sir, one more question, where does India VIX come in all of this?

 

[healthraj]

Thank you for the explanation. Sir, one more question, where does India VIX come in all of this?

Since NIFTY is Face of the Main 50 India stocks, INDIAVIX calculated from NIFTY OTM Options VOLT, gives the General Feel of the Indian Stock market. From a Trading perspective INDIAVIX as such applies to only NIFTY. You can google to find out how INDIAVIX is calculated. I generally use it for Pair Trading. If the INDIAVIX normally shoots up 5% to 10% in a day, it is not normally good for Pair Trading, since it will shoot up both the CE and PE Prices, which is not good for Pair Trading (I mean SELLing pairs)

 

[superandroid21]

Thanks a million for the knowledge shared....

 

[healthraj]

SBIN Today

MAX COI @ OI at 280-300. Since it is Result day we cannot assume to be FLAT.

The TREND as per OI and COI is DOWN.

The Resistance in LTF , HTF and Daily pointing to around 300-305.

So the Range for today is 280-300.

The Average PE Volt is around 73.7%. SBIN HVOLT is around 42%. So it is also not the Right time to BUY Naked Put Options. May be after the Result the VOLT will Drop and one can BUY around that time...

As said above the AVG Put VOLT has come down to 53.7%. 20% down. I don't know when the SBIN result is out. but it might come down further to say 45% and then one can BUY Puts accordingly.

 

[prabhaag]

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