Still positivity continues in max pain, option OI and future OI with strong support at 14100. VIX may fall soon. Time to sell more PE & less CE

Time: 8:25 am VIX:​​ 23.29​​ SGX Nifty:​​ ​​ 14588​​ FII:​​ +1879​​ DII:​​ -2370

 

Option Data Analysis (Jan)

 

Index

Max Pain

PCR

Highest OI

PE

CE

Highest Increase in OI

PE

 CE

Nifty

14100

1.79

14000

15000

13850(85%)

15000 (12%)

Banknifty

31500

1.65

28000

33000

32500 (130%)

32500 (11%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

Change (%)

NIFTY

28-Jan-21

14,595.00

-2.95

-0.02%

13,220,925

-670,500

-4.83%

BANKNIFTY

28-Jan-21

32,658.00

202.95

0.63%

1,377,625

-193,175

-12.30%

​​ 

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

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

  • FII is in buy mode

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

  • PEs are added at 13850 and CEs are added at 15000

  • More number of CEs are added than PEs

  • Max pain is at 14100 (Up by 100​​ points)​​ 

  • PCR is not changing

  • Net future Position is in neutral

  • Time for iron condor in Feb

 

Banknifty​​ (Over all FNO Position: Slightly bullish)

 

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

  • Highest PE is at 28000 and Highest CE is at 33000

  • PEs are sold at​​ 32500 and CEs are sold at 32500

  • More number of PEs have been added than CEs

  • Max Pain is at 31500 (No change in Max pain)

  • PCR is not changing

  • Net future position is in​​ short covering

  • Time to sell PE

 

Executed Trades

  • Rolled up - 15000 CE - 15200, sold 15200 & 15300​​ *2 - Chicken IC

  • Sold 13700 PE – Straddle

  • Made intraday profit of 30K

Trading Plan

  • Will Manage Chicken IC​​ and 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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