Though there was profit booking, max pain shifted up to 111000 which is strong support. Time to have ratio spread

Time: 7:30 am ​​ VIX:​​ 24.73 ​​​​ ​​ SGX Nifty: ​​ 11144​​ FII:​​ +207​​ Cr​​ DII:​​ -387​​ Cr

 

Option Data Analysis

 

Index

Max Pain

PCR

Highest OI

PE

CE

Highest Increase in OI

PE

 CE

Nifty

11100

1.74

11000

11500

11000 (23%)

11500 (95%)

Banknifty

22000

0.81

20000

23000

20000 (31%)

22500 (67%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

Change (%)

NIFTY

27-Aug-20

11,079.15

-142.15

-1.27%

10,410,225

2,709,825

35.19%

BANKNIFTY

27-Aug-20

21,612.45

-479.40

-2.17%

1,315,700

471,100

55.78%

 

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

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

  • FII is in BUY mode

  • Highest PE is at​​ 11000​​ and highest CE is at 11500.

  • PEs are added at 11000 and CEs are added at 11500

  • More number of CEs are added than PEs

  • MAX Pain is at 11100 (up by 100 points)

  • PCR is not changing

  • Net future Position is in​​ short

  • Good time to​​ ratio spread

 

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

 

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

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

  • PEs are​​ sold at 20000 and CEs are sold at 22500.

  • More number of CEs have been added than PEs

  • Max Pain is at 22000 (no change)

  • PCR is not changing

  • Net future position is in​​ short

  • Good time to​​ sell CE

 

Executed Trades

 

  • Exited bought option at 11300

 

Trading Plan

  • Will manage straddle and ratio spread

 

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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