Day Trading Stocks & Futures

[Nish]

Today Personally interested in N only - Would prefer to Buy on Dip - With PROPER SL in place.

N cp=18812.

Sup 1 is around 18728 +/- some point below 20DEMA
Sup 2 is around 18622 +/- some points near 50DEMA

Would avoid BN.

Above view is only for my own trading, If you think it is wrong, pl share your view , so I can avoid my losses ! ... Pl do your OWN STUDY before taking any position!

N took sup exactly from sup2 - which was around 18622 - todays intra low is around 18630 and zoomed to 18704.

N gave approx 70 pts from days low , so considering Fridays DELTA , it means min 25 pts per lot in ATM put option of 18650 - which is enough in a negative day.
Luckily SL did'nt trigerred .

In the morning , There was no confidence that market will go on falling like today in a BULL market , so avoided SHORT trade.

By the way - I had already cautioned few days ago that 17800 is just a figure and market is in Over Baught condition !

 

[mohan.sic]

N took sup exactly from sup2 - which was around 18622 - todays intra low is around 18630 and zoomed to 18704.

N gave approx 70 pts from days low , so considering Fridays DELTA , it means min 25 pts per lot in ATM put option of 18650 - which is enough in a negative day.
Luckily SL did'nt trigerred .

In the morning , There was no confidence that market will go on falling like today in a BULL market , so avoided SHORT trade.

By the way - I had already cautioned few days ago that 17800 is just a figure and market is in Over Baught condition !

delta on friday on what and what 25 pt move for atm pe's ? is that for a short position of pe ?

 

[mohan.sic]

Pl note that , Biofill is NOT allowed on intraday basis ! So be careful !

is it for long term and any news based idea to buy on this ?

 

[Nish]

delta on friday on what and what 25 pt move for atm pe's ? is that for a short position of pe ?

The trade was for N ATM 18650 CE BUY side.

By the way , while on the subject some of my observation on DELTA for new traders :

About Delta and Greeks , there is enough study material on net and YTube - which says CEs have positive Delta and PEs have negative etc etc.

But with my personal study , FOR WEEKLY expiry , .. I hv observed that if other parameters like IVs etc remain somewhat stable then in case of CEs:

1) ITM option's Delta loss is less towards expiry compaired to ATM and OTM options. .. Also ITM options have good Intrinsic value.

2) ATM option's Delta loss is less towards expiry compaired to OTM options BUT it is more than ITM option's Delta. ... But ATM options have NO intrinsic value.

3) OTM option's Delta loss is MORE towards expiry compaired to ATM options and much more than ITM options. OTM options have NO intrinsic and time value.

That may be the reason that for WEEKLY expiry of N :

a) On Friday option price is HIGH and for a rise of 100 pts of N spot , ATM CE option premium hardly go up approx 20 pts +/- .

b) On Monday for a rise of 100 pts of N spot , ATM CE option premium go up approx 35 pts +/-.

d) On Tuesday for a rise of 100 pts of N spot , ATM CE option premium go up approx 50 pts +/-

e) On Wedday for a rise of 100 pts of N spot , ATM CE option premium go up approx 70 pts +/-

f) On Thursday ( Expiry ) for a rise of 100 pts of N spot , ATM CE option premium go up approx 85 to 90 pts +/- .
By the way, on expiry day, options premium behave like FUTURES and rise and fall in tandem with the N spot.

Abv observation is just approx and depends on number of working days btw Friday to Thursday and Speed or Momentum of the underlying SPOT intrument , General Market Trend and the IVix value etc.

Same rule apply to BN but on diff points scale !

If anyone have different observation - pl share it here so many can be benefited !

 

[Nish]

is it for long term and any news based idea to buy on this ?

Abt Biofill , when I was preparing the intra stocks list someone asked some info ,abt it , so wrongly it was included in my intraday list. When I noticed it, immidiately I rectified in forum.
I have not studied that scrip ! May be GGL can help !

 

[mohan.sic]

The trade was for N ATM 18650 CE BUY side.

By the way , while on the subject some of my observation on DELTA for new traders :

About Delta and Greeks , there is enough study material on net and YTube - which says CEs have positive Delta and PEs have negative etc etc.

But with my personal study , FOR WEEKLY expiry , .. I hv observed that if other parameters like IVs etc remain somewhat stable then in case of CEs:

1) ITM option's Delta loss is less towards expiry compaired to ATM and OTM options. .. Also ITM options have good Intrinsic value.

2) ATM option's Delta loss is less towards expiry compaired to OTM options BUT it is more than ITM option's Delta. ... But ATM options have NO intrinsic value.

3) OTM option's Delta loss is MORE towards expiry compaired to ATM options and much more than ITM options. OTM options have NO intrinsic and time value.

That may be the reason that for WEEKLY expiry of N :

a) On Friday option price is HIGH and for a rise of 100 pts of N spot , ATM CE option premium hardly go up approx 20 pts +/- .

b) On Monday for a rise of 100 pts of N spot , ATM CE option premium go up approx 35 pts +/-.

d) On Tuesday for a rise of 100 pts of N spot , ATM CE option premium go up approx 50 pts +/-

e) On Wedday for a rise of 100 pts of N spot , ATM CE option premium go up approx 70 pts +/-

f) On Thursday ( Expiry ) for a rise of 100 pts of N spot , ATM CE option premium go up approx 85 to 90 pts +/- .
By the way, on expiry day, options premium behave like FUTURES and rise and fall in tandem with the N spot.

