Trade with options data

[uttamkamlesh]

HDFC Bank ..........Go short with sell stop at 499....right now at 501.6

HDFC Bank made a low of 496 later on....

 

[hrsnagpal]

removing the password is the easiest option but i was uncertain about write access password . in office 2007 click on topmost left icon(button) click on PREPARE>encrypt document> remove the password > click ok > since it is a read only file you will need to save as option > DONE. no need of any kind of password.

this will help you to edit the file and remove the stocks you not want . just read the code and help out everyone(including the MR. UTTAMKAMLESH) making the sheet better

Hi Rajin,

Thanks a pile! Your guidance really helped and now the file is working with Refresh. However, could you also guide on how to remove some stock symbols and add other symbols in place? Does one have to go into the fetch external data and enter the urls with yahoo suffix (.NS) or something like that? My downloaded excel file has 19 stocks and 2 indices (Nifty and Bank Nifty).

Kamlesh has done a good job no doubt and the format is quite readable. However still trying to understand the system fully.

hrsnagpal

hrsnagpal

 

[hrsnagpal]

1. Actually Macro program has been written by my friend....and accordingly he has put one REFRESH button....Earlier my version was auto refresh type....

2. Plz remember This is version 1.0 ,,,,v2.0 should be much better...but the central point is trading with option data should be consistently profitble.....

Let us focus on the IDEA not the tool....because one idea can change life....:lol:

Hi Kamlesh,

Thank goodness you didn't put auto refresh in your excel. I have used such excel sheets in the past and they severely disrupt a trader's workflow and use up bandwidth at unreasonable moments. The refresh button is a good alternative. Can't say whether it is possible to have a refresh button for each scrip. If possible please consider in your next update. Congratulations on the good design and format. Trying to understand the system fully. A guidance note summarizing the trading strategy and some cautions on whether to trade intraday only or can also carry forward with stop loss might have been more helpful.

hrsnagpal

 

[uttamkamlesh]

Hi Kamlesh,

Thank goodness you didn't put auto refresh in your excel. I have used such excel sheets in the past and they severely disrupt a trader's workflow and use up bandwidth at unreasonable moments. The refresh button is a good alternative. Can't say whether it is possible to have a refresh button for each scrip. If possible please consider in your next update. Congratulations on the good design and format. Trying to understand the system fully. A guidance note summarizing the trading strategy and some cautions on whether to trade intraday only or can also carry forward with stop loss might have been more helpful.

hrsnagpal

Plz see at the bottom 'how to use' in the Dashboard...
Also, go through this thread...how Kiran made his calls....

 

[prabhsingh]

Mate,In this excel sheet for some stocks what i have observed is that "BIAS" is bearish for call as well as put.How is this possible?If call is bearish then put should be bull and vice-versa.Atleast one of the trend should be bullish.Dont you think so?

 

[hrsnagpal]

Plz see at the bottom 'how to use' in the Dashboard...
Also, go through this thread...how Kiran made his calls....

Thanks Kamlesh. Yes I will go through the past posts in this thread and try to understand the strategy and method as outlined by Kiran and other seniors. But could you please clarify why only 19 stocks out of the 50 in Nifty appear in your Excel Sheet? Is there some method to add the rest perhaps in a differently named excel file?

As I understand options broadly the breakup of the change in open interest could be indicative of the market and specific stock direction. In other words, at which strike price calls or puts are being written and traded is indicative of option traders' market and scrip expectations. The nearest out of the money call or put from the in the money option is the direction of the trend. But this information is available in real time from NSE website as well as selection of scrips with their strike price in your trading terminal. So far as I can make out you are trying to identify build up or unwinding in open interest that is pronounced or resulting in more than +/- 10% change in option premium.

I shall appreciate if the above summary is confirmed and/or corrected or further elaborated. That will make it easier to understand the past discussions. I am indeed a novice to options and need some help in learning more.

Thanking all who can help,

hrsnagpal

 

[kiranjakka]

Thanks Kamlesh. Yes I will go through the past posts in this thread and try to understand the strategy and method as outlined by Kiran and other seniors. But could you please clarify why only 19 stocks out of the 50 in Nifty appear in your Excel Sheet? Is there some method to add the rest perhaps in a differently named excel file?

As I understand options broadly the breakup of the change in open interest could be indicative of the market and specific stock direction. In other words, at which strike price calls or puts are being written and traded is indicative of option traders' market and scrip expectations. The nearest out of the money call or put from the in the money option is the direction of the trend. But this information is available in real time from NSE website as well as selection of scrips with their strike price in your trading terminal. So far as I can make out you are trying to identify build up or unwinding in open interest that is pronounced or resulting in more than +/- 10% change in option premium.

I shall appreciate if the above summary is confirmed and/or corrected or further elaborated. That will make it easier to understand the past discussions. I am indeed a novice to options and need some help in learning more.

Thanking all who can help,

hrsnagpal

only the active stocks in f&o should be considered just because they provide clear direction.

try to read the OI data of in the money calls or puts or near the money calls or puts only then you can be little close.

 

[contactomprakash2000]

only the active stocks in f&o should be considered just because they provide clear direction.

try to read the OI data of in the money calls or puts or near the money calls or puts only then you can be little close.

Dear Kiran or Savant or Any expert,
Please evaluate my understanding on the below four situations.

Long Building
People are interested in fresh buying. Thus demand will dominate over supply and the price will rise and also OI will rise.
Conclusion - Price Rise & OI Rise = Long Building

Short Buildup
People are interested in fresh selling. Thus supply will dominate over demand and the price will fall and OI will rise.
Conclusion - Price Fall & OI Rise = Short Building

Long Unwinding
Those who bought the option earlier are selling now. Thus supply will dominate over demand and the price will fall and also OI will fall.
Conclusion - Price Fall & OI Fall = Long Unwinding

Short Unwinding
Those who sold the option earlier are buying now. Thus demand will dominate over supply and the price will rise and OI will fall.
Conclusion - Price Rise & OI Fall = Short Unwinding

 

[SavantGarde]

Hi Omprakash,

Do excuse me for my inability to reply to your queries...!!!

It is very rare for me to be trading in Options...personally I do not follow any of the conventional methods of OI & etc.

I am more comfortable writing Long Dated Options..... or Buying only when some Nifty options are very very cheap due to temporary price dislocation because of sudden Market movements as witnessed from Budget day onwards...!!!

SG

 

[SavantGarde]

In addition to the post below.....I will suggest one thing for active Option Traders....

Use the writing of Option to finance your Long leg Protection.... This requires some focused study of Underlying of very Liquid Options...!!!

SG