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

[columbus]

StatusQuo as effective region continues to be 4600~4900.
Tomorrow we can expect some fireworks in any side depending upon the
inflation numbers as it is going to be Inflation Day.

 

[columbus]

Hardly 61 points movement seen today.PUTS and CALLS have added maximum
20 % of previous close.

 

[DanPickUp]

StatusQuo as effective region continues to be 4600~4900.
Tomorrow we can expect some fireworks in any side depending upon the
inflation numbers as it is going to be Inflation Day.

IV on the put side is much higher compare to the call side. What does the put call ratio show?

 

[columbus]

IV on the put side is much higher compare to the call side. What does the put call ratio show?

Yeah ,that is correct.In CALL window ,we have around 30M shares versus
40M in PUT side.(Approx).Basically the bias continues to be NEGATIVE.

 

[adityasaraf007]

Put Call Ratio:

 

[sunny_cool]

Linkon Sir......Kahan Tum Chalay gaye

 

[LivetoTrade]

Yeah ,that is correct.In CALL window ,we have around 30M shares versus
40M in PUT side.(Approx).Basically the bias continues to be NEGATIVE.

Options are best written, so do we assume that the number of Puts being shorted is higher?

PCR has increased compared to past 2 days.

 

[LivetoTrade]

IV on the put side is much higher compare to the call side. What does the put call ratio show?

Earlier in the week, CEs had an IV between 20 to 25%, and the PEs had it between 32 to 45%.

I may be mistaken in my observation, and have not reached the books yet to read about it, but have noticed, that the market waits for the IV to go well below 30% before it moves in that particular direction.

 

[LivetoTrade]

4800 Put :
Here is a screen-shot of the historical data.

Was priced at 261, and I assume it was shorted anticipating the market upmove.

Note, on Dec 27th price was at 119, and turn-over is high, so assumption is that some of them were covered.

Today, Jan 4th, price touched low of 112.7, turn-over is high, and price has closed well not just over the day-low, but also in positive.

 

[DanPickUp]

Options are best written, so do we assume that the number of Puts being shorted is higher?

No.

Put call ratio doe's not talk in details about how many options are sold or bought. Just the volumes which are traded in calls and puts.

And by the way: What doe's that mean: Option are best written?