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I seek advice please.I am looking for some input which will help in option trading for successful trade.
Dear ayan
Client means retail investors and pro means proprietary traders (Nitin sir calls her Big players , smart money )As per my understanding client means retail investors and pro means proprietary desk trader include brokers like zerodha he is include in pro trading and other broker who is doing pro trading and DII-Domestic Institutional Investors means mutual funds.
If i am wrong please correct me.We have to check both call and put side IV and premium decay and have to do volume analysis as well to conclude anything
Call side correlation should be positive and put side correlation should be negative to go up then only you can conclude that nifty will definitely go up
Sir,
U told that total traded value “include future contracts”.
I Have download the csv file (from https://www.nseindia.com/live_market/dynaContent/live_watch/equities_stock_watch.htm), as per your “open interest excell sheet video”, where “CONTRACTS, VALUE IN LAKH, OPEN INTEREST, CHG_IN_OI” is present.
As per my understanding, the ‘VALUE IN LAKH’- is only for future contract (Number of contracts*ATP*Lot Size*)- Is it true?-
As, total traded value “include future contracts”, then it should always be greater than value of future contract (value displayed in “VALUE IN LAKH” table). But, practically it is not happening, when I substract value of future contract from total traded value, 47 of Nifty Stocks is showing -ve value except Maruti, Infratel & Ibulhsgfin.
Please enlight here.
Lots of thanks for providing such a platform and thanks to them also who is sharing their concept.All,
Option chain for 16th May shows,
》call side for all SP fresh short position created,
》Put side for majority SP fresh Long position created,As per this market must move in negative, or
We should not consider friday optional chain for weekly analysis???AND CORRELATION OF PUT IV & PREMIUM IS ALSO VERY STRONG POSITIVE 0.97 WHAT DOES THIS INDICATE PLEASE ANYONE CAN CLARIFY
THANK Uyes rajneesh according to nitin ji we can even judge the direction of stock but you should have historical IV and required data as the same formula applies to all
sir please correct me if i am wrongYes,to an extent, logic being the same. However the degree of variation will be high with the change in volatility. We have to take a cautious view.
Thank you sir and santanmanji for advise..
Now , i think its better to stay away.. and find another roller coster
Thank you for your precious time to read and reply me…
It may help you!
First read the basic term of IV. There are alot of things we have to learn about IV.Guys one more thing i want to add that ::
high IV leads to increase premium which indicates that seller is in fear in order not to hit his Strike Price he increase his premium ( coz normally retail investors usually prefer to buy call or put option with lower premium)
If market moves against the seller then seller usually unwind their contracts to prevent further loss which can leads to short covering ( IV shedding )Hope this concept might b helpful if any addition you are welcome. Thankx to NB sir for creating this club….
