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Good short covering with moving up max pain, but short is not yet covered fully. RBI event is ahead. Time to create short strangle with hedge

Time

VIX

SGX Nifty

FII

DII

07 August 2019 08:31:58

16.12

10911.5

-2108

2289

Option Interest Data Analysis (Weekly)

 

Script

Max Pain

PCR

High OI PE

High OI CE

Chng OI PE

Chng OI CE

Nifty

10950

0.81

10800

11200

10700

11050

Banknifty

28000

0.87

27500

29000

27500

28400

Future Data Analysis

 

Symbol

Expiry Date

Last Price

Chg(Rs)

Chg(%)

Open Interest

Change in OI

Change (%)

NIFTY

29-Aug-19

10963.55

66.75

0.61%

18786300

-1100250

-5.53%

BANKNIFTY

29-Aug-19

28111.50

315.75

1.14%

1791960

-143000

-7.39%

 

Nifty. (Over all FNO Position: Range-bound with positive bias)

SGX Nifty is down-0.47 Down and Global market is up

FII is in Sell side

Highest OI in PE is at 10800 and Highest OI in CE is moved to 11200

PEs are sold at 10700 and CEs are sold at 11050

More number of PEs have been added than CEs

Max Pain is at at 10950 (Up by 50)

PCR value is lower than 1.5

Net Future Position: Short Covering

Preferred Strategy: Sell more of far OTM PE with hedge and sell less CE

 

Banknifty. (Over all FNO Position: Range-bound with positive bias)

HDFC Bank 2.15% up & ICICI Bank 3.48% up in USA

Highest OI in PE is at 27500 and Highest OI in CE is at 29000

PEs are sold at 27500 and CEs are sold at 28400

More number of PEs have been added than CEs

Max Pain is at at 28000 (Up by 100)

PCR value is lower than 1.5

Net Future Position: Short Covering

Preferred Strategy: Sell more of far OTM PE with hedge and sell less CE

 

Executed Trades

  • Sold 28800 CE and 28900 CE

  • Sold 27000 and 27100 PE & bought 10400 PE and 26000 PE​​  

Trading Plan


Will Sell more far OTM PE with hedge and sell less cE (Nifty)
Will Sell more far OTM PE with hedge and sell less cE (Banknifty)

 

Open Positions

 

 

 

 

 

 

 

 

 

 

 

 

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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