All data look bad. Nifty SPOT is almost 300 away from pain. Breaking 11000 decisively may lead to panic. Time to sell only CE in monthly or stay away

Time: 8:28​​ am VIX:​​ 20.99 ​​​​ ​​ SGX Nifty: ​​ 11017​​ FII:​​ -3912​​ Cr​​ DII:​​ +1629​​ Cr

 

Option Data Analysis (OCT)

 

Index

Max Pain

PCR

Highest OI

PE

CE

Highest Increase in OI

PE

 CE

Nifty

11300

1.40

10500

11500

10500 (736%)

11500​​ (543%)

Banknifty

21800

0.71

21000

22000

21000 (5896%)

22000​​ (56K%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

Change (%)

NIFTY

29-Oct-20

11,162.00

-19.15

-0.17%

5,669,625

5,229,150

1,187.16%

BANKNIFTY

29-Oct-20

21,315.00

128.45

0.61%

1,201,975

1,152,750

2,341.80%

 

Nifty​​ (Over all FNO​​ Position:​​ Ultra​​ Bearish)

  • Global market is mixed and SGX nifty is bit down

  • FII is in sell mode

  • Highest PE is at 10500 and highest CE is at​​ 11500.

  • PEs are added at 10500 and CEs are added at​​ 11500

  • More number of CEs are added than PEs

  • MAX Pain is at 11300 (100​​ points down)

  • PCR is not changing

  • Net future Position is in short

  • Good time to sell CE

 

Banknifty​​ (Over all FNO Position:​​ Ultra​​ Bearish)

 

  • ICICI Bank is​​ down​​ and HDFC Bank is​​ down​​ in USA.

  • Highest PE is at 21000 and Highest CE is at​​ 22000.

  • PEs are sold at 21000 and CEs​​ are sold at​​ 22000.

  • More number of CEs have been added than PEs

  • Max Pain is at 21800 (down by 200 points)

  • PCR is not changing

  • Net future position is in Short

  • Good time to sell CE

Executed Trades

  • Sold 11600 CE for straddle 11500 in the morning​​ 

  • Adjusted all at 2 pm where exactly market reversed & had intraday loss of 40K.

 

Trading Plan

  • Will ratio​​ spread, Elite+ and straddle in OCT

 

My Position

Jegathesan Durairaj, a mathematician by qualification, an Ex-software professional and now a full time Risk Defined Option Writer. With his Open Book Strategies, he is the most known identity in twitter as itjegan, with huge followers. He had won Zerodha 60 Day Challenge – 10 Times round-the-clock. He is one of the prime Option Writing Trainer and tutored close to 1000 members till now.

He is the Mastermind of CapitalZone – Active Option Trading where Traders can avail Trading Chart with customised indicators, FNO tools and Payoff analysis. His keynote is to provide whole FNO deets to be handy for Traders in a sole place.

Now he is taking more heed on hedging portfolio in Option Writing where we might subject to more market risk. He is streamlining his strategies often and improving perpetually. At this time unfolding ways to measure good-quality Trend Following System.

Conducting workshop in all Metro Cities (Delhi, Mumbai, Bangalore, Chennai and Coimbatore) often based on queries from Traders.

 

 

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