Huge shorts added in Nifty and profit booking in BNF. More CEs are added. Looks very weak. Time to sell only CE with hedge

Time:​​ 7:57​​ am VIX:​​ 24.15​​ SGX Nifty:​​ ​​ 14911​​ FII:​​ -223​​ DII:​​ -788

 

Option Data Analysis (Mar)

 

Index

Max Pain

PCR

Highest OI

PE

CE

Highest Increase in OI

PE

 CE

Nifty

14850

1.75

14000

16000

15000(20%)

15000 (30%)

Banknifty

35500

0.99

34000

34000

36000 (20%)

37500 (71%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

Change (%)

NIFTY

25-Mar-21

15,108.00

-190.85

-1.25%

12,360,825

2,073,300

20.15%

BANKNIFTY

25-Mar-21

35,885.20

-606.55

-1.66%

1,345,800

-158,500

-10.54%

 

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

  • Global​​ market is​​ down​​ and SGX nifty is​​ down

  • FII is in​​ sell​​ mode

  • Highest PE is at 14000 and highest CE is at 16000.

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

  • More number of CEs are added than CEs

  • Max pain is at 14850 (Up by 50 points)

  • PCR is not​​ changing

  • Net future Position is in short

  • Time to sell​​ CE​​ with hedge

 

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

 

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

  • Highest PE is at 34000 and Highest CE is at 34000

  • PEs are sold at 36000 and CEs are​​ sold at 37500

  • More number of PEs have been added than CEs

  • Max Pain is at 35500 (No change in Max pain)

  • PCR is not changing

  • Net future position is in​​ profit booking

  • Time to sell​​ CE with hedge

Executed Trades

  • Exited PE in the morning once low is broken & VIX went​​ up, hedging is tough

  • Exited 70% of short strangle (Holding OTM strikes)

Trading Plan

  • Will manage strangle

 

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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