Showing posts with label future option tips. Show all posts
Showing posts with label future option tips. Show all posts

Thursday, April 2, 2020

WHAT IS VOLATILITY INDEX IN OPTION TRADING?

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We are making an attempt to explain VIX ,so that one can read and get the subject knowledge which would help one to trade in nifty accordingly.
What is Volatility exactly? Volatility is just a statistical term to measure the tendency of the market to fluctuate. Big fluctuations suggest fear, because they mean that investors are frantically changing their minds about what stocks are worth, in the face of great uncertainty. Smaller fluctuations suggest that investors are confident and they know what the stocks are worth.
Volatility Index: VIX is a measure of market's expectation of volatility over the near term. In simple words, Volatility Index (calculated as annualized volatility, denoted in percentage e.g. 20%) is a measure of the amount by which an underlying Index is expected to fluctuate based on the order book of the underlying index options.
VIX is the ticker symbol for the Chicago Board Options Exchange Volatility Index, a popular measure of the implied volatility of S&P 500 index options. It is commonly called the VIX, and is often referred to as the "fear index."
India VIX is a volatility index based on the Nifty 50 Index Option prices. From the best bid-ask prices of Nifty 50 Options contracts, a volatility figure (%) is calculated which indicates the expected market volatility over the next 30 calendar days. i.e. higher the India VIX values, higher is the expected volatility and vice-versa.
INDIA VIX:
Specifications: India VIX is a volatility index based on the Nifty 50 Index Option prices. From the best bid ask prices of near term Nifty 50 Options contracts (which are traded on the F&O segment of NSE), a volatility figure (%) is calculated which indicates the expected market volatility over the next 30 calendar days.
CalculationHigher the implied volatility higher the India VIX value and vice versa. There are some differences between a price index, such as the Nifty 50 and India VIX. Nifty 50 is calculated based on the price movement of the underlying 50 stocks which comprises the index. India VIX is calculated based on the bid-offer prices of the near and mid month Nifty 50 Index Options. Nifty 50 Index is an absolute number, e.g. 4500, 5000 etc., whereas India VIX is a percentage value (e.g. 20%, 30% etc.). The factors which will be taken into account to calculate the index include the following:
1) Time to expiry of the options contracts of Nifty that are selected to calculate the index.
2) Interest rate: The NSE MIBOR rate is being considered as risk-free interest rate for the respective expiry months of the 
NIFTY option contracts.
3) A methodology called the forward index level is being used to select the contracts which will be used to calculate the index.
4) From these selected contracts, the best bid and ask spreads will be chosen.
5) Weightage is given to each of the options contracts that are chosen, as per the method adopted by the Chicago Board of options exchange (CBOE). The weightage of a single options contract is directly proportional to the average of best bid-ask spread of that option contract and inversely proportional to the option contract's strike price.
Significance: Whereas Nifty 50 signifies how the markets have moved directionally, India VIX indicates the expected near term volatility and how the volatility is changing from time to time. India VIX is a premier barometer of investor consensus of market volatility expressed through option pricing. VIX is a trademark of CBOE Incorporated and Standard and Poor's has given license to NSE, with permission from CBOE, to use this trademark in the name of India VIX and for purposes relating to India VIX.
INTERPRETATION:
The exact number given by VIX is what a statistician would call the "forecasted annualized standard deviation of returns." But don't let that mouthful put you off - it's actually quite simple. A VIX reading of 50 means that options prices are suggesting that, over the next year, stock prices are expected to fluctuate within a range of plus or minus 50%. A VIX reading of 20 would mean expectations that the market will fluctuate less, staying within a range of plus or minus 20%.
In most cases, a high VIX reflects increased investor fear or uncertainty and a low VIX suggests complacency or less stressful times. Historically, this pattern in the relationship between the VIX and the behavior of the stock market has repeated itself in bull and bear cycles. During periods of market turmoil, the VIX spikes higher, largely reflecting the panic demand for puts as the hedge against further decline in stock portfolios. During bullish periods there is less fear and therefore less need for portfolio managers to purchase puts.
By measuring investor fear levels tick by tick and day by day, the VIX, like many emotional gauges (e.g. put/call ratio), can be used as a contrary opinion tool in attempting to pinpoint market tops and bottoms on a medium-term basis. There are two ways to use the VIX in this manner. The first is to look at the actual level of the VIX to determine its stock-market implications. Another approach involves looking at ratio comparing the current level to the long-term moving average of the VIX.
BOTTOM- LINE:
The VIX is a contrarian indicator that not only helps investors look for tops, bottoms and lulls in the trend but allows them to get an idea of large market players' sentiment. This is not only helpful when preparing for trend changes but also when investors are determining which option hedging strategy is best for their portfolio. A point to remember is that, even though bench-marking the past is a solid way to determine the future, nothing is set in stone.

