Technical analysis on Options chart

[john302928]

Hi, I would like to know if anybody is applying technical analysis on options charts. If so please share your views.

 

[bunti_k23]

Hi, I would like to know if anybody is applying technical analysis on options charts. If so please share your views.

hy john,

iam will be trading in options directly (buying only) in intraday by using trading system on nifty fut charts and i have checked the chart comparison of nifty options and nifty fut they move pretty similiar to each other....the one thing u need to keep in mind that theta will not be in ur favour so dont try to carry ur position on next day....and have tight trading plan as when we buy options we dont want to w8 too much coz theta will be eroding the value .so using ur trading plan on lower tf like 3m or 5m will be ideal ..any thoughts or ur exp on this.

 

[john302928]

hy john,

iam will be trading in options directly (buying only) in intraday by using trading system on nifty fut charts and i have checked the chart comparison of nifty options and nifty fut they move pretty similiar to each other....the one thing u need to keep in mind that theta will not be in ur favour so dont try to carry ur position on next day....and have tight trading plan as when we buy options we dont want to w8 too much coz theta will be eroding the value .so using ur trading plan on lower tf like 3m or 5m will be ideal ..any thoughts or ur exp on this.

You are correct Bunti_k23, Spot/Futures chart and options chart move pretty similar. But it happens only with ITM options contracts. as far as ITM we dont need to worry about theta much. But we have to be very cautious on OTM because of option greeks.
At the moment , I analyse spot chart and look for favourable positions in option contracts. I am not able to directly apply EW or any other technical analysis matters directly on to Options charts because options charts are not so clear due to volatility.

I am just wondering if anybody else is able to make it work so that we can discuss and fine tune it

 

[bunti_k23]

You are correct Bunti_k23, Spot/Futures chart and options chart move pretty similar. But it happens only with ITM options contracts. as far as ITM we dont need to worry about theta much. But we have to be very cautious on OTM because of option greeks.
At the moment , I analyse spot chart and look for favourable positions in option contracts. I am not able to directly apply EW or any other technical analysis matters directly on to Options charts because options charts are not so clear due to volatility.

I am just wondering if anybody else is able to make it work so that we can discuss and fine tune it

exactly im too looking for someone who has exp with this type of trading to guide us.....

 

[john302928]

exactly im too looking for someone who has exp with this type of trading to guide us.....

Hi Do you have 1 min IEOD data for bank nifty weekly contracts since the introduction of weekly contracts?