Huge long added in both nifty and banknifty. Looks bullish in all aspects. Time to sell PE alone below 13600 (Jan Max Pain) with hedge

Time: 8:35​​ am VIX:​​ 20.79​​ SGX Nifty:​​ ​​ 14064​​ FII:​​ +2350​​ DII:​​ -2011

 

Option Data Analysis (Jan)

 

Index

Max Pain

PCR

Highest OI

PE

CE

Highest Increase in OI

PE

 CE

Nifty

13600

1.83

13000

14000

13800(66%)

14800 (137%)

Banknifty

30500

1.61

27000

32000

28500 (96%)

33000 (90%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

Change (%)

NIFTY

28-Jan-21

13,984.40

44.80

0.32%

5,657,100

1,242,600

28.15%

BANKNIFTY

28-Jan-21

31,439.35

440.95

1.42%

688,300

244,025

54.93%

 

Nifty​​ (Over all FNO​​ Position: Bullish)

  • Global market is positive and SGX nifty is up

  • FII is in buy mode

  • Highest PE is at 13000 and highest CE is at 14000.

  • PEs are added at 13800 and CEs are added at 14800

  • More number of CEs are added than PEs

  • Max pain is at 13600 (Up by​​ 100 points)​​ 

  • PCR is not changing

  • Net future Position is in long

  • Time to sell more PEs

 

Banknifty​​ (Over all FNO Position: Bullish)

 

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

  • Highest PE is at 27000 and Highest CE is at 32000

  • PEs are sold at 28500 and​​ CEs are sold at 33000

  • More number of PEs have been added than CEs

  • Max Pain is at 30500 (No change in Max pain)

  • PCR is not changing

  • Net future position is in long​​ 

  • Time to sell more PEs

 

Executed Trades

  • Added short strangle

  • Sold 13000 PE and 15000 CE

Trading Plan

  • Slowly increase position size, else will stay with less volume.

 

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.