Intraday calls for 25-04-11
Markets likely to see a flat opening. Support for nifty is at 5860 and resistance at 5920
Buy Jubilant Foodworks Ltd around 658-663, target: 678. Stoploss: 648 – (book profit in Jubilant foodworks at 676-678)
10.37am – sell Rec ltd at 234.20, target: 230. Stoploss: 237.50
Trade in small quantity
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Subhag Ghosh Says:
April 25th, 2011
Posted at: 10:51 pm
Buddy the option price has dropped by 51 % with increasing OI, when your nifty has just dropped 10 points.
Risk Measures
Option price ( In Rupees) 8.55
Volatility (% per annum) 21.18
Stock price (In Rupees) 5874.50
Strike Price (In Rupees) 6000
Dividend (% per annum) 25
Interest Rate (% per annum) 12
Duration left 3 Days
Option Type Call
Exercise Type European
Delta: 0.1519
Gamma: 0.0021
Theta: -4.6541
Vega: 1.2372
Buddy theta decay can not drop the price to 51 %.
Even if you r not convience, then just wait for the expiry day.
Abdullah Says:
April 25th, 2011
Posted at: 10:52 pm
Hi YOGI, Waiting for Mr.Ghosh... :)
Hi Mango, :)
Mango Says:
April 25th, 2011
Posted at: 10:53 pm
Hi Abdullah, GE man .. :)
Hi YOGI, sorry not lawyer
Abdullah Says:
April 25th, 2011
Posted at: 10:56 pm
Hi Subhag Ghosh , Seen your data :)
Will definitely wait :)
Mango Says:
April 25th, 2011
Posted at: 10:59 pm
Hi Subhag Ghosh, who said that, theta decay can go up to 51 % ??
Its premium " NOT the price" it is decided by the seller, it changes with market sentiments.
Do u think that strong hands will sell the option having vol 21.18 % ??
Abdullah Says:
April 25th, 2011
Posted at: 10:59 pm
Hi Mango, Lets see :)
Whether options calculator helps :D
Abdullah Says:
April 25th, 2011
Posted at: 11:03 pm
Hi Mango, ya man... basic... premium v/s price...
Mango Says:
April 25th, 2011
Posted at: 11:05 pm
Hi Subhag Ghosh, Please check out last few months expiry data. It is a bad theory, have u heard of option pain ?
There is an article available in investopedia on this topic, no one can say that whether it is a buy/short sell by looking at addition of OI .. And the relation with price change & OI in options is a utter non sense.
Mango Says:
April 25th, 2011
Posted at: 11:09 pm
Hi Abdullah, :)
Abdullah Says:
April 25th, 2011
Posted at: 11:12 pm
Hi Mango, :)
But lets wait till expiry and see how it goes :) Can definitely have a good discussion then... Guess you will wait also...
Mango Says:
April 25th, 2011
Posted at: 11:17 pm
Hi Abdullah, ya rite, gamma, delta & options calculator will definitely help in finding weather it is a short sell or buy . :D :P
Abdullah Says:
April 25th, 2011
Posted at: 11:18 pm
Hi Mango, :P
Abdullah Says:
April 25th, 2011
Posted at: 11:24 pm
Hi Mango / YOGI / Kartk / CB / Sunil Rao / ALL, Interesting url :
http://www.optiontradingpedia.com/option_pain.htm
Mango Says:
April 25th, 2011
Posted at: 11:31 pm
Hi Abdullah, Rite. I was explaining this mistake
" huge shorting are seen at nifty 6000 CE, having 100 L OI, strong hands are the one who writes options"
Strong hands also buys calls, when they go short on Index, 4 hedging .. addition of OI doesn't give any cues about this. TV jokers always say this idea & people follow .
Mango Says:
April 25th, 2011
Posted at: 11:41 pm
Hi Abdullah, Ya.. thats the damn theory i mentioned (his analysis is a version of this)
Option Pain is a very interesting theory, proposing a very interesting use for Open Interest derived from options trading. "Even though it has no firm fundamental logic nor has it generated any consistent results "
read the Main point :P
Abdullah Says:
April 25th, 2011
Posted at: 11:43 pm
Hi Mango, Yes man... Strong hands always hedge... they never keep anything naked... and having huge OI does never, never indicate shorting :)