It is said, “If dreams are horses, beggars would ride them”. This suits an ordinary investor who hopes to get rich through stock marketing. Equity markets are considered to be very risky by some people.
AssuredGain.com, educational-brokerage firm based in Chennai is happy to share with you a series of article titled “LIES, LIES AND DAMN LIES” written by Chief Adviser, Cyriac Kandathil. Please do read all the series and get enlightened. Trading options requires a completely different mindset. Speculative trading in options is very risky.
Using Options Oracle is usually very simple thing. One can gain more number of informations about the nifty movement when trying to digging
into the Charts and Open Interest part of Nifty Options. Here are some of the useful charts like Option chain, Putcall ratio, Volatility Smile snapshots for Nifty options obtained using options oracle software.
In finance, the volatility smile is a long-observed pattern in which at-the-money options tend to have lower implied volatilities than in- or out-of-the-money options. The pattern displays different characteristics for different markets and results from the probability of extreme moves
Nifty futures hourly mood is still in buy mode since breaking 5040. Current Ichimoku supports are available near
5316. Trend likely to turn down only below 5300 otherwise shorts are not recommended
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Most of us know about SIP or systematic investment plan to invest in mutual funds, and other financial instruments. As you very well know such investment works only when the price of assets in which one has invested increases and thereafter gets profit on selling those assets like stocks, gold, etc. at higher price than cost price.
When volatility is very high, and the market has just made a dramatic move and you are expecting it to consolidate and take some time to digest its gains, you might consider selling a strangle. When you observe the past days of Open Interest Action then you could definitely get the clue that calls are being written at 5300CE and 5400CE and Puts are being written at 4900PE ,5000PE
Looks Put writers are not still in the panic mood to unwind their positions from the 4900PE and 5000PE in contrast they built the positions against the market bearisness. The current mood of the Put writers shows absolute bullishness and the confidence of holding 4900 and possibly even 5000 levels on EOD basis. As the world markets are in uncertainity mood its advisable to take any sort of longs with appropriate amout of hedges. Hedges are mandatory in such type of market uncertain market environment.
Last two days 5050 seems to be a valid support zone. If nifty tommorow sustains above 5050 then there is a possibility of complete reversal. As of now almost equal amout of Open Interest in both 4900PE and 5000 PE. So there is a chance of Put writing in 5000 PE zone also. Now we need to concentrate on both 4900PE and 5000PE.
As of now High Open Interest among the series witnessed in both 4900PE(Put writing) and 5300(call writing) strike prices. And there is almost equal amount of Open Interest in both the strike prices as of now. NIFTY MAY series PCR (OI) at 1.28 down by 0.09 points.
I would like to thank all readers of marketcalls for your mails. As I was busy with my new sub-broker, I could not update here. Most retail traders buy put option to make money in falling stock or index. Have you ever wondered who is selling the put options that you are buying? Most likely, it is another trader who has the opposite outlook for the stock (bullish).