This months nifty options are weird !

[onlinegtrash]

watching Nifty this months is very similar to watching horror+thriller movie.

In horror movies, when normal people die they start to do extraordinary things like uprooting a tree, floating a heavy rock in air etc etc, traveling at the light speed, vanish into thin air...
and form white cloud whenever possible

Just like that... Nifty is doing strange things.

Nifty pinned around 6700 for 3 to 4 days, pinning is supposed to happen on expiry days...
but we are no where near expiry... but still pinning is happening.

Normal Nifty usually moves 1-1.5% max 99% of time..
Now ghost Nifty uprooted all bears and managed to climb 3% in single day on last friday!

and still moving up on monday by another 100 pts

Strangely puts are supposed to crash with such high powered up move...
and they are NOT crashing...

No matter what I buy... call or put... I end in loss
and no matter what I sell... am not making money!

May be longer time frame traders trading in futures should be doing good I guess...
In options market volatility is hurting all option buyers and scaring all options writers with sleepless nights!

creepy times

 

[gmt900]

SOLD 8200CE MAY @ 18.6 AND 5800PE @ 18.3

Hopefully, 1200 points range ( 17%) both sides should be good enough.

 

[amitrandive]

watching Nifty this months is very similar to watching horror+thriller movie.

In horror movies, when normal people die they start to do extraordinary things like uprooting a tree, floating a heavy rock in air etc etc, traveling at the light speed, vanish into thin air...
and form white cloud whenever possible

Just like that... Nifty is doing strange things.

Nifty pinned around 6700 for 3 to 4 days, pinning is supposed to happen on expiry days...
but we are no where near expiry... but still pinning is happening.

Normal Nifty usually moves 1-1.5% max 99% of time..
Now ghost Nifty uprooted all bears and managed to climb 3% in single day on last friday!

and still moving up on monday by another 100 pts

Strangely puts are supposed to crash with such high powered up move...
and they are NOT crashing...

No matter what I buy... call or put... I end in loss
and no matter what I sell... am not making money!

May be longer time frame traders trading in futures should be doing good I guess...
In options market volatility is hurting all option buyers and scaring all options writers with sleepless nights!

creepy times

onlinegtrash

I think you had mentioned earlier that this would be a non event.With all the hype and volatility,the option prices are chaotic.The only people who will make money are Futures traders.But considering all situations ,taking either a short or long side on Nifty can be dangerous without hedging.

Wonder how to do that ?

 

[munde_77]

SOLD 8200CE MAY @ 18.6 AND 5800PE @ 18.3

Hopefully, 1200 points range ( 17%) both sides should be good enough.

Risk Reward i snot favorable . I will avoid such trades. Better I will sit on sideways till election results are out.Taking high risk for small reward.

Though there is more than 90 % chance this strategy will be successful but there is no guarantee.

If Third front comes and market crashes more than 20 %, Just calculate the scenario

 

[TradeOptions]

onlinegtrash

I think you had mentioned earlier that this would be a non event.With all the hype and volatility,the option prices are chaotic.The only people who will make money are Futures traders.But considering all situations ,taking either a short or long side on Nifty can be dangerous without hedging.

Wonder how to do that ?

bro, do not even think about taking a naked long or short trade in the futures. Could be extremely risky. There is no point in taking such a risky bet for the retail traders.

 

[amitrandive]

bro, do not even think about taking a naked long or short trade in the futures. Could be extremely risky. There is no point in taking such a risky bet for the retail traders.

TradeOptions

Thanks for word of caution.
:thumb:

 

[amitrandive]

SOLD 8200CE MAY @ 18.6 AND 5800PE @ 18.3

Hopefully, 1200 points range ( 17%) both sides should be good enough.

gmt900

This looks good, can you please explain the rationale behind this trade?

 

[gmt900]

gmt900

This looks good, can you please explain the rationale behind this trade?

There was 17% surge after 2009 election results. I take that as max possible movement on either side.

VIX was at 37. Premium was high for 1200 points away options.

Only 17 days left before expiry.

Return would be 4.5%

It would be possible to take pre emptive action since strike prices were far off.

During this turbulent period, I was sitting on cash and felt I should take some trade where i may not loose the shirt.

BTW I squared off the position this morning with a profit of 18 points ( 50% of max possible)

I am mulling going for long call spread, 7100CE/7200CE, since VIX has dropped to 32.

 

[amitrandive]

There was 17% surge after 2009 election results. I take that as max possible movement on either side.

VIX was at 37. Premium was high for 1200 points away options.

Only 17 days left before expiry.

Return would be 4.5%

It would be possible to take pre emptive action since strike prices were far off.

During this turbulent period, I was sitting on cash and felt I should take some trade where i may not loose the shirt.

BTW I squared off the position this morning with a profit of 18 points ( 50% of max possible)

I am mulling going for long call spread, 7100CE/7200CE, since VIX has dropped to 32.

Wow !!!
Thanks for detailed explanation.
:clapping::clapping::clapping:

 

[ramesh2020]

there was 17% surge after 2009 election results. I take that as max possible movement on either side.

Vix was at 37. Premium was high for 1200 points away options.

Only 17 days left before expiry.

Return would be 4.5%

it would be possible to take pre emptive action since strike prices were far off.

During this turbulent period, i was sitting on cash and felt i should take some trade where i may not loose the shirt.

Btw i squared off the position this morning with a profit of 18 points ( 50% of max possible)

i am mulling going for long call spread, 7100ce/7200ce, since vix has dropped to 32.

.. ..