Trade with options data Part 2

[nune_siva]

Dear trd student

What are the indicators which gave you confidence to take such great trading positions.
Hope you will explain in detail

 

[kiranjakka]

 

[tony513]

Any view on 5600PE27sep and 5500PE27Sep
will nifty go up or down the coming week ?

 

[timepass]

Heard Latha Venkatesh on CNBC : Today even FIIs and exporters have sold the dollar, and the OMC buying has been tepid.

 

[kiranjakka]

As with any single candlestick, confirmation is required. The Hanging Man formation shows the price goes much lower than the open then closes near the opening price. This could mean that many longs have positions that they are attempting to sell. Ideally, a black real body Hanging Man with a lower open the following day could be a bearish signal for the days ahead.

 

[tony513]

As with any single candlestick, confirmation is required. The Hanging Man formation shows the price goes much lower than the open then closes near the opening price. This could mean that many longs have positions that they are attempting to sell. Ideally, a black real body Hanging Man with a lower open the following day could be a bearish signal for the days ahead.

does that mean nifty will go down ?
im holding 5600pe and 5500pe
any views on this ?

 

[manojborle]

does that mean nifty will go down ?
im holding 5600pe and 5500pe
any views on this ?

depends on what price you bought 5500 put , don't expect expiry below 5500.
Similar for 5600 put , depends on what price you bought ?
There may be a dip till 5590 nf , so can exit there.
I dont see nf going below 5550.

 

[tony513]

depends on what price you bought 5500 put , don't expect expiry below 5500.
Similar for 5600 put , depends on what price you bought ?
There may be a dip till 5590 nf , so can exit there.
I dont see nf going below 5550.

Bought 5600pe at 15.80 and 5500pe at 6

 

[manojborle]

Bought 5600pe at 15.80 and 5500pe at 6

I have one query why did you buy 2 different puts of same expiry ?

For 5500 put, your breakeven is 5494@ expiry. (Delta -0.09)
For 5600 put, your breakeven is 5584@ expiry. (Delta -0.22).

Both the puts are far Out of Money.

As only 4 days are remaining, it is very difficult that 5500 put will be In the Money. So I don't think you will get anything out of 5500 Put.

There are good chances of market correcting but it may happen that it will try to to reach 5800 level first and then correct or it can remain sideways also.

If it remains sideways, you will lose premium of both the puts.

As far as I know you should never buy option which is going to expire in a week as it will not have any chance of getting into the Money, rather whatever time value it has it will erode very fast.

Hope you get profits from the position.

Best luck

 

[Option.Trader]

With Friday's close, it looks like 5700 and 5800 Puts are being heavily written and 6000 and 6100 calls are being accumulated.

Looking at OI, 5300 Put seems to be at the lower end and 6000 at the higher end... do you'll agree?