This blog intends to reduce the noise from the markets by the use of Market Profile as well as studying inter-market associations and their relevance to the short-term trend.
for eg - if today someone bought BN 11100PE when BNF was at 11400 - is it considered "D - O - O -M" option? i guess the calculation of profit will remain the same?
Spot Price 5575 Nearest Strike is 5600 (At the money) next strike for PE is 5500 OTM next strikes like 5400/5300 are deep out of money.
Normally one would not expect Nifty to move down 200 points more after already moving 100 points today. 5400PE will begin earning only below 5400 Nifty spot.
But if you are sure that the closing will be below 5400 then go ahead with your plan. :)
More importanatly, you speak your mind on the way you see the markets irrespective of it being right or wrong.
That's the hall mark of a good trader who knows what he has to do in a market.You may go wrong sometimes, but it is not important, as long as you do not curb this natural flow.
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12 comments:
looking at us mkt open, it will go further down.....tom, we slide to 5500....
rm sir, can i buy 5400 pe at the open? ;-) i mean the mkt. may expire at 5400? or there is a major panic - even below that?
@Janak
Sirjee mujhe sir bol kar sar pe na chadhao. :)
In my view the expiry is too close to buy deep out of money options. But market is supreme, it can do anything!
"deep out of money" - what is that? can't 5400pe be bought like 5500pe?
for eg - if today someone bought BN 11100PE when BNF was at 11400 - is it considered "D - O - O -M" option? i guess the calculation of profit will remain the same?
tom. i might buy a deep....10700PE BN....will it be good?
@Janak
Spot Price 5575
Nearest Strike is 5600 (At the money)
next strike for PE is 5500 OTM
next strikes like 5400/5300 are deep out of money.
Normally one would not expect Nifty to move down 200 points more after already moving 100 points today. 5400PE will begin earning only below 5400 Nifty spot.
But if you are sure that the closing will be below 5400 then go ahead with your plan. :)
are kahan? i m just asking for a hypo. ex. - however, that 11000pe travelled from 27 to 120 today!!! matlab 700rs. ka 1 lot has gone to rs. 3000.....
*11100 july pe in BN*
https://docs.google.com/document/d/1xxSo6-I02aOlzeyayRHBBoSLp9sEygshGIXQdfFBHMo/edit?hl=en_US
Friends, I have updated my EOD story.
Good analysis kris, thanks!
Kris,
Good analysis.
More importanatly, you speak your mind on the way you see the markets irrespective of it being right or wrong.
That's the hall mark of a good trader who knows what he has to do in a market.You may go wrong sometimes, but it is not important, as long as you do not curb this natural flow.
RoadMap updated
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