PUT and CALL options
- Thread starter columbus
- Start date
Re: June.27 JULY-series Day.1 Nifty= 7509 (16)
A big series (24days) started with a positive note, and the Expected Range at (7500~7600).
columbus bro..
plz tell how to understand ur expected range...
this range mean will nifty stay for a day... or some day in this range...
and how to trade using this range...
m a novice...need u help to understand
A big series (24days) started with a positive note, and the Expected Range at (7500~7600).
columbus bro..
plz tell how to understand ur expected range...
this range mean will nifty stay for a day... or some day in this range...
and how to trade using this range...
m a novice...need u help to understand
Re: June.27 JULY-series Day.1 Nifty= 7509 (16)
Hi parmit,
1.For the time-being ,forget about XX50 strikes.
2.When Total Open Interest jumps significantly ,say ,from LAKHS to MILLIONS, it gives
one boundary.(These points are marked).
3.The cross-section of CALL window and PUT window gives Expected Zone.
Study this ZONE ,togeather with TREND ,it gives fairly good idea.This zone modifies itself
as time progresses.( But do not consider it as PANACEA).
4.Retionale behind this zone ,is that ,if strong Upward movement is expected, on PUT side
the open interest reduces , eventually falls below Million and moves out this zone.
5.This is OK upto to certain time,(Say,approxmately 2 trading weeks) because by that time
the total open interest is huge on both sides.Afterwards another criterion is applied.That is ,
PREMIUM of the Option.If it is more than Rs.10 ,then it will stay in the zone ,otherwise ,out
of the zone.
6.This methodology is applied to Nifty Options only.The methodlogy applied to Bank Nifty
solely depends on the Premium of Options.
Hi parmit,
1.For the time-being ,forget about XX50 strikes.
2.When Total Open Interest jumps significantly ,say ,from LAKHS to MILLIONS, it gives
one boundary.(These points are marked).
3.The cross-section of CALL window and PUT window gives Expected Zone.
Study this ZONE ,togeather with TREND ,it gives fairly good idea.This zone modifies itself
as time progresses.( But do not consider it as PANACEA).
4.Retionale behind this zone ,is that ,if strong Upward movement is expected, on PUT side
the open interest reduces , eventually falls below Million and moves out this zone.
5.This is OK upto to certain time,(Say,approxmately 2 trading weeks) because by that time
the total open interest is huge on both sides.Afterwards another criterion is applied.That is ,
PREMIUM of the Option.If it is more than Rs.10 ,then it will stay in the zone ,otherwise ,out
of the zone.
6.This methodology is applied to Nifty Options only.The methodlogy applied to Bank Nifty
solely depends on the Premium of Options.
Re: June.27 JULY-series Day.1 Nifty= 7509 (16)
first of thanks for ur prompt rply...
some queries bro..
as u said the open int should increase from lakhs to millions thn if we notice in nse window we get to know tht
TOI of 7100 = 1090650 ... thn y dont we consider this as our start point of cross sectional area...
why u took 7500 only... ( did u apply ur 10 points premium method here )
and i hv also gone through ur previous post and found tht this zone last for around 4-5 days thn it either expand or reduce to 100 points, so my question is can v sell otm call as per this zone to eat some premium ???
i mean how to use this zone effectively
Hi parmit,
1.For the time-being ,forget about XX50 strikes.
2.When Total Open Interest jumps significantly ,say ,from LAKHS to MILLIONS, it gives
one boundary.(These points are marked).
3.The cross-section of CALL window and PUT window gives Expected Zone.
Study this ZONE ,togeather with TREND ,it gives fairly good idea.This zone modifies itself
as time progresses.( But do not consider it as PANACEA).
4.Retionale behind this zone ,is that ,if strong Upward movement is expected, on PUT side
the open interest reduces , eventually falls below Million and moves out this zone.
5.This is OK upto to certain time,(Say,approxmately 2 trading weeks) because by that time
the total open interest is huge on both sides.Afterwards another criterion is applied.That is ,
PREMIUM of the Option.If it is more than Rs.10 ,then it will stay in the zone ,otherwise ,out
of the zone.
6.This methodology is applied to Nifty Options only.The methodlogy applied to Bank Nifty
solely depends on the Premium of Options.
1.For the time-being ,forget about XX50 strikes.
2.When Total Open Interest jumps significantly ,say ,from LAKHS to MILLIONS, it gives
one boundary.(These points are marked).
3.The cross-section of CALL window and PUT window gives Expected Zone.
Study this ZONE ,togeather with TREND ,it gives fairly good idea.This zone modifies itself
as time progresses.( But do not consider it as PANACEA).
4.Retionale behind this zone ,is that ,if strong Upward movement is expected, on PUT side
the open interest reduces , eventually falls below Million and moves out this zone.
5.This is OK upto to certain time,(Say,approxmately 2 trading weeks) because by that time
the total open interest is huge on both sides.Afterwards another criterion is applied.That is ,
PREMIUM of the Option.If it is more than Rs.10 ,then it will stay in the zone ,otherwise ,out
of the zone.
6.This methodology is applied to Nifty Options only.The methodlogy applied to Bank Nifty
solely depends on the Premium of Options.
some queries bro..
as u said the open int should increase from lakhs to millions thn if we notice in nse window we get to know tht
TOI of 7100 = 1090650 ... thn y dont we consider this as our start point of cross sectional area...
why u took 7500 only... ( did u apply ur 10 points premium method here )
and i hv also gone through ur previous post and found tht this zone last for around 4-5 days thn it either expand or reduce to 100 points, so my question is can v sell otm call as per this zone to eat some premium ???
i mean how to use this zone effectively
Re: June.27 JULY-series Day.1 Nifty= 7509 (16)
hi parmit,
1.Yes.One more thing ,multiples of 500 ,that is 7000,7500,8000,8500 ....etc, tend to have HIGH Open Interest,sometimes in millions.
