Bit long added in Nifty and more PEs are added though pain came down. Looks positive. Time to sell more PEs and less CEs in May

Time: 8:35 am VIX:​​ 20.89​​ SGX Nifty:​​ ​​ 14610​​ FII:​​ +980​​ DII:​​ -527

 

Option Data Analysis (May)

 

Index

Max Pain

PCR

Highest OI

PE

 

CE

Highest Increase in OI

PE

 CE

Nifty

14500

2.60

13500

15000

14000 (12%)

15000 (11%)

Banknifty

32500

0.97

31000

35000

30000 (56%)

37000 (110%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

Change (%)

NIFTY

27-May-21

14,645.00

49.85

0.34%

883,200

93,825

11.89%

BANKNIFTY

27-May-21

32,365.00

384.30

1.20%

113,925

575

0.51%

 

Nifty​​ (Over all FNO Position: Range-bound)

  • Global market is​​ up​​ and SGX nifty is​​ flat

  • FII is in​​ buy​​ mode​​ 

  • Highest PE is at 13500 and highest CE is at 15000.

  • PEs are added at 14000 and CEs are added at 15000

  • More number of PEs are added than CEs

  • Max pain is at 14500 (Down by 100 points)

  • PCR is not changing

  • Net future Position is in Long

  • Time to sell​​ more PEs and less CE

 

Banknifty​​ (Over all FNO Position: Range-bound)

 

  • ICICI Bank is up and HDFC Bank is up in USA.

  • Highest PE is at 31000 and Highest CE is at 35000

  • PEs are sold at 30000 and CEs are sold at 37000

  • More​​ number of​​ PEs have been added than​​ CEs

  • Max Pain is at 32500 (No change in Max Pain)

  • PCR is not changing

  • Net future position is in Neutral

  • Time to sell strangle with hedge

 

Executed Trades

  • Exited all PEs and 15600CE.

Trading Plan

  • Will exit everything

  • Will create new positions in May

 

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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