Seasoned traders say the number of traders looking to make a quick buck on expiry day has been steadily rising over time. The NSE has weekly options contracts expiring on all days except Friday, and the BSE has a weekly options contract (Sensex) expiring on Friday.
Michael Burry’s Scion Asset Management held puts with a total contract value of $886 million against SPDR S&P 500 ETF shares, and another $739 million against Invesco QQQ Trust ETF, Reuters reported citing securities filings.
'Bear Put spread' is a moderately bearish strategy built by buying a Put close to the current market price of the underlying and selling the same expiry Put, but of a strike lower than the Put bought.
Market participants believe that the supply side shock is likely to get converted to demand destruction or deferment further pushing the economic recovery
On the downside 10,628 for Nifty is important critical support. Traders are advised to remain positively biased as long as Nifty trades above 10,700 on a closing basis
The index has been making lower highs and lower lows which is not a strong sign for the bulls; hence, investors should tread cautiously in the next few days.
Bull Call Spread is a bullish strategy where we buy one lot of lower strike Call and sell 1 higher strike Call. It’s is a safe strategy to play long bias as maximum risk and reward are well defined.
Some cool off in India VIX could be expected after the political outcome becomes apparent.
Every now and then we are faced with a situation where there is a firm possibility of headwinds created by a known event. Be it election outcomes, big trade agreements or major Monetary Regime change.
Election results in Chhattisgarh, Madhya Pradesh and Rajasthan, where BJP is the incumbent, will be keenly watched by market participants.
My last piece of investor advice would be to stay vigilant while at the same time remain disciplined. Reason being that while trading derivatives there is always a thin possibility of a very big loss.
F&O cues: Nifty 9600 Put added 8.4 lakh shares in Open Interest and Nifty 9700 Put added 6.4 lakh shares in OI.
The bias still remains on the upside as the index closed above its crucial resistance level of 9,100; however, if it closes below 9,000 this week, the bias might shift towards the downside, suggests experts.
The Nifty50 reclaimed its crucial resistance level of 9,133 and closed above its crucial 10-days exponential moving average (DEMA) placed at 9,104. The index formed a small bullish candle which resembles spinning top kind of pattern on daily charts.
Investors can create long positions on dips for a target of 9,218-9,250, which was its recent record high.
Mind The GAAP4: Financial Instruments (1)
It is a start of a truncated expiry week and it is a market which can make absolute mockery of the levels in expiry week. Anuj Singhal of CNBC-TV18 has more details.
Speaking to CNBC-TV18, Romal Shetty, ED and National Head, KPMG said that if norms are in place, it will ease entry of foreign flows in India. He believes global telecom companies are looking to enter India and there must be a safeguard to protect the Indian company‘s interest in the industry.
One can trade the September series with a positive bias and advised buying Options because the 8200-8300 Call Options are attracting lot of buying interest from stronger hands, said Siddharth Bhamre of Angel Broking
Siddharth Bhamre, Angel Broking believes that this market is going down because there are no domestic buyers and not because elections might be held earlier.
In an interview to CNBC-TV18 Siddharth Bhamre of Angel Broking shared outlook on the Futures and Options segment and stocks across various sectors.
In an interview to CNBC-TV18, Siddharth Bhamre, Angel Broking says that from here onwards they will be cautious on the market. He suggests squaring off long positions and buying some Put Options.
The Nifty could see support at around 6,000 points, analysts say based on a rise in put options at that level.
The previous two sessions on “Knowledge Center: Learning Derivatives†explained the concepts of Future & Option contracts. This session elaborates further on Option contracts. An option contract is a contract which gives one party the right to buy or sell the underlying asset on a future date at a pre-determined price (called the strike price).
In “Knowledge Center: Learning Derivatives - Session Iâ€, we gave a brief introduction of derivative contracts. What are forward and future contracts? What is the difference between the two? How they can be used for hedging and speculative purposes? What are Call and Put Options and how they permit non-linear payoffs… and so on.