PUT and CALL options

[columbus]

Re: NOV.14 nov-series day.9 NIFTY=6056 (66)

Average Open Interest (Today) as shown ... CALL side: 155 K [previous:531 K]
Average Open Interest (Today) as shown..-.. PUT side: 98 K [previous:241 ji




Can anyone please brief on what exactly this Average open interest ( today), (yesterday), How its calculated and interpretations.

or please give the link where Columbus ji explained it.

thanks.

In OI-TODAY column ,BARS were shown in some strikes.Average of these value gives AVG.open interest.More the open interest means more likely the movement
that side.For comparison sake ,giving Previous day's values also.

For the first time ,I am testing like this.So, one comparison does not make it
fool-proof.In fact ,going wrong makes me ,to study it better.I hope you understand.

 

[columbus]

NOV.18 nov-series day.10 NIFTY=6189 (133)

The EXPECTED zone is at (6000~6300) for FOURTH day.
A bit strange even after a strong UP movement.






Total strikes in CALL window: 5+2 (penny) [Previous:4+4 (penny)]
Total strikes in PUT window : 4+6 (penny) [Previous:6+4 (penny)]




Average Open Interest (Today) as shown ... CALL side: -515 K [previous:155 K]
Average Open Interest (Today) as shown..-.. PUT side: 1236 K [previous:98 K]

(After deleting PENNY Strikes ,if any.Because they adversely affect the values.
Strikes above and below the CURRENT position are taken ,as shown)


Yellow box indicates Open Interest over 500k.
GREY box indicates Open Interest over -500k.

Current position is indicated.

Lot of unwinding was seen.Closed all my CALLS.
A strong likely DOWN movement is indicated.Let us see.

 

[mohan.sic]

Re: NOV.18 nov-series day.10 NIFTY=6189 (133)

The EXPECTED zone is at (6000~6300) for FOURTH day.
A bit strange even after a strong UP movement.






Total strikes in CALL window: 5+2 (penny) [Previous:4+4 (penny)]
Total strikes in PUT window : 4+6 (penny) [Previous:6+4 (penny)]




Average Open Interest (Today) as shown ... CALL side: -515 K [previous:155 K]
Average Open Interest (Today) as shown..-.. PUT side: 1236 K [previous:98 K]

(After deleting PENNY Strikes ,if any.Because they adversely affect the values.
Strikes above and below the CURRENT position are taken ,as shown)


Yellow box indicates Open Interest over 500k.
GREY box indicates Open Interest over -500k.

Current position is indicated.

Lot of unwinding was seen.Closed all my CALLS.
A strong likely DOWN movement is indicated.Let us see.

Columbus ji,

Average Open Interest (Today) as shown ... CALL side: -515 K [previous:155 K]:
& Total strikes in CALL window: 5+2 (penny) [Previous:4+4 (penny)]

It means -515 k is the SUM of change in OI for 7 strikes in todays data ( considering both positive and negative changes in OI)

and same way for puts 1236 k is the SUM of change in OI in 10 strikes.

And you said interpretation is: More the open interest means more likely the movement that side. For comparison sake ,giving Previous day's values also.

Does above idea mean that as Put OI is more than call OI, market is more likely to be negative for next day ? or should the comparison be done between todays data and yesterdays days ( todays avg oi in calls to previous avg oi in calls ). In that case, how ?

And lastly you said: Lot of unwinding was seen. Closed all my CALLS.
A strong likely DOWN movement is indicated. Let us see.

Today market is positive with otm calls unwinding and all puts adding OI. How do you read this. you read this as popular way of interpreting OI.. market up but calls Oi decresing and puts Oi increasing, hence market move is weak and may turn down. OR you see it the other way ( from call writers point of view) .

thank you.

 

[columbus]

Re: NOV.18 nov-series day.10 NIFTY=6189 (133)

Columbus ji,

Average Open Interest (Today) as shown ... CALL side: -515 K [previous:155 K]:
& Total strikes in CALL window: 5+2 (penny) [Previous:4+4 (penny)]

It means -515 k is the SUM of change in OI for 7 strikes in todays data ( considering both positive and negative changes in OI)

and same way for puts 1236 k is the SUM of change in OI in 10 strikes.

And you said interpretation is: More the open interest means more likely the movement that side. For comparison sake ,giving Previous day's values also.

Does above idea mean that as Put OI is more than call OI, market is more likely to be negative for next day ? or should the comparison be done between todays data and yesterdays days ( todays avg oi in calls to previous avg oi in calls ). In that case, how ?

