NIFTY Options Trading by RAJ

[DanPickUp]

Thanks @Healthraj and thanks @Option.Trader for your kind views and posts.

Take care and furhter good trades / DanPickUp

 

[Option.Trader]

FII Analysis August

Its interesting to see how the big boys have played the market when markets have had such a move in August

The data is arranged with FII statistics of the previous day shown with the next day's delta.. in effect showing the impact of previous days position in FnO on nifty for subsequent trading day

Its basically a 2 phase block, the first ellipse shows the accumulation of puts and in the second phase, they have traded with shorting Futures ...
I would think the FII's would play more in the derivatives rather than equity, just for the reason that if they start dumping in cash market, there would be no buyer to absorb the sell... the fall would be disproportionate to the sell.. with the Re fallen the largest of EM's they are stuck with equity investments...God save us if they decide enough is enough and pack off... that will be 19% of all holdings in market, we have seen what happens with a 50 cr basket order erroneously punched
All the best for future trades

 

[DIVYEDIX]

FII Analysis August

Its interesting to see how the big boys have played the market when markets have had such a move in August

The data is arranged with FII statistics of the previous day shown with the next day's delta.. in effect showing the impact of previous days position in FnO on nifty for subsequent trading day

Its basically a 2 phase block, the first ellipse shows the accumulation of puts and in the second phase, they have traded with shorting Futures ...
I would think the FII's would play more in the derivatives rather than equity, just for the reason that if they start dumping in cash market, there would be no buyer to absorb the sell... the fall would be disproportionate to the sell.. with the Re fallen the largest of EM's they are stuck with equity investments...God save us if they decide enough is enough and pack off... that will be 19% of all holdings in market, we have seen what happens with a 50 cr basket order erroneously punched
All the best for future trades

Option. Trader

Can u pls explain some more - accumulation of puts is buying or selling
Also if possible pls post the link.

Will appreciate posting of this chart for next couple of days to get better understanding.

 

[Option.Trader]

Option. Trader

Can u pls explain some more - accumulation of puts is buying or selling
Also if possible pls post the link.

Will appreciate posting of this chart for next couple of days to get better understanding.

It's buy figure, but you need to remember that options are rising because of Nifty falling and not the other way

 

[NIFTYSIMBA]

5200 being fought for ...MAX oi for both CE n PE @5200....5250 SAR....else keep selling....

 

[healthraj]

The market is more or Less at the Crossroads now - Today it made another bottom of 5257. If this has to be considered as a double bottom then it can make at least 250 points from here on the UP side. If this the middle of Down side then it can make another 250 points on the downside. So either way it can make 250 points on either side. Hopfully if the market does not go sideways in the next month, then we can take some risk and buy some Deep OTM call and PUT. I am going to put just 10% of my capital.

5% in SEP-13 4500 PE @ 12.2
5% in SEP-13 5900 CE @ 9.2

Keep the Positions, till one of the position becomes 3 times so that we will make 100%.

Due to High Volatility the Target is met today itself. The combined Premium is now 42. 20 Points profit. Call closed. Close both the positions.

I closed the Put at 38 and Carrying the Call. Even if the Call expires to Zero I will still make profit

 

[gmt900]

I came accross the following article by Zerodha,
http://www.zerodha.com/z-connect/blog/view/open-interest-maxpain-put-call-ratiopcr

 

[shiv2012]

Can we say that it is difficult to base trades on Max pain in such volatile times? Surely both the call writers & put writers would be at their wit's end during such times leave alone directing the market towards the MAx pain point.

 

[healthraj]

I came accross the following article by Zerodha,
http://www.zerodha.com/z-connect/blog/view/open-interest-maxpain-put-call-ratiopcr

It is more or less in line with my Rules at least on the MAX OI. The Article does not specify anything on COI or OI. It is good article but most of it is covered in this thread. you can anyway read the article because Nitin gives a fluid explanation.

 

[healthraj]

Can we say that it is difficult to base trades on Max pain in such volatile times? Surely both the call writers & put writers would be at their wit's end during such times leave alone directing the market towards the MAx pain point.

The MAX Pain for this month was remaining at 5500 for most of the time, then it went to 5400 and today it is at 5300.

When the market was at 5250, the market went to 5500 (When the MAX Pain was at 5500). There was a breakout at 5300, (MAX OI which was at 5300-5600) and the breakout gave 200 points. So when there is a Breakout the MAX Pain also will change.