Friday, September 6, 2019

NIFTY WEEKLY OUTLOOK & OPTION CALL PUT TIPS FOR 9 SEP TO 13 SEP 2019

TO GET OPTION CALL PUT TIPS WHATSAPP ON 9039542248
UNIONBANK 57.5 CALL NEAR TO HIT 1ST TGT  MADE A HIGH OF 2.2
WEEKLY RESISTANCE FOR NIFTY: 11100, 11200, 11300
 PIVOT POINT: 11000
WEEKLY SUPPORT FOR NIFTY:  10900, 10800, 10700
WEEKLY CHART FOR NIFTY



















DAILY RESISTANCE FOR NIFTY: 11000, 11050, 11100
PIVOT POINT:10900
DAILY SUPPORT FOR NIFTY :  10850, 10800, 10750
DAILY CHART FOR NIFTY

After an extended weekend, nifty started the week with a big gap down mainly on the back of escalated trade war between US and China over the weekend. Index then consolidated a bit throughout the first half but all of a sudden the selling momentum accelerated at the stroke of the penultimate hour which lasted till the closing point of the day. Eventually Nifty ended with a mammoth cut over 200 points on Tuesday. Tuesday’s sharp selloffs were followed by a muted opening on Wednesday; but immediately in the initial trade, the selling momentum resumed and we went on to sneak below the 10750 mark. Things started to look a bit intimidating but fortunately we saw good buying emerging at lower levels which continued for the remaining part of the day. This recovery was mainly provided by the easing political tensions in Hong Kong and hence we witnessed a rub off effect to conclude in the positive territory.  Thursday, we had a good head start for the day as index opened slightly higher on the back of positive global cues. However we couldn’t capitalize on this early morning lead. In the latter half, we not only wiped off all gains but also managed to slip slightly into a negative territory. Eventually the weekly expiry ended flat with no clear direction. Nifty managed to hold the 10,850 level and gradually extended its gains towards the 10,950 mark in Friday’s trade.
NIFTY: A STRONG SUPPORT WILL BE @ 10750; STRONG RESISTANCE LEVEL SEEN @11100
We still remain optimistic and expect the index to revisit 11200-11400 in coming days. For the coming week, 11000 followed by 11200 are the levels to watch out for in the upward direction and on the lower side, we expect 10750 to act as a sheet anchor. In case of any decline , traders should construe this as a good buying opportunity. It formed a bullish candle on the daily scale while Bullish Pin Bar on the weekly scale, which implied support-based buying interest has emerged in the market at lower levels. Nifty has started to form higher lows and supports are shifting higher. Now it has to hold above 10,850 to extend its bounce towards 11,050 and 11,100 levels, while on the downside supports are seen at 10855 and then 10775 levels.

Monday, April 15, 2019

RELCAPITAL & ICICIBANK TIPS;NIFTY VIEW FOR 16 APRIL'19


"BUY RELCAPITAL 180 CALL @ 8 TGT 10/12"
"BUY ICICIBANK 385 PUT @ 3 TGT 3.9/4.8"
Bulls are back in action & took nifty above 11700 but nifty close. Indices ended higher but off day's high on Monday with Nifty finished below 11700 level. At close, the Sensex was up 138 points at 38905, while Nifty was up 46 points at 11690.  Market took positive cues from Asian peers, where equities neared nine-month highs on easing of concerns about the US-China trade conflict.  Trade talks between the two countries were approaching a final lap, while strong Chinese export and bank loan data boosted confidence in the global economy.
The index formed a bullish candle on the daily scale and needs to hold above 11700 to extend gains towards 11800, and then 11900 -12000 zone. Overall setup and momentum is positive and a hold of recent zones could extend rally, while support exists at 11650 and then 11600 levels. It has been making higher top and higher bottom formation and supports are gradually shifting higher with medium term support at 11500. 
More about intraday tips on Google +
Resistance: 11800, 11900
Support: 11650, 11600

Thursday, April 10, 2014

MUST KNOW BEFORE TRADING IN NIFTY

  • The rupee had a down fall on Wednesday at the end of the day it closed  3 paise lower at 60.14 against the dollar ..
  • Trading of Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 11 points in morning session.
  • Down jones 181 points up  16,437
  • NIKKIE 98 points up  @14,398
  • HENG SENG 36  points up @22,880
  • Upcoming result : GRUH Finance Ltd.

