Gamma based range & trade

#11
am closing another buy 6200 call at 161.
and closing sell 6000 put at 12.30.

Thus,position as of now is nil:thumb::clap:

Status of trades:

Buy 6200 call at 133 sold at 161 today +28
Buy 6200 call at 119 sold at 147 today +28
Sell 6000 put at 20 bought at 12 today +8
Sell 6200 put at 69 bought at 45 today +24
Total:+88 ..................
 
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#12
Critical Parameters for Wednesday is as follows:-

1.5ema reversal point:6179

2.20ema reversal point:5580

3.MACD zero cross:5879

5ema reversal point is now between L1 & L2.Pressure was there and nifty did come down yesterday but strong support at 6200 resulted in big move towards Critical point 6305.Have closed calls & puts today as nifty close near 6305..

20ema reversal point away from the range indicates that 20ema(6170) would not be broken now..(Thats the reason why 6200 put open interest is piled up for now)

Nifty went above Daily macd.div.tick(Histogram) today.Has to move above 6308 for further positivity tomorrow.

On break of Daily macd div.tick 6261 today on the upside,Calls prices moved away from their average price.

Average price:

6000 call:240

6100 call:154

6200 call:105

Thus,the range to be watched would be 6256/6305/6355 for now..

Further,nifty macd is positive.But calls macd was still in negative.Tomorrow,6000 call macd would get into positive above 347..

Have squared off all positions today.Further,positions would be taken tomorrow..
 
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#13
am closing another buy 6200 call at 161.
and closing sell 6000 put at 12.30.

Thus,position as of now is nil:thumb::clap:

Status of trades:

Buy 6200 call at 133 sold at 161 today +28
Buy 6200 call at 119 sold at 147 today +28
Sell 6000 put at 20 bought at 12 today +8
Sell 6200 put at 69 bought at 45 today +24
Total:+88 ..................
@Umash2000

Looks great. Well done :thumb::clapping:

I have one simple question, which I think would also improve this nice thread, which I just quoted with a 5 to give visualized value to it. (Many thread starter do value there threads by them self with a 5 after posting only one post. :rofl: :lol: You are one of those better thread starters who not did this stupid thing and this is what I really appreciate.)

Now to my question: As you use indicators, is it possible for you (if time permits) to post some times a screen shot from any of your charts you talk about. This would give the real option chart picture about what you talk. As you work with those parameters you mentioned, it is very easy to make a screen shot from time to time. Hope you do not mind about this idea. :)
 
#14
6000 call lingering around 347..Close above 6305 is important today.Otherwise
pressure could build up on the downside as 5ema reversal point could penetrate within L1 6206..Its wait & watch as of now:annoyed:
 
#15
Todays trade:

Sell 6200 call @ 179.

This is essentially taken as 5ema reversal point is expected to get inside L1 tomorrow and avg price of 6200 call at present is 105.

Open position:

Sell 6200 call @ 179 : +2
 
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#16
Critical Parameters for Thursday is as follows:-

1.5ema reversal point:6206

2.20ema reversal point:5519

3.MACD zero cross:5796

5ema reversal point is now at L1.Expected to cross tomorrow.Pressure seems to be round the corner.

20ema reversal point away from the range indicates that 20ema(6185) would not be broken now..(Thats the reason why 6200 put open interest is piled up for now)

Nifty closed above Critical point 6305 & 6000 call macd became positive today..

Daily macd.div.tick(Histogram) for tomorrow would be at 6334.

Average price:

6000 call:240

6100 call:154

6200 call:105

Thus,the range to be watched would be 6256/6305/6355 for now..

When trend is positive,options tend to move 1.25-2.25 times its average price.6200 call moved nearly 1.75 times & thus thought a decent risk to go for shorting as the price would seek average price again..when trend becomes negative..(below 6334)
 
#17
@Umash2000

Looks great. Well done :thumb::clapping:

I have one simple question, which I think would also improve this nice thread, which I just quoted with a 5 to give visualized value to it. (Many thread starter do value there threads by them self with a 5 after posting only one post. :rofl: :lol: You are one of those better thread starters who not did this stupid thing and this is what I really appreciate.)

Now to my question: As you use indicators, is it possible for you (if time permits) to post some times a screen shot from any of your charts you talk about. This would give the real option chart picture about what you talk. As you work with those parameters you mentioned, it is very easy to make a screen shot from time to time. Hope you do not mind about this idea. :)
Thank you Somatung for your stars:thumb:
The parameters mentioned in my posts are all excel based and formulae driven.Thus,screen shots would not be available.In fact terms like 5ema reversal or 20ema reversal are all self coined terms which would not be available elsewhere..

The main purpose of this thread is to :-
1.Identify broad range(using gamma)

2.Identify the trends(for purpose of direction using MACD)

3.Identify the risks of break of 5ema or 20ema point thru the concept of 5ema reversal point & 20ema reversal point entry into broad range or cross of important points.This helps in assertiveness in taking certain positions and would identify potential risk around..

4.Make use of options to maximise returns using the above understanding of trend & risk..

5.Had added the concept of average of options to see potential in option price falling or going up..Reason why, would focus more on selling calls rather than buying puts..

Do Know the above concept would be new to viewers.In case of queries,pls do raise.Would clarify!!
 
#19
Critical Parameters for Friday is as follows:-

1.5ema reversal point:6240

2.20ema reversal point:5435

3.MACD zero cross:5685

5ema reversal point is now between L1 & Critical point..Pressure seems to be round the corner.

20ema reversal point away from the range indicates that 20ema(6205) would not be broken now..(Thats the reason why 6200 put open interest is piled up for now)

Nifty touched H1 target 6404.Closing above 6404 would result in move towards 6500...

Daily macd.div.tick(Histogram) for tomorrow would be at 6393.

Average price:

6000 call:240

6100 call:154

6200 call:105

Thus,the range to be watched would be 6305/6355/6404 for now..

Now all calls macd are witnessing zero cross.Today it was turn of 6100 call & would be 6200 call tomorrow if sustains above 154.
The trade was iniated to take advantage of upcoming short term negativity & breakeven of present position as such is at 6407..Further management of position would be done by buying calls if nifty moves above 6407 tomorrow..

Support seems to exist now at 6250-6300..on the downside.
 
#20
umash please! how do you arrive at the range to be watched would be 6305/6355/6404 for now...May be I am not familiar with your older threads. if it is boring, you may refer me the link pl.
Regards
 

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