Confused !!!

[Niranjanam]

Just saw. 1 lot nifty = 13331 + MTM of 1000 = 14500. He may get about 15 points OTM. Approx 375 Rs or about 2.5%. If all the FIIs only buy options the prices will go over the roofs and they wont be able to move the index enough to make any kind of profits.

Brokers/prop desk can write options without margins as they have security deposit. If you remove the margin out. Investment of 1000-1500Rs MTM can give about 375 Rs. which is a good return. The brokers also buys for FII/retail.

This is what you have posted in the other thread.
"Generally the small hands would quickly close their positions on profit and the big hands would hold. Also its assumed the sellers are operators and big hands"

Data suggests otherwise. Atleast in case of FII. That is my confusion

 

[jagankris]

This is what you have posted in the other thread.
"Generally the small hands would quickly close their positions on profit and the big hands would hold. Also its assumed the sellers are operators and big hands"

Data suggests otherwise. Atleast in case of FII. That is my confusion

Also since three months trading horizon available we don't know which month they are long and which month they are short.

 

[lemondew]

We are going more and more into fiction here so I suggest you form your own theories. And these theories havent been proved.I ll give more links which will help you form your own theories.

There could be a difference between an FII and a market maker

https://en.wikipedia.org/wiki/Market_maker

http://www.sec.gov/investor/pubs/tradexec.htm

This is what you have posted in the other thread.
"Generally the small hands would quickly close their positions on profit and the big hands would hold. Also its assumed the sellers are operators and big hands"

Data suggests otherwise. Atleast in case of FII. That is my confusion

Also since three months trading horizon available we don't know which month they are long and which month they are short.

 

[lemondew]

One more link

http://articles.economictimes.india...53_1_fiis-clsa-india-motilal-oswal-securities

 

[vijayanscbe]

Just saw. 1 lot nifty = 13331 + MTM of 1000 = 14500. He may get about 15 points OTM. Approx 375 Rs or about 2.5%. If all the FIIs only buy options the prices will go over the roofs and they wont be able to move the index enough to make any kind of profits.

Brokers/prop desk can write options without margins as they have security deposit. If you remove the margin out. Investment of 1000-1500Rs MTM can give about 375 Rs. which is a good return. The brokers also buys for FII/retail.

Any one can trade in FNO without margin money, If he has enough stock holdings in DP account.

 

[lemondew]

you ve to pledge the stock holdings to the broker. In which case you cant sell it till you unpledge it. You cant unpledge it as long as you clear all your FNO positions.

Any one can trade in FNO without margin money, If he has enough stock holdings in DP account.

 

[Jinti]

Suppose Change in open interest of a particular strike = 1000. How to know - whether it is buying interest or selling interest ?
Who knows all that information in real time basis ? I think they have an edge.

 

[rook]

Dear Rajesh Ji / Niranjanam Ji / ST,

You have helped me fortify my ideas and expand even more. Pls accept my gratitude. I will be glad if someday we meet as we probably stay in the same city.

Here's a video which all of us should find extremely teasing and curiosity generating.

This should give an idea "WHO" could be real Options players. And, the video is lot more helpful though doesn't gives up all answers.

There are aspects of day-to-day trading beyond Retailers' vision. This video will point in that direction. Your other post with enormous "views" might be find this video useful.

If all of us can discuss about video's content wrt to your questions that will be great.

Market Maker - Venkata, Owner of Stampede Capital - on YouTube

 

[Somatung]

Any more discussions in this thread?

 

[mohan.sic]

I am looking for some positional trades. So far I have tried only pure vanilla calls and puts. Decision making is purely based on Nifty chart. Thought of going for some spreads where I am not very confident of a directional move. So far I was not able make this OI data effectively. Nifty stalls and reverses at its own supports and resistances. OI shifts as it moves. Really wonder whether OI is worth monitoring during these kind of trades

Here we have threads living on this concept. I think they can comment on this.. lets see how many can help you precisely..:lol: