FNO data smells range-bound day as there is not much change, but still PE writers are so strong. Time for IC and straddle in Jan

Time: 8:35​​ am VIX:​​ 19.20​​ SGX Nifty:​​ ​​ 13680​​ FII:​​ +1982​​ DII:​​ -1718

 

Option Data Analysis (Dec)

 

Index

Max Pain

PCR

Highest OI

PE

CE

Highest Increase in OI

PE

 CE

Nifty

13200

1.93

13000

13000

13500(29%)

14200 (27%)

Banknifty

30000

1.33

27000

31000

30000 (16%)

31000 (12%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

Change (%)

NIFTY

31-Dec-20

13,697.00

112.05

0.82%

12,492,375

743,625

6.33%

BANKNIFTY

31-Dec-20

30,743.05

36.45

0.12%

1,477,075

41,850

2.92%


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

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

  • FII is in buy mode

  • Highest PE is at 13000 and highest CE is at 13000.

  • PEs are added at 13500 and CEs are added at 14200

  • More number of PEs are added than CEs

  • Max pain is at 13200 (No change in Max pain)​​ 

  • PCR is not changing

  • Net future Position is in neutral

  • Time for range bound strategies

 

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

 

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

  • Highest PE is at 27000 and Highest CE is at 31000

  • PEs are sold at 30000​​ and CEs are sold at 31000

  • More number of CEs have been added than PEs

  • Max Pain is at 30000 (No change in Max pain)

  • PCR is not changing

  • Net future position is in neutral

  • Time to for range-bound strategies

 

Executed Trades

  • Exited put calendar - loss of Rs 2

  • Rolled up PEs – Strangle

  • Rolled up PEs & CEs - IC

Trading Plan

  • Will manage short strangle, short straddle, calendar and chicken IC

  • Will start deploying in Jan

 

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.