crazy gap down, simple expiry.

2022年1月6日

What an expiry today, with interest rate fear taking nifty down. Look at the chart. There was a huge gap between the opening and the consolidation. Looking at the nifty 5 minute chart, there is a strong upward trend, supporting 50 EMA. Every time the Nifty is at the 50EMA,  good buying activity. At one point, it indicated that it was about to cross the 18000 mark. But as we saw, the channel was created with respect to Nifty, and yesterday it was above the line at 18,000. Price action is at an important level, and profit booking may begin from there. I was expecting that. In the coming days as well, I will closely watch the 18000 level. If it tests again, rejects, or consolidates below the level, it might break out from there again. But with a positive global clue, it's hard to bark at the 18000 level. Keep an eye on FII DII activity. If FII starts buying and DII is still buying, but if DII starts booking their profit, the power of the nifty might slow down. Let's keep an eye on all these activities.

When it comes to my weekly option selling this week, I am in the green. But I haven't booked the loss for the 13th expiry (17300 PE). If I book the losses, my net profit and loss will be close to 2%. This 50EMA buying activity helped me to get out of huge losses this week. And I had 17650 PE and my 13th expiry (17300 PE) yesterday. I booked other positions with Profit. Because I was expecting a retest, I took this safe position. The day began with a gap down, which allowed me to exit with a good profit. On the PE side, there is a premium spike, and there is a massive spike on the 17550, 17600, and 17650.
My plan for the 13th expiry (17300 PE) is to sell anything above it with a good premium to minimize the losses. I will keep adjusting on my call side as well. I hope I can manage a 2% loss while trying to keep the net P & L green.