1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures - Bac

[columbus]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Though I refrain from making any guesses, both Nifty and Bank Nifty
have moved by good amount.Picture below:

 

[mech71]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

5900 is a crucial level for NSE NIFTY. From here Market can minimum make 500 points UP or DOWN. It might do it in December itself. So Better go for some Option stratgies like
- Buy 6300 Call - 50% positions.
- Buy 5500 Put - 50% positions.

Looking at the current chart, My opinion it would go DOWN. So you can Options in the december Series itslef.

If you want to play Safe, you can buy the Options in the Jan Series. The only thing being you will pay double the premium and profit also will be half.

I personally have gone bought the December Series.

You have to be patient and wait till your target is reached.

Dear Raj,

Can you also discuss the probabilities of happenings as to show it can be a profitable preposition...Suppose we buy equal lot of 6300call and 5500put and as market looses momentum or breaks support , can one add another lot of puts and vice-versa if market goes higher...or just buy the equal lots and in any case we can expect profits ??

Sorry for asking intricate analysis...since am weak in options buddy....

May be other boarders like smart trade or columbus can also give their views..

Thanks....

 

[anup]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Hi Raj, Unable to download version 3.3,.. can you please share the correct url

 

[awr]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Are they being traded in NSE? Do you have the NSE code? And are they available in Google Finance?

No they are traded in MCX. I m sorry to put MCX query in ur post but i didnt gen any tool like your excelsheet for commodity trading. Thats why i requested you.

 

[madmax]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

No they are traded in MCX. I m sorry to put MCX query in ur post but i didnt gen any tool like your excelsheet for commodity trading. Thats why i requested you.

i think the upper limit is 6000-6150....if it crosses 6000...then lower limit is 5650....

however if rebound happens with 5950 then it can go till 5450...


I am basing my opinion on the triangle formed..if triangle breached i,e 5950 crossed it will follow the channel and lower limit is then 5650

but i agree that this might be the last bull run

 

[healthraj]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Tool for Option Trading.

Somebody in the thread (I think it is Option.Trader) who was asking for a Option Trading Tool... I was not able to download the Options chain data before. But the NSEIndia Options Chain data seems to be available for Excel download. So the question to the Option Trading Experts on the Rules to be followed...

Please confirm my understanding so that I can develop the tool in line with the following rules....

We will use the following Data
1. Strike Price - SP
2. Call Open Interest Change - CEOI
3. Call LTP - CELTP
4. Put Open Interest Change - PEOI
5. Put LTP - PELTP

Rules.
For CALL Options
1. For Each Strike Price, if CEOI > 0 and CELTP > 0 then "LONG BUILD"
2. For Each Strike Price, if CEOI < 0 and CELTP < 0 then "LONG UNWIND"
3. Else Flag the Strike as "FLAT"
For PUT Options
4. For Each Strike Price, if PEOI > 0 and PELTP > 0 then "SHORT BUILD"
5. For Each Strike Price, if PEOI < 0 and PELTP < 0 then "SHORT UNWIND"
6. Else Flag the Strike as "FLAT"

After the abiove rules, We will have one of the Following for CALL Options
LONG BUILD, LONG UNWIND or FLAT

After the above rules, We will have one of the Following for PUT Options
SHORT BUILD, SHORT UNWIND or FLAT

Then for each Strike Price a Combination of CALL and PUT should give the effective direction of the strike

CALL Result & PUT RESULT = Effective Result
FLAT + FLAT = FLAT
FLAT + SHORT BUILD = BEAR
FLAT + SHORT UNWIND = BULL
LONG BUILD + FLAT = BULL
LONG BUILD + SHORT BUILD = FLAT
LONG BUILD + SHORT UNWIND = STRONG BULL
LONG UNWIND + FLAT = BEAR
LONG UNWIND + SHORT BUILD = STRONG BEAR
LONG UNWIND + SHORT UNWIND = FLAT

After the above for each strike price we will have either FLAT or BULL or BEAR or STRONG BULL or STRONG BEAR

At 2:05 PM, If I apply the above logic I am getting net result as FLAT with a slightly BEARISH.

The maximum Open Interest for CALL is at 6000 and for PUT it is at 5800... In the last 2 -3 days Heavy Open interest is seen from 5500, 5600, 5700 and 5800 Puts

Please put your thoughts so that I can include this in the next version of the MTP tool. I will want to do this first for NIFTY and we can extend this for any Stock.

 

[anup]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

@Raj: My question is if Option tool is built only with help of OI, does it really work out? also are you going to do it for intraday or positional?.

 

[healthraj]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

@Raj: My question is if Option tool is built only with help of OI, does it really work out? also are you going to do it for intraday or positional?.

It is better to have something rather than nothing. The Options chain would definitely give some direction of the market. I am not sure the relevance of Intraday or Positional. It would be only based on the LIVE Data. So it would be for Intraday I suppose.

If not "Only OI", what do you think will add more value to the decision?

 

[prabhsingh]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

I think Volume will also add some value in taking trading calls.So for e.g,if Volumes are strong along with "Change in OI",trend can be decided as whether Call Writing is done or Put Writing.Hence Volume might play and integral part for trading.

 

[healthraj]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

I think Volume will also add some value in taking trading calls.So for e.g,if Volumes are strong along with "Change in OI",trend can be decided as whether Call Writing is done or Put Writing.Hence Volume might play and integral part for trading.

When volumes are High should we taking it as Writing?

Please be little more specific. Volumes can indicate buying or selling.