Speculation has come down. No change in max pain as well. May go range-bound. Time for ratio spread

Time:​​ 7:56​​ am ​​ VIX:​​ 29.73 ​​​​ ​​ SGX Nifty: ​​ 10290​​ FII:​​ -1051​​ Cr​​ DII:​​ -256​​ Cr

 

Option Data Analysis

 

Index

Max Pain

PCR

Highest OI

PE

CE

Highest Increase in OI

PE

 CE

Nifty

10200

1.53

9000

11500

11500​​ (46%)

11500​​ (45%)

Banknifty

21000

0.80

20000

23000

20000​​ (48%)

24000​​ (28%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

Change (%)

NIFTY

30-Jul-20

10,230.00

-50.75

-0.49%

10,638,150

3,145,050

41.97%

BANKNIFTY

30-Jul-20

21,425.00

49.65

0.23%

1,262,225

367,750

41.11%

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

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

  • FII is in​​ sell​​ mode

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

  • PEs are added at​​ 11500​​ and CEs are added at​​ 11500

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

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

  • PEs are sold at​​ 20000​​ and CEs are sold at​​ 24000.

  • 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

 

  • Created put butterfly at 10000

 

Trading Plan

  • Shor straddle and butterfly

 

Open Positions

Refer yesterday post for positions. Could not pull today

 

 

 

 

 

 

 

 

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.