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

[mangup]

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

1. Infy Futures -> 1.18% change(+)
2. Infy 2900 CE -> 70.22% change (+)
3. Infy 2200 PE -> 26.92% change (+)

As Infy has closed 1.18% up w.r.t yesterday's close, how come PE closed in +ve. Can anybody pl explain the logic?

1. Is it prudent to buy or sell the pair (2900CE & 2200PE) in view of results for one day only?
2. What is the logic behind this?
3. What will be the diff in profit/loss is infy opens/closes 500 pts +/- ?

I bought the above pair at 110/-.

 

[healthraj]

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

1. Infy Futures -> 1.18% change(+)
2. Infy 2900 CE -> 70.22% change (+)
3. Infy 2200 PE -> 26.92% change (+)

As Infy has closed 1.18% up w.r.t yesterday's close, how come PE closed in +ve. Can anybody pl explain the logic?

1. Is it prudent to buy or sell the pair (2900CE & 2200PE) in view of results for one day only?
2. What is the logic behind this?
3. What will be the diff in profit/loss is infy opens/closes 500 pts +/- ?

I bought the above pair at 110/-.

1. I recommended A SELL... assuming that market will either move down or be flat...
2. The reason for PE going UP : The only reason I can find is that the Volatility was very high around 80%. The reason why both PE and CE were going UP.
3. 500+ points should be crazy ... The Volatility for sure will go down and will bring down the prices by a huge premium... Even if it goes UP, due to volatility going DOWN, the prices will go down for the Pair...

For Example if we take INFY 2900 CE, The theoretical price with the the following parameters
Asset Price : 2535
Strike : 2900
Option Type : Call
Days To Maturity : 11
Volatility : 85%
Interest Rate : 10%
Theoretical Price : 40.33

But the Market closing price is 53.2

Tomorrow only with the Volatility changing to say 60% The price will come down to 11.55. So the Volatility plays a BIG factor for SELLING OPTIONS.
Asset Price : 2535
Strike : 2900
Option Type : Call
Days To Maturity : 10
Volatility : 60%
Interest Rate : 10%
Theoretical Price : 11.55

The Average Volatility of INFY is around 34%

 

[healthraj]

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

1. Infy Futures -> 1.18% change(+)
2. Infy 2900 CE -> 70.22% change (+)
3. Infy 2200 PE -> 26.92% change (+)

As Infy has closed 1.18% up w.r.t yesterday's close, how come PE closed in +ve. Can anybody pl explain the logic?

1. Is it prudent to buy or sell the pair (2900CE & 2200PE) in view of results for one day only?
2. What is the logic behind this?
3. What will be the diff in profit/loss is infy opens/closes 500 pts +/- ?

I bought the above pair at 110/-.

Have you SOLD or BOUGHT the pair?

 

[mangup]

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

Have you SOLD or BOUGHT the pair?

I bought it as i am expecting a 500 pts +/- mvt tomorrow. Only for one day. Let's see what happens.

 

[jamit_05]

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

6000 Ce Lost majority.
5800 Pe became support... teji is the talk of town... shorters might run for cover tomorrow.

 

[healthraj]

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

Whatever Happens on INFY, Let us observe and Learn from it so that we can implement for other stocks.

I want to See what Happens to the Volatility and the corresponding Price. I took a SELL 2200-2900 Pair call, because the Volatility was very High.

Let us see what happens:thumb:

 

[jamit_05]

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

I bought it as i am expecting a 500 pts +/- mvt tomorrow. Only for one day. Let's see what happens.

500 pts move... in Nifty or Sensex... and what are your reasons?

Pre-opening is near 6000.

 

[healthraj]

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

1. I recommended A SELL... assuming that market will either move down or be flat...
2. The reason for PE going UP : The only reason I can find is that the Volatility was very high around 80%. The reason why both PE and CE were going UP.
3. 500+ points should be crazy ... The Volatility for sure will go down and will bring down the prices by a huge premium... Even if it goes UP, due to volatility going DOWN, the prices will go down for the Pair...

For Example if we take INFY 2900 CE, The theoretical price with the the following parameters
Asset Price : 2535
Strike : 2900
Option Type : Call
Days To Maturity : 11
Volatility : 85%
Interest Rate : 10%
Theoretical Price : 40.33

But the Market closing price is 53.2

Tomorrow only with the Volatility changing to say 60% The price will come down to 11.55. So the Volatility plays a BIG factor for SELLING OPTIONS.
Asset Price : 2535
Strike : 2900
Option Type : Call
Days To Maturity : 10
Volatility : 60%
Interest Rate : 10%
Theoretical Price : 11.55

The Average Volatility of INFY is around 34%

Where is the Infosys Volatility ?

For the CALLs the Volatility dropped from 85 to 40.
For the PUTS the Volatility has gone down from 85 to 70.

The Pair that we took yesterday at around 105-110 today at 110.
So even though the Stock has moved from 2500 to 2850, the Option price has not moved anywhere.

That is the Power of Volatility change. When the Volatility of PUTs also cool down the price of this pair will definitely give profit.

 

[jamit_05]

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

Another bullish signal is that after 5600... the base was formed directly at 5800 by jumping one strike. There is a sense of hurry. Moreover, when a trend is continued by opening gaps that often means it will last till it meets a strong resistance. In NF daily chart strong resistance is at 6100-6200 belt.

But, then again chart does what it does...

One fact that does not confirm NF uptrend is BnF, which is still making a double top. In fact, I would hv lurking doubts of NF uptrend till BnF closes over 12K.

 

[Option.Trader]

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

Vol, Chgoi, Net OI favour bulls... 2 wide days also favour them... we may see a short term pull back before the rally resumes