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Bank Nifty: Tuesday - 27/12/22Levels: Support: 42550, 42250, 41900, 41400 Resistance: 43000, 43200, 43375, 43650 OI Data: ---------------------------------------------------------------------| Bank Nifty => Price: 42630.15 ATM: 42600 , ITM: 42500, 42400, 42300 , OTM: 42700, 42800, 42900 ---------------------------------------------------------------------| Highest OI Call in Bank Nifty per OI data: 43000 Highest OI Put in Bank Nifty per IO data: 42000 Nearest Major Resistance in Bank Nifty per OI data: 43100 Nearest Major Support in Bank Nifty per IO data: 42400 ---------------------------------------------------------------------| Trade setup: +++++++++++++++++++++++++++++++++++++++++ Trade | Level | SL | T1 | T2 ----------------------------------------- BUY | > 43000 | 42800 | 43200 | 43400 ----------------------------------------- SELL | < 42200 | 42400 | 42000 | 42800 +++++++++++++++++++++++++++++++++++++++++
NSE:BANKNIFTYLong
by pradipandsuvra
WHAT IS OPTION GREEKS ?NSE:BANKNIFTY Introduction Option trading is an exciting process and almost every market participant has at least experienced the thrill of trading options, almost all the time with unsatisfactory results. To avoid such accidents an option trader seeks different tools to trade sucssessfully, The most important of tools are the Option Greeks and they are usually the first metric looked upon by option traders. What are Option Greeks? Options are derivatives of underlying assets ( curd is a derivative of milk, so the change in the quality of milk will result in a change in the quality of the curd derived ) similarly, Greeks are a way to measure the sensitivity of the price of the option to various factors. The price of the option premium does not always move in conjunction with the price of the underlying asset and it is important to understand the different factors that affect the change in the price of the premium. With the help of the option greeks, a trader will be able to measure the rate of change of different factors affecting the option premium. # You can check the option greeks by using zerodha option chain or any other trading platform What is DELTA? The first Greek is Delta, which quantifies how much an option's price is projected to fluctuate for every $1 that the underlying securities or index changes in price. For example,A Delta of 0.50 indicates that the option's price will fluctuate 50 point for every 100 point movement in the price of the underlying stock or index. #Delta for call option ranges between 0 to 1 and for put option ranges between -1 to 0. >ATM options have a delta of 0.5 >ITM option have a delta of close to 1 >OTM options have a delta of close to 0. Delta = Change in option premium/ Unit change in the price of the underlying asset. #The following example should help you understand this better – Nifty is currently trading at 16000 Option Strike = 15900 Call Option Premium = 150 Delta of the option = + 0.60 Nifty is expected to reach 16200 What is the likely option premium value at 16200 ? Well, this is fairly easy to calculate. We know the Delta of the option is 0.60, which means for every 1 point change in the underlying the premium is expected to change by 0.60 points. We are expecting the underlying to change by 200 points (16200 – 16000), hence the premium is supposed to increase by = 200*0.60 = 120 the new option premium is expected to trade around 150 + 120 = 270 What ia gamma? Gamma is used to measure the delta’s change relative to the changes in the price of the underlying asset. If the price of the underlying asset increases by 1point, the option’s delta will change by the gamma amount. The gamma value will also range between 0 and 1. Gamma = Change in an options delta / Unit change in the price of the underlying asset. What is Theta? The Theta or time decay factor is the rate at which an option loses value as time passes. Theta is expressed in points lost per day when all other conditions remain the same. theta is always shown as negative number because option value is depriciating as the time is passing. Theta is the biggest enemy of option buyer cause it reduces the favourable outcome of option buyer by depriciating the option price. for example,A Theta of -15 indicates that the option premium will lose -15 points for every day that passes by. if an option is trading at Rs.290/- with a theta of -15 then it will trade at Rs.275/- the following day when other factors remain constant. Theta = Change in an option premium / Change in time to expiry. This is the graph of how premium erodes as a time to expiry approaches. This is also called the ‘Time Decay’ graph. What is Vega ? It is intended to tell you how much an option’s price should move when the volatility of the underlying security or index increases or decreases. It is the change of an option premium for a given change (typically 1%) in the underlying volatility. 1. Vega measures how the implied volatility (IV) of a stock affects the price of the options on that stock. 2. Volatility is one of the most important factors affecting the value of options. 3.A drop in Vega will typically cause both calls and puts to lose value. 4. An increase in Vega will typically cause both calls and puts to gain value. Vega = Change in an option premium / Change in volatility. What can option Greeks do for you? 1.Help you measure the possibility that an option will expire in the money (Delta). 2.Estimate how much the Delta will change when the stock price changes (Gamma). 3.Get a feel for how much value your option might lose each day as it approaches expiration (Theta). 4.Understand how sensitive an option might be to large price swings in the underlying stock (Vega). “With the help of Greeks, an options trader can make more analyzed decisions about which options to trade, which strike price to trade and when to trade. Since there are a variety of market factors that can affect the price of an option in some way, assuming all other factors remain unchanged, we can use Greeks and determine the impact of each factor when its value changes.” I Hope you found this helpful. Please like and comment. Happy Trading!
