Market senses bull momentum. ITM PEs are added and CEs are far OTM. Looks ultra bullish. Time to sell PE with hedge

Time: 8:50 am VIX:​​ 20.43​​ SGX Nifty:​​ ​​ 14007​​ FII:​​ +1589​​ DII:​​ -1387

 

Option Data Analysis (Jan)

 

Index

Max Pain

PCR

Highest OI

PE

CE

Highest Increase in OI

PE

 CE

Nifty

13500

1.97

13000

13500

15000(200%)

15000 (66%)

Banknifty

30500

1.55

30000

31000

30500 (100%)

31000 (39%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

Change (%)

NIFTY

28-Jan-21

13,948.00

142.45

1.03%

4,590,900

1,444,425

45.91%

BANKNIFTY

28-Jan-21

31,037.95

522.65

1.71%

443,650

171,150

62.81%

 

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 13500.

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

  • More number of PEs are added than CEs

  • Max pain is at 13500 (No​​ change in Max pain)​​ 

  • 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 30000 and Highest CE is at 31000

  • PEs are sold at 30500​​ and CEs are sold at 31000

  • More number of PEs have been added than CEs

  • Max Pain is at 30500 (Up by 500 points)

  • PCR is not changing

  • Net future position is in long​​ 

  • Time to sell more PEs

 

Executed Trades

  • No adjustments

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.