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Welcome to…

Trading Index
Options via Data
Analytics

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Section 4
Index Straddle charts

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Each Section of chart explained
Header- dynamic and displays current value of Future with color coding-
1 “Amber” means Index is negative from previous day and “Blue” indicates
Index is positive from previous closing.

Body- Straddle pricing status

• Figures in Green background pricing at 09:25
• Figures in black background- Current price of straddle
• Prices of Calls and Puts individually
• Strike price and figures in bracket- prices at 09:25 for easy readability
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Interpretation of chart-
Index Straddle Chart
Indicates “bearish” view as all straddle at 16000 and below are
profitable. As we saw in the previous slide, Nifty was sliding down
Nifty Straddle stats – 15th July at 12:53 PM after opening gap up and Straddle prices indicated the same.

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Observation and Trading Views

Interpretation of chart-

At end of day all Straddles 16000 and above became profitable,

indicating upward shift in Nifty.

Future was trading at 16076 by close, up 100 points from 15978 at

12:53 PM.

The move up was also confirmed by other indicators as seen in

previous slides.

Index Straddle Chart

Nifty Straddle chart at EOD- 15th July’22

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Nifty Straddle Chart in Action for full day
Observation-

• Nifty Future and straddle pricing movement-

• ATM and below straddles were profitable till about 13:00 .
• As Nifty was attempting move up and touching level of 15970-15980, upper
strike straddles were getting into profit .
• Post 13:30-14:00, when up move came and Nifty broke ATP after showing
resistance at 1st Retracement- upper strike straddles became profitable .

Outcome-

Following can be interpreted by Straddle pricing chart and it’s movement is

about 80% accurate. Combined with other indicators it is a confirmation of
expected movement:
• When ATM and below straddles are profitable, Index is “ Bearish”
• When ATM and above straddles are profitable, Index is “ Bullish”
• When both sides (above and below ATM) are profitable, Index is “ Sideways”
and directional bet should be avoided till there is any confirmation
Index Straddle Chart

Nifty Straddle chart at EOD- 15th July’22

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Recap- Nifty movement on 15 th July’22

Index Straddle Chart

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Nifty Straddle Chart- 29 th July’22
Observation-

• Both side straddles were profitable with some higher profitability seen in
Upper strikes
• Nifty remained range bound for a large part of the day in IB range and broke
out at fag end of the day.

Index Straddle Chart

Nifty Straddle chart at EOD- 29th July’22

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Nifty movement- 29 th July’22
Observation-

• Nifty was not breaking 1st retracement at 17145 which was also 15 min high.

• We were waiting for breakout of this level (BNF was weak hence
confirmation was required).

• All other data metrics were positive and pointing at Nifty being strong.

Nifty Movement

Nifty Straddle chart at EOD- 29th July’22

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Updates shared on Telegram Private Channel- 29th July at 12:23

Failure of 1st Breakout

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Updates shared on Telegram Private Channel- 29th July at 12:23

Breakout in last 30 mins

Testimony post market hours

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