This months nifty options are weird !

onlinegtrash

onlinegtrash

Well-Known Member
#1
#1
I think this month is going to be a very interesting month worth studying and understanding.

Did you guys notice today (may 02, 2014) both
* ITM calls and OTM calls
* ITM puts and OTM puts

all gained value while Nifty index just stayed exactly where it started yesterday with just 2 points down move.

IV of all options seem to reaching for the skies... all are above 34-35 !

This is weird... I tried shorting call... but at EOD even calls have gained value!

So... it seems blood pressure of the market is going up and up...!
 
amitrandive

amitrandive

Well-Known Member
#3
#3
onlinegtrash said:
I think this month is going to be a very interesting month worth studying and understanding.

Did you guys notice today (may 02, 2014) both
* ITM calls and OTM calls
* ITM puts and OTM puts

all gained value while Nifty index just stayed exactly where it started yesterday with just 2 points down move.

IV of all options seem to reaching for the skies... all are above 34-35 !

This is weird... I tried shorting call... but at EOD even calls have gained value!

So... it seems blood pressure of the market is going up and up...!
Click to expand...
onlinegtrash

It seems with the election results , everybody is building huge position in straddles and strangles.Hence the IV's have zoomed up.Wonder if selling options is the right thing to do,as after the results IV's will come down drastically.:confused:
 
Last edited:
jetking

jetking

Well-Known Member
#4
#4
onlinegtrash said:
I think this month is going to be a very interesting month worth studying and understanding.

Did you guys notice today (may 02, 2014) both
* ITM calls and OTM calls
* ITM puts and OTM puts

all gained value while Nifty index just stayed exactly where it started yesterday with just 2 points down move.

IV of all options seem to reaching for the skies... all are above 34-35 !

This is weird... I tried shorting call... but at EOD even calls have gained value!

So... it seems blood pressure of the market is going up and up...!
Click to expand...
market makers,always encash on the feeling of retail investors

the feeling of FEAR abd GREED

which are at its best now

FEAR of missing out the possible rally after the election result

And GREED of encashing the post result big move

it is time to enjoy the party from outside or play with CHILLER only
 
onlinegtrash

onlinegtrash

Well-Known Member
#5
#5
I have a feeling... but its highly implausible... not going to happen...
but lets try this scenario and see if my anti crowd instincts work well :)
----
by definition crowd should lose...

if every one is gearing up with straddles and strangles... I think huge volatile moves will be curbed and market is going to be flat and range bound... making all the option holding crowd losers, eating up all the premiums! some big bad ass big market makers are going to deploy huge delta neutral strategies and make the market price pin around 6800 ;)

well... market entering into range on election results...
everyone is thinking about upper circuit and lower circuit... I must be crazy right?

I don't know :) just a thought experiment and lets come back to this thread after results!

mean while hope everyone is having good times!
 
TradeOptions

TradeOptions

Well-Known Member
#6
#6
onlinegtrash said:
I have a feeling... but its highly implausible... not going to happen...
but lets try this scenario and see if my anti crowd instincts work well :)
----
by definition crowd should lose...

if every one is gearing up with straddles and strangles... I think huge volatile moves will be curbed and market is going to be flat and range bound... making all the option holding crowd losers, eating up all the premiums! some big bad ass big market makers are going to deploy huge delta neutral strategies and make the market price pin around 6800 ;)

well... market entering into range on election results...
everyone is thinking about upper circuit and lower circuit... I must be crazy right?

I don't know :) just a thought experiment and lets come back to this thread after results!

mean while hope everyone is having good times!
Click to expand...
Excellent Contra View bro :clap:

When everyone is expecting the circuits, most probably it will not happen. If we get some Extremely Shocking Results in the elections, then that's a different story.

Big guys with huge money are very well aware of fact that a lot of retail traders like us, will jump in, hoping that they will hit a jackpot like the last time, but time only will tell, who hits the jackpot and who gets trapped big-time.
 
Somatung

Somatung

Banned
#7
#7
TradeOptions said:
Excellent Contra View bro :clap:

When everyone is expecting the circuits, most probably it will not happen. If we get some Extremely Shocking Results in the elections, then that's a different story.

Big guys with huge money are very well aware of fact that a lot of retail traders like us, will jump in, hoping that they will hit a jackpot like the last time, but time only will tell, who hits the jackpot and who gets trapped big-time.
Click to expand...
You mean, this time the world could be the other way round :D:):

 
You must log in or register to reply here.
Thread starter Similar threads Forum Replies Date
U 21500 points in banknifty spot in 13 months, will this survive post charges and slippage Algo & Automated Trading 1
K 1 min Banknifty data for last 3/6 months required Data Feeds 0
A Charting Software with Nifty IEOD data for minimum 6 months Data Feeds 0
S 9 Months nifty and stock future data free download 1 min Intraday 20
T 600 points in Nifty Future every 3 months.. Futures 129

Similar threads