MAY-2014 EXPIRY OPTIONS BUILD UP & EXPIRY TRADING IDEAS

May has been an extremely volatile and a big month for the markets and hence it will be keenly watched by option players to see where it tends to close from here. With two days to go for expiry we thought to bring up some interesting statics on the data for this month.

First a look at the options build up for May. As the graph suggests that the maximum buildup of options  is in the 7400 & 7500 range for CE. This indicates as serious resistance and more or less confirms that markets wont be pulling back above those levels in the next few days.

This is inline with our other analysis last week  where we had clearly marked that 7550 would be a big hurdle for the markets and in the last two sessions markets have exactly retraced from there.

On the downside option build up support emerges at much wider band of 7000-7200 levels and hence not much conclusion can be derived for a definitive levels.

Now also a look at the INDIAVIX Charts. INDIAVIX is currently in the consolidation band and faces serious hurdle at 25 levels and support at 13-15 zones. This would largely mean that volatility may further consolidate and hence markets may continue to remain in the wide band of 7200-7400 for a while.

So what would be the option trades for this expiry, we would say look for a pullback options opportunity from 7200 levels on the downside and 7400 on the upside.

We will also post an updated analysis on the morning of expiry day as well on the facebook page. Stay tuned

INDIAVIX combined with the option OI can potentially offer some great trade set ups in the markets. For both writers and option buyers.

NIFTY Options OI Data-27- May-2014

This is inline with our other analysis last week  where we had clearly marked that 7550 would be a big hurdle for the markets and in the last two sessions markets have exactly retraced from there.

On the downside option build up support emerges at much wider band of 7000-7200 levels and hence not much conclusion can be derived for a definitive levels.

Now also a look at the INDIAVIX Charts. INDIAVIX is currently in the consolidation band and faces serious hurdle at 25 levels and support at 13-15 zones. This would largely mean that volatility may further consolidate and hence markets may continue to remain in the wide band of 7200-7400 for a while.

So what would be the option trades for this expiry, we would say look for a pullback options opportunity from 7200 levels on the downside and 7400 on the upside.

We will also post an updated analysis on the morning of expiry day as well on the facebook page. Stay tuned

INDIAVIX combined with the option OI can potentially offer some great trade set ups in the markets. For both writers and option buyers.