Trade with options data

[trader15]

5400 Put Open Interest : 3 times since 11 AM data : Strong Wave coming

Wave came.. waiting for 5430 to reverse trend..

 

[kiranjakka]

we may go up once again near or over 5400 today

thanks for the post i wast able to post here between 1-3 only because i will be busy at my office

nice to see somebody tracking

you are right in predicting the move

 

[jkfincorp]

5400 Put Open Interest : 3 times since 11 AM data : Strong Wave coming

Trader15- would appreciate if you could pl elaborate. Thanks...

 

[rajin90]

it breake the resistance of 5400. tomorrow is FRIDAY . the last day . so we can hope for some profit booking too . is PUT a better option now

 

[trader15]

it breake the resistance of 5400. tomorrow is FRIDAY . the last day . so we can hope for some profit booking too . is PUT a better option now

Not yet. unless you want to play intraday. Look for Europe and Dow today, if greek resolution in place, then rally tomorrow.

5430 is key level to be broken, Even today there was strong pullback post 5420.

You can play intraday around 5430, buy put and sell it : play with 3/4 lots.. and catch 5 points easily

 

[trader15]

Trader15- would appreciate if you could pl elaborate. Thanks...

The open interest for 5400 Put was X at 11 AM, and by 2 PM was 3X. Volume increase in Put implies, folk's are writing put's at specific strike price.

Normally traders buy put's, but someone is selling: Writer.

Put Writer can only make money when market goes in opposite direction: UP
so put value decreases and he can buy back at lower rate

So when Open interest of Put at specific strike price is increasing 3 folds: that shows confidence of Put writers, that market may move up in short term.

For example: Someone who wrote Put in morning at say Rs. 90 was anticipating upmove, and he closed in day's end at 70, making Rs. 20 intraday profit.

 

[jkfincorp]

The open interest for 5400 Put was X at 11 AM, and by 2 PM was 3X. Volume increase in Put implies, folk's are writing put's at specific strike price.

Normally traders buy put's, but someone is selling: Writer.

Put Writer can only make money when market goes in opposite direction: UP
so put value decreases and he can buy back at lower rate

So when Open interest of Put at specific strike price is increasing 3 folds: that shows confidence of Put writers, that market may move up in short term.

For example: Someone who wrote Put in morning at say Rs. 90 was anticipating upmove, and he closed in day's end at 70, making Rs. 20 intraday profit.

appreciate your revert, thanks for the clarity and assistance...

 

[rajin90]

trader i am an intraday trader who hold his options . past 4 days there were many times when anyone could book 15points profit. today it gave 25 points profit from low

 

[trader15]

trader i am an intraday trader who hold his options . past 4 days there were many times when anyone could book 15points profit. today it gave 25 points profit from low

Market gives 15-30-40 points at a strech and specially loads of points to book from low's of day. Question is to :

1. Define when u have 5 points or 10 points in ur pocket, how do you know
whether u will get another 5 points waiting, it can go in reverse direction
too as fast as it came.

Looking back at charts is one thing: but in my practical experience
when one is in front of screen, u really dont know whether the next few
points will be in your direction or not.

2. Low: No one ever knows what the low will be especially in options. In
futures/spot, you know through technicals.

The only way to define low and trade using lows in options is to buy/write
options at technical support/resistance levels. That pays. You may
not be able to buy lowest price of option or sell highest price of option

So simple funda for options: M2M dekhne ka, jisme shirt pant lungi aa jaye
utne daam per "square off" use karne kaaa..

"Square off" : In options dont think of limit orders... Square off button takes
emotions away and helps closing

 

[rajin90]

yeah trader15 you are right this whole month i bought only 1 lot and missed many opportunities i will try to lessen my objective to 15-30 points