PUT and CALL options

[columbus]

Dear Columbus

Correct me if i am wrong

*Big moves happen during short covering.

If the answer is yes

why???

What factors should be observed at near strikes call & Put
to find out that short covering is ready to happen.

Pls enlighten

I am into options buying . I am usually on the side of trend.
Due to time decay i am losing on time factor and premium.
So i am not able to ride any up or down move to my advantage.

Regards

Siva Prasad

Dear Prasad,


What factors should be observed at near strikes call & Put
to find out that short covering is ready to happen.

Difficult to say ,when a SHORT-COVERING ,starts.
Perhaps ,one way to solve this, is to AVERAGE at 30 minutes intervals. (Personal experience).
Generally short covering will start from 1.45Pm~ 2.00Pm.Keeping
on adding (minimum lots) at 1.00.1.30.2.00 etc...Keep a watch on BEP (Break
Even Price). Square off all lots once your target is met.(Say 50% higher BEP)

I am into options buying . I am usually on the side of trend.
Due to time decay i am losing on time factor and premium.
So i am not able to ride any up or down move to my advantage.

Perhaps premium erosion with TIME ,is unique feature of Options.
Funny enough ,even if we are in correct trend ,often we lose.
This requires to change the trend within the day, 2 or more times.
But often we find it difficult to do it. To do this we have STRADDLE strategy.

As far as possible ,do not carry your positions.
To give another example ,on carrying positions we may gain 60%times , versus 40%
times losses.But if we observe money- wise, it may boil down to 40% gain versus 60%
losses.

 

[pram251064]

Dear Columbus,
Very valuable guidance.Thank you,sir.:thanx::thanx:

 

[nune_siva]

Thank you sir.

 

[columbus]

DEC.24 DEC series Day.19(end) NIFTY=8174 (-93)

Nifty ended on 8174.

Open Interest (Today) over 5 Lakhs is indicated in YELLOW bold. (If any)
Open Interest (Today) less than -5 Lakhs is indicated in YELLOW italics. (If any)
Outside the zone , interesting accumulations shown in ORANGE colour.

6 strikes on CALL side and 6 strikes on PUT side from the current strike ,as shown ,are analyzed.




Option chain based on TODAY'S Open Interest JAN15-series looked like this:

Looks like UP movement is likely though ,it is indicating Weak.Let us see.

Nifty has lost 320 points in this series.

 

[anilpalan]

Re: DEC.24 DEC series Day.19(end) NIFTY=8174 (-93)

Nifty ended on 8174.

Open Interest (Today) over 5 Lakhs is indicated in YELLOW bold. (If any)
Open Interest (Today) less than -5 Lakhs is indicated in YELLOW italics. (If any)
Outside the zone , interesting accumulations shown in ORANGE colour.

6 strikes on CALL side and 6 strikes on PUT side from the current strike ,as shown ,are analyzed.




Option chain based on TODAY'S Open Interest JAN15-series looked like this:

Looks like UP movement is likely though ,it is indicating Weak.Let us see.

Nifty has lost 320 points in this series.

Columbus,

Looking to the daily negative and positive cubes, it seems that we have continuous two to three days up moves followed by two to three days of down moves.

Looking to today's down move we can predict to some extent that Nifty may close negative or positive on 26th. If it closes negative we can safely assume that on 27th Nifty will definitely close in positive zone.

Your views please.

 

[columbus]

Dec.26 JAN series.1 Nifty=8201 (27)

The Expected Zone is at (8600~8000) .Rather large ,spanning 13 strikes.


Open Interest (Today) over 5 Lakhs is indicated in YELLOW bold. (If any)
Open Interest (Today) less than -5 Lakhs is indicated in YELLOW italics. (If any)


7 strikes on CALL side and 7 strikes on PUT side from the current strike ,as shown ,are analyzed.

Earlier a small mistake was committed in calculating GAIN-LOSS.Sorry for error and it has been rectified.

 

[columbus]

Re: DEC.24 DEC series Day.19(end) NIFTY=8174 (-93)

Columbus,

Looking to the daily negative and positive cubes, it seems that we have continuous two to three days up moves followed by two to three days of down moves.

Looking to today's down move we can predict to some extent that Nifty may close negative or positive on 26th. If it closes negative we can safely assume that on 27th Nifty will definitely close in positive zone.

Your views please.

Good observation.But not true always.

http://www.traderji.com/options/66083-put-call-options-61.html#post850344

 

[stock72]

Re: Dec.26 JAN series.1 Nifty=8201 (27)

Happy to see some many blank columns ur trading days for this series ..:thumb::thumb:

The Expected Zone is at (8600~8000) .Rather large ,spanning 13 strikes.


Open Interest (Today) over 5 Lakhs is indicated in YELLOW bold. (If any)
Open Interest (Today) less than -5 Lakhs is indicated in YELLOW italics. (If any)


7 strikes on CALL side and 7 strikes on PUT side from the current strike ,as shown ,are analyzed.

Earlier a small mistake was committed in calculating GAIN-LOSS.Sorry for error and it has been rectified.

 

[columbus]

Re: Dec.26 JAN series.1 Nifty=8201 (27)

Happy to see some many blank columns ur trading days for this series ..

This JAN series is a big one , spanning 24 days.

 

[Somatung]

Dec 7900-8000 calls added big OI , just a day back.
May be that was some premonition.

http://economictimes.indiatimes.com...ies-surprises-market/articleshow/34800038.cms

This post is not only for Abcpankaj. It is for all lovers of option trading.

His above post was made on the 09.05.2014 in this thread. :thumb:

Now have a look at this, which shows the closing price of the Nifty Dec 2014 7900 call at expiry:

Discount the entry price from that 265.75 RS and multiply it with the amount of lots used for that trade and what do you get?

An other prove of: Buying options can bring huge money with low risk and absolute low work. And now imagine you add to that one leg some simple option strategies you trade actively for such a long time beside only just managing that huge on leg over the whole period .

Have a nice weekend / Dan

Edit: Here the original link to the post in this thread made on that 09.05.2014 from Abcpankaj: http://www.traderji.com/options/66083-put-call-options-120.html#post966278