NIFTY Options Trading by RAJ

[adg123]

Nice discussion..., this VIX hurt me badly in last couple of days. At present I am holding pair CE6300 @ PE6000 in more then 40% loss. Another expensive experience about VIX.

 

[simpletrader2012]

There are multiple links to get the OptionsChain data.
The link that I am using is

http://www.nseindia.com/live_market...in/optionKeys.jsp?symbol=NIFTY&date=31OCT2013

The image that you have posted access the following link

http://www.nseindia.com/live_market...-&segmentLink=17&symbolCount=2&segmentLink=17

I had this doubt earlier and people told me that whatever is used in the Tool is fine and whatever you see in the OAT tools is the latest.

On Yesterday the NIFTY SPOT closed at 6089.05.

You will see that the link that you have posted has NIFTY Closing price as 6079.05.

Anyway let the Experts tell me which one to take. My view is that during market hours you will get the same data for both the links. After market closing however the data changes a bit due to square off which is not updated in one of the links.

I am also sure about this because I posted the VOLT chart after 3:30 and the VOLT chart that I am seeing now is different. So between 3:30 to 3:45 the data is still getting updated in OptionsChain due to some squaring Off

hi raj
I started reading this thread from the past 2 days.
Really you have done a wonderful job in formulating all these rules and more than everything the documentation is absolutely great.

I would like to mention one thing here where you have a confusion as to which link to follow for Option chain
when i have check with all the Eod Data and files provided by NSE the following link gives perfect data
http://www.nseindia.com/products/content/derivatives/equities/homepage_fo.htm
and the data in other link
http://www.nseindia.com/live_market...-&segmentLink=17&symbolCount=2&segmentLink=17

doesnt match with any of the EOD data files.

 

[appajib]

There are multiple links to get the OptionsChain data.
The link that I am using is

http://www.nseindia.com/live_market...in/optionKeys.jsp?symbol=NIFTY&date=31OCT2013

The image that you have posted access the following link

http://www.nseindia.com/live_market...-&segmentLink=17&symbolCount=2&segmentLink=17

I had this doubt earlier and people told me that whatever is used in the Tool is fine and whatever you see in the OAT tools is the latest.

On Yesterday the NIFTY SPOT closed at 6089.05.

You will see that the link that you have posted has NIFTY Closing price as 6079.05.

Anyway let the Experts tell me which one to take. My view is that during market hours you will get the same data for both the links. After market closing however the data changes a bit due to square off which is not updated in one of the links.

I am also sure about this because I posted the VOLT chart after 3:30 and the VOLT chart that I am seeing now is different. So between 3:30 to 3:45 the data is still getting updated in OptionsChain due to some squaring Off

Raj bhai,

Below link give the historical option price for particular strike either for indices or stocks...
By looking at this we can know the high and low values of option price for particular strike price and also see spot rate at that price.
By this we can get some idea about low and top levels of option price of any strike price till date for respected expiry
http://www.nseindia.com/products/content/derivatives/equities/historical_fo.htm

 

[simpletrader2012]

I was not aware of the highlighted part. I was thinking Volume, OI and COI are expressed as number of contracts, in which case my Rule and Analogy is wrong.
Can you throw more light on where did you get this info? I still think OI, COI and Volume are expressed as number of contracts

Hi raj
As quoted by Mohan COI and OI will be in Qty and Volume will be in contracts.
So if we want to compare volume and OI then we have to multiply volume by lot size of that particular scrip.
I am 100 % Sure about this.
If you want click on the LTP of the particular strikePrice you will get the Detailed info where you can see the volume specified in contracts

One point that i like to bring to your notice is that volume can never be lesser than COI(Change in OI).

 

[adg123]

Hi raj
As quoted by Mohan COI and OI will be in Qty and Volume will be in contracts.
So if we want to compare volume and OI then we have to multiply volume by lot size of that particular scrip.
I am 100 % Sure about this.
If you want click on the LTP of the particular strikePrice you will get the Detailed info where you can see the volume specified in contracts

Yes, I think so, One solid example is today's PE4850 strike - where volume is 1 & COI is -50.

 

[Option.Trader]

Hello Raj Sir,


Raj Sir,

NSE option chain page gives 1) Change in OI in terms in QTY ( No of lots x 50 ) . And 2) Volume in terms of no of Lots. In your example of rule no.4, is it taken same way ?

Considering you took it same way, My question is how can Volume be less than OI.

In your example change in OI of 6100 CE is 6L positions ( means 6L / 50 = 12000 lots added) AND Volume traded is 5.5 lakh ( 5.5L / 50 = 11000 ).

When 11000 lots were trade how can 12000 lots get added to OI.

Did I miss something in this. please help me out.

Thanks.

I was not aware of the highlighted part. I was thinking Volume, OI and COI are expressed as number of contracts, in which case my Rule and Analogy is wrong.
Can you throw more light on where did you get this info? I still think OI, COI and Volume are expressed as number of contracts

Mohan ,

Good observation, you are correct. But there is a simple explanation to OI is higher than volumes traded

Change of OI is influenced by many ways
a) New seller creates a postion with a new buyer (OI added)
b) Existing buyer squares of with existing seller (OI decreases)
c) Existing buyer squares of with new seller (no change)
d) Existing seller squares of with existing buyer (OI decreases)
e) Existing seller squares of with new buyer (no change)

So a new position is created only when a new seller comes in.
There is a good example in one of blogs

Hope this clears things

 

[Option.Trader]

Those who want to Take a Gamble, can buy some OTM 5200 Puts which are available at 1.5. This is purely a Gamble and if it works out you could become a Millionaire in a Fortnight. The Same opportunity was available when the market was around 5100. Let us Try this time. My suggestion is based on the Huge Bid at the 4850, 4950 and 5050 Strikes.

This is some bizzare calculation that you have come up with.. i can understand if the debt was over the cliff driving everyone over... but with that resolved you are suggesting a 1000 point drop in 10 days ... some prophecy if it comes true

anyways, none of the strikes 4850/4950/5050 mentioned have any significance bid/ask of value.. infact the ITM options have 10X more bid/ask compared to the ones mentioned

 

[drwriter]

Those who want to Take a Gamble, can buy some OTM 5200 Puts which are available at 1.5. This is purely a Gamble and if it works out you could become a Millionaire in a Fortnight. The Same opportunity was available when the market was around 5100. Let us Try this time. My suggestion is based on the Huge Bid at the 4850, 4950 and 5050 Strikes.

Hi Healthraj,

There is absolutely no point buying the 5200 put @1.2 if you justify gamble based on large bids at 4850, 4950, 5050. These bids are for arbitrage positions as the 4800, 4900 and 5000 bids are at much higher prices.We haven't seen any selling in the markets yet and to gamble one should buy calls during strong downtrends in the hope of sharp short covering to make money. Do you think Put writers sell puts first and then sell in cash? or sell in cash and then write puts? I do the second one..

 

[sanjeev258380]

it might be Okay..because..from one of my friend i got news.. nifty will expiry around 5400... so.. may be because..FOMC and RBI.. news coming on last week of nifty. So we might bet. If 5200-5100 put strike has so much bid then... i cant see any volume in historical data.. Better away from mkt during news time. Mkt is always there..Your money should also be there to trade.

 

[avibhu]

Dear ,

My observation & understanding is that

1. Mohan was stating that Change in OI being more than Volume whereas in illustration provided by Option.Trader it was OI .

hope this point will help to augment Mohan's point that change in OI cannot by more than Volume of that day.

i am in conformity with Mohan's view & explanation of Option.Trader he in his example has demonstrated by an example of OI being less than Volume ,which is possible .

Thanks