NIFTY Options Trading by RAJ

[healthraj]

Overall CHG in OI

11:00 AM
CE @ -9.2 L
PE @ 19.15L.
If the CE volume does not Go Down, then it would be a concern for our Short positions. Because Too much Negative Values means the BEARs are letting the market GO UP.
CHG in OI @ 6100-6200
MAX OI @ 5900-6200
Still Favouring Bulls - No signs of Short Yet

11:45 AM
CE @ -8.4 L - The Positions gone down by 60K
PE @ 19.25L - Up 10K.
So nothing much happening overall. But the CE squaring is paused or coming down


1:45 PM
CE @ -11.5 L - More Calls getting squared off. May this is the last chance for the bulls - In the last week of expiry this might be a signal of Bearish
PE @ 15.75L - down by 5L - So the PEs are getting unwind - Sign of Bearish

with 6107 as the Top, 6077 (30 points) might act as the next Support/Resistance. So book 50% of the positions around 6077

The Volatility of CEs came down from 24 to 22 which should have helped our shorts. the PE volatility down from 19.5 to 18

 

[aimer]

Overall CHG in OI


PE @ 15.75L - down by 5L - So the PEs are getting unwind - Sign of Bearish

with 6107 as the Top, 6077 (30 points) might act as the next Support/Resistance. So book 50% of the positions around 6077

The Volatility of CEs came down from 24 to 22 which should have helped our shorts. the PE volatility more or less same

raj why do u consider only 30points, why not 40 or 50...is their some strategy around that ...yesterdays u used 60points....

 

[aimer]

raj why do u consider only 30points, why not 40 or 50...is their some strategy around that ...yesterdays u used 60points....

By the way, 6077 is also the 38.2 retracement lvl for this down move...

 

[guptak03]

raj why do u consider only 30points, why not 40 or 50...is their some strategy around that ...yesterdays u used 60points....

i think raj ji is using nifty annual Volatility..!!

 

[healthraj]

raj why do u consider only 30points, why not 40 or 50...is their some strategy around that ...yesterdays u used 60points....

For NIFTY 1% means 60 points. 50% of 60 points is 30 points. Yesterday it was not bearish so when the market came down I asked to close with 40 points itself.

 

[healthraj]

Overall CHG in OI

11:00 AM
CE @ -9.2 L
PE @ 19.15L.
If the CE volume does not Go Down, then it would be a concern for our Short positions. Because Too much Negative Values means the BEARs are letting the market GO UP.
CHG in OI @ 6100-6200
MAX OI @ 5900-6200
Still Favouring Bulls - No signs of Short Yet

11:45 AM
CE @ -8.4 L - The Positions gone down by 60K
PE @ 19.25L - Up 10K.
So nothing much happening overall. But the CE squaring is paused or coming down


1:45 PM
CE @ -11.5 L - More Calls getting squared off. May this is the last chance for the bulls - In the last week of expiry this might be a signal of Bearish
PE @ 15.75L - down by 5L - So the PEs are getting unwind - Sign of Bearish

with 6107 as the Top, 6077 (30 points) might act as the next Support/Resistance. So book 50% of the positions around 6077

The Volatility of CEs came down from 24 to 22 which should have helped our shorts. the PE volatility down from 19.5 to 18

Having booked 50%, Move your stoploss to Cost.

If you are not able to close this with enough profit today, You can hold this for tomorrow because the Theta for this pair is 13 points. Just by timevalue decay you will get another 13 points tomorrow when the market opens.

You can also try this around EOD. Whatever be the pair value, Sell once again at say 3:15 pm today. Tomorrow when the market opens you will get 12 points minimum. Just try

 

[healthraj]

At the end of the day 23-Jul-13, there were -30L CE squared off. 15L in 6000CE itself... that also confirms the MAX Pain at 6000. So I hope that market will move towards 6000. Let us see...

The Volatility of CEs have come down to an AVG of 20.37 from 24 - The power of volatility helping our positions.

Made 12 points when the market reached 6077 levels.

Sold again at the end of day for around 97.

Tomorrow if the market opens FLAT or DOWN or UP, it does not matter, we will get 12 points straight away using the Time decay. So If I get the pair for 87, will close another 50% and will hold the Rest of the positions till it gives minimum 30 points profit.

So even when the Market was looking Bullish, we are able to make 12 points profit using Options - That is the power of Options Selling

Happy Trading

 

[healthraj]

dear raj,
when u get time pls give some detailed explanation about the usage of option chain to take a trade or form a strategy in a simple manner like how to check for pain n OI ect.

Hi,

Please let me know if you are looking for anything specific on Options Chain. Otherwise the important stuff I have already given it as Rules.

It might not be easy to put everything on this forum. Hope some self study is also required. Otherwise if you follow this thread for another one month, I think you will understand more.

Those who were following my previous thread, hope would agree with the "one month".

If somebody who was following my previous thread, can document the whole thing and share it here. Otherwise I will take some time to prepare some presentation which will cover the basics of "How to Read Options Chain?".

 

[maneverfix]

[/COLOR][/B]

This is the reason why I believed that there is a single strike price where there is max pain

Me too, thought on the same line

 

[maneverfix]

After moving to Options Chain, nowadays I don't look at any charts... Looking at Charts only makes the heart go fast and creates the FEAR syndrome. So after you have taken the position, Put the stoploss trade and go for a break for 30 minutes... Don't keep on looking at the Charts and the monitor

With this amount of knowledge and analysis, if Raj is getting FEAR syndrome, then I am **** scarred............LOL,

Happy Trading

My prediction someday Raj will end up finding "HOLLY GRAIL"