NIFTY Options Trading by RAJ

[Option.Trader]

New tentative trendline?

Broke out of that range now

 

[Option.Trader]

The 250 points reversal at 5525 happened but the Options did not give me a good result because I took the 5300 PE. I should have may be taken the 5600 PE.

Some news on govt, power stocks to break out

 

[healthraj]

Some news on govt, power stocks to break out

That means we can Buy at the NIFTY Levels of 5445. Let us see. As per the Reversal it should test 5400 At least.

For NIFTY Buy above 5502 SPOT and for BANKNIFTY Buy above 9425

 

[Option.Trader]

That means we can Buy at the NIFTY Levels of 5445. Let us see. As per the Reversal it should test 5400 At least.

For NIFTY Buy above 5502 SPOT and for BANKNIFTY Buy above 9425

Perfect, missed getting out earlier, hope to get out now

 

[Option.Trader]

Perfect, missed getting out earlier, hope to get out now

Trailing stop loss did the trick, missed out on exit @5510, but fdidn't get hit by sudden drop and came out at 5497

 

[Option.Trader]

My view, this month is done, options writer holding fort and collecting premium, next month, would be biased on the short side if this rally picks up. Don't trust this rally to go anywhere

 

[Option.Trader]

24l added in 5500pe open interest, bulls desperately trying to have expiry above 5500, Raj your Max pain theory working to perfection. Wonder if there is a strategy to play only one week before expiry based on this. If it's 200 points away from Max pain we have a trade?

 

[healthraj]

24l added in 5500pe open interest, bulls desperately trying to have expiry above 5500, Raj your Max pain theory working to perfection. Wonder if there is a strategy to play only one week before expiry based on this. If it's 200 points away from Max pain we have a trade?

The Max Pain for Aug-13 @ 5500 But for SEP-13 it is at 5600. So when we are following the MAX Pain theory, Please always close the positions near the MAX Pain. Otherwise it could happen like last month. Last month the MAX Pain was at 6000 but then the Operators took the market to near 6100 and then started selling from there. This month for a Brief period MAX Pain was also at 5600. So Aug-13 Series might expire around 5600 also.

OT, It is a Good idea to do some trade based on MAX Pain.

Today the BANKNIFTY also behaved very well. The MAX Pain was at 9500 and even though NIFTY was in green, BANKNIFTY after touching 9550 made 150+ points on the downside. Remember two days back the MAX Pain was at 9400.

 

[Option.Trader]

The Max Pain for Aug-13 @ 5500 But for SEP-13 it is at 5600. So when we are following the MAX Pain theory, Please always close the positions near the MAX Pain. Otherwise it could happen like last month. Last month the MAX Pain was at 6000 but then the Operators took the market to near 6100 and then started selling from there. This month for a Brief period MAX Pain was also at 5600. So Aug-13 Series might expire around 5600 also.

OT, It is a Good idea to do some trade based on MAX Pain.

Today the BANKNIFTY also behaved very well. The MAX Pain was at 9500 and even though NIFTY was in green, BANKNIFTY after touching 9550 made 150+ points on the downside. Remember two days back the MAX Pain was at 9400.

I fully agree, I would like to trade at extremes of it. Preferably 100-150 points away from it. Looks like rr is there, but hard to define stop loss, maybe OTM premium is the stop loss?

 

[Option.Trader]

I fully agree, I would like to trade at extremes of it. Preferably 100-150 points away from it. Looks like rr is there, but hard to define stop loss, maybe OTM premium is the stop loss?

The MAx pain as per the tool is still at 5500.. So Raj would you advocate that nifty would gravitate towards 5500 by this expiry? We could put this to test with 5500 CE premium itself acting as a stop loss... what say? or is there any flaw in this argument?