Volatility comes down again, but max pain claims up with no speculation. Time for calendars in both sides

Time:​​ 7:50​​ am  ​​ VIX:​​ 11.96 ​​​​ SGX Nifty:​​ ​​ 11764​​ ​​ FII:​​ +1463​​ Cr ​​​​ DII:​​ -1947

 

Option Data Analysis

 

Index

Max Pain

PCR

Highest OI

PE

CE

Highest Increase in OI

PE

 CE

Nifty

12200

1.41

12000

12300

12250​​ (26%)

12300 (17%)

Banknifty (M)

32300

1.26

32000

32500

32300 (45%)

32500​​ (42%)

 

Nifty and 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

26-Dec-19

12,276.85

-13.15

-0.11%

12,291.65
12,226.10

12,266.24

11,010,900

-1,717,200

-13.49%

7,346,775
5,973,975

22.98%

BANKNIFTY

26-Dec-19

32,337.05

-41.35

-0.13%

32,425.00
32,220.00

32,326.29

1,111,340

-133,820

-10.75%

1,981,360
1,967,160

0.72%

 

 

Nifty​​ (Over all FNO Position: Range-Bound with Bullish bias)

 

Global market is​​ mixed​​ and SGX nifty is​​ flat

FII is in buy side

Highest PE is at​​ 12000​​ and highest CE is at 12300.

PEs are added at​​ 12250​​ and CEs are added at 12300

More number of PEs​​ have been added than CEs

MAX Pain is at​​ 12200​​ (50 points up)

PCR is not changing

Net future Position is range-bound

Time to create put calendar

 

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

 

ICICI Bank is​​ Down​​ and HDFC Bank is​​ Down​​ USA.

Highest PE is at 32000 and Highest CE is at 33000.

PEs are sold at 32300 and CEs are sold at​​ 32500

More number of PEs have been added equal to CEs

Max Pain is at 32300 (100 points up)

PCR is not changing

Net future position is range-bound

Time to create put calendar

 

Executed Trades

  • Taken double diagonal calendar spread in Nifty at 12250

  • Taken double diagonal calendar spread in Banknifty at 32300

 

Trading Plan

  • Will create more calenars today

  • Will do one day before expiry

 

Open Positions

 

 

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.