Have a look below and you will see the expiry day nifty intraday movement - what it has been doing .....? A quick look shows that the last one hour or so is the time when nifty bangs on up or down by 30 to 50 points. Is that trade-able ? Well it all depends what your mind set it . Some intraday jobbers work huge volumes and small gains. Some try with small volumes but large gains.
How can we try and trade these moves tomorrow ? Expiry of September was the only one out of the 10 images that you see below that have had spikes in the last one hour or two. How can we trade them ? If you know the direction, take a position in that direction. Some smart people do this. They keep an eye on the PUTS and CALLS of each pair of nifty strikes. The premiums rapidly start deteriorating.Keep an eye on the nifty and on the PUT-CALL pair. The moment both become same, theoretically that is the entry point. But ideally it does not happen. The lesser the time left, the better are the rates. Say if you are able to get a PUT-CALL pair at 5 to 10 bucks, that is a good price. At 10, one needs 20 points to cover the cost. Or even so, if you wish to trade only one side, one can observe that one side remains strong where premium does not dip. So this perhaps is the best direction.
In some cases, it so happens that one pair which is close to the current price starts generating huge volumes. Huge volumes generally are indications when the punters just close nifty there ........ where all the PUTS and CALLS get destroyed. Nobody earns here and it just is s total whitewash.Such situations have to be avoided.
Best of luck for Thursday.
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