NIFTY Options Trading by RAJ

[anilnegi]

This analysis is wrong.

1. First one has to take a view of whether the market will be Rangebound or Trending based on COI and NOT OI.
2. If it is TRENDING then the COI will be the Range for the Day.
3. If it is Rangebound, then we have to find the Range. one part of the Range will come from COI (average of COI) and the Second part of the Range would come COI and OI (Average of COI and OI).

So we cannot do the Analysis for today with Yesterday's OI and/or COI.

Raj bro

you said we cannot analysis today with yesterday oi and coi, than how can we take positional entries on basis of that, or is it that we can take chances in stock only and nifty may be only for day trader.

anil negi

 

[rajesh_]

Range bound - (COI CE - COI PE) > =200, First target avg(COI CE, COI PE), second target avg(COI, OI)

Trending - (COI CE - COI PE) < =100, Support COI PE, Pivot avg(COI CE, COI PE), Resistance COI CE.

 

[healthraj]

This analysis is wrong.

1. First one has to take a view of whether the market will be Rangebound or Trending based on COI and NOT OI.
2. If it is TRENDING then the COI will be the Range for the Day.
3. If it is Rangebound, then we have to find the Range. one part of the Range will come from COI (average of COI) and the Second part of the Range would come COI and OI (Average of COI and OI).

So we cannot do the Analysis for today with Yesterday's OI and/or COI.

Raj bro

you said we cannot analysis today with yesterday oi and coi, than how can we take positional entries on basis of that, or is it that we can take chances in stock only and nifty may be only for day trader.

anil negi

For positional entries, you have to use only OI.
Buy when the Stock is near MAX OI @ PE. SELL When the stock is near MAX OI @ CE.

If you take NIFTY, this month the MAX OI @ PE is at 7800. And we got 3 opportunities to BUY near 7800.

08-OCT - Made low of 7816 and made high of 7955
10-OCT - Made low of 7796 and made high of 7928
14-OCT - Made low of 7825 and made high of 7900.

Of course in an index you will not get too many chances... But if you look for stocks, where it is trading near the MAX OI levels, you will have a lot of options.

Remember the MAX OI @ PE or CE will not be broken so easily or will not be broken at the first hit. So one can confidently execute this strategy when the MAX OI @ PE or CE is hit the first time.

 

[ybha]

Dear RAJ bro,
Your are such a great man. you are best in option analysis. I follow your thread (before 5 days)and it's best for option trader. THANKS.

 

[hardik229]

Hi Raj,

I am very impressed with your analysis. I am learning options and more interested in positional trade rather intraday. What will be the stop loss when we trade near MAX OI CE or PE?

Entry point would be Max OI CE - 30 points and MAX OI PE + 30 points.

Example here 7800 is MAx OI PE, then buy entry would be near 7830?

Thanks..!!
Hardik Shah

For positional entries, you have to use only OI.
Buy when the Stock is near MAX OI @ PE. SELL When the stock is near MAX OI @ CE.

If you take NIFTY, this month the MAX OI @ PE is at 7800. And we got 3 opportunities to BUY near 7800.

08-OCT - Made low of 7816 and made high of 7955
10-OCT - Made low of 7796 and made high of 7928
14-OCT - Made low of 7825 and made high of 7900.

Of course in an index you will not get too many chances... But if you look for stocks, where it is trading near the MAX OI levels, you will have a lot of options.

Remember the MAX OI @ PE or CE will not be broken so easily or will not be broken at the first hit. So one can confidently execute this strategy when the MAX OI @ PE or CE is hit the first time.

 

[XRAY27]

Health raj ji,

i have Gone through your thread in detail yesterday.. you are the wonderful contributor to the forum with respect to option chain..iam only using the MAX PAIN as dynamic support and resistance for my trading in nifty which is going well..for me..
i got to know the usage of various option chain for intraday with your presentation in simple language

 

[copypasteaee]

Health raj ji,

i have Gone through your thread in detail yesterday.. you are the wonderful contributor to the forum with respect to option chain..iam only using the MAX PAIN as dynamic support and resistance for my trading in nifty which is going well..for me..
i got to know the usage of various option chain for intraday with your presentation in simple language

yes i have also realized just yesterday that how great is this thread. :clap:

 

[healthraj]

Hi Raj,

I am very impressed with your analysis. I am learning options and more interested in positional trade rather intraday. What will be the stop loss when we trade near MAX OI CE or PE?

Entry point would be Max OI CE - 30 points and MAX OI PE + 30 points.

Example here 7800 is MAx OI PE, then buy entry would be near 7830?

Thanks..!!
Hardik Shah

The ideal entry should be between 7770 and 7800. OR Buy around 7800 with a Stoploss around 7770

 

[nsbadri]

XRAY27 ji,

I have also been following this thread and its great one.

Thanks again for Healthraj.

XRAY ji could you mind sharing your experience about the trading based on the max pain concept

thanks in advace

 

[healthraj]

NIFTY
As per COI the Range for today is 7800-7900.
So accordingly SELL near 7900 and Buy near 7800.

BANKNIFTY
It seems to be Rangebound with Pivot at 15850. It seems to be trading below 15850 and so the next Target could 15675 (Average of OI and COI). If 15675 breaks then it could test 15500 (MAX COI at PE) also. More or less Same level as on Tuesday.