Max Pain clearly climbs up to 11700 and 23500. More PEs are added. VIX may come down. Both Nifty & Banknifty look positive. Time to sell more PE with hedge

Time: 8:10 am VIX:​​ 22.69 ​​​​ ​​ SGX Nifty: ​​ 11946​​ FII:​​ +1585​​ Cr​​ DII:​​ -1633​​ Cr

 

Option Data Analysis (OCT)

 

Index

Max Pain

PCR

Highest OI

PE

CE

Highest Increase in OI

PE

 CE

Nifty

11700

1.40

10500

12500

11900​​ (16%)

12000 (4%)

Banknifty

23500

1.12

23000

25000

21500​​ (14%)

24500 (10%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

Change (%)

NIFTY

29-Oct-20

11,895.15

5.75

0.05%

10,825,350

354,300

3.38%

BANKNIFTY

29-Oct-20

24,350.70

4.00

0.02%

1,504,000

-15,325

-1.01%

​​ 

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

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

  • FII is in buy mode

  • Highest PE is at 10500 and highest CE is at 12500.

  • PEs are added at​​ 11900​​ and CEs are added at 12000

  • More number of PEs are added than CEs

  • MAX Pain is at 11700 (up by 100 points)

  • PCR is​​ not changing

  • Net future Position is in​​ neutral

  • Good time to sell more PE with hedge

 

Banknifty​​ (Over all FNO Position: Slightly Bullish)

 

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

  • Highest PE is at 23000 and Highest CE is at 25000.

  • PEs are sold at​​ 21500​​ and CEs are sold at 24500.

  • More number of PEs have been added than CEs

  • Max Pain is at 23500 (up by​​ 200 points)

  • PCR is not changing

  • Net future position is in​​ neutral

  • Good time to sell more PEs with hedge​​ 

Executed Trades

  • Taken Call Calendar sold 11900 CE (OCT) bought 12000 CE (Nov)​​ 

  • Rolled up 11900 CE to 12200

  • Bought 11200 PE Weekly

 

Trading Plan

  • Will manage Condor & Straddle

 

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.