Trade with options data

[TraderRavi]

call writing at 5100 will come up automatically if nifty falls and trades below 5200 for some time:thumb:

wats ur target today kiran..
5170 tutega kya..........?

 

[kiranjakka]

wats ur target today kiran..

cant say anything until it breaks 5150 but my gut feeling we break it faster than expected this much OI i have seen it when nifty moved 120 pts from 5000 to 5100 few days back and now seeing the same amount of OI now,letus see what happens now :thumb:

 

[kiranjakka]

wats ur target today kiran..
5170 tutega kya..........?

nifty fallen just 0.6percent and 5200 and 5100 puts doubled denotes how bearish the underlying sentiment is, even then not able to see reasonable amount of put covering as such :thumb:

 

[TradersZone]

When we rose from 4800 to 5100-5200 quickly, Put call ratio jumped from 0.95 to 1.5+. This meant more puts have been bought compared to calls. So if market falls, put writers would burn their hands with unlimited loss.. so their attempt will be to save themselves by not making the market fall.

Now, put call ratio past few days has dropped from 1.25 to 1.05 or so. Indicating more calls have been bought, means market sentiment was positive. Capitalizing on that, calls are being written even more because the sentiment is there means buyers are also there.

(copy pasted)

 

[aayush_123]

reliance results today.. any view?

 

[darshanshukla]

you are right TZ but I want to draw your attention that
PCR does not mean that put or call bought only.....
it is volume based and it is ZERO SUM GAME
if you understand my point how many buyer will be there they required same amount of seller... Hope you got my point
(Option seller will require 3-5 times more margin than option buyer so please understand that seller is having more money than buyers and they will drive option market as well as whole market - most of FII and others use it as HEDGING)
Happy trading Ahead,

When we rose from 4800 to 5100-5200 quickly, Put call ratio jumped from 0.95 to 1.5+. This meant more puts have been bought compared to calls. So if market falls, put writers would burn their hands with unlimited loss.. so their attempt will be to save themselves by not making the market fall.

Now, put call ratio past few days has dropped from 1.25 to 1.05 or so. Indicating more calls have been bought, means market sentiment was positive. Capitalizing on that, calls are being written even more because the sentiment is there means buyers are also there.

(copy pasted)

 

[poortrader]

How about buying a straddle on Reliance? Since results may evoke high volatility/move?

 

[kiranjakka]

you are right TZ but I want to draw your attention that
PCR does not mean that put or call bought only.....
it is volume based and it is ZERO SUM GAME
if you understand my point how many buyer will be there they required same amount of seller... Hope you got my point
(Option seller will require 3-5 times more margin than option buyer so please understand that seller is having more money than buyers and they will drive option market as well as whole market - most of FII and others use it as HEDGING)
Happy trading Ahead,

volumes also play an important role to decide the trend of the market one should read the volume aspect also before deciding the underlying trend :thumb:

 

[TradersZone]

Kya Market Hey Whole World Range Bound

 

[kiranjakka]

Kya Market Hey Whole World Range Bound

POSITIONED MY SELF IN THE MARKET BEFORE THE FALL AND WAS HAPPY SEEING THE MARKET FALLING FOR FEW MINS OR SECONDS FROM THERE ON RANGEBOUND 15PTS DAMN REALLY BORING :thumb: