Trade with options data

[jovial01]

hi kiran, i m still holding hindalco 160 ce...wut do u say.

 

[uttamkamlesh]

Thanks Kamlesh. Yes I will go through the past posts in this thread and try to understand the strategy and method as outlined by Kiran and other seniors. But could you please clarify why only 19 stocks out of the 50 in Nifty appear in your Excel Sheet? Is there some method to add the rest perhaps in a differently named excel file?

As I understand options broadly the breakup of the change in open interest could be indicative of the market and specific stock direction. In other words, at which strike price calls or puts are being written and traded is indicative of option traders' market and scrip expectations. The nearest out of the money call or put from the in the money option is the direction of the trend. But this information is available in real time from NSE website as well as selection of scrips with their strike price in your trading terminal. So far as I can make out you are trying to identify build up or unwinding in open interest that is pronounced or resulting in more than +/- 10% change in option premium.

I shall appreciate if the above summary is confirmed and/or corrected or further elaborated. That will make it easier to understand the past discussions. I am indeed a novice to options and need some help in learning more.

Thanking all who can help,

hrsnagpal

I have considered only liquid stock options...rest were not worth the hard work....so wide offer-bid price....our markets are maturing slowly...

 

[uttamkamlesh]

Mate,In this excel sheet for some stocks what i have observed is that "BIAS" is bearish for call as well as put.How is this possible?If call is bearish then put should be bull and vice-versa.Atleast one of the trend should be bullish.Dont you think so?

Prabh...Bias is for the scrip...and it is OK...plz go thru previous posts ...within 1 week...

 

[uttamkamlesh]

Hello Uttam,

Thank you so much for the excellent piece of work done by you. I am sure it will be helpful for many of us.

Is there a way to remove few stocks name from this list? Lets say I want to focus only on Nifty+5 stocks and in order to do that I have removed all other worksheets for those stocks but in Dashboard I see #Ref! for those stocks. I would like to see a cleaner Dashboard only for Nifty+ 5 stocks but I am unable to edit that sheet or unhide these columns...

Pls help.

Thanks again for this wonderful work for the benefit of all of us.

Cheers
Abhinav

Delete those columns....from top...

 

[anilnegi]

Technically bharti must take support as of now around 319 level but option date not supporting cause, let us see tommorrow who win.

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[uttamkamlesh]

Technically bharti must take support as of now around 319 level but option date not supporting cause, let us see tommorrow who win.

It is in my RADAR too....

 

[uttamkamlesh]

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[hrsnagpal]

I have considered only liquid stock options...rest were not worth the hard work....so wide offer-bid price....our markets are maturing slowly...

Thanks again for your clarification. But what would you do if the liquid stocks that you have now chosen are no longer so liquid and other scrips in future justify being classified as liquid? It would be easy for you ofcourse to make changes in your excel sheet. However, if some flexibility or guidance on deletion/addition of scrips/symbols was provided for users in your excel based software itself, that would be a further plus point.

Anyway, based on your experience, I take it as granted that there are only 19 scrips that are included in your program that are worth considering for options trading, besides Nifty and Bank Nifty. That itself reduces the complexities of trading to some degree.

Recently I asked a senior executive in a securities firm whether there actually are market makers in the stock market. I was surprised to hear his confirmation. I then went a step further and asked him how could that be possible in a market with such large volumes being traded. He replied that market makers are usually option writers and they have deep pockets besides expert knowledge of the market and corporate information that is public as well as researched (a softer word for inside information perhaps).

This thread and your software it seems is trying to read the moves of option writers to advantage. The leverage in options being so high, it is imperative to have strategies and plans for whipsaws and correct triggers for entry and exit. Needless to mention that a good charting software and real time charts for both cash and futures segments, perhaps also including option charts in real time, are a must. Could you please suggest a few good AmiBroker AFLs and possibly refer their download links?

Still going through your thread backwards with increasing appreciation as well as doubts.

Regards,

hrsnagpal

 

[kiranjakka]

 

[trader15]

As per options data, hindalco should go down, but since last 30 min, it is following nifty in going up..

bye the way.. nifty data shows signifcant call covering..