NIFTY Options Trading by RAJ

[healthraj]

I am still holding my Put even though the price went below 85. Bought more quantities and averaged my positions to 90.

Did not look at my MTP pivots. In fact in the 60 min chart, the Resistance is at 5395-5405. So we should have bought the Put at 5400 Levels.
Anyways as per the Options Table also it is a STRONG BEAR. So no change in opinion from my side. It is a SELL, SELL, SELL for target of 5300

This might be the LAST Leg on the downside from 5750. So the Last leg is always Risky.

In the 30 min chart there is a BEAR FLAG which is heading South. The Support line @ 5394 is broken

In the 60 min Chart there is a Channel with the Resistance at 5410 and the Support at 5280. In the 60 minute chart, NIFTY is heading south towards 5280. Those who are still doubting the SHORT can safely sell below 5370.

 

[gmt900]

If you want to BUY OTM call, buy it in the SEP-13 Series. Two reasons

- The MAX OI is indicating 5200-6000
- The CE VOLT is also Low around 22. In Aug-13 Series the VOLT is around 26-28. So in the last week it might be the Premium eating week. In Aug-13 we can expect a maximum pullback till 5500 because the MAX Pain is at 5500. Towards the end of the expiry it would be better to buy the 5400 CE or 5500CE and not 5600CE or above.

Just a Second thought on VOLT: When the market is around 5250 and the CE VOLTs are low around 22, then we can trade Aug-13 Series calls for Targets of 5500 - 250 points from 5250.

I was thinking about BUYING STRADDLE, since reasonably big swing is expected on either side as per jamit's expectation.

 

[Option.Trader]

In the 30 min chart there is a BEAR FLAG which is heading South. The Support line @ 5394 is broken

In the 60 min Chart there is a Channel with the Resistance at 5410 and the Support at 5280. In the 60 minute chart, NIFTY is heading south towards 5280. Those who are still doubting the SHORT can safely sell below 5370.

Bulls don't seem to be giving up without a fight, bank Nifty supporting, looks like someone is aware of some news flow

 

[Option.Trader]

I was thinking about BUYING STRADDLE, since reasonably big swing is expected on either side as per jamit's expectation.

Buying straddle during last week of expiry is risky

 

[jamit_05]

Will it be a good idea to buy ATM long straddle tomorrow?

I suppose they'd be very expensive by now...

 

[jamit_05]

Due to the FED news, even if a pullback were to come, it'd only be to trap.

A very important support on the Weekly Chart got taken out. This pullback would retest the trendline. This retest is likely to be in the region of 5700/5800... option table are showing max OI at 5700 CE and the daily chart has a major pivot.

Besides, its typical of big traders to not reward linear thinking amongst retail traders.... "no hard-feelings its only business" they say

 

[Option.Trader]

Wow, a triple top made, now is that bearish?

 

[healthraj]

Wow, a triple top made, now is that bearish?

In the 60 min Chart, A double top is made at 5421 and 5417 and market is heading towards 5280. So the Bulls have taken the morning session to build 10L positions in 5300 CE. But 5300 Still looks Bullish. So we cannot expect anything more then 5280 today. It would be better to close at least 50%Short positions around between 5280-5300.

 

[healthraj]

I was thinking about BUYING STRADDLE, since reasonably big swing is expected on either side as per jamit's expectation.

Since the VOLT is High it would be better to do a Credit Strategy. I mean selling Puts instead of Buying Calls. I am assuming the VOLT will ultimately come down before the expiry

 

[healthraj]

I am still holding my Put even though the price went below 85. Bought more quantities and averaged my positions to 90.

Did not look at my MTP pivots. In fact in the 60 min chart, the Resistance is at 5395-5405. So we should have bought the Put at 5400 Levels.
Anyways as per the Options Table also it is a STRONG BEAR. So no change in opinion from my side. It is a SELL, SELL, SELL for target of 5300

This might be the LAST Leg on the downside from 5750. So the Last leg is always Risky.

Holding my PUTs today was one of the toughest.
One lesson is when the market is making 100 points down and 100 points UP, Stoploss of 20 points do not work. And the other problem is taking early positions without looking at 60 min Chart.

The positions are now at a profit of 17 points. I will hold it till 5300.