Options/futures data for 15th Sep (EOD)

Yesterday's Shai's post here has some very good insights about the levels to watch for. The best part of the trading room @Vtrender2 is that I get answers to my queries about stock futures - rightaway. Please read about the FINANTECH trade we took at Vtrender2 at the end of this post ..

One more point I wanted to make about the 80% rule. We have seen it being obeyed day in and day out. Its only because of my disbelief that I haven't traded much using that rule. Here is the detailed explanation of 80% rule from Shai with illustration on a weekly timeframe.

Back to options --

Quick Summary:

1. Options data has "TOO MUCH BULLISHNESS" written all over it. Will too much turn out to be too bad? Only time will tell

2.Call writers at 5500-5600-5700 are still covering and there's no respite. Only 5800CE writers are daring not to cover today. Lets see if they are proved right or crucified tomorrow.

3. Put writing just continues @5900/5800. But interesting there is reluctance to write puts at 5700 - because if there there a fast fall the 5700PEs will gain very fast.

4. The last but the most dangerous one -- PCR has hit 1.79 now! Typically Nifty tends to reverse direction - even if its a temporary reversal --when PCR hits 1.8+ So we are not too far from there. Two such instances of reversal on account of "OVERDOSE Of BULLISHNESS" were -- around June expiry (Intraday 5370+ and reversed) and a few days back around August expiry (Intraday 5540+ hit and reversed)

Nifty futures:

SEP: 3.87Cr OI up 3.6% -- With premium reduced yesterday, some shorts might have come. But the uptrend is still intact though.

OCT: 36L OI up 6.6%

Banknifty Futures:

27L OI flat

FINANTECH --

A few days back we noticed some Open Interest addition in FINANTECH and I put a query to Shai about this stock. From looking at the profile Shai said some balancing was happening after two bursts of rise. I don't have the full chart with HVNs, but Shai's chart had few HVNs closer to 1342-1352 range. So he said rightway "lets take this trade right here" and I got some in cash and 1 lot in futures @1375

Yesterday when the stock started literally flying, Viren -- my buddy -- helped me to keep feet on the ground and wait for the objective which was HVN @1422 in futures and 1413 in cash. I booked out the futures exactly @1423. It went up a bit more - but my objective was achieved.

The point is not about making money - its about trading with reasoning - why a certain trade has to be taken and what are the levels - the entry, the stop loss and the target.

And with 250 lotsize, almost 50 points is not small money either :)