Trading Options with Tukka style
- Thread starter praveen taneja
- Start date
OPTION CHAIN ANALYSIS.
April Series
Nifty ~ Huge liquidations was seen in 7600 to 7900 CE which we consider as unwinding by traders (can be said as stop loss hit by writers or profit booking by buyers) Further to add surprise additions in 7000 PE which today in just single session became highest OI surpassing 7500 PE, yes change in PE front (downside) of 500 points in single session....!!!
Further to add additions in 7000, 7100, 7600 & 7700 PE gives hint of limited upside in come sessions.
Highest OI tag is with 7000 PE & 8000 CE.
Bank Nifty ~ Somewhat same replication can be seen in Bank Nifty options chain. Good liquidation can be seen in 16000, 16500 & 17000 CE. If we consider additions in 15500 & 15000 PE then it is not big surprise.
Highest OI tag is with 15000 PE & 17000 CE.
NOW LETS SEE SOME IMPORTANT NIFTY RATIO
PE RATIO FOR NIFTY STANDS AT 21.07
PE RATIO FOR BANK NIFTY STANDS AT 17.30
(as on 08/04/2016)
APRIL SERIES
NIFTY PCR ON BASIS OF OI IS 0.84
BANK NIFTY PCR ON BASIS OF OI IS 0.69
FINAL CONCLUSION
Nifty & Bank Nifty
Liquidations in ITM, ATM & OTM CE we feel this rally was fully utilized by respective holders. Now if we see additions in PE then it gives hint of some inverse kind of movement in next 2-3 sessions. Another sound reason behind this expectation is due to huge additions in 7000 PE. Bank Nifty is also giving some this kind hint only.
April Series
Nifty ~ Huge liquidations was seen in 7600 to 7900 CE which we consider as unwinding by traders (can be said as stop loss hit by writers or profit booking by buyers) Further to add surprise additions in 7000 PE which today in just single session became highest OI surpassing 7500 PE, yes change in PE front (downside) of 500 points in single session....!!!
Further to add additions in 7000, 7100, 7600 & 7700 PE gives hint of limited upside in come sessions.
Highest OI tag is with 7000 PE & 8000 CE.
Bank Nifty ~ Somewhat same replication can be seen in Bank Nifty options chain. Good liquidation can be seen in 16000, 16500 & 17000 CE. If we consider additions in 15500 & 15000 PE then it is not big surprise.
Highest OI tag is with 15000 PE & 17000 CE.
NOW LETS SEE SOME IMPORTANT NIFTY RATIO
PE RATIO FOR NIFTY STANDS AT 21.07
PE RATIO FOR BANK NIFTY STANDS AT 17.30
(as on 08/04/2016)
APRIL SERIES
NIFTY PCR ON BASIS OF OI IS 0.84
BANK NIFTY PCR ON BASIS OF OI IS 0.69
FINAL CONCLUSION
Nifty & Bank Nifty
Liquidations in ITM, ATM & OTM CE we feel this rally was fully utilized by respective holders. Now if we see additions in PE then it gives hint of some inverse kind of movement in next 2-3 sessions. Another sound reason behind this expectation is due to huge additions in 7000 PE. Bank Nifty is also giving some this kind hint only.
PT,
Checked Apr. 7500 PE which was trading @ 9.05, May 7500 PE @ 49.40 and finally checked Nifty Jun 7500 PE which is trading currently @ 93.00 Assume you are trading Far month options to save on time decay. Is that assumption right? If so, wondering what is your holding period and SL if any? Considering the forthcoming holidays, will you still be carrying on your positions over the long weekend? Asking as my preference is to trade current month ITM options. Reply at your leisure. Thanks.
Checked Apr. 7500 PE which was trading @ 9.05, May 7500 PE @ 49.40 and finally checked Nifty Jun 7500 PE which is trading currently @ 93.00 Assume you are trading Far month options to save on time decay. Is that assumption right? If so, wondering what is your holding period and SL if any? Considering the forthcoming holidays, will you still be carrying on your positions over the long weekend? Asking as my preference is to trade current month ITM options. Reply at your leisure. Thanks.
Bro logic is simple to save my self from time decay huge volatality and buying pressure on opposite side of trade :thumb:
when u trade opposite of trend buy far away in that case fall is less rise in more now no buyer all waiting for a dip to enter playing for 20-25 point down and there i would give my puts no mood to take trade with me
Jai Ram JI KI:thumb:
ATM options are when u know trade is in ur reach now trade is more then 1100 points up and shorts mostly squeeze and most blindly shorting puts even 8000 now so SM know money is now in reversal thats why asking
7800 de de baba:clap::clap::clap:
when u trade opposite of trend buy far away in that case fall is less rise in more now no buyer all waiting for a dip to enter playing for 20-25 point down and there i would give my puts no mood to take trade with me
Jai Ram JI KI:thumb:
ATM options are when u know trade is in ur reach now trade is more then 1100 points up and shorts mostly squeeze and most blindly shorting puts even 8000 now so SM know money is now in reversal thats why asking
7800 de de baba:clap::clap::clap:
Thanks PT Bhai! Will look into it.
Also sharing a neat trick trading options (also commodities) in a sideways market. When the market does not have direction, wait for a few bars for the market to go high or low. Then check the last price, but place a limit order in your favor in the opposite direction that is 200-250 Rs. away from the last traded The key is to get the price right. Most of the time a price 200-250 above the last traded gets executed. One can scalp multiple lots keeping a SL of Rs. 200-250 (a bit more if trading commodity) for high probability trades with low risk. My 2C.
Cheers.
Also sharing a neat trick trading options (also commodities) in a sideways market. When the market does not have direction, wait for a few bars for the market to go high or low. Then check the last price, but place a limit order in your favor in the opposite direction that is 200-250 Rs. away from the last traded The key is to get the price right. Most of the time a price 200-250 above the last traded gets executed. One can scalp multiple lots keeping a SL of Rs. 200-250 (a bit more if trading commodity) for high probability trades with low risk. My 2C.
Cheers.
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