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Straddle

11 Jan ’24 — Gap-up spoils the market dynamics, Nifty PostMortemNifty Weekly Analysis The close we had on 4th Jan was 21669.6, the close today is 21669.4. Nifty moved -0.2pts this expiry. Unbelievably flat! Would have been a dream come true for traders who took home short iron fly & short straddle last week. 16mts chart link Nifty Analysis - Stance Neutral ➡️ Recap from yesterday “The last candle which is strongly GREEN is standing out. It looks like the 21491 support is respected for now. If we fall below that tomorrow, we will not hesitate to switch back the stance to bearish.” 4mts chart link See how the gap-up changed the dynamics today. Firstly, there was nothing special to have a gap-up of 68pts. Secondly, this got sold into but the selling was not aggressive enough to bring down the markets lower than yesterday’s close. The price move from 14.03 to 14.11 where we got a fall of 75pts looked like a warning shot. Surprisingly there was someone at the other end, buying all of those dips. Despite those swings, the options premium were all dead and good for nothing. Far OTM sellers would have fell asleep watching the charts today. 63mts chart link Nifty looks perfectly neutral from here, the moment the support of 21491 gives away - we can start looking for bearish opportunities. To go bullish the ATH has to be taken out. With the IT majors TCS and INFY declaring the results - we should have a strong swing direction tomorrow. Our stance stays neutral.
NSE:NIFTY
by viswaram
PostMortem on BankNifty & Analysis of 25 APR 2023 + Finnifty EXPFor traders who are playing NSE:BANKNIFTY expiries on Thursdays can play the same trades on FinNifty on Tuesdays. The margin requirements are lower and now since the option premiums are staying low - the ROI in finnifty is better than banknifty. Today was a flat day, open was at 42731 and then it was struggling to keep the momentum up. We had a gradual rise upto 42865 by 11.20 and then we started falling.  The fall itself was not convincing, only a 196pts dip & then it got bought into. This time we did not take the swing high but maxed out at 42827 @ 14.40. The second fall was showing a bit more strength but we ran out of time, we had a dip of 220pts from 14.40 to 15.20 Even after all this banknifty still closed in green, up 42pts. The expiry on Fininfty would have played its part which we will discuss shortly. --- 15 mts TF also showing a bit of tiredness after a good session yesterday. Will banknifty protect the 42576 support is what we need to look at. In spite of all the bullishness yesterday I seriously thought we might have a retest of 42576 today. --- 1hr TF has made a rounded top as of now. Its not confirmation of a top as-it-is. We would need further price action to confirm that. The signs of momentum tiredness was visible in last 4 candles of today. --- Coming to the NSE:CNXFINANCE expiry, 18971 SR zone was active today. There were 3 tests on the 15mts TF today. I was ready with the 18900 PUT option but the support break came in very late ~ 15.15 today. At 12.30 the same put option was active and might have continued to be in the money if not for the quick rejection candle at 12.45 wherein it recovered 0.24%. This SR zone was impacting the movements on the banknifty as well. For the expiry traders it was a perfect day as the closing was flat and they would have got the max bang for the straddles.
NSE:BANKNIFTY
by viswaram
MONTHLY STRADDLE IN NIFTY FOR OCTOBER Hi there, Nifty Closing today 29/09/2022 : 16818 spot Since last 3 weeks if we observe Nifty movement there is lot of selling pressure. From the recent high of 18096 levels Nifty has declined almost 7.5%. In the chart if you observe I have drawn a primary wave .It looks like we are in the wave 2 of that Elliott wave. wave 2 will be mostly 3-3-3 or 5-3-5 corrective wave. In this WXY corrective wave W is 0.318 Fib retracement of wave 1.So there is higher probability that we will find some support in this area. X point is 0.618 Fib retracement of wave W Considering the recent aggressive selling those who missed the bus will short the market again or take fresh positions when the retracement wave happens. SO WHY MONTHLY STRADDLE? There will be 4 weekly candles in the October series. So even this weeks candle engulfs the latest red candle by oct 6 expiry or after that expiry market will be facing resistance at X area. If people start shorting the market fresh then high chance that market will go to Y area to complete the correction wave . In this process mostly after 3 weeks we can see the market in these levels again with most of the price decay. What if Nifty breaks W area this week without taking support there ? Then the retracement is inevitable in coming weeks and 2 or 3rd week again nifty will be in the anticipated area. Straddle breakeven should be above X and near Y 16750 STRADDLE will do the work. By calculating the percentage return one can safely exit the straddle there. Nifty monthly straddle has almost 30% ROI. Even 10% in 15 days is a better deal. Avoid If you don't know about straddle management I hope this analysis will help you. If you agree with my analysis you can comment on this post by yes or give a boost Thank you. And happy trading. *SECURING THE TRADE AND PROTECTING THE CAPITAL SHOULD BE YOUR FIRST PRIORITY. *NOT A SUGGESTION VIEWS ARE FOR EDUCATIONAL PURPOSES.
NSE:NIFTY
by Mo-Kri
1
TCS Strategy creation explained ahead of its resultsIn this video, I share how I have created in excel TCS Bull Call Spread and TCS ATM Short Straddle. I have explained all that is needed for the purpose of creating the strategies. Please note that I may / may not execute the trade depending upon how the funds position is closer to the day end. If you have liked the video, please let me know and if you feel something else needs to be included, please feedback on the same. Best wishes, Umesh
NSE:TCS
by AVENUESOFINVESTMENT
2