Trade Nifty Options Using Open Interest

[ankurpcl]

Options Update at 11:06 AM
If due to any reason, SL gets hit @200, 6350 Sell Put Option, Next level to capture is
6050, Put on Sell Side (2 Lots,Assuming 1 lot earlier taken in 6350 Sell Put Option) whatever premium available to capture on SL hit.

Reason for its selection is we have 2 supports coming in between which is at 6140 and 6060 levels after 6220 support, thus providing 2 times protection due to 2 supports in between. (Levels calculated based on OI build up at 6200 and 6100 put options).

 

[ankurpcl]

Option Update at 1:20 PM

If Nifty manage to jump by 40-50 points from 6210 levels, then 6050 Put Sell Position 1 lot can be added.

Else strategy remains same as mentioned in above thread.

 

[hardik229]

Hi Ankur,

Thanks for sharing your strategy. I have couple of questions:

- What was the reason behind selling 6350 call & put?
- How to identify which call & put we have to select?

If you can provide more details about your strategy then it would be a great help.

Thanks..!!

Regards,
Hardik

 

[ankurpcl]

Dear Hardik,
All levels calculated based on Open Interest only, There are 2-3 Major tasks to be done when you trade Options:
1. Calculation of OI at multiple strikes ending with 00 like 6100,6200,6300 for both Call and Puts
2. Based on OI developing you need to consider which Levels would be best if Any option to be write (Same time you have to keep eye on last 15 trading sessions too across all strike prices)
3. Always try to sell option using hedge if you are new to options as it gives you sufficient time to plan exit from trade even if Nifty makes sudden movement of 150-200 points in 1-2 trading sessions.

These are some points for which you need to do homework before planning any trade. As far as options trading is concerned, there are more than 1000 strategies available if you read any book on Options. But till now I never found even a single book which talks about considering Open Interest be it bull spread, straddle, synthetic, combo, ladder, butterfly.

All such strategies make your calculations so difficult in end that sudden movement in Nifty by 100-150 point in 1 trading session make you feel lot more confused and in end left with losses in your pocket.

But if you learn the art of Options trade using Open Interest, you will get 1 method of earning income in your life with risk factor of just 5% of losing your capital in longer period.

Most of viewers who read this thread must have jobs in their hands and same time they want to use their surplus capital in some good manner rather investing in FDs or MFs where you have no control in the returns.

But Options is one such platform where you can generate capital based on your capability level to understand market much faster than others and take quick decisions.

Just be with this thread, all profits and losses will be shared too along with all viewers as month progresses. In very first thread it was declared using Open Interest you can expect 10~15% returns easily. And if by month end I successful in achieving same, in next month i will guide all viewers how to trade options using Open Interest.

I would first like to win the confidence of viewers with the strategy which I have developed based on my experience and skillset only.

If viewers are convinced, they can take the same art from me and apply through out their lifes to earn side by side income for entire life.

Thanks
ANkur

 

[ankurpcl]

INTERESTING ARTICLE TO READ, NOT BIG ONE

People who say they can predict the market are fools?

Many people feel market behave the way they think. For this they claim they have knowledge of candle sticks,
bar patterns, delta, volatilty index, theta, vega blah blah

But real fact is that market govern by people emotions the way they perceive the things around. Somewhat similar to your mood. Someday you are very happy and some day very sad.

God not given power to any human being that he can predict emotions of any person for next day.

What best you can do, if today your friend in good mood you talk for things which make him more happy. Similarly if your friend in anger mood you will plan accordingly what needs to be done while interacting him. Sometimes leaving your friend and be silent
much better than trying for new things as it may break your relation as well with him which you never want if he is your good friend.

Same principle adopted by hedge fund managers and investment bankers when they trade markets. They have only 1 good trait which is "Given a condition what should be best steps to work." And they not care much about rest. And in end they are the actual winners and get crores as pay packages.

Hope these thoughts will let you know why markets become 200 points up 1 day and 400 points down next day.

