We are in super bullish market. And no second thought on it. But there is some feeling coming that WILL THE UPMOVE CONTINUE TOMORROW ??
So Let me see how I plan for tomorrow.
We will start with 39500CE and concentrate on our trade on 39500 strike and straddle !!
So Let me see how I plan for tomorrow.
We will start with 39500CE and concentrate on our trade on 39500 strike and straddle !!
39500CE tried hard throughout the day to cross morning high of 155 but failed and in last one hour, it did went above 155 to hit a high of 170 and then close at 141. Notice one more thing in 39500 straddle. It was downward slopping one and closed at the lowest point of the day.
CMP at 440, giving a range of 39500+440 = 39990 and 39500-440 = 39060.
So anyone who sold this straddle, today will not panick till 40000/39000 is holding tomorrow.
Now see the below OI change table for tmw expiry. 39500CE seen unwinding while 39500PE was written.
So anyone who sold this straddle, today will not panick till 40000/39000 is holding tomorrow.
Now see the below OI change table for tmw expiry. 39500CE seen unwinding while 39500PE was written.
But here one thing is creating confusion in my mind. This CE shown a unwinding of 3 lk contracts today and still the CE did not closed at high and for this reason I am expecting a choppy day tomorrow.
Also this straddle is holding the highest VALUE AT RISK today EOD.
Also this straddle is holding the highest VALUE AT RISK today EOD.
For me this 39500CE will be a buy above today high with SL at VWAP or 152(whichever is higher) . But better trade will be to buy next week ce and sell this week ce with defined risk.
See data is bullish, everyone is bullish and this is the reason I am cautious.
See data is bullish, everyone is bullish and this is the reason I am cautious.
I USED THE WORD "CAUTIOUS" AND NOT "BEARISH"
Trade Responsible
Trade Responsible
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