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Subhadip Nandy

@SubhadipNandy16

Sep 26

Did not do one of those lengthy technical threads for a long time. So here we go :

Intraday straddle/strangle selling 101 : The basics

( for someone experienced , all these points are known. But facing these simple questions on Twitter, so tried to give a simple overview. If I am wrong in any point or have missed something, please point that out and I will rectify / add )

Intrinsic Value
Intrinsic value is the amount by which an option is in-the-money (ITM). It represents the real, tangible value of the option if it were exercised right now.

🔹For a call option, intrinsic value is calculated as:
Intrinsic Value=Current Stock Price−Strike Price
For example, if the stock price is Rs. 135 and the strike price is 100, the intrinsic value is 35

🔹For a put option, intrinsic value is:
Intrinsic Value=Strike Price−Current Stock Price
If the stock price is Rs.135 and the strike price is 150, the intrinsic value is 15

If an option is out-of-the-money (OTM), its intrinsic value is zero because exercising it would not be profitable

Extrinsic Value
Extrinsic value (also known as time value) is the portion of the option’s price that exceeds its intrinsic value. It accounts for the potential for the option to gain value before expiration due to factors like time remaining and volatility.

Time Value: The longer the time until expiration, the higher the extrinsic value, as there’s more opportunity for the underlying asset’s price to move favorably.

Implied Volatility: Higher volatility increases extrinsic value because there’s a greater chance of significant price movement.
For example, if a call option has an intrinsic value of Rs.15 and is priced at rs.20, the extrinsic value is Rs.5.

Option Price
The total price (premium) of an option is the sum of its intrinsic and extrinsic values:
Option Price=Intrinsic Value + Extrinsic Value

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Subhadip Nandy

@SubhadipNandy16

Jun 25

Here is the link for tomorrow :

Will show Nifty and BankNifty charts, best if one sees on a laptop/computer screen to see the layout. Mobile apps seems to show only one chart. Change background to black to see the SL lines.

I will be off markets tomorrow, so cannot answer any queries in realtime.tradingview.com/chart/HpnI5PSs/

Options Analyser analyses the whole option chain and shows Bullish or Bearish. Deep blue bars hitting > 96 is strongly bullish. Deep red bars <-96 are strongly bearish.
Value above 68 bullish , below -68 bearish.

Values between -68 and 68 are neutral/congestion .

Buy or Sell signals gets generated based on AVWAPS, shows entry point and SL .
There is another signal shown and P_Buy or P_Sell. That's a pullback buy or pullback sell , generally much more accurate than a normal buy/sell

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Subhadip Nandy

@SubhadipNandy16

Mar 16

Positional analysis on Nifty. These are just pointers from charts and indicators which should be kept in mind for the rest of this March expiry

Negative divergence on RSI and MFI
Volatility divergence on Bollinger Bands
MACD is sell signal, raw MACD line sloping down

Breakdown of trendlines on price supported by breakdown on trendlines of RSI and MFI.

Read 8 tweets

Subhadip Nandy

@SubhadipNandy16

Mar 14

Nifty puts added OI from 22000-22000 which is normal as Nifty went up, so is the cut in the 22k ce OI.
What is abnormal is the cut in 22500pe, that should have added OI by the same logic.
So we now watch two strikes :
Nifty bullish if 22500pe trades below 310 and 22000pe trades below 80.

Nifty bearish if 22500pe trades above 392 and 22000pe trades above 150

On BNF , two strikes stand out. The addition on the 47k ce ( thrice that of 47k pe) and addition in ITM 46500ce.

So we will watch these two strikes
BN bullish if the 46500ce trades above 1175 and 47000ce trades above 870
BN bearish if 46500ce trades below 850 and 47000ce trades below 580.

What's very interesting is the OI behavior on the 46500ce , the sellers kept on selling even when BN went up without any fear.

Makes me say they know something which makes BN much more bearish than NIFTY

Last but not the least, my standard template on eod charts.
Make your own inferences, important to keep the broader picture in mind.

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Subhadip Nandy

@SubhadipNandy16

Oct 4, 2023

BankNifty had an almost 28% increase in COI today. This COI increase in a large range day ( up or down) would have been justifiable, not in a range day like today. The only logic can be the coming RBI MPC meet from which someone is expecting something very very big

So I went back for the last couple of years and tried to check how BN behaves after such and increase in COI

Then went through the bhavcopy to check which month has seen the increase ( will give an idea / confirmation about these players when they are expecting the event). It's Oct expiry, so this is a near term game

Read 6 tweets

Subhadip Nandy

@SubhadipNandy16

Jan 23, 2023

Thanks to everyone who enquired about my well being. For the last almost 2 months, suffering from probable long covid symptoms.

1. I am a type 2 diabetic. Sugar etc was always under control. Now sugars, cholesterol etc have all shot thru the roof. HBA1C at 9 , ACR is 130

2. Joint pains at shoulder , xray-usg-mri does not find any physical reasons

3. Huge fatigue. Getting out of bed or going out is a chore.

4. Problems with short term memory. I am forgetting certain things , have been pointed this out by my near family members, I did not realise this myself. This is actually pretty scary.

5. Abcesses/styes out of nowhere ( one was solved by a twitter doc friend)

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