Slaughterhouse

In the markets Buyers make money, Sellers make money--it's the pigs who get slaughtered !

Definition of a Pig : Greedy short term player, looking for small profits with big risk and no knowledge of the markets.

At yesterday's close we had mentioned that the buildup at 6000 CE which was around 24L was speculative and certainly not smart money.

By Afternoon the CE buildup at 6000 CE was another 22 Lakhs, and that's where it was evident that the market would go for the kill.

...And Viren unleashed his now famous Option call.

 at around 1.40 pm. ( in the comments of the previous post)

The result- All the 22 lakhs added intraday covered  +  another 20 Lacs from yesterday evident in the final OI figure at the 6000 CE which stands at 56 Lacs now against the 76 Lacs yesterday.

To the uni-initiated, the purpose of writing a call is to gain from time decay in a side-ways market.You don't write an option with one day to go.

There is no time factor in an option set to expire the next day...

Anyways here are the charts for October : 

The two yellow lines are where the seller operates from.The lower single yellow would be the support

Even today, when the market reached the top end of the Vix range estimated in last night's post. it sold off.

The Bank Nifty has done the 80 % rule twice this week.Getting above 12405, it climbs even higher.

Risk in that position can now be easily managed at 12305.

Have a great October trading the markets. Be a Buyer, even a seller, don't be a pig.

Stay informed.