Pre Market Report, February 8, 2018 | Stocks and Commodities

February 8, 2018
Time: 8.40 am

February 8, 2018:

1. Now there is no meaning in writing this blog.
2. Everyday we will be moving as per US market direction.
3. Day before yesterday, US markets closed positive, so we opened 100 point gap up yesterday.
4. Then after our markets opened, Dow future started falling, so we fell 175 points from intraday high.
5. Again yesterday night US markets were higher at open, so SGX Nifty shot up by 175 points.
6. Again US markets fell in the last half an hour of trading, so now SGX Nifty is only 50 points higher.
7. This volatility is going to kill all the traders.
8. It is better to keep away from markets if we do not have positions.
9. Daredevils can make huge profit in this volatility.
10. Yesterday Bank Nifty 24400PE was trading around Rs 15. Just 1 day to expiry, we are getting such a good premium.
11. I bought Bank Nifty weekly expiry 24600PE (Rs 23) and then sold double the quantity of 24500PE (Rs 18), 24400PE (Rs 15) and 24300PE (Rs 12).
12. Today I am expecting very good profit in this strategy.
13. Monthly options are trading at unbelivable rates.
14. Bank Nifty monthly option, 23300 strike, the least strike available for trading, is trading at Rs 60. That too there was buyer at Rs 60 and no seller.
15. March Nifty 8000PE is trading at Rs 6.
16. So it is time to sell far out of money options to make decent return.
17. Those who have some fear, can go for ratio spread.
18. Somehow I feel markets are going to stabilise and expecting Volatility to subside.
19. So yesterday, I bought Nifty 10700PE and sold double the quantity of 10500PE.
20. As long as Nifty is not breaking 10300 and Bank Nifty 25000, both panic lows on Monday, I am expecting markets to go sideways with huge volatility.
21. I will go short if these levels are breached.
22. No point in talking about FII selling, DII buying, etc. as things change within hours.