morning thoughts...
The markets once again followed the yo yo pattern and swung like a pendulum keeping both long and short traders on toes
The series june so far has been a topsy turvy zone with the index remaining in a range and unable to provide much momentum
On the upside nifty has channel at 10830 and lower range is at 10700 which has been maintained throughout with bank nifty channel at 26800 and lower range at 26200 and the movement has been between this range providing ample and beautiful opportunities for trading with buy near lower channel or dips and sell on higher channel and rise
However in this scenario the option premium for both calls and puts have been eaten by writers and none have gained due to range bound channel moves , yes small gains have been seen
It has been witnessed that one day heavy call and put writing with additional oi haoi has been notified and the other day heavy unwinding with decreased oi has has been informed, so retail traders have been confused on trading
The biggest benefits have been in index trading in the above pattern mentioned and we have encashed the same accordingly
Now we near the fo expiry and this channel and strategic move is near to end and will not apply for longer with buy on dips and sell on rallies in channel as we are very near to channel break and vast moves are ahead
In the present move we have already made above 300 points in nifty and 1500 in bank nifty in last 10 days with the strategy mentioned
The broader market has been under pressure and the same is likely to continue
Our tata motors 290 put given on monday at 1.75 for expiry moves to 15 , lic 480 pa given at 1.70 for expiry moves to 5.85
The markets once again followed the yo yo pattern and swung like a pendulum keeping both long and short traders on toes
The series june so far has been a topsy turvy zone with the index remaining in a range and unable to provide much momentum
On the upside nifty has channel at 10830 and lower range is at 10700 which has been maintained throughout with bank nifty channel at 26800 and lower range at 26200 and the movement has been between this range providing ample and beautiful opportunities for trading with buy near lower channel or dips and sell on higher channel and rise
However in this scenario the option premium for both calls and puts have been eaten by writers and none have gained due to range bound channel moves , yes small gains have been seen
It has been witnessed that one day heavy call and put writing with additional oi haoi has been notified and the other day heavy unwinding with decreased oi has has been informed, so retail traders have been confused on trading
The biggest benefits have been in index trading in the above pattern mentioned and we have encashed the same accordingly
Now we near the fo expiry and this channel and strategic move is near to end and will not apply for longer with buy on dips and sell on rallies in channel as we are very near to channel break and vast moves are ahead
In the present move we have already made above 300 points in nifty and 1500 in bank nifty in last 10 days with the strategy mentioned
The broader market has been under pressure and the same is likely to continue
Our tata motors 290 put given on monday at 1.75 for expiry moves to 15 , lic 480 pa given at 1.70 for expiry moves to 5.85
