NIFTY Options Trading by RAJ

[bksujal]

MAX OI at 6000-6300.
MAX Pain at 6100.

MAX COI at 6200-6300. So the fight between 6200 and 6300 is LIVE, Which is right now slightly Favoring Bulls. But I don't think 6300 would be crossed today

BANKNIFTY MAX Pain is now at 10800. Yesterday it was at 10700. With the OI at 10000-11000. But if 10800 need to be the MAX Pain then BANKNIFTY can goto 11600

thanks Raj yea same here I too was long like you booked profits in the 6200 ce very good trade for me though now i think we might have expiry around 6200 or a bit below that and then friday onwards we'll continue the upmove :thumb:

 

[healthraj]

thanks Raj yea same here I too was long like you booked profits in the 6200 ce very good trade for me though now i think we might have expiry around 6200 or a bit below that and then friday onwards we'll continue the upmove :thumb:

For the time being Treat 6300 as the Top and take Short Positions near 6300. May be this week the market might be positive since we have also Diwali. But From Monday I think the market might go down.

From NOV-13 OI, It is a SELL around 6300 SPOT and a BUY Around 6000 SPOT.

 

[healthraj]

Raj,

I have been doing options trading for long time, but with only my analysis on futures. I always did only naked calls and puts sort of trading. did not follow any option trading strategies. I don't even know what is MAX PAIN.. to be honest :lol::lol::lol: Is there any thread of yours, where you started the strategies step by step ?? I cant find any in this thread's first page. or do you have any materials that are good about option trading strategies, learning terminology like option greeks nd all those ??? share it if you can buddy.. thank you.

You can go through the 8 Rules to understand on how to Read and Interpret the OptionsChain. The interpretation is completely my logic and so you will not find any books. So I leave it to your decision.

But if you want a Simple Rule.

Then Look for the three Levels

MAX OI @ CE - Call it Resistance
MAX OI @ PE - Call it Support
MAX Pain - Pivot

Buy Puts near the Resistance
Buy Calls near the Support.

You can decide to close the Positions near MAX Pain or RESISTANCE / SUPPORT. For Example in the beginning of the OCT-13 Series, the OI started with 5700-6000. So it was a SELL near 6000 and Should have closed near 5700. At 5700, should have bought Calls and the OI@ CE kept on increasing from 6000 to 6300. Since the Overall Trend is positive, Any Puts taken should be tried to close near MAX Pain and any Calls Taken near Support or MAX Pain should be closed near the RESISTANCE.

The logic works very much for the Stocks Traded in F&O.

 

[healthraj]

MAX Pain Shifted from 6100 to 6150. So you can Expect 50 point additional move, which would set 6300/6320 as the Target. This Up Move from Futures Perspective, the Low was 6080 and so 240 points would also lead to 6320. So you can Expect 6320 as the Top of this Series. From 6320 it might be a Sharp Move on the downside.

 

[trader15]

You can go through the 8 Rules to understand on how to Read and Interpret the OptionsChain. The interpretation is completely my logic and so you will not find any books. So I leave it to your decision.

But if you want a Simple Rule.

Then Look for the three Levels

MAX OI @ CE - Call it Resistance
MAX OI @ PE - Call it Support
MAX Pain - Pivot

Buy Puts near the Resistance
Buy Calls near the Support.

You can decide to close the Positions near MAX Pain or RESISTANCE / SUPPORT. For Example in the beginning of the OCT-13 Series, the OI started with 5700-6000. So it was a SELL near 6000 and Should have closed near 5700. At 5700, should have bought Calls and the OI@ CE kept on increasing from 6000 to 6300. Since the Overall Trend is positive, Any Puts taken should be tried to close near MAX Pain and any Calls Taken near Support or MAX Pain should be closed near the RESISTANCE.

The logic works very much for the Stocks Traded in F&O.

Thats a wonderful summary. Can you also summarize whats max pain and how does that impact the movement

 

[healthraj]

Thats a wonderful summary. Can you also summarize whats max pain and how does that impact the movement

MAX Pain in simple Terms is the Average of the Resistance and the support. Or you can call it as the Pivot or the Centre of Gravity. So normally in a Series, the expiry tends to move towards the MAX Pain. But in this Series I am not sure it will happen because market spent a lot of time near the MAX Pain.

 

[healthraj]

MAX Pain Shifted from 6100 to 6150. So you can Expect 50 point additional move, which would set 6300/6320 as the Target. This Up Move from Futures Perspective, the Low was 6080 and so 240 points would also lead to 6320. So you can Expect 6320 as the Top of this Series. From 6320 it might be a Sharp Move on the downside.

As per the PRICE Action BUY signal Triggered above 6250. Let us see if it Sustains. From Futures Perspective since the Low was 6222, the Top should be at least 6290

 

[healthraj]

MAX Pain Shifted from 6100 to 6150. So you can Expect 50 point additional move, which would set 6300/6320 as the Target. This Up Move from Futures Perspective, the Low was 6080 and so 240 points would also lead to 6320. So you can Expect 6320 as the Top of this Series. From 6320 it might be a Sharp Move on the downside.

As per the PRICE Action BUY signal Triggered above 6250. Let us see if it Sustains. From Futures Perspective since the Low was 6222, the Top should be at least 6290

MAX Pain Shifted from 6150 to 6200. Now should I say expect another 50 points?

 

[Gandhar.]

MAX Pain Shifted from 6150 to 6200. Now should I say expect another 50 points?

pe's are written as there is no downside also 6250 has the COI after 6200 hope max pain does not change for 3rd time in day

 

[healthraj]

MAX Pain changed back to 6150 and I think by looking at the movement, I think Shorts are getting built so, you can Try shorting around 6250 to Play the MAX Pain tomorrow at 6150. Better Take shorts in NOV-13 Series.