Options Adjustments

[toughard]

DONE WITH THE DAY......

 

[toughard]

how did u get the interpretations. thanks

interpretations

 

[lemondew]

You are more or less correct with your views through OI. I guess thats the basis of your stock trading. good going.

Consider another image
http://imgur.com/wOV8v4p

This is tuesday (27-may) close at around 7315. Please correct my interpretations if I am wrong. If you see it There was short buildup in 7300 CE and & 7300 PE. There was long at 7350 PE. This gives mixed signals doesnt it. Still you interpreted as short and purchased a put on wednesday evening ?

Thanks

DONE WITH THE DAY......

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[lemondew]

Could you please also post the nifty price at the time of your interpretations then I can compute the IV at that point of time .

Also As per your interpretation
What would your position be if interpretation is
1) Short
2) long unwinding
3) Long
4) shortcovering

Would you go with the crowd.
Thanks

 

[toughard]

You are more or less correct with your views through OI. I guess thats the basis of your stock trading. good going.

Consider another image
http://imgur.com/wOV8v4p

This is tuesday (27-may) close at around 7315. Please correct my interpretations if I am wrong. If you see it There was short buildup in 7300 CE and & 7300 PE. There was long at 7350 PE. This gives mixed signals doesnt it. Still you interpreted as short and purchased a put on wednesday evening ?

Thanks

Thanks.... I have to look into few things before I arrived at the conclusion...

1st... market was at over bought stage...
2nd... after big rally profit booking even on last day is expected
3rd... day before election result 2000 crores worth calls were sold by big boys
4th... 7400 and 7500 CE OI was kept rising
5th... even after many (6) attempts price dint not broke 7350

don't look at middle strike like 7350 7450 before last day... but you are right that mixed data will confuse...

Actually its been full ONE LAKH DAY for me... but 7250 put short with so high volumes that it forced me to conclude the closing between 7250 and 7300...
and closed with 31k+ intentionally avoided exposing the profits to wild swings...

As we discussed, looking at OI change live is bit adventures but today's scale of change was astonishing as it wildly reversed in just 4min....

yes took 7200 put by Wednesday and after 7250 PE OI drama quickly changed to 7300 puts...

hope it helps...

 

[toughard]

Could you please also post the nifty price at the time of your interpretations then I can compute the IV at that point of time .

Also As per your interpretation
What would your position be if interpretation is
1) Short
2) long unwinding
3) Long
4) shortcovering

Would you go with the crowd.
Thanks

If you are asking this with reference to NF then I don't Interpret NF individually...

 

[lemondew]

Not necessarily nifty any stock
What i meant is if people are doing short covering at PE 7300 what would you
similarly if people are doing short at PE 7300 what would you do?

If you are asking this with reference to NF then I don't Interpret NF individually...

 

[toughard]

Not necessarily nifty any stock
What i meant is if people are doing short covering at PE 7300 what would you
similarly if people are doing short at PE 7300 what would you do?

7300 PE short covering means--- market will fall... short means form an upside view...

 

[lemondew]

Summarizing tough pls add your inputs.

1) FInd out support / resistance through OI.
FOr position use OI/ Intraday chg in OI.
2) Take position short outside support/resistance.
3) Take long positions when resistance/support is reached
4) Use adjustments to manage your trade.

Toughs explanations have been very clear. Also further enlightened by this wonderful thread which you can check. http://www.traderji.com/trading-diary/88670-nifty-options-trading-raj.html

okay its my way, any way...

1 - Which time frame that one should follow for positional/swing trading?
1 hour or day
2 - How to find the Support and Resistance?
best is PHL
3 - Which is the reasonable trend/direction spotting indicator?
EMA Cross 5/11
4 - Which is the reasonable momentum indicator or oscillator?
RSI
5 - Best way to interpret the MAX OI & MAX OI CHANGE?
MAX OI as S/R --- MAX OI change only on EOD
6 - Will OI MAX PAIN work?
I dont believe in that concept
7 - VIX range
its Future Looking:annoyed:

 

[lemondew]

Please confirm or correct me
1)when more people are shorting Ce / CE price will go down/ CE OI will go up /market will go down
2) when people are short covering CE /CE price will go up/CE OI will go down/ market will go up.

3) When people are buying CE/ CE price will go up/ CE OI will go up/ market where is it expected to go??? Do you rely on long positions too

4) When people are long unwinding CE/ CE price will go down/ CE OI will go down/ market where is it expected to go??? Based on long positions

Thanks.

7300 PE short covering means--- market will fall... short means form an upside view...