And lastly you said: Lot of unwinding was seen. Closed all my CALLS.
A strong likely DOWN movement is indicated. Let us see.

Today market is positive with otm calls unwinding and all puts adding OI. How do you read this. you read this as popular way of interpreting OI.. market up but calls Oi decresing and puts Oi increasing, hence market move is weak and may turn down. OR you see it the other way ( from call writers point of view) .

thank you.

Hi mohan,

Average Open Interest (Today) as shown ... CALL side: -515 K [previous:155 K]:
& Total strikes in CALL window: 5+2 (penny) [Previous:4+4 (penny)]

It means -515 k is the SUM of change in OI for 7 strikes in todays data ( considering both positive and negative changes in OI)

and same way for puts 1236 k is the SUM of change in OI in 10 strikes.

Earlier ,I used to take CALL & PUT windows into consideration.
It is leading to erroneous calculations because strikes above & below CURRENT
strike ,the open interests are OFTEN in different signs ,thereby nullify
each other.Hence calculation is bit changed like this.(YESTERDAY)

CALL side = (-343,800-687,650)/2=-515k
PUT side=(1,334,750+1,477,800+896,300)/3=1236K

For easy reference BLUE BOXES are indicated. Our interest is confined to EXPECTED
ZONE only, because in this only the Option's cost tend to be HIGH.Yesterday it so
happened that YELLOW boxes were prominent ,making a bit confusing.

As far as interpretation is concerned ,it is too early to comment.

YOU CAN UNDERSTAND IT BETTER IF YOU FOLLOW THIS THREAD ALSO BankNifty PUTs & CALLs.

 

[columbus]

NOV.19 nov-series day.11 NIFTY=6203 (14)

The EXPECTED zone has condensed to (6100~6300) from (6000~6300).



Total strikes in CALL window: 3+3 (penny) [Previous:5+2 (penny)]
Total strikes in PUT window : 3+6 (penny) [Previous:4+6 (penny)]




Average Open Interest (Today) as shown ... CALL side: 295 K [previous:-515 K]
Average Open Interest (Today) as shown..-.. PUT side: 919 K [previous:1236 K]

(After deleting PENNY Strikes ,if any.Because they adversely affect the values.
Strikes above and below the CURRENT position are taken ,as shown)


BOLD numbers indicate Open Interest over 500k.


Current position is indicated.

 

[columbus]

NOV.20 nov-series day.12 NIFTY=6123 (-80)

The EXPECTED zone has not moved from (6100~6300)
for Second day.

New format has appeared 3 days early,just because Yesterday all strikes outside
the zone are PENNY and also before expiry XX50 strike means a lot.


Average Open Interest (Today) as shown ... CALL side: 593 K [previous:295 K]
Average Open Interest (Today) as shown..-.. PUT side: -146 K [previous:919 K]

(After deleting PENNY Strikes ,if any.Because they adversely affect the values.
Strikes above and below the CURRENT position are taken ,as shown,confining
ourselves to E.ZONE)


BOLD numbers indicate Open Interest over 500k.
ITALICS number indicates Open Interest over -500k.

Current position is indicated.

 

[srinisrini2009]

very good information

very good information

 

[trade4joisar]

Re: NOV.18 nov-series day.10 NIFTY=6189 (133)

Lot of unwinding was seen.Closed all my CALLS.
A strong likely DOWN movement is indicated.Let us see.

Hello Columbus,

On 18th Nov, you said and it is now.

I am poor in reading Options as of now, Can you give in details, how you came to this point ?

 

[columbus]

NOV.21 nov-series day.13 NIFTY=5999 (-124)

The EXPECTED zone has moved DOWN to (5950~6200) from (6100~6300).



Average Open Interest (Today) as shown ... CALL side: 1441 K [previous:593 K]
Average Open Interest (Today) as shown..-.. PUT side: 199 K [previous:-146 K]

(After deleting PENNY Strikes ,if any.Because they adversely affect the values.
Strikes above and below the CURRENT position are taken ,as shown,confining
ourselves to E.ZONE)


BOLD numbers indicate Open Interest over 500k.
ITALICS number indicates Open Interest over -500k.

Current position is indicated.

 

[columbus]

Just follow open interest

Hello Columbus,

On 18th Nov, you said and it is now.

I am poor in reading Options as of now, Can you give in details, how you came to this point ?

Hello trade4joisar,

I follow just sentiments + open interest.
CAVEAT is open interest may not work always ,immediately,but just keep in mind.

By going by open interest alone,Yesterday's report and today's report saw a huge
addition of open interest on CALL side.