HAPPY TRADING !!!

 

[ankurpcl]

Current Status of Jan Expiry as below:

Fridays Gain: 1 Lot 6050 Put Sold at levels of 46 and covered at levels of 33 Giving 1st Net Point Gain of Jan Month = 13

Reason for Postion Square Off was: 30% returns enough for book profits
(Small profits make your upcoming trades too profitable, proven fact by many traders)

Recommendation:
Sell 6350 Put and Sell 6350 Call 1 lot still holds (Premium Captured: 205 Points)
Action Plan: StopLoss maintained as 6200 Nifty Considering 6210 as Major Support to hold. On hitting SL,
Square Off 6350 Put Option,Keep Holding 6350 Call Sell Option till it comes to level of 10 or below
No Upper SL giving as Nifty next resistance comes at levels of 6320 as of now,
if nifty crosses 6320 then Upper SL need to rework based on Open Interest developed)

Booked Profits in Jan Series: 13*50 = Rs 650

(Note: All analysis will be done considering 1 lot of Nifty options, to make calculations simple and easier to understand
but you can trade multiples of lots if you get convinced with the strategy mentioned any time.
To remain profitable you need to check this thread minimum 3 times in day around 10:00 AM, 1:OO PM, 3:15PM)

 

[pakatil]

Current Status of Jan Expiry as below:

Fridays Gain: 1 Lot 6050 Put Sold at levels of 46 and covered at levels of 33 Giving 1st Net Point Gain of Jan Month = 13

Reason for Postion Square Off was: 30% returns enough for book profits
(Small profits make your upcoming trades too profitable, proven fact by many traders)

Recommendation:
Sell 6350 Put and Sell 6350 Call 1 lot still holds (Premium Captured: 205 Points)
Action Plan: StopLoss maintained as 6200 Nifty Considering 6210 as Major Support to hold. On hitting SL,
Square Off 6350 Put Option,Keep Holding 6350 Call Sell Option till it comes to level of 10 or below
No Upper SL giving as Nifty next resistance comes at levels of 6320 as of now,
if nifty crosses 6320 then Upper SL need to rework based on Open Interest developed)

Booked Profits in Jan Series: 13*50 = Rs 650

(Note: All analysis will be done considering 1 lot of Nifty options, to make calculations simple and easier to understand
but you can trade multiples of lots if you get convinced with the strategy mentioned any time.
To remain profitable you need to check this thread minimum 3 times in day around 10:00 AM, 1:OO PM, 3:15PM)

Hi Ankur,

I am willing to bite the bullet on Mon day 6th. 1 Lot each.

As i hv understood, exit Put if NF hits 6200 and hold CE till it touches 10.

As suggested, will watch this thread thrice.

All the best to both of us......:clapping:

 

[ankurpcl]

Dear Ananth,
As you can see Premium of Recommendation 1 still holds at 205, so you can enter into this trade, But remember if same premium falls to 150-170 points in days to come then its advisable to other viewers not to jump that time as if any time premium jumps back to 180-190 levels and OI Analysis demands position need to be square off then you come into losses being entered late.

So best will be wait for next recommendation to come. As per past trades analysis, new recommendation generally comes in 2-3 trading sessions, rest depends on market too and you can be part of same that time.

Remember we are here to trade for living and not trade to create miracles.

Thanks
Ankur

 

[ankurpcl]

Options Update at 09:21 AM

Todays level to watch for :
6142 => 6210 => 6322 => 6373
Any strategy will be designed on break of any above mentioned levels.
Till then its wait and watch situation.

 

[ankurpcl]

Options Update at 09:54 AM
Action Plan:
On Hitting Nifty 6210,
a) Add Square Off Order 6350 Put Option with SL as 200,
b) Keep Holding 6350 Call Sell Option till it comes to level of 10 or below
On Hitting Nifty 6240,
a) Add 1 Lot of 6050 Put Sell between 42-46 levels