Tuesday, April 1, 2014

KEYS TO TRADE IN NIFTY FOR TUESDAY

  • The rupee breached the 60-per-dollar mark for the first time in eight months on Friday
  • Trading of Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 20 points in morning session.
  • DOW JONES  134 points up @ 16,457.
  • NIKKIE 42  points  down  @114,785
  • HENG SENG 210 points up @ 22,361
  • Upcoming Results: Kitex Garments Ltd

Tuesday, March 18, 2014

MID-SESSION UPDATES FOR NIFTY

Nifty  trimmed gains after hit record high in early trade. The Sensex fell below the psychological 22,000 mark after hitting record high above that mark in early trade. The Sensex was up 188.51 points off close to 40 points from the day's high and up about 150 points from the day's low. The market breadth, indicating the overall health of the market, was strong. The BSE  was up more than 1%. Except the BSE IT index, all the other sectoral indices on BSE were in the green.

Wednesday, March 12, 2014

MID SESSION OF NIFTY

Market indicates initial volatility..The  Nifty was down 7 points or 0.11% to 6,504.90. The index hit a high of 6,516.90 in intraday trade.
as weakness in Asian stocks weighed on sentiment adversely. The Sensex was down 18.40 points up about 40 points from the day's low and off close to 50 points from the day's high. The overall health of the market, was positive.

Tuesday, February 11, 2014

MUST KNOW BEFORE TRADING IN NIFTY FOR 11/02/2014

  • The rupee on Monday erased initial gains to end 15 paise lower at 62.43 against dollar on fag-end demand of the US currency from banks and importers, amid a tepid stock market. 
  • DOW JONES closed 7  points up  closed @ 15
  • NIKKIE closed 255  points up closed 14,718
  • HENG SENG closed 250  points up closed @ 21,829
  • Results today : Dr. Reddy's Laboratories Ltd,.Tata Steel Ltd.Aditya Birla Nuvo Ltd.Hindustan Petroleum Corporation Ltd.GMR Infrastructure Ltd.

Friday, February 7, 2014

WORLD MARKET UPDATES FOR 07/02/2014

  • The rupee on Thursday appreciated by 20 paise to end at 62.37, its highest in two weeks, on positive trends in local equities and fresh dollar selling by exporters.
  • DOW JONES ended 188  points up  closed @ 15,628
  • NIKKIE closed 227  points up closed @ 14,382
  • HENG SENG closed 185  points up closed @ 21,608
  • The market may open higher on firm Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 43 points at the opening bell. Asian stocks rose on Friday as US jobless claims fell and investors weighed company earnings.

Monday, February 3, 2014

Market in down slide (03 FEB 2014)

HINDALCO put call given in Last Post achieved all Tgts.
"BUY YES-BANK IN CASH ABOVE 304 TG 308/312 SL 300"
Market in down slide, no recourse for positive traders. Complete Bear market Today. Bulls are trapped in cage key to which is 6120. The Nifty fell below the psychological 6,000 mark. The market breadth, indicating the overall health of the market, was negative. The Sensex was provisionally down 320.52 points or 1.56%, off about 285 points from the day's high. Except BSE Healthcare index all the other sectoral indices on BSE were in the red. Weakness in Asian and European stocks also dampened sentiment on the domestic bourses.
RESISTANCE:6120,6150,6175
SUPPORT:6072,6050,6027

Tuesday, January 21, 2014

MUST KNOW BEFORE TRADING IN NIFTY FOR 21/01/2013

  • In a dull and listless trade, the rupee on Monday lost eight paise to close the day at 61.62 against the dollar on demand for the US currency from importers.
  • DOW JONES ended 41  points up closed @ 16458
  • NIKKIE closed 230  points up closed @ 15,872
  • The market may open higher on firm Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 10 points at the opening bell.                                                                                                                                             To get free Nifty stock future and option tips enter your mobile number HERE 

Tuesday, December 17, 2013

WORLD MARKET UPDATE FOR 17 DEC 2013

RUPEE V/S DOLLAR
The Indian rupee eased by two paise to 62.14 against the American currency in the late morning trade on mild dollar demand from banks and importers on the back of higher dollar overseas. 

