Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Risk Increasing in Very Short Term Long Bets in Nifty Futures

41 sec read

Too many short term emotional buyers are speculating in Nifty Futures in the last two trading sessions by buying every mico dips in Nifty Futures. Though the short term auction is still on the upper side for the last 7 trading sessions. Short term risk in holding positional longs increased in the last two trading sessions.

From the market profile context, emotional buyers bought Thursday trading session with failed auction formation at the day’s lows.

However, markets are likely to get into holiday mood and hardly 4 trading sessions are left for Dec 2019 expiry. Short term supports got built around 12155 levels(Single Print Zones).

Most of the option premium is ultra lower due to the upcoming holiday effect and lower VIX. Volatility is dead and so the option premiums

Hence most of the Option writers could be mostly focusing on short straddles. Net Premium of 12250 straddles in Nifty comes around 130 points with breakeven points come around 12119 – 12380 levels for Dec 2019 expiry.

Carrying options could be a bad idea as holidays are likely to favor premium erosions both on the call side and put side. Any naked option buying trading strategies can be executed from the intraday perspective.

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

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