No change in max pain. Not much change in PCR & OI with decreasing VIX. May consolidate. Time for range-bound strategies

Time:​​ 8:00​​ am ​​ VIX:​​ 28.74 ​​​​ ​​ SGX Nifty: ​​ 10285​​ FII:​​ -753​​ Cr​​ DII:​​ +1304​​ Cr

 

Option Data Analysis

 

Index

Max Pain

PCR

Highest OI

PE

CE

Highest Increase in OI

PE

 CE

Nifty

10200

1.50

9000

11500

10000 (17%)

11200​​ (129%)

Banknifty

21000

0.83

20000

23000

19500​​ (185%)

23000​​ (17%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

Change (%)

NIFTY

30-Jul-20

10,330.00

84.35

0.82%

11,634,825

996,675

9.37%

BANKNIFTY

30-Jul-20

21,522.95

83.40

0.39%

1,184,175

-78,050

-6.18%

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

  • Global market is​​ weak​​ and SGX nifty is​​ flat.

  • FII is in sell mode

  • Highest PE is at 9000 and highest CE is at 11500.

  • PEs are added at 10000 and CEs are added at 12000

  • More number of CEs are added than PEs

  • MAX Pain is at 10200 (no change)

  • PCR is not changing much

  • Net​​ future Position is in neutral

  • Better to have far OTM ratio spreads

 

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

 

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

  • Highest PE is at 20000 and Highest CE is at 23000.

  • PEs are sold at​​ 19500 and CEs are sold at​​ 23000.

  • More number of PEs have been added than CEs

  • Max Pain is at 21000 (no change in July)

  • PCR is not changing much

  • Net future position is in neutral

  • Better to have far OTM ratio spreads

 

Executed Trades

 

  • Done nothing

 

Trading Plan

  • Will manage​​ Shor straddle and​​ ratio spread

 

 

 

 

 

 

 

 

 

 

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.