BankNifty PUTs & CALLs

[columbus]

JUL series Day-14 BankNifty=10607 (49)

We are on DAY-14 in this series, so we change our boundaries of PUT & CALL
windows to price (30~300) instead of (40~400) as per our strategy at post#1.

In JUL series 8 UP and 6 DOWN days as follows.
UUUUUUDUDDDDDU


Both CALL and PUT windows coincided totally as shown.


The Expected Zone has moved from (10300~10800) to (10400~10800).
Today intersection is shown in YELLOW while yesterday's in CYAN.

Repo Rate (Repurchase Rate)
Repo rate is the rate at which banks borrow funds from the RBI
to meet the gap between the demand they are facing for money
(loans) and how much they have on hand to lend.If the RBI wants
to make it more expensive for the banks to borrow money, it
increases the repo rate; similarly, if it wants to make it cheaper
for banks to borrow money, it reduces the repo rate.
At present REPO rate stands at 8%.
(Source:Internet)

 

[columbus]

I think it is apt for NSE to give STRIKE values in Descending order rather than
in Ascending order as in practice now.

This can be illustrated if you make a statement ,for example, like this.
NIFTY LIKES TO MOVE UPWARDS.(meaning higher values).

If you refer Option Chain,you encounter LOWER values ,upwards.


Both the statements are contradictory.This can be set alright ,if strikes are given
in REVERSE order of the present.

 

[columbus]

JUL series Day-15 BankNifty=10622 (15)

We are on DAY-15 in this series, so we change our boundaries of PUT & CALL
windows to price (20~200) instead of (30~300) as per our strategy at post#1.

Considering 10 holidays approximately we have 21 trading days per month.
[(365-2*52-10)/12=21 days(approx)]

We follow the PUT and CALL windows with the boundaries, as follows.

DAY		LOW~HIGH
========= 	=========	
1  to 7 	40Rs~400Rs
8  to 14	30Rs-300Rs
15 to END 	20Rs~200RS

This is not based on ANY formula , but on just observations of last few days.


In JUL series 9 UP and 6 DOWN days as follows.
UUUUUUDUDDDDDUU


In this series ,first time the height (or width) of PUT window is more than
CALL window.

Bank Rate

This is the rate at which RBI lends money to other banks (or financial institutions) .
The bank rate signals the central bank’s long-term outlook on interest rates. If the
bank rate moves up, long-term interest rates also tend to move up, and vice-versa.
Banks make a profit by borrowing at a lower rate and lending the same funds at a
higher rate of interest.If the RBI hikes the bank rate , the interest that a bank pays
for borrowing money (banks borrow money either from each other or from the RBI)
increases. It, in turn, hikes its own lending rates to ensure it continues to make a profit.

 

[columbus]

JUL series Day-16 BankNifty=10482 (-140)

We are on DAY-16 in this series, so we change our boundaries of PUT & CALL
windows to price (20~200) instead of (30~300) as per our strategy at post#1.

Considering 10 holidays approximately we have 21 trading days per month.
[(365-2*52-10)/12=21 days(approx)]

The Expected Zone has condensed from (10500~10800) to (10400~10700).(yellow colour)
Today intersection is shown in YELLOW while yesterday's in CYAN.

We follow the PUT and CALL windows with the boundaries, as follows.

DAY		LOW~HIGH
========= 	=========	
1  to 7 	40Rs~400Rs
8  to 14	30Rs-300Rs
15 to END 	20Rs~200RS

This is not based on ANY formula , but on just observations of last few days.




In JUL series 9 UP and 7 DOWN days as follows.
UUUUUUDUDDDDDUUD

CRR
Also called the Cash Reserve Ratio, refers to
a portion of deposits (as cash) which banks have to keep/maintain with
the RBI. This serves two purposes. It ensures that a portion of bank
deposits is totally risk-free and secondly it enables that RBI control liquidity
in the system, and thereby, inflation by tying their hands in lending money.
If CRR is cut ,that portion of money is released into system.The
present rate is 4.75%.
(Source:Internet)


Bank Nifty in this series looked like this:

 

[columbus]

JUL series Day-17 BankNifty=10277 (-205)

In JUL series 9 UP and 8 DOWN days as follows.
UUUUUUDUDDDDDUUDD

We are on DAY-17 in this series, so we change our boundaries of PUT & CALL
windows to price (20~200) instead of (30~300) as per our strategy at post#1.

Considering 10 holidays approximately we have 21 trading days per month.
[(365-2*52-10)/12=21 days(approx)]

The Expected Zone has condensed from (10400~10700) to (10200~10400).(yellow colour)
Today intersection is shown in YELLOW while yesterday's in CYAN.

