Trading NR7 setup

[hills_5000]

I understand NR7..but what does inside bar mean ?

Here we Go .

Inside bar and NR7 in Nifty Weekly

Naresh

 

[AW10]

Here we Go .

Inside bar and NR7 in Nifty Weekly

Naresh

Yes, the weekly range is just 159 points.. compared to usual weekly range of 270 to 300 points. Weekly range of just 3.5% of spot price, haven't seen for long time. Even in March / Jan when we had really narrow range days, weekly range was decent.

Has trading in nifty become so boring that nobody is interested in it ? How are we going to see 5000/ 4000 levels then. Keeping my fingers crossed for the weekend and waiting for monday and anticipating breakout in next week.

Narrow range days, narrow range weeks ? Testing my patience ?

Happy Trading

 

[AW10]

I understand NR7..but what does inside bar mean ?

Inside bar where the current bar is completely within the range of previous bar.
i.e. Current bar high < Prev Bar's high and
Current bar low > Prev bar's low.

Indicates consolidation in a range that was setup by prev days bar.

I am sure u can extend this concept and define Outside Bar.

Happy Trading

 

[hills_5000]

Hi ,

Been reading your options strategies .... thanks for the write ups.. very informative... especially where this guy came up with the Billion dollar strategy..your explanation using delta made things simpler and more sensible ...

A few basic questions at this time..

1..We write an OTM Put ..market rallies upwards ... EOD..there a M2M on the Put.. does that get credited to the put writers a/c ?..

2. If one is sitting on a profit after writing a PE can one square it off by buying a PE at the same strike price and expiry?

3..If M2M does happen , and the market moves towards the strike price dailybut still not in the money , then daily the writer is going to have a M2M loss ?.. which gets reduced from his margin... ?

4..On expiry , if the PE is still not ITM , it obviously has only an intrinsic value .... so assuming (theoritically) from the time the PE was written ... the market slowly ..drifted down towards the strike price ..and yet remained out of it on expiry ... what will happen to the writer's daily M2M losses... ???

regards

Inside bar where the current bar is completely within the range of previous bar.
i.e. Current bar high < Prev Bar's high and
Current bar low > Prev bar's low.

Indicates consolidation in a range that was setup by prev days bar.

I am sure u can extend this concept and define Outside Bar.

Happy Trading

 

[MurAtt]

1..We write an OTM Put ..market rallies upwards ... EOD..there a M2M on the Put.. does that get credited to the put writers a/c ?..

No -- no M2M gets credited coz u have already digested the premium which is max gain jyaada khaane se badhazmi ho jaayegi!!!

2. If one is sitting on a profit after writing a PE can one square it off by buying a PE at the same strike price and expiry?

Depends on your broker -- some brokers sq off the same as cancellation, sell one and buy one. For some it is a diifferent trade and they keep the Margin and block another amount for purchase of Put. Generally they have a sq off option in the open positions window. Check with your broker abt how its done at their end.

3..If M2M does happen , and the market moves towards the strike price dailybut still not in the money , then daily the writer is going to have a M2M loss ?.. which gets reduced from his margin... ?

Right ---

4..On expiry , if the PE is still not ITM , it obviously has only an intrinsic value .... so assuming (theoritically) from the time the PE was written ... the market slowly ..drifted down towards the strike price ..and yet remained out of it on expiry ... what will happen to the writer's daily M2M losses... ???

Then you will get your deducted M2M back at expiry in your account (w/o interest of course )

Hope this helps.

especially where this guy came up with the Billion dollar strategy

Hame bhi yaad rakhna

 

[rohangawale]

NR7 stocks triggered on 7th Sept:

[B]STOCK		HIGH		LOW[/B]
ACC		803.9		793.2
CAIRN		262.9		260
HCL TECH	312.75		306.4
HERO HONDA	1639		1610.9
HINDALCO 	108.9		106
IDEA		81.5		80
INFOSYS		2230		2196.2
L&T		1602		1575
M&M		876.8		850.1
MARUTI		1584.75		1542.8
NTPC		208.25		206.3
REL CAP		927.85		910.1
RIL		2008.95		1976.5
REL INFRA	1166		1145
RPL		123.9		122.25
SAIL		168.25		165.05
SUZLON		103.4		100.35
TATA POWER	1325		1295
TATA STEEL	443.25		434.55

 

[rohangawale]

nifty with range of 60 points today.
again an NR7 day.

last time we saw 60 pts range on 14th aug and next day we got a breakout of 204 pts.

dekhte hai kal kya kamaal dikhata hai nifty

 

[rohangawale]

NR7 stocks triggered on 7th Sept:

[B]STOCK		HIGH		LOW[/B]
ACC		803.9		793.2
CAIRN		262.9		260
HCL TECH	312.75		306.4
HERO HONDA	1639		1610.9
HINDALCO 	108.9		106
IDEA		81.5		80
INFOSYS		2230		2196.2
L&T		1602		1575
M&M		876.8		850.1
MARUTI		1584.75		1542.8
NTPC		208.25		206.3
REL CAP		927.85		910.1
RIL		2008.95		1976.5
REL INFRA	1166		1145
RPL		123.9		122.25
SAIL		168.25		165.05
SUZLON		103.4		100.35
TATA POWER	1325		1295
TATA STEEL	443.25		434.55

Closing of NR7 as on 8 Sept:

[B]STOCK		CLOSE[/B]
ACC		796.1
CAIRN		266.35
HCL TECH	307.65
HERO HONDA	1668.85
HINDALCO 	114.95
IDEA		80
INFOSYS		2203.8
L&T		1617.65
M&M		838.15
MARUTI		1517.75
NTPC		206.2
REL CAP		912.05
RIL		2075.6
REL INFRA	1204.65
RPL		127.7
SAIL		168.6
SUZLON		101.3
TATA POWER	1280.55
TATA STEEL	456.5

 

[Aqua9]

Hi Rohan

Guess RIL cannot be on NR7 today

rgds
arun.

 

[MurAtt]

It already given a b/out.