PUT and CALL options

[Relish]

@columbus Please also post some analysis on call prices drops 10 times more than put prices? Is this only due to volatility or market gives sign will go up from here ?

 

[columbus]

@columbus Please also post some analysis on call prices drops 10 times more than put prices? Is this only due to volatility or market gives sign will go up from here ?

Hi Relish,

This is quite common before EXPIRY. If you see a drop in CALL options ,the rise in
PUT options is not seen ,VICE VERSA. In fact even PUT options below 6000 saw erosion
in premium.In such scenario ,it is better to trade in FUTURES.This is due to time decay,the
chances of market going down are plenty.This can be seen in options 6200CE and 6100CE
having a OI-Today is getting unwinding.(NEGATIVE values)

 

[columbus]

OCT.17 Oct-series Day.13 Nifty=6046 (-43)

The EXPIRY zone has condensed further to (5700~6200) for SECOND day.

Total strikes in CALL window: 7+2 (penny) [ previous:8+1(penny)]
Total strikes in PUT window : 6+7 (penny) [ previous:7+6(penny)]


OI-TOTAL in the above mentioned ZONE

CALL window :17.2 M [Previous:17.2 M]
PUT window : 26.7 M [Previous:25.9 M]

[These figures are adjusted as per the latest ZONE, which are taken from
the Database ,and may vary from previous post as number of strikes differ
from previous day's Zone.]




Yellow colour box,if any, indicates OI-Today more than +0.5M.
Grey colour box,if any, indicates OI-Today more than -0.5M.

Current position is indicated.

 

[timepass]

Seems like the puts lost more today (or didn't gain as much).

 

[columbus]

OCT.18 Oct-series Day.14 Nifty=6189 (143)

The EXPIRY zone is at (5900~6200).

The +143 of Nifty and +408 of Banknifty really surprised me.
There is no big policy announcements or no big Dollar fluctuation ,it is believed that
there is lot of buying interest by FII. If it were so ,then one can forget about PUTs
for the time being since the party will continue.(Personal view)



Total strikes in CALL window: 7+1 (penny) [ previous:7+2(penny)]
Total strikes in PUT window : 4+9 (penny) [ previous:6+7(penny)]
(What a change?)

OI-TOTAL in the above mentioned ZONE

CALL window :12.3 M [Previous:14.6 M]
PUT window : 18.7 M [Previous:15.2 M]

[These figures are adjusted as per the latest ZONE, which are taken from
the Database ,and may vary from previous post as number of strikes differ
from previous day's Zone.]




Yellow colour box,if any, indicates OI-Today more than +0.5M.
Grey colour box,if any, indicates OI-Today more than -0.5M.

Current position is indicated.

 

[timepass]

Re: OCT.18 Oct-series Day.14 Nifty=6189 (143)

The +143 of Nifty and +408 of Banknifty really surprised me.
There is no big policy announcements or no big Dollar fluctuation ,it is believed that
there is lot of buying interest by FII. If it were so ,then one can forget about PUTs
for the time being since the party will continue.(Personal view)

Yesterday, I was surprised by the downside despite INR showing goodly strength. Today, the intraday upsurge in the USD didn't affect the index. USDINR went up by nearly 80 paisa within a space of 20 minutes and it didn't even cause a 20 pts drop in nifty. But as as USDINR cooled, the upside in the index was exponential. Some index manipulation.

But don't you think that the options haven't performed as well as the futures today ?

 

[columbus]

Re: OCT.18 Oct-series Day.14 Nifty=6189 (143)

Yesterday, I was surprised by the downside despite INR showing
goodly strength. Today, the intraday upsurge in the USD didn't affect the index. USDINR
went up by nearly 80 paisa within a space of 20 minutes and it didn't even cause a 20 pts
drop in nifty. But as as USDINR cooled, the upside in the index was exponential. Some index
manipulation.
But don't you think that the options haven't performed as well as the futures today ?

Though not talking about today's movement,it is possible to manipulate the OPTION
market before Expiry, since some option are low priced.For example ,consider an option
having price of Rs.10 and a FII buying 1Million options.This 10 million rupees (1 Crore) is
nothing for a FII.There is saying IN THE FIGHT BETWEEN TWO ELEPHANTS ,IT IS THE
GRASS THAT SUFFERS THE MOST.Similarly between the fight between the FIIs ,
the retailer (like you and me) suffers the most.

 

[trader15]

Today 6300 6400 6500 ce tripled. Yesterday 6500 ce option writers closed positions. Is the market movement pre determined.

Now today, 6100 and 6200 put buildup. May be Monday markets testing 6000 again.

 

[columbus]

Today 6300 6400 6500 ce tripled. Yesterday 6500 ce option writers closed positions. Is the market movement pre determined.

Now today, 6100 and 6200 put buildup. May be Monday markets testing 6000 again.

Yes, deep ITM options tend to multiply in case of strong movement.
In this series so far 6200 is the Maximum ,observed ,in the zone.
The appearance of 6300 is dependent on TOTAL-OI of 6300 strike i.e 987K ,which is hardly
13K ,away from 1M mark ,which is highly achievable in case a Bull market.There is a GULF
between 6300 & 6400 (Total-OI).If shopping by FIIs continues,then Bull Market is not ruled
out.

Personally ,I feel that CALLs are over bought.
Even the Min.LTP on CALL side is not Max.LTP on PUT side in the ZONE.
So better watch the market for some time ,before taking a decision.

 

[trader15]

Yes, deep ITM options tend to multiply in case of strong movement.
In this series so far 6200 is the Maximum ,observed ,in the zone.
The appearance of 6300 is dependent on TOTAL-OI of 6300 strike i.e 987K ,which is hardly
13K ,away from 1M mark ,which is highly achievable in case a Bull market.There is a GULF
between 6300 & 6400 (Total-OI).If shopping by FIIs continues,then Bull Market is not ruled
out.

Personally ,I feel that CALLs are over bought.
Even the Min.LTP on CALL side is not Max.LTP on PUT side in the ZONE.
So better watch the market for some time ,before taking a decision.

My view is bull trend is intact, but simple rule mkts are not linear, so retrace net to Fibonacci levels is essentially to reload the rocket for upward movement.. Looking at 5700 levels as target