Intraday Trading Strategy for Budget Day 2021 | Theta Gainers

 

Understanding DELTA is enough to take benefit of greeks in options

 

THREAD ON DELTA (The most important GREEK)

Many traders don't indulge in understanding GREEKS because they think they are very complicated.

There are 4 primary greeks:

Delta
Gamma
Theta
Vega

In my experience, understanding DELTA is enough to take benefit of greeks.(1/n)

— Sarang Sood (@SarangSood) January 2, 2021

Read complete thread at https://twitter.com/SarangSood/status/1345268369117777920 More similar threads at https://threadreaderapp.com/user/SarangSood

INDIAVIX daily and weekly charts

Daily chart:

- past few months, support around 15

- note this is not a support or resistance issue

- just that when VIX drops, writers are reluctant to write options at lower IVs

Weekly charts:

- here lower range is 10

- formed since 2017

- options are unlikely to get cheaper than this

You can be right about market direction but still not make money

 

A problem with OTM options is you can be directionally right and still not make money. Worse is when the IV drops.

And if you are directionally wrong, then it is even worse.

NIFTY is up more than 100 points from pre day open yet 12200 CE buyers struggling to make money. pic.twitter.com/RCT83SBYh6

— KPL (@vfmdirect) November 6, 2020

Video: Why trade ATM options in place of futures intraday

NIFTY options open interest distribution

 - strong resistance at 11500

NIFTY options open interest distribution

- analysis is for monthly expiry

- highest OI is at 11000 PE followed by 10500 PE

- reduction in put OI seen and increase in OTM calls OI seen

- puts below 10500 has increase in OI

-in calls, highest OI is at 11500 CE followed by 12000 CE

- no clear conclusion can be drawn

NIFTY options open interest distribution

 

How SoftBank Made Billions Using The Biggest "Gamma Squeeze" In History

https://t.co/9r9wolGsPD

— KPL (@vfmdirect) September 7, 2020

NIFTY options open interest distribution

- writers see limited upsides

- max hedges around 12500 CE

Highest Open Interest in 12500CE! NIFTY Will Cross 12500 Next Week?

 

NIFTY options open interest chart

 

NIFTY options open interest

- highest OI at 11300 PE

- next highest OI is at 11400 CE

- tussle between bulls and bears likely to continue

NIFTY options open interest analysis

 - there has been an increase in OI of OTM puts

- fall in OI of calls seen

- highest OI is now at 11000 PE

- in calls, highest OI is at 11500 CE

- overall bias is mildly bullish

NIFTY options open interest

- highest OI is at 11200 CE

- weekly expiry

NIFTY options open interest

- bias is bullish 

- as long as 11000 does not break

NIFTY options range

NIFTY close	10062	Date	3-Jun-2020
VIX	30.00%
	Levels	Strike price	Significance
Month Hi	10,933	11,000	Resistance
Week Hi	10,481	10,500	Resistance
Day Hi	10,220	10,300	Resistance
Day Lo	9,904	9,900	Support
Week Lo	9,643	9,600	Support
Month Lo	9,191	9,100	Support
Levels are for day/ week/ month starting tomorrow
Strike price is arrived after rounding up/ down of levels
Range expansion if VIX explodes
For educational purposes only. Not for trading
Updated daily at vfmdirect.in

NIFTY options range

NIFTY close	9980	Date	2-Jun-2020
VIX	30.00%
	Levels	Strike price	Significance
Month Hi	10,844	10,900	Resistance
Week Hi	10,395	10,400	Resistance
Day Hi	10,137	10,200	Resistance
Day Lo	9,823	9,800	Support
Week Lo	9,565	9,500	Support
Month Lo	9,116	9,100	Support
Levels are for day/ week/ month starting tomorrow
Strike price is arrived after rounding up/ down of levels
Range expansion if VIX explodes
For educational purposes only. Not for trading
Updated daily at vfmdirect.in

NIFTY options range

NIFTY close	9826	Date	1-Jun-2020
VIX	31.00%
	Levels	Strike price	Significance
Month Hi	10,705	10,800	Resistance
Week Hi	10,248	10,300	Resistance
Day Hi	9,985	10,000	Resistance
Day Lo	9,667	9,600	Support
Week Lo	9,404	9,400	Support
Month Lo	8,947	8,900	Support
Levels are for day/ week/ month starting tomorrow
Strike price is arrived after rounding up/ down of levels
Range expansion if VIX explodes
For educational purposes only. Not for trading
Updated daily at vfmdirect.in

Option range based on VIX

NIFTY close	9580	Date	29-May-2020
VIX	30.00%
	Levels	Strike price	Significance
Month Hi	10,410	10,500	Resistance
Week Hi	9,979	10,000	Resistance
Day Hi	9,730	9,800	Resistance
Day Lo	9,430	9,400	Support
Week Lo	9,181	9,100	Support
Month Lo	8,750	8,700	Support
Levels are for day/ week/ month starting tomorrow
Strike price is arrived after rounding up/ down of levels
Range expansion if VIX explodes
For educational purposes only. Not for trading
Updated daily at vfmdirect.in