2.During earlier period ,I used to indicate total window ,like this:
http://www.traderji.com/options/66083-put-call-options-29.html#post899172
Now-a-days ,I am concentrating on that window side ,where cross-section is taking place,
may be 5 strikes Upwards & 5 strikes Downwards from the CURRENT position.
3.Difficult to guess.May be RIGHT sometimes but not ALWAYS.
The other day the Market was UPBEAT ,and then the news of Bombing of Iraqi Refinery came out.
Market went down.Sentiments play an important role in market.
4.Just it will put you on right track.
hi parmit,
1.Yes.One more thing ,multiples of 500 ,that is 7000,7500,8000,8500 ....etc, tend to have HIGH Open Interest,sometimes in millions.
2.During earlier period ,I used to indicate total window ,like this:
http://www.traderji.com/options/66083-put-call-options-29.html#post899172
Now-a-days ,I am concentrating on that window side ,where cross-section is taking place,
may be 5 strikes Upwards & 5 strikes Downwards from the CURRENT position.
3.Difficult to guess.May be RIGHT sometimes but not ALWAYS.
The other day the Market was UPBEAT ,and then the news of Bombing of Iraqi Refinery came out.
Market went down.Sentiments play an important role in market.
4.Just it will put you on right track.
Last edited:
thanks bro :clap::clap::clap:
now some more queries
lets assume our zone 7300-7600
and nifty around 7450...
so there anyway to know tht in which direction will nifty move now... bullish or bearish.
2. suppose i think tht nifty will move around 100 point upward in 1-2 days... thn how to trade in option... i mean should i buy naked call or follow some strategy of option... i just wanna know which strategy to follow.
3. if possible plz tell me how u trade in options , ur trading ways whether u follow some strategy or buy/sell naked call/puts
now some more queries
lets assume our zone 7300-7600
and nifty around 7450...
so there anyway to know tht in which direction will nifty move now... bullish or bearish.
2. suppose i think tht nifty will move around 100 point upward in 1-2 days... thn how to trade in option... i mean should i buy naked call or follow some strategy of option... i just wanna know which strategy to follow.
3. if possible plz tell me how u trade in options , ur trading ways whether u follow some strategy or buy/sell naked call/puts
thanks bro :clap::clap::clap:
now some more queries
lets assume our zone 7300-7600
and nifty around 7450...
so there anyway to know tht in which direction will nifty move now... bullish or bearish.
2. suppose i think tht nifty will move around 100 point upward in 1-2 days... thn how to trade in option... i mean should i buy naked call or follow some strategy of option... i just wanna know which strategy to follow.
3. if possible plz tell me how u trade in options , ur trading ways whether u follow some strategy or buy/sell naked call/puts
now some more queries
lets assume our zone 7300-7600
and nifty around 7450...
so there anyway to know tht in which direction will nifty move now... bullish or bearish.
2. suppose i think tht nifty will move around 100 point upward in 1-2 days... thn how to trade in option... i mean should i buy naked call or follow some strategy of option... i just wanna know which strategy to follow.
3. if possible plz tell me how u trade in options , ur trading ways whether u follow some strategy or buy/sell naked call/puts
Personally ,I feel there is a BEARISH sentiment ,now.
2.Generally I square off positions within the day.(As far as ,possible).I trade Naked options.
Gap Ups/Gap Downs really shake your confidence ,if it goes against your present positions.
3.I trade with 2 lots.One lot in UP/ DOWN direction based on prevailing sentiment
,keep one more lot to average ,in case if it goes against.I am against to averaging.
But once or twice averaging within the day is OK.(If it goes against your position and
sufficient time is left for market closure,may be around 2 hours).
Last edited:
thanks bro. :clapping::clapping:
now plz tell me...
1. as v see nifty today made a high of around 7650, which is 50 more d our upper range 7600. so it means it is possible tht nifty may move out of this range ( i know tht our range is short this time) but wanna know how frequent such incident happens.
2. what is role of total OI of call and put.... how to see d market if overall call OI is greater thn put OI ?
3. Now in our today chart IV of puts is around 20 and call is around 15.... y such diff is thr.
4. if we noticed the 7400 strike call has gained = 50 point but put lost= 27 points only... y such diff inspite of same strike.
now plz tell me...
1. as v see nifty today made a high of around 7650, which is 50 more d our upper range 7600. so it means it is possible tht nifty may move out of this range ( i know tht our range is short this time) but wanna know how frequent such incident happens.
2. what is role of total OI of call and put.... how to see d market if overall call OI is greater thn put OI ?
3. Now in our today chart IV of puts is around 20 and call is around 15.... y such diff is thr.
4. if we noticed the 7400 strike call has gained = 50 point but put lost= 27 points only... y such diff inspite of same strike.
Similar threads
-
how to decise whether to buy call options or put options?
- Started by srikanthyadav444p
- Replies: 6
-
How to buy / square off huge quantity of BNF/NF Put or Call options
- Started by dreambuddy
- Replies: 15
-
Help with Options Strategy on Writing OTM Puts and Calls on Nifty
- Started by abehdfc
- Replies: 10
-
-
Is it possible to trade Options (CALL or PUT) with a Stop Loss?
- Started by abhinav99
- Replies: 3