Trade with options data

[darshanshukla]

Dear Kiran
absolutely right:thumb:
and with the call covering there is also PUT writing seen in 5300/5200 and somewhat in 5400
(if I'm not wrong)

As per options data, hindalco should go down, but since last 30 min, it is following nifty in going up..

bye the way.. nifty data shows signifcant call covering..

 

[cityhunter]

hi, trader 15,

if nifty goes up everthing tries to go up and minimize the loss as per previous posts even kiran mentioned trade only if nifty moving up or down in his previous posts

 

[anilnegi]

is anybody trading with the help of excel sheet of uttam bhai

anil negi

 

[TraderRavi]

As per options data, hindalco should go down, but since last 30 min, it is following nifty in going up..

bye the way.. nifty data shows signifcant call covering..

trading on the basis of OI alone is not good sometimes.....I was long on a scrip today ..but when I checked ,its OI showed heavy call writing while puts covering...I squared off only to see massive serge in call premiums but still same OI.....:annoyed:

 

[kiranjakka]

only trend to be considered based on OI as per my experience and you should read the OI carefully before proceeding to any trade. our group never had any problem taking trades as per OI

coming to hindalco the OI trend never changed. i have mentioned many times in this thread take the trade only when you are with nifty trend. hindalco contract lost just 40 paisa when nifty moved up 2 percent nearly. imagine what should have happened when you are in any other contract you should have lost minimum 40-60 percent of your trade.

coming to the put covering and call writing in hindalco, call writers are happy as they are getting more premium and put writers are today happy that nifty moves made to buy their options back at a low price, who want to stop them.

today we took position on hindalco at 1.5rs and squared off at 1.9rs 130 put option as nifty is moving up and closed our position.

please dont expect i can give each and every trade on this thread( i mean when i am buying and when i am selling) i can just help out giving the trend of the stock and the rest left to your justification.

if we were in a chat room it will be easy to post or put my thoughts as and when it arises but in a thread its really difficult.

 

[kiranjakka]

it is so clear on each and every contract that nifty is headed up and a lot of put writing at 5400 and 5300 contracts i wonder how somebody can just miss the trend.

 

[TheDreamer]

it is so clear on each and every contract that nifty is headed up and a lot of put writing at 5400 and 5300 contracts i wonder how somebody can just miss the trend.

The bulk of the OI increase in 5400 puts happened in the last hour of trade... market was already above 5380 at that time...

 

[kiranjakka]

OI data is not just buying out which ever side is negative? many friends here are doing that. if you take a stock you should look out the OI where it peaked out and started falling too__________- i wonder if there are any indicators for OI data intraday and eod tools

 

[uttamkamlesh]

Thanks again for your clarification. But what would you do if the liquid stocks that you have now chosen are no longer so liquid and other scrips in future justify being classified as liquid? It would be easy for you ofcourse to make changes in your excel sheet. However, if some flexibility or guidance on deletion/addition of scrips/symbols was provided for users in your excel based software itself, that would be a further plus point.

Anyway, based on your experience, I take it as granted that there are only 19 scrips that are included in your program that are worth considering for options trading, besides Nifty and Bank Nifty. That itself reduces the complexities of trading to some degree.

Recently I asked a senior executive in a securities firm whether there actually are market makers in the stock market. I was surprised to hear his confirmation. I then went a step further and asked him how could that be possible in a market with such large volumes being traded. He replied that market makers are usually option writers and they have deep pockets besides expert knowledge of the market and corporate information that is public as well as researched (a softer word for inside information perhaps).

This thread and your software it seems is trying to read the moves of option writers to advantage. The leverage in options being so high, it is imperative to have strategies and plans for whipsaws and correct triggers for entry and exit. Needless to mention that a good charting software and real time charts for both cash and futures segments, perhaps also including option charts in real time, are a must. Could you please suggest a few good AmiBroker AFLs and possibly refer their download links?

Still going through your thread backwards with increasing appreciation as well as doubts.

Regards,

hrsnagpal

This thread has been started by Kiran.
Plz keep on working hard!. Best Wishes!...

 

[jovial01]

In the evening will go through some Nifty Options an illustrate the same with an actual example for better understanding....!!!

SG

Savant Sir,
Require ur support to understand how to decide whether options price quoted currently are cheap as u mentioned in ur prev mess.