31st August 2020 – today we saw selling across the board. Nothing was spared. The new rule by Sebi spooked the selling.
What’s important now for a trader? Find strength/weakness in markets – as always. Days like these are really important to filter stocks. There are various methods to check strength in a stock. Today i’ll touch upon 1 more way – find stock options where the underlying was negative but the Call option closed in positive. Further you may create other combinations also.
1.Go to Myfno Options/option page.
2.Create filters – Delta >0 ; Spot <0 ; option price >0.
3. the higher the number of strikes the better your output.
1.See for any pending /upcoming published announcements(SC cases, results – rise in volatility may cause this scenario to develop)
2.It’s just another filter for your watchlist – see the underlying price action the following session to arrive at conclusion(sometimes the options gets sold in the first half of next day).
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