Shorts are covered, but long is yet to be seen. Spot & pain are in same place. VIX came down & Market looks positive. Time for hedged short strangle

Time: 8:40​​ am VIX:​​ 20.68 ​​​​ ​​ SGX Nifty: ​​ 11106​​ FII:​​ -2080​​ Cr​​ DII:​​ +2071​​ Cr

 

Option Data Analysis (OCT)

 

Index

Max Pain

PCR

Highest OI

PE

CE

Highest Increase in OI

PE

 CE

Nifty

11100

1.28

10500

12500

10500 (9%)

12300​​ (37%)

Banknifty

21500

0.66

21500

23000

20000​​ (76%)

23000​​ (62%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

Change (%)

NIFTY

29-Oct-20

11,031.90

195.70

1.81%

7,815,825

-229,650

-2.85%

BANKNIFTY

29-Oct-20

20,934.00

407.25

1.98%

1,531,850

-130,475

-7.85%

​​ 

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

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

  • FII is in sell mode

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

  • PEs are added at 10500 and CEs are added at​​ 12300

  • More number of​​ PEs are added than​​ CEs

  • MAX Pain is at 11100 (no change)

  • PCR is not changing

  • Net future Position is in short​​ covering

  • Good time​​ for short strangle with hedge

 

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

 

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

  • Highest PE is at 21500 and Highest CE is at​​ 23000.

  • PEs are sold at 20000 and CEs are sold at 23000.

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

  • Max Pain is at 21500 (no change)

  • PCR is not changing

  • Net future position is in Short​​ covering

  • Good time​​ for short strangle with hedge

Executed Trades

  • Sold CEs 11500, 11600, 11700​​ 

  • Sold PEs 10400, 10300, 10200​​ 

  • Taken Straddle at 11000

 

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.

 

 

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