NIFTY Options Trading by RAJ

[prabhsingh]

Short Oct series and go Long in Nov series.

 

[healthraj]

The MAX OI has changed once again from 5700-6300 to 6100-6300. So whenever the market goes down the 6100 Levels seems to change, which suggests that if the market really goes down it would definitely break 6100. For now since the 6300 Level is not Tested, my Bias is positive and so Buy on Dips for 6300/6400 as the Target. For Today the Trend might be Negative. One more observation is that whether it is Stock or index, whenever the MAX Pain = RESISTANCE or MAX PAIN = SUPPORT, it is normally broken because MAX PAIN simply cannot be equal to SUPPORT or RESISTANCE, MAX Pain should be in between SUPPORT and RESISTANCE. So for this Series two things can happen,

- If 6100 forms a Strong Support then MAX Pain might shift to 6200 or higher.
- If 6100 cannot hold the Support then the Support might shift to 5900/6000.

All these suggest that the Action is still not over. There is a BIG move in waiting

 

[healthraj]

Short Oct series and go Long in Nov series.

Looking at the OI, I think it should be the Other way. The MAX OI for NOV-13 which was at 5700-6200 on Yesterday has moved to 5900-6200.

So I would suggest to Buy Oct-13 Series for 6300/6400 and Go short in NOV-13 Series when the market is around 6300 for target of 5900/6000.

Prabhsingh, What prompts you to take the opposite trade?

 

[prabhsingh]

Looking at the OI, I think it should be the Other way. The MAX OI for NOV-13 which was at 5700-6200 on Yesterday has moved to 5900-6200.

So I would suggest to Buy Oct-13 Series for 6300/6400 and Go short in NOV-13 Series when the market is around 6300 for target of 5900/6000.

Prabhsingh, What prompts you to take the opposite trade?

Just sticking to basics Raj.Nifty is already making HL and HH which means trend is UP.Since Nifty has already rallied quite huge its time for some consolidation for later part of this month hence SHORT for this month.Just to add on RSI on daily charts is close to overbought territory.

 

[healthraj]

Just can't seem to get out of my biases, long with stop loss of 6154 is the trade of the day

OT, As I posted in one of the post Yes NIFTY is forming a base at the previous 52-Week High 6230 SPOT. So 6230 will take some time to be broken. But once 6230 SPOT is broken, I think you have to change your Bias and Trade for a minimum of 120 points. But since the VOLT is very very low, The LONG Puts or Calls are not giving any Results. Only Shorts are giving the Results.

 

[Option.Trader]

The MAX OI has changed once again from 5700-6300 to 6100-6300. So whenever the market goes down the 6100 Levels seems to change, which suggests that if the market really goes down it would definitely break 6100. For now since the 6300 Level is not Tested, my Bias is positive and so Buy on Dips for 6300/6400 as the Target. For Today the Trend might be Negative. One more observation is that whether it is Stock or index, , it is normally broken because MAX PAIN simply cannot be equal to SUPPORT or RESISTANCE, MAX Pain should be in between SUPPORT and RESISTANCE. So for this Series two things can happen,

- If 6100 forms a Strong Support then MAX Pain might shift to 6200 or higher.
- If 6100 cannot hold the Support then the Support might shift to 5900/6000.

All these suggest that the Action is still not over. There is a BIG move in waiting

whenever the MAX Pain = RESISTANCE or MAX PAIN = SUPPORT, I see this occurring in stocks more than nifty, don't remember seeing in nifty, so what's the trade at these points. Also by support I think you mean Max oi right?

 

[healthraj]

whenever the MAX Pain = RESISTANCE or MAX PAIN = SUPPORT, I see this occurring in stocks more than nifty, don't remember seeing in nifty, so what's the trade at these points. Also by support I think you mean Max oi right?

Yes MAX OI @ PE = SUPPORT, MAX OI @ CE = RESISTANCE.

Whenever MAX Pain = RESISTANCE, Expect a BREAKOUT
Whenever MAX PAIN = SUPPORT, Expect a BREAKDOWN

So my ideal Trade would be to wait for the TOP to be formed, I am not sure if it is going to 6350 or 6400. Then Take a Short position depending on where the MAX Pain Is. If MAX Pain continues as 6100, then take 6100 PE. And if MAX PAIN continues to be at 6100 and MAX OI @ PE continues at 6100, then I am expecting a BREAKDOWN of 6100 to either 6000 or 5900.

 

[Option.Trader]

Yes MAX OI @ PE = SUPPORT, MAX OI @ CE = RESISTANCE.

Whenever MAX Pain = RESISTANCE, Expect a BREAKOUT
Whenever MAX PAIN = SUPPORT, Expect a BREAKDOWN

So my ideal Trade would be to wait for the TOP to be formed, I am not sure if it is going to 6350 or 6400. Then Take a Short position depending on where the MAX Pain Is. If MAX Pain continues as 6100, then take 6100 PE. And if MAX PAIN continues to be at 6100 and MAX OI @ PE continues at 6100, then I am expecting a BREAKDOWN of 6100 to either 6000 or 5900.

Agree, but there was one aspect you talked earlier, when Max pain changes a level, in this case from 6000 to 6100, then the probability of index retracing to that level(6100) is higher than continuing further, this led to my bias of being on short side of trade. It's profitable upto now, but I have my doubts

 

[premkumartalreja]

Sqaured Off 6300 CE 2 lots at 16. ( Bought at 36 )
Averaged 6100 PE by selling another lot at 50.

Now have Short 5 lot of 6100 PE at 38

 

[premkumartalreja]

As per my tool Max Pain is now moved to 6050. There is difference of only 3 crores between 6000 to 6100 .

Strike Price Call Give Put Give Total Give

6000 432 198 630
6050 489 138 627
6100 547 80 627