Explanation of the post
Edit : This thread was started by Columbus, but later in merging two posts somehow the thread starter's name changed to Blackhole. Credit to Columbus please.
In BANKNIFTY the open interest is low, rather very low compared to Nifty.
In nifty OPEN INTEREST used to take care in deciding the boundaries
of CALL and PUT windows.Moreover the BID-ASK rates are wide apart ,which
discourage many to go for BANKNIFTY options,so interest is low.
So we have to devise a method ,which takes care of decaying in options.
Decreasing the width of the range with time ,is one method.
On an average we have 22 trading days per month.First 7 trading days
let us suppose 40~400 decides the boundaries of PUT& CALL windows.
Next 7 days 30~300 decides the boundaries and 20~200 for the rest.
Let us see ,how it pans out !!!!
Day=1 BankNifty=10341(+337)
The philosophy is like this,if the market is bullish then the present 10100CE
trades more than the present 396.90 and CALL window will move to higher
strikes.On the other hand if market is bearish ,then the present 10500PE
trades at higher than present value of 350.00 and goes out of PUT window.
PUT window seeks lower strikes.
best man to answer your query is columbus(thread owner) and timepass(moderator and follower of thread) still will try to simplify a bit.
top left has Vix...that helps sellers and buyers to place their bet accordingly......for instance high no of vix like 22 or so premiums or the options would be high and sellers get more aggressive,good trade managers earn good with selling and strategy playing.
MAxpain ;;; +/- 50 -70 is a strike where series expiry is expected. It can also change daily based on heavy movements.
on top right we have put call ratio that suggest the sentiments of sellers/buyers.....like below 1 its said to be bearish whereas above 1.25 is bullish but overbought.
left side we have monthly expiry mentioned ....or right side we have monthly gain or loss(expired based on index)
bottom right we have ...max Open interest standing on both put and call...that helps in swing positions or strategies and for intraday we have intraday open interest changes.
this are just indicator that can help u place strategies with the data analysis before hand.......like i had straddle /strangle sold in last series helped me earned over 50% of credit received without adjustments.
for some strategy volatility is good for some its bad....for some time decay is good for some its bad.....please go thru strategies , learn everything theta vega implied volatility beforehand.
suggestion : please follow columbus thread and thread mentioned in his signature
http://www.traderji.com/options/66083-put-call-options.html
hope this helps.
Edit : This thread was started by Columbus, but later in merging two posts somehow the thread starter's name changed to Blackhole. Credit to Columbus please.
In BANKNIFTY the open interest is low, rather very low compared to Nifty.
In nifty OPEN INTEREST used to take care in deciding the boundaries
of CALL and PUT windows.Moreover the BID-ASK rates are wide apart ,which
discourage many to go for BANKNIFTY options,so interest is low.
So we have to devise a method ,which takes care of decaying in options.
Decreasing the width of the range with time ,is one method.
On an average we have 22 trading days per month.First 7 trading days
let us suppose 40~400 decides the boundaries of PUT& CALL windows.
Next 7 days 30~300 decides the boundaries and 20~200 for the rest.
Let us see ,how it pans out !!!!
Day=1 BankNifty=10341(+337)

The philosophy is like this,if the market is bullish then the present 10100CE
trades more than the present 396.90 and CALL window will move to higher
strikes.On the other hand if market is bearish ,then the present 10500PE
trades at higher than present value of 350.00 and goes out of PUT window.
PUT window seeks lower strikes.
What is this complex image mean exactly?

best man to answer your query is columbus(thread owner) and timepass(moderator and follower of thread) still will try to simplify a bit.
top left has Vix...that helps sellers and buyers to place their bet accordingly......for instance high no of vix like 22 or so premiums or the options would be high and sellers get more aggressive,good trade managers earn good with selling and strategy playing.
MAxpain ;;; +/- 50 -70 is a strike where series expiry is expected. It can also change daily based on heavy movements.
on top right we have put call ratio that suggest the sentiments of sellers/buyers.....like below 1 its said to be bearish whereas above 1.25 is bullish but overbought.
left side we have monthly expiry mentioned ....or right side we have monthly gain or loss(expired based on index)
bottom right we have ...max Open interest standing on both put and call...that helps in swing positions or strategies and for intraday we have intraday open interest changes.
this are just indicator that can help u place strategies with the data analysis before hand.......like i had straddle /strangle sold in last series helped me earned over 50% of credit received without adjustments.
for some strategy volatility is good for some its bad....for some time decay is good for some its bad.....please go thru strategies , learn everything theta vega implied volatility beforehand.
suggestion : please follow columbus thread and thread mentioned in his signature
http://www.traderji.com/options/66083-put-call-options.html
hope this helps.
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