This Rule is for those who want to Trade naked Options and what Strikes to Choose. The Rule is very simple. Choose the Strike where the Volume is Greater than COI. Make sure the Volume and COI is positive.
For Example if you look at 15-OCT-13 Data, you will notice that 5900 PE had two times volume than the 5900 PE COI. And when the market came down yesterday, 5900 PE would have given the MAX Profit. On the CE side 6200CE had 110% volume compared to COI and it would have given more profit compared to any other strike in terms of SELL.
So on 15-OCT-13, the ideal Candidate for BUY was 5900PE and the ideal candidate for SELL was 6200CE. So when there is not candidate with Volume greater than 100% of the COI, indicates that it is a FLAT market and it is better to avoid any naked options.