NIFTY Options Trading by RAJ

[prabhsingh]

I think BankNifty can go down close to 10 k levels.

I am anticipating Triangle formation in BankNifty SPOT daily charts.Now for positional trader (4-6) months this is best time to go and buy equities.Post this triangle pattern my personal opnion is we will see strong highs.

 

[prabhsingh]

Is it good time to go SHORT in TataSteel.Chart seems to be suggesting though.For Positional traders,one can buy this stock on declines.Thoughts Welcome.

 

[healthraj]

Is it good time to go SHORT in TataSteel.Chart seems to be suggesting though.For Positional traders,one can buy this stock on declines.Thoughts Welcome.

In this Series TATASTEEL has not Tested the RESISTANCE of 350. So if you want to Go Short for Target of 320 then Short around 350

 

[ifti1027]

Hi raj..

I have downloaded all ur excel sheets.. tried everything reading ur threads again n again but unable to find any solution for excel sheet working properly..all sheets giving some or the other errors i m using windows 8 and office 2007..
can u plz help me.. thanks.

 

[healthraj]

NIFTY Broke the 52 Week High of 6229 and on its way to Test 6300/30 (All time high)

MAX OI at 6100-6300.

Those who have not taken any call Can buy 6300CE AND/OR Sell 6200PE.

Today As per OAT if above 6275 Futures, then the Target would be 6316.

In the Calls Side the COI is max at 6400CE. So Less Risky can Try buying 6400CE

 

[healthraj]

Planning for the Short Trade.

This market will NOT Sustain on Highs beyond 6350. So the market will correct at least 240 points from the Highs. If we can plan a Short Trade then normally during the Expiry week the profit will be huge. And in the past four months the MAX Pain Theory has worked.

Since the MAX OI is at 6100-6300, and MAX Pain at 6100, It would be better to Buy 6100PE OR 6150PE.

Remember since the MAX PAIN and SUPPORT are at 6100, there is also a Chance of 6100 level breaking and going to 6000.

With the current VOLT in 6100 PE, if the market trades around 6325, then you should be able to Get 6100PE for around 9. And if the market goes back to 6100 (MAX Pain of this Series now), then the value should become 65. So if you invest 10000, you should get 5 times the profit. But please remember to put a Limit order between 8 and 10 based on the VOLT.

For Today don't think too much about the Short trade because the market is on the UP Side and Go for the Trade only when the market is around 6320. Do not buy 6100 PE at the current Rate of 20.

 

[RAGHUERK]

Planning for the Short Trade.

This market will NOT Sustain on Highs beyond 6350. So the market will correct at least 240 points from the Highs. If we can plan a Short Trade then normally during the Expiry week the profit will be huge. And in the past four months the MAX Pain Theory has worked.

Since the MAX OI is at 6100-6300, and MAX Pain at 6100, It would be better to Buy 6100PE OR 6150PE.

Remember since the MAX PAIN and SUPPORT are at 6100, there is also a Chance of 6100 level breaking and going to 6000.

With the current VOLT in 6100 PE, if the market trades around 6325, then you should be able to Get 6100PE for around 9. And if the market goes back to 6100 (MAX Pain of this Series now), then the value should become 65. So if you invest 10000, you should get 5 times the profit. But please remember to put a Limit order between 8 and 10 based on the VOLT.

For Today don't think too much about the Short trade because the market is on the UP Side and Go for the Trade only when the market is around 6320. Do not buy 6100 PE at the current Rate of 20.

Will execute this.........

 

[gmt900]

Planning for the Short Trade.

This market will NOT Sustain on Highs beyond 6350. So the market will correct at least 240 points from the Highs. If we can plan a Short Trade then normally during the Expiry week the profit will be huge. And in the past four months the MAX Pain Theory has worked.

Since the MAX OI is at 6100-6300, and MAX Pain at 6100, It would be better to Buy 6100PE OR 6150PE.

Remember since the MAX PAIN and SUPPORT are at 6100, there is also a Chance of 6100 level breaking and going to 6000.

With the current VOLT in 6100 PE, if the market trades around 6325, then you should be able to Get 6100PE for around 9. And if the market goes back to 6100 (MAX Pain of this Series now), then the value should become 65. So if you invest 10000, you should get 5 times the profit. But please remember to put a Limit order between 8 and 10 based on the VOLT.

For Today don't think too much about the Short trade because the market is on the UP Side and Go for the Trade only when the market is around 6320. Do not buy 6100 PE at the current Rate of 20.

Raj, I did not understand this. If we buy 6100P @say 9 and the market expires at say 6100 as Max Pain is suggesting, we will not get anything. Will it be better to buy say 6200 P which will be in the money by 100 points if nifty closes at 6100?

 

[healthraj]

Raj, I did not understand this. If we buy 6100P @say 9 and the market expires at say 6100 as Max Pain is suggesting, we will not get anything. Will it be better to buy say 6200 P which will be in the money by 100 points if nifty closes at 6100?

Please use the Option Calculator in OAT or using some other tool and calculate the Price of 6100 PE and Take a Call. You are talking about the Worst case Scenario. What if market expires around 6075, Will you not get 25 points? What if 6100 Breaks and expires around 6000? So I am only suggesting a Trade from 6320, the normal Trade which is based on MAX Pain theory. I also had the same doubt and the Reason why I also suggested to buy the 6150 PE. Finally it is a Trade based on MAX Pain.

The Idea is definitely NOT to Buy any Strikes lower than 6100PE like 6050 PE, 6000PE etc... It would be safe to 6150PE or 6200PE. But 6100PE will only Give the max Profit in the best case

 

[healthraj]

From this morning a Channel has been formed. So it is a BUY Above 6245 and SELL Below 6200.

I hope the Last Leg of the Rally for 100 points is pending.