NIFTY 17TH OCTOBER OPTION BUYING SETUP

 OPTION BUYING SETUP FOR NIFTY OPTION BUYERS


17TH OCTOBER NIFTY CHART.

NOW WHEN YOU SEE THIS DAY CHART OF 17TH OCTOBER, YOU WILL NEVER BUY OPTIONS ON THIS DAY, AS YOU CAN CLEARLY SAY, ITS RANGE BOUND DAY AND COMPLETELY DOMINATED BY SELLERS. 

BUT HOW YOU CAN PREDICT THIS WITH FIRST CANDLE IN THE MARKET.


ALSO YOU can see that first candle is very big red candle, you will get tempted to buy put options and this is trap by option sellers, retail traders loose lot of money on such days, this is due to time decay. 


now when you see strike price chart, this will help you. also volume plays important role here.


as per 1st 5 min candle.

call strike is 19850  and put strike price is 19800


now see 19850 chart below

buying at 102 and stop loss at 90. here you can see 1st candle high is 117. so difference is just 15 points. so instead of buying at 102 wait for volume to form, then enter the trade. you will see it went till 122 and then again came down and sl got hit. so instead of just buying without volume, let the setup form.  market going up but volume is missing, in that case ignore trading. if market has to go up, then 1st candle volume bar should get passed with big volume bar, with candle at 102 or 110 etc and hat gives indication, its going up. in this case, that never happened.




NOW SEE PUT OPTION STRIKE PRICE CHART


19800 strike price put chart.

in this chart buying is 107 and stop loss is 97. but volume bar is very small. now at 1:35pm  i have marked with blue arrow, you can see low is getting crossed with little bit of volume, here you can buy with target of 131. it reached till 140, but you exit at 131, as its very low trading day.

also keep that volume bar in your range. premium came down from there



but next day, when this volume bar got breached with another high volume bar, see what happened here. this will help you understand.

i have marked the volume chart with two blue arrows. 1st on 17th October and next on 18th October, here on 18th volume increased and you will see from 131 it went till 190. so if your sl hit on 17th dont over trade, wait for next day, if volume is increasing on that same premium price you can enter the trade will small sl. always keep sl. dont be in trade without sl. let the sl get hit, you will get next setup later. 


PLEASE NOTE, BEFORE READING AND SEEING THIS STRATEGY, MAKE SURE THIS IS JUST FOR EDUCATION PURPOSE. I AM NOT SEBI REGISTERED. IT’S NOT CALL OR PUT BUYING ADVISE. 

I AM JUST SHARING MY VIEW. IF YOU LIKE IT. YOU CAN FOLLOW. PLEASE BACK TEST AND DO YOUR OWN RESEARCH, BEFORE ENTERING REAL TRADE. OPTION IS VERY RISKY, SO DON’T FOLLOW ANYONE, BLINDLY. DO FULL PRACTICE AND KEEP PROPER STOPLOSS AS PER YOUR RISK.

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