We follow the PUT and CALL windows with the boundaries, as follows.

DAY		LOW~HIGH
========= 	=========	
1  to 7 	40Rs~400Rs
8  to 14	30Rs-300Rs
15 to END 	20Rs~200RS

This is not based on ANY formula , but on just observations of last few days.

Repo Rate (Repurchase Rate)
Repo rate is the rate at which banks borrow funds from the RBI
to meet the gap between the demand they are facing for money
(loans) and how much they have on hand to lend.If the RBI wants
to make it more expensive for the banks to borrow money, it
increases the repo rate; similarly, if it wants to make it cheaper
for banks to borrow money, it reduces the repo rate.
At present REPO rate stands at 8%.
(Source:Internet)

 

[S S]

Hi Columbus,

I know that you use Trade Tiger. But where do you get this info in such tabulations ?

I take it that all the info in the table is End of the Day.
But I am unable to get the details to interprete the data properly... may be because I had not read this thread earlier from the beginning..

Care to explain, please?

Good that you are posting the details for Bank rates, Rapo rates etc, that could be useful to begginers.

As for the Poll, I feel that on some occassions, BankNifty Put-Calls pay you exceedingly higher than those for Nifty. But when caught on the wrong foot, one could also loose heavily. May be, that is the reason, why people prefer Nifty Put-Calls to those for BankNifty.

Cheers!
SS

 

[timepass]

Hi Columbus,

I know that you use Trade Tiger. But where do you get this info in such tabulations ?

He get the data from nseindia.com and transfers it to MS-Excel. The procedure is explained somewhere in his other thread. This one http://www.traderji.com/options/66083-put-call-options.html


As for the Poll, I feel that on some occassions, BankNifty Put-Calls pay you exceedingly higher than those for Nifty. But when caught on the wrong foot, one could also loose heavily. May be, that is the reason, why people prefer Nifty Put-Calls to those for BankNifty.

Cheers!
SS

BNF options aren'nt as liquid as NF options. In NF options, the spread may be 1 tick, whereas in BNF the spread is quite wide.

 

[vikrit]

Hi Columbus,

But where do you get this info in such tabulations ?

...............

its from nseindia.com, links for current series -

Nifty

Banknifty

 

[columbus]

Hi Columbus,

I know that you use Trade Tiger. But where do you get this info in such tabulations ?


I take it that all the info in the table is End of the Day.
But I am unable to get the details to interpret the data properly... may be because I had not read this thread earlier from the beginning..
Care to explain, please?

Good that you are posting the details for Bank rates, Rapo rates etc, that could be useful to begginers.

As for the Poll, I feel that on some occassions, BankNifty Put-Calls pay you exceedingly higher than those for Nifty. But when caught on the wrong foot, one could also loose heavily. May be, that is the reason, why people prefer Nifty Put-Calls to those for BankNifty.

Cheers!
SS

Hi SS,

Thanks.

I take data from NSE's website MINUS Bid-Ask rates from the file.

As far as Interpretation goes ,it helps to be on the side of market.

Details about things like CRR ,REPO rate ,.......etc are available on INTERNET
and people fear to ask sometimes.

PCR is tricky thing.50% of times PCR above 1 indicates BEARISHness
and 50% of times it indicates BULLISHness.Following blindly PCR
often leads to problems.

One more thing ,in the initial stages ,I defined lower boundary as 40Rs
and upper boundary as 400Rs.In the mid series 30Rs~300Rs defines the
boundaries and 20~200Rsin the final stages.This is in keeping in view
of TIMEDECAY of Options.

 

[columbus]

JUL series Day-18 BankNifty=10310 (33)

In JUL series 10 UP and 8 DOWN days as follows.
UUUUUUDUDDDDDUUDDU


The Expected Zone has moved from (10200~10400) to (10300~10400).(yellow colour)


We follow the PUT and CALL windows with the boundaries, as follows.

DAY		LOW~HIGH
========= 	=========	
1  to 7 	40Rs~400Rs
8  to 14	30Rs-300Rs
15 to END 	20Rs~200RS

This is not based on ANY formula , but on just observations of last few days.

Repo Rate (Repurchase Rate)
Repo rate is the rate at which banks borrow funds from the RBI
to meet the gap between the demand they are facing for money
(loans) and how much they have on hand to lend.If the RBI wants
to make it more expensive for the banks to borrow money, it
increases the repo rate; similarly, if it wants to make it cheaper
for banks to borrow money, it reduces the repo rate.
At present REPO rate stands at 8%.
(Source:Internet)