Speculation has come down in FNO, market may roam around pain 14600 and 32500. Time to create short strangle with hedging

Time: 8:45 am VIX:​​ 20.46​​ SGX Nifty:​​ ​​ 14633​​ FII:​​ -731​​ DII:​​ +244

 

Option Data Analysis (Apr)

 

Index

Max Pain

PCR

Highest OI

PE

 

CE

Highest Increase in OI

PE

 CE

Nifty

14600

1.43

14000

15000

14000 (17%)

14900 (28%)

Banknifty

32500

0.93

30000

33500

31000 (39%)

32000 (26%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

Change (%)

NIFTY

29-Apr-21

14,556.00

212.75

1.48%

11,130,375

-72,525

-0.65%

BANKNIFTY

29-Apr-21

31,831.45

962.20

3.12%

1,766,950

-48,150

-2.65%

​​ 

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

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

  • FII is in sell mode​​ 

  • Highest PE is at 14000 and highest CE is at 15000.

  • PEs are added at 14000 and CEs are added at 14900

  • More number of CEs are added than PEs

  • Max pain is at 14600 (No change in max pain)

  • PCR is not changing

  • Net future Position is in Neutral

  • Time to sell​​ strangle with hedging

 

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

 

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

  • Highest PE is at 30000 and Highest CE is at 33500

  • PEs​​ are sold at 31000 and CEs are sold at 32000

  • More number of PEs have been added than CEs

  • Max Pain is at 32500 (Down by 200 points)

  • PCR is not changing

  • Net future position is in Neutral

  • Time to sell​​ strangle with hedge

 

Executed Trades

  • Added 2 X​​ 13300PE

  • Hedged same in weekly.

  • Did intraday option selling – BNF (21 lots on each strike)

Trading Plan

  • Will manage short strangle​​ 

 

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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