NSE:BANKNIFTYEducation
by SANJAYPATIDAR_
28
Nifty: Friday - 23/12/22Levels: Support: 18050, 17980 Resistance: 18150, 18250, 18350, 18430 OI Data: ---------------------------------------------------------------------| Nifty => Price: 18127.35 ATM: 18150 , ITM: 18100, 18050, 18000 , OTM: 18200, 18250, 18300 ---------------------------------------------------------------------| Highest OI Call in Nifty per OI data: 18500 Highest OI Put in Nifty per OI data: 18100 Nearest Major Resistance in Nifty per OI data: 18350 Nearest Major Support in Nifty per OI data: 17950 ---------------------------------------------------------------------| Trade setup: +++++++++++++++++++++++++++++++++++++++++ Trade | Level | SL | T1 | T2 ----------------------------------------- BUY | > 18150 | 18100 | 18250 | 18300 ----------------------------------------- SELL | < 18070 | 18120| 18000 | 17950 +++++++++++++++++++++++++++++++++++++++++
NSE:NIFTYShort
by pradipandsuvra
RBL Bank: Trend Reversal is imminentNSE:RBLBANK is about to show excellent breakout. Price is crossing the 200 DMA. It is basically a trend reversal as the order will be: Price cut the 200 DMA, then 21 DMA will cut the 200 DMA and then 50 DMA will cut the 200 DMA, uptrend starts. Volume is high. A Bullish Engulfing candle is formed in daily chart engulfing whole 1 week price action. Long build up is seen in OI data. Trade : Buy above 153 (200 DMA), SL: 148. T: 158, 164 .. long term 200. Option Strategy Looking at the OI data here is what I can see: Call side: Short covering is happening in 145 strike. Call side: From 147.5 upto 160 .. all strikes has long build up. Put side: Upto 150 short build up is happening. So once price stays above 153, can simply buy 155 Call option (CMP: 5.35 with SL: 4.50, T: 7) Note Typically, when a very big engulfing candle is formed in chart, there is always a possibility that next few days price can consolidation within the range of the candle (143-152) from price action perspective.
NSE:RBLBANKLong
by pradipandsuvra
Nifty: Tuesday - 22/11/22Levels: Support: 18150, 18080, 18000 Resistance: 18220, 18275, 18320, 18370 OI Data: ---------------------------------------------------------------------| Nifty => Price: 18159.95 ATM: 18150 , ITM: 18100, 18050, 18000 , OTM: 18200, 18250, 18300 ---------------------------------------------------------------------| Highest OI Call in Nifty per OI data: 18300 Highest OI Put in Nifty per OI data: 18000 Nearest Major Resistance in Nifty per OI data: 18250 Nearest Major Support in Nifty per OI data: 18050 ---------------------------------------------------------------------| Trade setup: 1. If Nifty Opens up more than 200 points, safely sell. 2. For any buy trade, follow the N pattern (let the price run above the level, let it retrace back to the level and let it hold the level as support) 2. For any sell trade, follow the mirror-N pattern (let the price fall below the level, let it pulls back to the level and unable to pass through the level as resistance). +++++++++++++++++++++++++++++++++++++++++ Trade | Level | SL | T1 | T2 ----------------------------------------- BUY | > 18200 | 18160 | 18300 | 18350 ----------------------------------------- SELL | < 18100 | 18140 | 18000 | 17950 +++++++++++++++++++++++++++++++++++++++++
NSE:NIFTYShort
by pradipandsuvra
EaseMyTrip Price Action AnalysisThere is a pennant (symmetrical triangle) pattern formation (blue triangle). By choosing baseline charting (instead of candlestick or range), you can visualize the swings. As of now it's hitting the resistance of 403. If it able to break the previous swing high (409 on 04/10) with volume, it can go high (~425). But see the black dotted line. That's a "prediction" heuristic (no guarantee, it's just a heuristic) where price-action can go. If it fails to break the upper trend line, then the range is: 400-375.
NSE:EASEMYTRIP
by pradipandsuvra
Nifty: Wednesday - 02/11/2022Levels: Support: 18120, 18100, 18060, 18000 Resistance: 18175 OI Data: ---------------------------------------------------------------------| Nifty => Price: 18145.4 ATM: 18150 , ITM: 18100, 18050, 18000 , OTM: 18200, 18250, 18300 ---------------------------------------------------------------------| Highest OI Call in Nifty per OI data: 18400 Highest OI Put in Nifty per OI data: 18000 Nearest Major Resistance in Nifty per OI data: 18250 Nearest Major Support in Nifty per OI data: 17950 ---------------------------------------------------------------------| Trade setup: 1. For any buy trade, follow the N pattern (let the price run above the level, let it retrace back to the level and let it hold the level as support) 2. For any sell trade, follow the mirror-N pattern (let the price fall below the level, let it pulls back to the level and unable to pass through the level as resistance). +++++++++++++++++++++++++++++++++++++++++ Trade | Level | SL | T1 | T2 ----------------------------------------- BUY | > 18180 | 18140 | 18250 | 18300 ----------------------------------------- SELL | < 18100 | 18140 | 18000 | 17950 +++++++++++++++++++++++++++++++++++++++++
NSE:NIFTYLong
by pradipandsuvra