Market is weak. Vega is up, Gamma is in. Awesome setup to capture high theta/Vega in intraday with low delta options

Market is weak. Vega is up, Gamma is in. Awesome setup to capture high theta/Vega in intraday with low delta options

Time: 7:30 am  
VIX: 12.5      SGX Nifty: 9516        FII: +292 Cr        DII: -149 Cr
Open
Interest Analysis
Index
Max Pain
PCR
Highest
PE
CE
Highest Increase
PE
          CE
Nifty
9500
0.91
9500
9700
9400 (9%)
9600 CE (36%)
Banknifty
23400
0.88
23000
24000
22900 (198%)
23500 (108%)
                              
Technical
Data and Analysis
Index
Support
Resistance
4 Hour Trend
Daily Trend
Weekly Trend
Nifty
9376
9725
Up
Up
Up
Banknifty
23289
24636
Up
Up
Up
Future
position and Volume Analysis (Nifty and Banknifty stocks)
Long Build Up
Profit Booking
Short Build Up
Short Covering
High Delivery Volumes
Infratel, ITC, Hero, Grasim
Bankindia, Ambuja,
PNB, BoB, Auro, HDFC Bank, Indusind, Kotak,  
MM, LT, Canara, SBI,, Bajaj, HCL, Cipla, Axis,
Ultratech, Bosch, TechM, ICICI, Wipro, Infy, HDFC
Reliance, Sun Pharma,
ONGC, Reddy, Lupin  
TechM, Indusind, HDFC, Hul, Wipro, Bajaj
Nifty
(Over all FNO Position: Bearish, but downside is limited for this expiry)
·                    
FIIs are in buy side now.
·                    
Global market is slightly negative and SGX nifty is flat.
·                    
Overall FNO position is in short
·                    
Highest CE is at 9700 and highest PE is moved to 9500.
·                    
CEs are sold heavily yesterday in multiple strike prices.
·                    
PE is sold only at 9400.
·                    
Max Pain came down to 9500 and PCE looks very weak.
·                    
Pharma sector is in short covering mode. Accumulation started with bullish divegence in
Dr Reddy (Only for cash market).
·                    
However still high PE is at 9500. Hence downside is limited, but
at any time, unwinding may happen.
Banknifty (Over all FNO Position: Bearish, but
downside is limited for this expiry)
·                    
Both ICICI Bank and HDFC Bank are down in USA.
·                    
Highest CE is at 24000 and Highest PE is at 23500.
·                    
22900 PE is sold and CE is sold at 23500 CE.
·                    
CEs are sold heavily. All banking stocks are in short mode.
·                    
PCR is very weak and Max Pain is at 23400.
·                    
Downside is very limited to 22900 for this expiry.
·                    
Awesome time to capture in theta in intraday.
·                    
Be brave if gamma tries to play over your head.
·                    
Sell 22500 PE and 24000 CE for intraday.
Executed Trades
ü 
Banknifty came down 600 points in intraday.
ü 
Sold as many CEs as possible.
ü 
Not enough to defend my PEs (23000 and 22900).
ü 
Shorted Banknifty futures, sold 22700 PE and 22000 PE in next
month.
ü 
In the end, exited most dangerous positions completely.
ü 
For nifty also sold as many CEs and in the end, exited completely.
ü 
Sold 22500 and 22400 PEs. Holding all CEs.
ü 
Total MTM loss was 25K in the end. Was happy with the way I
traded.
ü 
Refer my open positions for more details.
Trading Plan
Ø 
Planning to do intraday today heavily as VIX is high.
Ø 
By end of day, planning to take short strangle in Banknifty and
short straddle in Nifty.
Open Positions

Product Instrument Qty. Avg. price LTP P&L Chg.
NRML BANKNIFTY17JUN22500PE NFO -1200 8.23 8.85 -746.00 +7.56%
NRML BANKNIFTY17JUN23900CE NFO -1200 11.28 5.40 +7060.00 -52.14%
NRML BANKNIFTY17JUN24000CE NFO -1200 11.82 4.10 +9264.00 -65.31%
NRML BANKNIFTY17JUN22400PE NFO -600 6.51 6.60 -56.00 +1.43%
NRML BANKNIFTY17JUN23700CE NFO -600 10.00 10.30 -180.00 +3.00%
NRML BANKNIFTY17JUN23800CE NFO -600 9.12 7.05 +1240.00 -22.67%
TOTAL 16,582

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.