Huge long (with roll-over) added with moving up max pain. Selling CE looks dangerous. Time to sell more PE with hedge

Time: 7:15 am VIX:​​ 22.58​​ SGX Nifty:​​ ​​ 15050 ​​​​ FII:​​ +766 ​​​​ DII:​​ +436

 

Option Data Analysis (May)

 

Index

Max Pain

PCR

Highest OI

PE

 

CE

Highest Increase in OI

PE

 CE

Nifty

14600

1.90

14000

15000

14800 (284%)

14800 (65%)

Banknifty

33000

1.00

28000

36000

34500 (170%)

36000 (63%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

Change (%)

NIFTY

27-May-21

14,900.00

201.90

1.37%

7,498,125

2,919,225

63.75%

BANKNIFTY

27-May-21

33,805.00

948.85

2.89%

1,069,800

435,250

68.59%

 

Nifty​​ (Over all FNO Position: Bullish)

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

  • FII is in sell mode​​ 

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

  • PEs are added at 14800 and CEs are added at 14800

  • More number of PEs are added than CEs

  • Max pain is at 14600 (Up by 100 points)

  • PCR is not changing

  • Net​​ future Position is in Long​​ 

  • Time to sell more PE

 

Banknifty​​ (Over all FNO Position: Bullish)

 

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

  • Highest PE is at 28000 and Highest CE is at 36000

  • PEs are sold at 34500 and CEs are sold at 36000

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

  • Max Pain is at 33000 (Up by 1000 points)

  • PCR is not changing

  • Net future position is in Long

  • Time to sell more PE

 

Executed Trades

  • Taken Put butterfly in Nifty for expiry

  • Buy 15050 PE - 1 lot

  • Sell 14850 PE - 1 lot

  • Sell​​ 14750 PE - 4 lot

  • Buy 14300 PE - 3 lot​​ 

  • Additionally sold 15100 CE

  • Sold 34500 CE in the end

  • Made Intraday Profit of 1.4L in BN

Trading Plan

  • Will​​ manage all butterflies

  • Will do expiry trading

 

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.

 

 

Leave comment

Your email address will not be published. Required fields are marked with *.