Options Adjustments

[lemondew]

"Forming a possible View on underlying using S/R, Trend, Momentum, MAX OI STAND, VIX RANGE, MAX PAIN"

Lets focus on this one for the next series. Inputs from everyone welcome

 

[toughard]

Sounds good. Glad I am part of this. Traderji has some amazing folks.
I know I can do better than that but just sharing. I generally follow my own estimate on how market will behave in the series. This is based more on the trend and news thats stacked up. I am not good in predicting direction of stock so I take neutral positions. If i feel it is going to be range bound I take up short strategies always a spread so that max profit and loss is defined. If i feel it is going to trend then I take up long positions at times straddle but again I quickly convert to a spread incase there is a chance of IV fall.

I spent little time in analysing open interest but could never come close to predicting anything. Not even sure open interest can indicate how delivery based buying can happen. So the predicting part is over to you guys. May be i should ve a look at VIX.

Thanks

More or Less I had same feel on directional studies... then the option was the obvious choice for me based on some common sense like...

if we have future trade with 50 points stop and if the stop triggers in one or two days -
I lose 50 points
I am out of the trade
I Stand no chance if market goes in the my way later

can't avoid losing 50 points if I am wrong but holding the change as long as possible make sense to me... so it better to be with structures

Finally, one can not skip the step of "forming a view" its a corner stone!!
Let's do it!!

 

[toughard]

In any given studies lesser the variables higher the accuracy... so lets start with few questions to FIX some of the variables by seeking answers for them from specific masters (though we all may have bits and pieces of knowledge on all these) -

1 - Which time frame that one should follow for positional/swing trading?
2 - How to find the Support and Resistance?
3 - Which is the reasonable trend/direction spotting indicator?
4 - Which is the reasonable momentum indicator or oscillator?
5 - Best way to interpret the MAX OI & MAX OI CHANGE?
6 - Will OI MAX PAIN work?

we can use these resources to find out some answers-

http://chartink.com/stocks/nifty.html - for EOD charts
www.bazaartrend.com/nsecharts/intraday-free.php - LIVE and 5min to daily charts
http://www.optiontradingpedia.com/strategy/optionstrategyselector.htm - basic strategy selection
http://optionstrategy.co.in/optionstrategy.html - option graphs

for advanced studies - http://www.finideas.com/software-inner.aspx

 

[lemondew]

This has some answers and works in that direction
http://www.traderji.com/technical-analysis/6072-teach-man-fish.html . Go on toughard

In any given studies lesser the variables higher the accuracy... so lets start with few questions to FIX some of the variables by seeking answers for them from specific masters (though we all may have bits and pieces of knowledge on all these) -

1 - Which time frame that one should follow for positional/swing trading?
2 - How to find the Support and Resistance?
3 - Which is the reasonable trend/direction spotting indicator?
4 - Which is the reasonable momentum indicator or oscillator?
5 - Best way to interpret the MAX OI & MAX OI CHANGE?
6 - Will OI MAX PAIN work?

we can use these resources to find out some answers-

http://chartink.com/stocks/nifty.html - for EOD charts
www.bazaartrend.com/nsecharts/intraday-free.php - LIVE and 5min to daily charts
http://www.optiontradingpedia.com/strategy/optionstrategyselector.htm - basic strategy selection
http://optionstrategy.co.in/optionstrategy.html - option graphs

for advanced studies - http://www.finideas.com/software-inner.aspx

 

[toughard]

okay its my way, any way...

1 - Which time frame that one should follow for positional/swing trading?
1 hour or day
2 - How to find the Support and Resistance?
best is PHL
3 - Which is the reasonable trend/direction spotting indicator?
EMA Cross 5/11
4 - Which is the reasonable momentum indicator or oscillator?
RSI
5 - Best way to interpret the MAX OI & MAX OI CHANGE?
MAX OI as S/R --- MAX OI change only on EOD
6 - Will OI MAX PAIN work?
I dont believe in that concept
7 - VIX range
its Future Looking:annoyed:

 

[lemondew]

Nifty is moving crazy today. friday close 7367. Today it hit high 7500 140 point upmove. Then came down hit 7420. 80 point down. Was batting for a 7350 -7450 series close. Later thought it would be 7450 - 7550 series close. This is crazy. Tough are your indicators saying anything.

 

[toughard]

Nifty is moving crazy today. friday close 7367. Today it hit high 7500 140 point upmove. Then came down hit 7420. 80 point down. Was batting for a 7350 -7450 series close. Later thought it would be 7450 - 7550 series close. This is crazy. Tough are your indicators saying anything.

sure lemondew... its been a perfect day for day trades as I dont have anything for positional as such... few things worked very well...:thumb:

MAX OI was at 7500 when NF @ 7500 and kept rising a clear shorting set up....
But MAX OI CHANGE was contra BUT we have already decided that we look at it by EOD its showing right.... now!!
lets see EMA cross and PHL on chart....

bought 7400 PE @ 18.8 SOLD at 7300 levels please see MTM pic below

that's all for the day with nifty ...

 

[yan]

sure lemondew... its been a perfect day for day trades as I dont have anything for positional as such... few things worked very well...:thumb:

MAX OI was at 7500 when NF @ 7500 and kept rising a clear shorting set up....
But MAX OI CHANGE was contra BUT we have already decided that we look at it by EOD its showing right.... now!!
lets see EMA cross and PHL on chart....

.[/B]

can u share which indicator ur using for this 7500 PE buying ,it's phenomenal . I'm recently started option trading .If you suggest me some technical softwares ,which are enable buying,selling trigger setting.

Thanks

 

[toughard]

can u share which indicator ur using for this 7500 PE buying ,it's phenomenal . I'm recently started option trading .If you suggest me some technical softwares ,which are enable buying,selling trigger setting.

Thanks

dear yan welcome...

I don't use any special software...
the chart in on amibroker with simple EMA5 and EMA11...
OI you can see on excel with nse option data or on nse site....
I selected 7400 as it was just OTM as OTM's catch up fire when during last week of contract...

Please let me know if you need more info...

 

[lemondew]

Gr8 good going. :clap: Thanks for the lovely charts. I ll ve to look at EMA as well now
Step by step first I ll be thorough on options. Then get into technicals.

sure lemondew... its been a perfect day for day trades as I dont have anything for positional as such... few things worked very well...:thumb:

MAX OI was at 7500 when NF @ 7500 and kept rising a clear shorting set up....
But MAX OI CHANGE was contra BUT we have already decided that we look at it by EOD its showing right.... now!!
lets see EMA cross and PHL on chart....

bought 7400 PE @ 18.8 SOLD at 7300 levels please see MTM pic below

that's all for the day with nifty ...