Trade Nifty Options Using Open Interest

[gmt900]

Hi Ankur,

I am willing to bite the bullet on Mon day 6th. 1 Lot each.

As i hv understood, exit Put if NF hits 6200 and hold CE till it touches 10.

As suggested, will watch this thread thrice.

All the best to both of us......:clapping:

Do you exit if NF hits6200 or put a stop loss order @ 6350P for 200?

 

[ankurpcl]

That's the thing which every option trader need to understand.

Your StopLosses should be set on Nifty but when you punch orders on your trade terminal it should be in terms of Options Price Level Calculated always.

We have resistance on Nifty in terms of 6210 and at 6350 Put Options at 191
So we need both to be taken out before deciding to square off
(SMART THINGS WHICH SMART TRADERS GENERALLY DO )

 

[ankurpcl]

1 Lot 6050 Put Sell Option Added @ 40 Levels.

 

[ankurpcl]

Options Update at 2:30PM

Market unable to hold 6250 levels in todays trade thus can drift below 6200 in tomorrows trade.
Considering same 6350 position has shifted to 6200 for both put and call postions.
Profit and Loss will be share after market hours.

 

[ankurpcl]

Summay of Today's Trade as below:

6350 PUT AND CALL CLOSE WITH POINTS RETURNED : 215
Net Point Loss : 10 (Position taken at 205 Points)

New position created at 6200 Levels both Sell Sides for Put and Call (1 Lot),
1 Lot at 6050 Put Sell
Total Premium Captured: 196 + 40 = 236

StopLoss for above calculated as 6110 and 6350, On hitting SL Open Interest will be checked for next course of action.

 

[ankurpcl]

Options Update at 08:35 AM

Today Ranges in Nifty work out as :
6142 => 6210 => 6310 =>6373

Considering same yesterday Carry and hold strategy seems to be perfect as of now.
We have protection till levels of 6110 on down side to 6350 on upside. Hopefully this time Nifty will spend some time in these ranges to give some better returns to writers.

 

[ankurpcl]

Levels still maintained in Nifty, so no trades done in the Carry Forward Options Strategy today. Enjoy writing points gain today with out doing any trade

 

[gmt900]

Please explain the logic behind selling 6050P at 40 yesterday. We are going to loose if nifty keeps sliding down. Of course, 6350C earlier and 6200C will compensate for the loss.

 

[ankurpcl]

reason for 6050 put sell is we have 3 barriers in between 6110, 6145, 6210 when it was decided to initiate trade in this

 

[hardik229]

Dear Hardik,
All levels calculated based on Open Interest only, There are 2-3 Major tasks to be done when you trade Options:
1. Calculation of OI at multiple strikes ending with 00 like 6100,6200,6300 for both Call and Puts
2. Based on OI developing you need to consider which Levels would be best if Any option to be write (Same time you have to keep eye on last 15 trading sessions too across all strike prices)
3. Always try to sell option using hedge if you are new to options as it gives you sufficient time to plan exit from trade even if Nifty makes sudden movement of 150-200 points in 1-2 trading sessions.

These are some points for which you need to do homework before planning any trade. As far as options trading is concerned, there are more than 1000 strategies available if you read any book on Options. But till now I never found even a single book which talks about considering Open Interest be it bull spread, straddle, synthetic, combo, ladder, butterfly.

All such strategies make your calculations so difficult in end that sudden movement in Nifty by 100-150 point in 1 trading session make you feel lot more confused and in end left with losses in your pocket.

But if you learn the art of Options trade using Open Interest, you will get 1 method of earning income in your life with risk factor of just 5% of losing your capital in longer period.

Most of viewers who read this thread must have jobs in their hands and same time they want to use their surplus capital in some good manner rather investing in FDs or MFs where you have no control in the returns.

But Options is one such platform where you can generate capital based on your capability level to understand market much faster than others and take quick decisions.

Just be with this thread, all profits and losses will be shared too along with all viewers as month progresses. In very first thread it was declared using Open Interest you can expect 10~15% returns easily. And if by month end I successful in achieving same, in next month i will guide all viewers how to trade options using Open Interest.

I would first like to win the confidence of viewers with the strategy which I have developed based on my experience and skillset only.

If viewers are convinced, they can take the same art from me and apply through out their lifes to earn side by side income for entire life.

Thanks
ANkur

Thanks Ankur..!!

But if you can provide the details of the OI data for any strike selection. That would give us more idea about this strategy and can learn more things.

Thanks in advance..