Max Pain tries to come to the mean. Speculation comes down, it is a short covering. May lead to flat market. Time for range-bound strategies

Time: 8:05 am VIX:​​ 25.63​​ SGX Nifty:​​ ​​ 14862​​ FII:​​ +125​​ DII:​​ -195

 

Option Data Analysis (Mar)

 

Index

Max Pain

PCR

Highest OI

PE

CE

Highest Increase in OI

PE

 CE

Nifty

14700

1.70

14000

16000

13000(14%)

15500 (12%)

Banknifty

35000

0.89

34000

37000

35000 (22%)

38000 (14%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

Change (%)

NIFTY

25-Mar-21

14,820.50

242.05

1.66%

10,609,125

-261,225

-2.40%

BANKNIFTY

25-Mar-21

35,370.00

499.65

1.43%

1,513,375

33,425

2.26%

 

Nifty​​ (Over all FNO Position:​​ Range-bound)

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

  • FII is in sell mode

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

  • PEs are added at 13000 and CEs are added at 15500

  • More number of PEs are added than CEs

  • Max pain is at 14700 (Down by 100 points)

  • PCR is not changing

  • Net future​​ Position is in neutral​​ 

  • Time to sell​​ strangle with hedge

 

Banknifty​​ (Over all FNO Position:​​ Range-bound)

 

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

  • Highest PE is at 34000 and Highest CE is at 37000

  • PEs are sold at 35000 and CEs are sold at 38000

  • More number of PEs have​​ been added than CEs

  • Max Pain is at 35000 (No change in Max pain)

  • PCR is not changing

  • Net future position is in neutral

  • Time to sell​​ strangle with hedge

 

Executed Trades

  • Taken simple short strangle in March Series just now

  • Sold 13000 PE & 16000 CE with weekly hedge

Trading Plan

  • No plan​​ 

 

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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