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There was short covering in Banknifty, but nothing happened much in Nifty. Still FII selling continues. Time to create ratio spread with hedge on June

Time: 8:45​​ am  ​​ VIX:​​ 35.81 ​​​​ ​​ SGX Nifty: ​​ 8915​​  ​​ ​​​​ FII:​​ -1467​​ Cr ​​ ​​ ​​​​ DII:​​ +2373

 

Option Data Analysis

 

Index

Max Pain

PCR

Highest OI

PE

CE

Highest Increase in OI

PE

 CE

Nifty

9150

1.05

9000

10000

9000​​ (16%)

9200​​ (18%)

Banknifty

18500

0.68

17000

20000

17500 (43%)

19000​​ (30%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

High
Low

Average
Price

Open Interest

Change in OI

Change (%)

Vol. Shares
Prev. Volume

% Change

NIFTY

28-May-20

9,084.00

199.90

2.25%

9,097.70
8,879.00

8,995.18

7,764,150

-125,025

-1.58%

18,818,025
22,458,450

-16.21%

BANKNIFTY

28-May-20

17,939.00

500.25

2.87%

18,026.95
17,351.70

17,675.94

1,269,360

-105,500

-7.67%

8,037,500
9,243,600

-13.05%

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

 

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

  • FII is in sell mode

  • Highest PE is at 9000 and highest CE is at 10000.

  • PEs are added at​​ 9000​​ and CEs are added at​​ 9200

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

  • MAX Pain is at​​ 9150​​ (down by 50 points)

  • PCR is no changing

  • Net future Position is in neutral

  • Time to​​ create ratio spread 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​​ 17000​​ and​​ Highest CE is at 20000.

  • PEs are sold at​​ 17500​​ and CEs are sold at​​ 19000.

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

  • Max Pain is at 18500 (no change)

  • PCR is not changing

  • Net future position is in short​​ covering

  • Time to sell​​ more PEs and less CEs

 

Executed Trades

  • Rolled down all CEs

  • Rolled up all PEs

 

Trading Plan

  • Will​​ exit May Series

  • Will enter June Series

 

Open Positions

 

 

 

 

 

 

 

 

 

 

 

Had trouble in fetching the positions, hence pasting the yesterday close positions

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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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