Nifty Falls 90 Points, But Why Was The Selling Not Aggressive?

Nifty Falls 90 Points, But Why Was The Selling Not Aggressive?

Amplify Trading Academy  | Jun 12, 2019 17:30

India’s benchmark Nifty fell 90 points intraday after a gap down opening in the morning. The important question is, why was today’s selling not aggressive despite the presence of institutional sellers in the market?

Why Was Today’s Selling Not Aggressive?

The answer to this unique phenomenon lies in the gamma imbalance in the Put options caused by the surprise 200 points fall on the 1st day of the June contract. Today, the 3D Delta System captured the institutional seller entering the market in the morning after the gap down opening. It also indicated that the downside target for the institutional seller was around 11852. So why did the market bounce back 25 points ahead of the downside target?

Nifty Options Data

Why Nifty Bounced Back Ahead Of The Target?

Although institutional traders always set a time and target before entering the market, they manage their positions intelligently to negotiate the threat of theta decay as time passes by. We all know the adverse correlation between the price of an option and its theta decay. Today, the 3D Delta system indicated that the institutions waited till 1 pm today keeping in mind the existing gamma imbalance in put options and the implied volatility of the designated option strike. Thus positions were squared off at 1:15 pm, above the downside target of 11852 approx.

Today’s Trade Execution

At Amplify we never predict the market; we trade if institutional traders enter the market. It gives us the edge over the rest and provides extreme levels of accuracy. To test the accuracy of the 3D Delta System, we bought the 11800 Put @ Rs.72 today after the institutional sellers entered the market in the morning. The downside target was set at 11852. The position was booked alongside the institutional seller. Put options were squared off around 1:10 pm at @ Rs.87.

Nifty Trade In 11800 Put Option

ORIGINAL POST

Amplify Trading Academy

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Shankar Shanmugam
Shankar Shanmugam

How do we  know when institutional traders enter or square off?  ... (Read More)

Jun 12, 2019 15:46 GMT· 1 · Reply
Prashant Wani
Prashant Wani

how to reach you?  ... (Read More)

Jun 12, 2019 15:17 GMT· Reply
Ankur Sharma
Ankur Sharma

I can write better article after seeing whole market movement and justify it with post market stats  ... (Read More)

Jun 12, 2019 15:11 GMT· Reply
Kamlesh Jha
Kamlesh Jha

Do you give any suggestions on nifty??  ... (Read More)

Jun 12, 2019 13:26 GMT· Reply
Kamlesh Jha
Kamlesh Jha

Do you give any suggestions on nifty??  ... (Read More)

Jun 12, 2019 13:26 GMT· Reply
deepak yadav
deepak yadav

how you calculate gamma Vega covariance for neutrality?  ... (Read More)

Jun 12, 2019 13:07 GMT· Reply
LIJEESH KRISHNA
LIJEESH KRISHNA

how you knows Institutional traders entering market?  ... (Read More)

Jun 12, 2019 12:43 GMT· Reply
Krishnandan Thakur
Krishnandan Thakur

3 point down is not gap down opening.   ... (Read More)

Jun 12, 2019 12:39 GMT· Reply
mariyappan cm
mariyappan cm

tomorrow which side move sir  ... (Read More)

Jun 12, 2019 12:27 GMT· Reply
Shailesh Kumar
Shailesh Kumar

great  ... (Read More)

Jun 12, 2019 12:27 GMT· Reply
mariyappan cm
mariyappan cm

tomorrow which side move sir  ... (Read More)

Jun 12, 2019 12:27 GMT· Reply
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