Trade Nifty Options Using Open Interest

ankurpcl

Active Member
#1
Dear All,
I am creating this new thread for all traders who want to earn decent returns of 10~15% per month of the total amount invested for trading.

In my followup threads I will teach you how to trade nifty options using Open Interest which can be easily checked from www.nseindia.com website. No expensive trading software require for same, only you need to keep an eye on Open Interest Build Up and then plan your trades accordingly.

Thanks
Ankur
 

ankurpcl

Active Member
#2
Whats the Open Interest?
Open Interest tells number of contracts which are opened but not yet closed.

Considering Options, OI is most important to watch for as big institutional investors generally take view of market direction after calculating build up of OI positions.

Lets understand same using example:

1. In Jan series of 2014 max OI Build up seen at levels of 6300 Puts and 6500 Calls. what does this signify??

It tells us that Nifty major support will come at levels of 6220 as premium of 6300 put available is near 80 and resistance will come at levels of 6545 as 45 premium available with 6500 Call.

2. How to plan the trade based on trend which is emerging?
If you are an options trader you can use multiple strategies to maximize your returns, but i will share my trading recommendation free of cost which viewers can initially watch and later they can start following if they find
recommendations given are profitable over 1 month period.

Thanks
Ankur
 

ankurpcl

Active Member
#3
Recommendation 1 (Jan Series 2014)

2-Jan
Sell 6350 both Put and Call Options.
Expected premium to be captured: 205
Total investment required: 35000 (Depends from broker to broker)
StopLoss: 6250, 6450 levels

Once 6250 or 6450 levels hit by nifty this strategy need to be closed and new strategy will be proposed to viewers.
 

ankurpcl

Active Member
#5
Strategy Update at 10:34 AM, 2-Jan-2014

Today Nifty future tried to cross levels of 6400 but due to increase in OI at 6400 Calls, future moves back to 6300-6400 range.

If you checked on www.nseindia.com site increase in Open Interest for 6400 Call stands at 4,07,500 and increase in Open Interest at 6300 Put stands at 3,96,000 which confirms trend likely to be range bound between 6300 and 6400 for few more days till 6400 or 6300 levels take out by Nifty by decrease in Net Open Interest which stands at 40,00,000 + at both 6300 Put and 6400 Call levels.
 

ankurpcl

Active Member
#6
Strategy Update:

Today Nifty future has crossed below 6250 but unable to hold below 6250 and recover back sharply till 6267 levels and consolidates thereafter.

Tomorrow Action Plan:
If Nifty makes Gap down tomorrow and unable to cross 6250 levels by 11:00 AM, then position need to be square off with whatever loss available on table to grab.

If Nifty makes Gap Up Opening And touches 6300 levels, then stop loss need to be modified as 6200 and 6400 levels.

After studying today's closing OI, It seems market expects to make Gap up opening for tomorrow. But as an trader always think for worst to happen then good to happen.
 

DanPickUp

Well-Known Member
#7
Recommendation 1 (Jan Series 2014)

2-Jan
Sell 6350 both Put and Call Options.
Expected premium to be captured: 205
Total investment required: 35000 (Depends from broker to broker)
StopLoss: 6250, 6450 levels

Once 6250 or 6450 levels hit by nifty this strategy need to be closed and new strategy will be proposed to viewers.
Hi Ankurpcl

First: Nice to see an other interesting thread here. I wish you good luck with it. Will visit it from time to time.

As your strategy could be interesting for those who do not stay the whole day in front of the screen, and there are many here in the forum which are in such a situation, I have a clear question to you. For newbies who stay in such a situation, the idea of having a stop loss of 100 point with the future may sounds incredible safe and with out risk. I ask that question to you, as you come up with the strategy and with that kind of stop loss.

Here we go: Nifty at 6350. Market spikes up to 6470. Stop loss is filled and now you are long the future. But markets jumps back to 6356. In the evening those people come home and are now short with one future leg and two option legs.

Could you kindly explain them the numbers (Profit on each leg and loss on each leg) they do face in such a case, so there will be no miss interpreting of your idea and the 100 point stop loss you show. Take care and see you around / DanPickUp
 

pakatil

Well-Known Member
#9
Recommendation 1 (Jan Series 2014)

2-Jan
Sell 6350 both Put and Call Options.
Expected premium to be captured: 205
Total investment required: 35000 (Depends from broker to broker)
StopLoss: 6250, 6450 levels

Once 6250 or 6450 levels hit by nifty this strategy need to be closed and new strategy will be proposed to viewers.
The Position Shld have been close at 3.05 isn't it......:confused:
 

rkkarnani

Well-Known Member
#10
Hi Ankurpcl

First: Nice to see an other interesting thread here. I wish you good luck with it. Will visit it from time to time.

As your strategy could be interesting for those who do not stay the whole day in front of the screen, and there are many here in the forum which are in such a situation, I have a clear question to you. For newbies who stay in such a situation, the idea of having a stop loss of 100 point with the future may sounds incredible safe and with out risk. I ask that question to you, as you come up with the strategy and with that kind of stop loss.

Here we go: Nifty at 6350. Market spikes up to 6470. Stop loss is filled and now you are long the future. But markets jumps back to 6356. In the evening those people come home and are now short with one future leg and two option legs.

Could you kindly explain them the numbers (Profit on each leg and loss on each leg) they do face in such a case, so there will be no miss interpreting of your idea and the 100 point stop loss you show. Take care and see you around / DanPickUp
Dan, Ankur did not seem to have added any position in Nifty Futures in his strategy!!! OR am I missing something.
 

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