PUT and CALL options

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comm4300

Well-Known Member
#52
Re: Feb series-Day7 ,NiftySpot:5362 (+36)

The EFFECTIVE ZONE continues to be same at, 4900~5400.In PUT window
6 strikes are closed (4300~4800) and 6 strikes are open (4900~5400).In
call window just one strike is closed.(5700)



For EVERY 100 puts ,we have approximately 60 calls in Effective Zone.
Effective Zone plays crucial role ,since this moves in accordance with Nifty.


Courtesy:AdityaSaraf007
thank you for the amazing layout and analysis...:thumb:
 

columbus

Well-Known Member
#53
Re: Feb series-Day7 ,NiftySpot:5362 (+36)

thank you for the amazing layout and analysis
Hi Comm,
Analysis may be mine but the idea behind this lay-out belongs to
Timepass/Adityasaraf.
 

columbus

Well-Known Member
#54
It's priced same as 5000PE .. wonder what that means..
Well,if one is sure of UPWARD movement, why to settle for 5500CE (42.50)
,you can as go for 5600(18.50).You will get more than TWICE the benefit.
 
#56
Re: Feb series-Day7 ,NiftySpot:5362 (+36)

The EFFECTIVE ZONE continues to be same at, 4900~5400.In PUT window
6 strikes are closed (4300~4800) and 6 strikes are open (4900~5400).In
call window just one strike is closed.(5700)



For EVERY 100 puts ,we have approximately 60 calls in Effective Zone.
Effective Zone plays crucial role ,since this moves in accordance with Nifty.


Courtesy:AdityaSaraf007

Thanks for making me understand my queries :)

Now just a point in this image effective zone should not be in btw 4900-5600 as till strike price 5600 calls are above Rs. 10?
Does it bcz we are calculating btw PUT n CALL common zone and the common are btw 4900 and 5400 ... other strikes are outside the common area?

One more thing ... what this effective zone represent? Does it represent that nifty will move in btw these level till expiry till there is NO CHANGE?

Correct me pls if i am taking it wrong. :)

Thank You Again

Regards
 
#57
So, these calls have actually lost some value that can't be attributed to time decay !! Looks like a bear trap. I would be wary of buying puts, maybe betting on 5500CE would be safer.

TP Bro if u don't mind can u pls give ur 5 min in explaining that how u determining that its a bear trap ... as calls of 5700 n 5600 are loosing there value?

Thanks

Regards
 
#58
TP Bro if u don't mind can u pls give ur 5 min in explaining that how u determining that its a bear trap ... as calls of 5700 n 5600 are loosing there value?

Thanks

Regards
Not too much technical analysis. But if nifty is going up, then the calls should be going up also; if they are not going up then either a) someone believes that 5400 is upper limit, or b) they are trying to fool the bears by keeping the value down, so that the bears get trapped into buying puts.

Just some thoughts, no technical basis.
 

columbus

Well-Known Member
#59
Feb series-Day8 ,NiftySpot:5335 (-27)

EFFECTIVE ZONE is condensed to 5000~5400.Earlier 4900PE which was
in Effective Zone ,came out of it.

 

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