NIFTY Options trade : Why and what-if...

[adityasaraf007]

Please go through this post by Linkon Sir......

Here he has mentioned that big players are generally considered as Option Sellers..... and if there is huge OI buildup in particular contract it is safe to assume that big players have shorted that contract.....

Hence, if there is huge OI addition in 4700 Put, it is safe to assume that this level is secured for now and it would act as a good support and markets should move up..... Similarly, if there is huge OI addition in 5200 Call, it is safe to assume that this level is going to provide a strong resistance and markets should be contained within this level for time being......

Hope this makes some sense....

 

[trade4joisar]

Truely speaking i was not interested much in options.

Based on options, analysis people are doing to see where market is going is really good.

It will be great if seniors can write in brief daily on how market reacts tomorrow based on options strategy changed yesterday.

 

[timepass]

So, 4700PE is still the topper. 5100CE and 5200CE are also showing added interest. The month (December) began at 4970. If past performance is repeated, we should close December above this level.

 

[adityasaraf007]

So, 4700PE is still the topper. 5100CE and 5200CE are also showing added interest. The month (December) began at 4970. If past performance is repeated, we should close December above this level.

Wow!!!! If we have to go by Change in OI........ As Paul Sir said, "We are heading South big time and the move is going to be very fast"......

Addition to both 5100CE and 5200CE is over a million with 4900CE and 5000CE not lagging much behind........ And the scenario is opposite in case of Puts.....

God save Nifty

 

[timepass]

It's a long series. Enough time left for nifty to travel twice between 4700-5100, lowering the averages till it enters the "Greater fool zone" or upper BB.

Another thought, Nifty touched its 100MA today.

 

[adityasaraf007]

It's a long series. Enough time left for nifty to travel twice between 4700-5100, lowering the averages till it enters the "Greater fool zone" or upper BB.

Another thought, Nifty touched its 100MA today.

How about it traveling that range many times during a day ........ Won't that be exciting...... I am waiting for it.....

 

[PGDIMES]

How about it traveling that range many times during a day ........ Won't that be exciting...... I am waiting for it.....

hilarious... outrageous... incredible... :lol::lol::lol: :rofl::rofl::rofl:

 

[prst]

So, 4700PE is still the topper. 5100CE and 5200CE are also showing added interest. The month (December) began at 4970. If past performance is repeated, we should close December above this level.

Hi,
I have a query here.
Can you please explain the significance of negative OI.
As we see that 4700 PE has OI of - 60,900.

thanks in advance..

 

[PGDIMES]

Hi,
I have a query here.
Can you please explain the significance of negative OI.
As we see that 4700 PE has OI of - 60,900.

thanks in advance..

Simple explanation is - Covering...

But near expiry, it might be to get more 'bang for the buck' by writing the meaty (but low probab.) strike prices and getting out of strikes which have become lifeless...

 

[timepass]

Hi,
I have a query here.
Can you please explain the significance of negative OI.
As we see that 4700 PE has OI of - 60,900.

thanks in advance..

That column is actually "change in OI" column.