Huge shorts added to BNF & pain is down by 500 points. VIX is up >10%. More PEs added to hedge the shorts. Looks negative & Time for Elite+

Time: 8:44​​ am VIX:​​ 22.66 ​​​​ ​​ SGX Nifty: ​​ 11300​​ FII:​​ -539​​ Cr​​ DII:​​ -518​​ Cr

 

Option Data Analysis (OCT)

 

Index

Max Pain

PCR

Highest OI

PE

CE

Highest Increase in OI

PE

 CE

Nifty

11500

1.55

10500

12000

10500 (585%)

12000 (257%)

Banknifty

22000

0.73

21000

25000

21000 (4651%)

25000 (2548%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

Change (%)

NIFTY

29-Oct-20

11,242.00

-293.85

-2.55%

2,606,850

2,166,375

491.83%

BANKNIFTY

29-Oct-20

21,312.95

-812.40

-3.67%

634,950

585,725

1,189.89%

​​ 

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

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

  • FII is in sell mode

  • Highest PE is at 10500 and highest CE is at 12000.

  • PEs are added at 10500 and CEs are added at 12000

  • More number of CEs are added than PEs

  • MAX Pain is at 11500 (no​​ change)

  • PCR is not changing

  • Net future Position is in short

  • Good time to sell CE

 

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

 

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

  • Highest PE is at 21000 and Highest CE is at 25000.

  • PEs are sold at 21000 and CEs are sold at 25000.

  • More number of CEs have been added than PEs

  • Max Pain is at 22000 (down by 500 points)

  • PCR is not changing

  • Net future position is in Short

  • Good time to sell CE

Executed Trades

  • Taken Synthetic Elite+ in​​ 

    • OCT BUY 11500 PE - 1 SELL​​ 11000 PE - 1 SELL 10500 PE - 1​​ 

    • SELL 12200 CE - 2​​ 

  • Converted 11500-11600 strangle to straddle.​​ 

    • Exited 11600 CE​​ 

    • Sold 11500 CE

  • Sold 11500 Additional Sold 1200 CE - 2 lots for Ratio Spreads

 

Trading Plan

  • Will ratio spread, Elite+ and straddle in OCT

 

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.