NIFTY Options Trading by RAJ

[singlap]

Any strategy on TCS before q3 results ? How about selling 2450 call and 2200 put ?

 

[premkumartalreja]

Option prices are based on future price rather than on spot price. So NF is somewhere at 6317 now and hence price of 6300 call will be slightly higher than 6300 put.

Goo Point..Does this mean that I use Future price instead of spot to calculate Greeks ?

 

[healthraj]

Raj /Dan,

I need help with understanding something. Nifty Spot is at 6307 and the put IV for 6300 is 16.41 and the call IV for 6300 is 11.53.

The 6300 call is trading at 75 and 6300 put at 65.
Since the Put IV is Higher shoudnt the 6300 put be more expensive than Call.

Pls advise.

If NIFTY is at 6300, without doing anything, just going by your values I am just adjusting the values for Puts and Calls

6300CE = 75-7 = 68.
6300PE = 65+7 = 72.

So at 6300 you can see that the Value of Put is higher than the Call.

 

[singlap]

Goo Point..Does this mean that I use Future price instead of spot to calculate Greeks ?

Greeks calculator asks the price of underlying. Based on underlying price, IV , time to expiry it calculates greeks. So we need not use future price in cal.

 

[prabhsingh]

If NIFTY is at 6300, without doing anything, just going by your values I am just adjusting the values for Puts and Calls

6300CE = 75-7 = 68.
6300PE = 65+7 = 72.

So at 6300 you can see that the Value of Put is higher than the Call.

What does -7 and +7 signify here?

 

[healthraj]

Raj /Dan,

I need help with understanding something. Nifty Spot is at 6307 and the put IV for 6300 is 16.41 and the call IV for 6300 is 11.53.

The 6300 call is trading at 75 and 6300 put at 65.
Since the Put IV is Higher shoudnt the 6300 put be more expensive than Call.

Pls advise.

If NIFTY is at 6300, without doing anything, just going by your values I am just adjusting the values for Puts and Calls

6300CE = 75-7 = 68.
6300PE = 65+7 = 72.

So at 6300 you can see that the Value of Put is higher than the Call.

What does -7 and +7 signify here?

The Values 75 (6300CE) and 65 (6300PE) were when the NIFTY SPOT was 6307. So I am calculating for 6300 SPOT (6307-6300=7)

 

[funkyvaib]

@Funkyvaib

Yes, you are right. Some of the books are not for free and some you can find as PDF downloads in the net. There is not just one particular side/resource about them. It is really a basic mix of what I like and for what I also paid for beside other things. Did you read all the free PDF downloads and did you understand them? Give me a PM, tell me what you already did read and tell me what next book you like to read. Take care / DanPickUp

Hi Dan

Somehow I'm not able to send a PM to you. It says - "DanPickUp has chosen not to receive private messages or may not be allowed to receive private messages. Therefore you may not send your message to him/her."

Anyhow, do you have softcopy for a couple of below titles and share with us -

1. Trading Options Visually by Paul Forchone
2. Guy Cohen: The bible of option strategies
3. George Jabbour and Philip Budwick: The option traders handbook. Strategies and Trade Adjustment

Will be a great help.

Regards

 

[healthraj]

As per the OI, the Range has become 6200-6300 with MAX Pain still at 6300. There is some indication of Bearishness with MAX COI at 6200-6300. So better be Cautious on LONGs.

Note that this sudden change is caused by change in OI and COI in 6400. So keep a Watch on 6400.

The Range has once again become 6200-6400. So there is once again hope for BULLs to Test 6425.

 

[snnygrover]

Any idea where nifty heading today...??

 

[funkyvaib]

Raj - Infy is on fire, do you think it may end up +3800 on expiry?