Abv observation is just approx and depends on number of working days btw Friday to Thursday and Speed or Momentum of the underlying SPOT intrument , General Market Trend and the IVix value etc.

Same rule apply to BN but on diff points scale !

If anyone have different observation - pl share it here so many can be benefited !

Now you have made all these observations based on your understanding of Delta and Iv.
I don't want to comment on observations if they are right or wrong because it is pointless. If I try to correct, you may think I was wrong or you will start making new observations.
The problem is in the root, which is your understanding of Delta or iv.

I suggest for now take a break from observations on intrinsic value of options, and try to understand intrinsic meaning and nature of option geeks. They are very simple concepts. Just use common sense and logical approach.

Please don't take it negatively. When I say to use common sense and logic, I don't mean that it is lacking. My feedback is only on option geeks where I often see people apply deep research, analysis and make observations, but problem is all this is done on a flawed foundation ( in this case understanding greeks). Please try to correct the foundation.

I can assure you that when you correctly understand the fundamental nature of Delta or any other option Greek, you will not even spend time to make most of the observations like above. And btw some of your observations are right and some are half right and others are grossly wrong. And they are wrong not because you dint do it properly but because they are done on a wrong foundation.

 

[timepass]

Now you have made all these observations based on your understanding of Delta and Iv.
I don't want to comment on observations if they are right or wrong because it is pointless. If I try to correct, you may think I was wrong or you will start making new observations.
The problem is in the root, which is your understanding of Delta or iv.

I suggest for now take a break from observations on intrinsic value of options, and try to understand intrinsic meaning and nature of option geeks. They are very simple concepts. Just use common sense and logical approach.

Please don't take it negatively. When I say to use common sense and logic, I don't mean that it is lacking. My feedback is only on option geeks where I often see people apply deep research, analysis and make observations, but problem is all this is done on a flawed foundation ( in this case understanding greeks). Please try to correct the foundation.

I can assure you that when you correctly understand the fundamental nature of Delta or any other option Greek, you will not even spend time to make most of the observations like above. And btw some of your observations are right and some are half right and others are grossly wrong. And they are wrong not because you dint do it properly but because they are done on a wrong foundation.

Love to hear your understanding of delta and IV.

I hardly notice delta unless there is some major movement.

But I have no understanding of IV or how to use it. I just eyeball the screen and look at the moving averages

 

[Nish]

Now you have made all these observations based on your understanding of Delta and Iv.
I don't want to comment on observations if they are right or wrong because it is pointless. If I try to correct, you may think I was wrong or you will start making new observations.
The problem is in the root, which is your understanding of Delta or iv.

I suggest for now take a break from observations on intrinsic value of options, and try to understand intrinsic meaning and nature of option geeks. They are very simple concepts. Just use common sense and logical approach.

Please don't take it negatively. When I say to use common sense and logic, I don't mean that it is lacking. My feedback is only on option geeks where I often see people apply deep research, analysis and make observations, but problem is all this is done on a flawed foundation ( in this case understanding greeks). Please try to correct the foundation.

I can assure you that when you correctly understand the fundamental nature of Delta or any other option Greek, you will not even spend time to make most of the observations like above. And btw some of your observations are right and some are half right and others are grossly wrong. And they are wrong not because you dint do it properly but because they are done on a wrong foundation.

As always expected ! Keep it up !!

Excuse me ! BUT...

As long as, my "half right and others are grossly wrong and on a wrong foundation" knoledge is helping me to profit in this market- I am happy with it ! NO REGRETS !

Those who have more practical approach on the subject which can convert into benefits, they should share their view - IF THEY KNOW MORE than this !

"Imagination is more important than knowledge. For knowledge is limited, whereas imagination embraces the entire world, stimulating progress, giving birth to evolution."
- Albert Einstein .

 

[Nish]

Love to hear your understanding of delta and IV.

I hardly notice delta unless there is some major movement.

But I have no understanding of IV or how to use it. I just eyeball the screen and look at the moving averages

As far as BN option traders, it is enough to know how much an option premium can increase on the start of the expiry day and at the end of expiry day - IF BN spot moves certain points , which helps to book profit at perticular level - ELSE option premium loss is more sudden and quick.

DELTA knowledge is to be known only once and should not be tracked per hour or per day basis, I guess !

As far as, I CAN UNDERSTAND, IV simply project the limits of volatility in percent term - in which the underlined instrument can swing in either way on a perticular day after calculating a single days volatility from the value .

Most of the underlined instruments in stocks swing 1 to 2 percent per day of their last closing value - with exception of special days like Election results , Central Banks decision etc !

Off-course - many MORE LEARNED people can throw more light on this issue.

Anyways - most of the experienced traders ignore all such indiacators and concentrate on Brk/out levels , and price actions like Hammers, Morning Star formation on charts etc.

 

[Nish]

BN Resi and Sup levels as per my knoeledge, IF you differ pl share for benefits of all !
cp=43130

I always use proper SL.