Nifty Open Interest Analysis

[sridhar]

that would not lead to an increase in OI timepass...to answer shridhar's question tht could possible be someone who bought it at the opening or someone playing cal spreadz or some punter(s) trying to predict mkt will dip below 5600 !!!

What I find confusing is that the OI increase was huge on expiry day. So unless you are betting on a large move it does not make sense. And the market in the last 45 min. partly answered my question. So could it be insider info/trading in the Oil & Gas index stocks? Buying in the stocks in the last hour betting on the outcome of the Cabinet meeting on Gas pricing- but hedging the stock purchases in the expiring Options series does not make sense.

Possibly a case for SEBI, as we do not have enough data.

 

[Option.Trader]

What I find confusing is that the OI increase was huge on expiry day. So unless you are betting on a large move it does not make sense. And the market in the last 45 min. partly answered my question. So could it be insider info/trading in the Oil & Gas index stocks? Buying in the stocks in the last hour betting on the outcome of the Cabinet meeting on Gas pricing- but hedging the stock purchases in the expiring Options series does not make sense.

Possibly a case for SEBI, as we do not have enough data.

Well its people trying to play lottery... hoping to buy at rock bottom price to get a 10X increase in option and then ending up loosing everything. But another phenomenon is that when options are exercised, they incur exchange percentage which is usually twice the amount than just being squared by user.

 

[Option.Trader]

Well its people trying to play lottery... hoping to buy at rock bottom price to get a 10X increase in option and then ending up loosing everything. But another phenomenon is that when options are exercised, they incur exchange percentage which is usually twice the amount than just being squared by user.

Lets play with the trend... if nifty holds 5850.. it can go upto 5970... try shorting 5800 PE at these levels for some risk free returns... you can also try selling 6100 calls or take the other way round... buy 5800 calls and sell 6100 call as IV's are pretty low on the calls

 

[R M]

Well its people trying to play lottery... hoping to buy at rock bottom price to get a 10X increase in option and then ending up loosing everything. But another phenomenon is that when options are exercised, they incur exchange percentage which is usually twice the amount than just being squared by user.

It is actually STT which is applicable at a delivery rate of full contract value (.125%) for ITM options when they expire (or exercised, European options can be exercised only at expiry so ITM expiry and exercise is one and the same thing here) instead of normal STT of .017% of premium if the option is squared off.

regards.
rm

 

[jamit_05]

5600 is going for base formation for the series... lets wait for closing.

 

[anup]

Yes Amit u r right.. 5600 can be the base, But will nifty come and test the base i.e., 5600 ??

 

[jamit_05]

Yes Amit u r right.. 5600 can be the base, But will nifty come and test the base i.e., 5600 ??

I have observed that the base is often challenged, especially if this base forms early on in the series. To take advantage of this information one should have a trading system in place.

But talking simply, should one just sell 5600 PE now? Probably not, because the DD will be sharp if 5600 is tested.

So should one Buy 5600 PE? Yes, it makes sense. Set a wide SL as per levels on the chart and work with a 1:2 RR.

 

[jamit_05]

Another observation I would like to share with you guys.

Whenever a Base is made and a few days later a higher base is made. Then it is a confirmation of the ongoing trend. Just like a Higher Pivot Low being made in an uptrend.

I do not know how this information can be used independently, but yes it will help traders of Daily charts to time their exits.

 

[jamit_05]

Newspaper are screaming Mandi.... Options Table is showing Teji !!

 

[Option.Trader]

Newspaper are screaming Mandi.... Options Table is showing Teji !!

Jamit

There is an interesting strategy based on Options being developed by Raj on his thread. He is actively taking inputs based on strategies discussed here.. it would be good to get your inputs in... search my posts for threads that i have posted in the last few days