Wednesday, December 11, 2013

Thursday, August 29, 2013

NIFTY FUTURE TIPS FOR TOMORROW

Sell RPOWER future below 66 tg 64.50,62.20 sl 68.20
Buy HINDZINC future above 121 tg 124.50,127.90 sl 118.40
INFY call given in post achieved all targets.
NIFTY OUTLOOK FOR TOMORROW
Another pullback corrective rally happened  today. mostly due to the probable short covering that took  place on account of the August derivative settlement day today. Nifty managed to cross 5420 today. However, so long as the Nifty fails to take out the range between 5420 and 5460 supply zone decisively, we can’t expect further sustained upswing. This is going to be the acid test range for the bulls .....

Thursday, June 27, 2013

FREE FUTURE OPTION TIPS FOR 28-06-13

Buy Vijaya bank future above 44 tg 45.20,46.40 sk 42.80
Buy IDFC 115 put @ 2.50 tg 3.90,5.50 sl 1.20
NIFTY OUTLOOK FOR TOMORROW
Nifty lost 20 points  to 5682, its lowest closing level since 15 April 2013. The index hit a high of 5685in and  a low of 5645 in intraday trade. Short covering happened  in a big way considering today being the settlement day for June series of equity derivatives. Now, if we are to see any real strength the Nifty should not fall below 5680 after opening higher. The range between 5650 and 5680, potentially the most significant support area, after the index opens higher, should not be violated....

Saturday, June 8, 2013

NIFTY OUTLOOK FOR TOMORROW

Index dropped in choppy trade, with investor sentiment hit by a weak rupee. Nifty settle at 6-week low Nifty lost 40 point to 5,881, its lowest closing level since 26 April 2013. The index hit a low of 5,871 in intraday trade. The index hit a high of 5,972 in intraday trade, its highest level since 4 June 2013. Initially, the critical range for the day is located between 5880 and 5850. Next important resistance zone 5900 -5930....

Thursday, June 6, 2013

NIFTY OUTLOOK AND OPTION CALLS FOR TOMORROW

Buy ICICI BANK 1200 call @ 18 tg  26,37 sl 10.50
NIFTY OUTLOOK FOR TOMORROW
There was not a good start of the day, nifty managed to gain pace once again crossed and sustained  5900  and ended at 5926 today.In case, you see any recovery monitor the level 5940 acting as the first line of resistance....

Friday, May 31, 2013

FUTURE TIPS AND NIFTY OUTLOOK FOR MONDAY

Buy Wipro future above 328.40 tg 332.5,337 sl 324
Sell HDIL future below 40 tg 38.20,36.40 sl 41.90
NIFTY OUTLOOK FOR TOMORROW
The May series of derivatives has ended quite strong with the Nifty posting a close above the 6100-mark. The June series began  today nifty was not able to maintain level 6000i.e. the series started not with very positive indications For the day, we need to monitor the support range between 6100 and 6090 unless this zone is violated on large scale selling, the bulls need not worry so much, at least for now....

Tuesday, May 28, 2013

NIFTY OUTLOOK AND FUTURE TIPS FOR TOMORROW

Buy Hindalco future above 110 tg 112.90,115.40 sl 107.20
NIFTY OUTLOOK FOR TOMORROW
Nifty was up 99.60 points to 6,083.  The index hit a high of 6116 and a low of 6060 in intraday trade. Major gainers in the Nifty were Hero Motocorp , Jaiprakash Associates , BHEL , Coal India and Mahindra and Mahindra , up between 3 to 6 percent.....

Wednesday, May 8, 2013

BULLS GET ANOTHER WEDNESDAY WIN:MAY CONTINUE TOMORROW

Buy IDFC 160 call @ 3.50 tg 6.30,9.59 sl 2
Bank Nifty call given yesterday almost achieved first target.
NIFTY OUTLOOK FOR TOMORROW
Bulls are in action now,as we have stated in last post nifty opened and sustained above 6000. The Nifty closed at 6069.30, up 25 points over the previous close. With today’s rise, the Nifty has gained 575 points or 10 percent over the last month. Tomorrow  we expect a gap up opening in the market above 6060 Nifty level....