Stock FUTURES To Keep A Close Eye On

[Goofy]

it averages about @1845

 

[Goofy]

Mr. SG, sorry, I was unable to refersh the thread. The connection is losing steam. I hope your sage advice will be there before 9.00am tomorrow morning.

Thanks

 

[SavantGarde]

Goofy,

You will be able to exit profitably this week.....

....But do not re-enter.... because there are many things weighing on the company's future with Honda..... withdrawing.

Happy & Safer Trading

SavantGarde

it averages about @1845

 

[option fan]

SG sir sry to disturb topic of the thread..

this is what I asked DAN in option strategy thread.. he told me you or Ronak may answer it properly as he dont trade indian market.

Hi Dan sir,

I observed 2 things today..

NIFTY 6300 call was trading much less than its th. value, almost 10% or more
NIFTY 6300 put was trading 0.5-1 rs less than its th. value 91.xx and 90.xx something like it.

vice versa...

RELIANCE 1100 call was trading almost @10% more than its th. value.
RELIANCE 1100 put was also trading @10% more than its th value.

what does it idicates?

1. NIFTY is expected to be less volatile in coming days?
2. RELIANCE will move wildly on some direction?

If it means so.. i will write nifty 6400 call and nifty 6200 put? vice versa.. i will buy RELIANCE 1100 call & PUT simultaniously??

i mean... if market value of any strike price call & put option differs much from the th value.. can it help us to choose option spread strategy?

for calculations i used volatility given yesterday on NSE site. and days to expiry I taken as 13.. or only no of trading sessions.both NIFTY & RELIANCE options have good enough liquidity

I trade naked options only with s/l .. so trying to know/learn more.

 

[SavantGarde]

Hi Option_Fan,

Was the theoretical value out of whack only for sometime during the session or was it throughout...

Happy & Safer Trading

SavantGarde

 

[option fan]

Hi Option_Fan,

Was the theoretical value out of whack only for sometime during the session or was it throughout...

Happy & Safer Trading

SavantGarde

almost through out the session today

 

[Goofy]

You mean till Friday, Mr. SG?

Goofy,

You will be able to exit profitably this week.....

....But do not re-enter.... because there are many things weighing on the company's future with Honda..... withdrawing.

Happy & Safer Trading

SavantGarde

 

[SavantGarde]

Hi Option_fan,

First things first to understand that our Options market is not at all a developed market.

Secondly, RIL, ONGC & Many other big weighted stocks are used by the Big Fishes to Move the Nifty.

Even during the day one will find suddenly the whole screen awash with red... evidence of basket selling... this happens several times during the day... to jerk small traders out of their position....

For instance there were many small traders (even intraday) who were not able to exit their position on Diwali session of Friday....and to add to it Thursday & Friday settlement getting clubbed together.....were hoping to get a morning upmove to exit... but Big Fishes.... jerked them out first thing in the morning....and perhaps through most of Monday session....

In view of so many things that happen & especially in a segment (options) which is not at all advanced & then to take two entities (RIL & NF) to manage the move.... is not difficult to understand that Theoretical Prices will many a times be out of whack.

Big guys are usually on the SELL side of an Option trade in our markets... for various reasons such as Arbitrage, protection of portfolio and various other complicated stuff......

Therefore, to me it looks like small fries are buying RIL Calls that are expensive by 10% & Big fishes are selling PUTs that are expensive by 10%

Perhaps....Big fishes are looking to make money on both legs I guess.
Therefore, it would be safe to assume... that market will be More Volatile in coming sessions.

NF small deviation is not all that important for now....it is perhaps reflection of the bigger deviation of RIL and it weightage on Nifty.

I dont know why you think market will be less volatile....in coming days.

Happy & Safer Trading

SavantGarde

SG sir sry to disturb topic of the thread..

this is what I asked DAN in option strategy thread.. he told me you or Ronak may answer it properly as he dont trade indian market.

Hi Dan sir,

I observed 2 things today..

NIFTY 6300 call was trading much less than its th. value, almost 10% or more
NIFTY 6300 put was trading 0.5-1 rs less than its th. value 91.xx and 90.xx something like it.

vice versa...

RELIANCE 1100 call was trading almost @10% more than its th. value.
RELIANCE 1100 put was also trading @10% more than its th value.

what does it idicates?

1. NIFTY is expected to be less volatile in coming days?
2. RELIANCE will move wildly on some direction?

If it means so.. i will write nifty 6400 call and nifty 6200 put? vice versa.. i will buy RELIANCE 1100 call & PUT simultaniously??

i mean... if market value of any strike price call & put option differs much from the th value.. can it help us to choose option spread strategy?

for calculations i used volatility given yesterday on NSE site. and days to expiry I taken as 13.. or only no of trading sessions.both NIFTY & RELIANCE options have good enough liquidity

I trade naked options only with s/l .. so trying to know/learn more.

 

[SavantGarde]

If not by Friday...will request the exchanges to have a special session on Saturday for Your profitable Exit....

Happy & Safer Trading

SavantGarde

P.S.: Let me know which Exchange you prefer....

You mean till Friday, Mr. SG?

 

[Goofy]

If not by Friday...will request the exchanges to have a special session on Saturday for Your profitable Exit....

Happy & Safer Trading

SavantGarde

P.S.: Let me know which Exchange you prefer....

Sorry for the bloody connection! Had to click many times. Got the following message repeated!