Option Pain Analysis - Jan

The option Pain for the month of January '10 is at 5100 as of 25-Jan. 3 more days to go for the expiry. In fact the Option Pain was at 5100 since 22-Jan. So I have not taken any short position when the nifty was trading below 5000 and the overall sentiment was bearish. The market may attempt to move towards 5100 on wednesday or thursday.

I have not taken any position this month based on Option Pain as the market resembles the October month where it fell nearly 10% in the last week. Instead I will use this as a guide to take position. I am waiting for nifty to trade near 5100 level to initiate short position. Lets wait and see whether we will get that level.



Thanks