NIFTY Options Trading by RAJ

[healthraj]

For Pair Trading this Week end I want to try the 5500Pe-5900CE - Avilable now at 97. The PE is having a Larger Premium. So I am going with the majority who are saying the market will Go up.

 

[prabhsingh]

There seems to be Triangle formation happening on hourly chart in Wave B.If SPOT price moves above 5734 then Buy for clear 100 points move.If Nifty SPOT moves below 5705 then its a Big Sell.

Not sure how many of you followed this.But i had a made a whooping 40 points profit for Nifty Index which is 40K.Took naked PE and enjoyed it.

 

[healthraj]

For Pair Trading this Week end I want to try the 5500Pe-5900CE - Avilable now at 97. The PE is having a Larger Premium. So I am going with the majority who are saying the market will Go up.

Hope this time we have taken a Fairly safe Trade. NIFTY @ 5700. The Two pairs are at least 200 points away from each other. That also means our profit also will be slow because the Delta is only .25. So for every 1 point move in Nifty the options will moe only .25 points.

PE premium @ 55. CE Premium @ 40. PE Premium is slightly more than CE, which is what we want in a Bullish direction. Coming to VOLD also 5500 PE has the MAX volatility. So if the pair works and then PE VOLT will come down.

Let us hope for the best. Wish you all a Happy week end.

 

[BANI KANTHA BHATTACHARYA]

@raj,
Sir, sometimes please visit my thread, open secret I fall in love in your dedicated service. Once visit and some advice encouraged me to give more more good calls.
Longlive you and your works.
Thanks.

 

[prabhsingh]

We should see RelCapital coming close to 270 levels in coming days.

From Nifty perspective we should see SPOT Nifty coming to 5566 levels at minimum as this is going to be 100% retracment from last uptrend.

These are all advance Elliot wave analysis according to which we are in Impulsive downtrend which is made up of 5 waves and which is going to be very severe.Every up move should be taken as an opportunity to go Short.In an impuslive move we have 2nd and 4th wave which retraces 1st and 3rd move.I cant tell we are in which wave but always go with Trend which is Down.Nifty SPOT will be coming below 5000 in coming weeks/months.Where it will finish need to wait and watch.

 

[healthraj]

We should see RelCapital coming close to 270 levels in coming days.

From Nifty perspective we should see SPOT Nifty coming to 5566 levels at minimum as this is going to be 100% retracment from last uptrend.

These are all advance Elliot wave analysis according to which we are in Impulsive downtrend which is made up of 5 waves and which is going to be very severe.Every up move should be taken as an opportunity to go Short.In an impuslive move we have 2nd and 4th wave which retraces 1st and 3rd move.I cant tell we are in which wave but always go with Trend which is Down.Nifty SPOT will be coming below 5000 in coming weeks/months.Where it will finish need to wait and watch.

Prabhsingh, What Makes you say that NIFTY will touch below 5000 ?

 

[jamit_05]

On PE side, Max COI was in 56 PE. Means, writers are betting on 5600 holding.
On CE side, Max Coi was in 60 (and 57 Ce) and Max Oi.

So essentially, we are sitting on a support and the topside is 6000.

 

[Option.Trader]

On PE side, Max COI was in 56 PE. Means, writers are betting on 5600 holding.
On CE side, Max Coi was in 60 (and 57 Ce) and Max Oi.

So essentially, we are sitting on a support and the topside is 6000.

Not necessarily, it's just shifting of base. I would still see 5700 pe holding up as a sign of support, though chgoi dramatically decreased at the end. I was hoping you would have held to your shorts, u caught a good 300 points drift, not sure why you wanted to venture into a bull call spread then. Exotic options just work in DAN'S land where you have liquidity in future months. Synthetics just limit your profit

 

[jamit_05]

Not necessarily, it's just shifting of base. I would still see 5700 pe holding up as a sign of support, though chgoi dramatically decreased at the end. I was hoping you would have held to your shorts, u caught a good 300 points drift, not sure why you wanted to venture into a bull call spread then. Exotic options just work in DAN'S land where you have liquidity in future months. Synthetics just limit your profit

I too wish I had held on and this thought has given me a sleepless night or two. But its very hard to gauge a trend's end. The last few months have shown that Shorts do not go much deep, since the weekly trend is still up.

Moreover, I feel that the growth of my account will be steadier if I relied on Position Sizing than on better exits. Because there is no definition of a better exit.

I am convinced with the logic that if I exit flat out at 150 point gain and increase position size with every profitable trade then I will be better off, instead of wanting to get a better exit, to which there is no end to analysis. Clarity is sacrificed, and so is the trader.

I agree with you on the options front. I did not take up an options trade in a long while. It was touch and go.

 

[prabhsingh]

Prabhsingh, What Makes you say that NIFTY will touch below 5000 ?

Let me try to explain the things with the help of charts.I am not that good in making charts but let me give a try.This is weekly chart.Please note this is very big picture that i have depicted here.

In this chart,you can see we have completed Big A wave followed by Wave B and now it seems Wave C is in progress which started from high of 6230.Now if this Wave C is true then according to Elliot most of the times Wave C tend to finish 1.0 Fibonnic projection of distance from Wave A to Wave B hence Wave C completion comes close to 4400 which also seems to be the level from where Wave A started hence Wave C has has to finish close to start of Wave A.

The yellow line projection that has been shown might not give exact those levels/points but it should come down in five waves which is the key point that i am trying to say here.

First projection that Big 3rd Wave is in progress will come when Nifty will break trendline which is connecting Wave2 and Wave4 as shown in picture.
Now how many days/months/year it will take is what GANN experts can tell.