PUT and CALL options

[jagankris]

Re: Just follow open interest

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.

Columbus ji,

Last half an hour Nifty witnessed short covering on huge volumes.
Nifty Futures breached its previous swing low of 6008 but Spot didn't breach its previous low of 5972.

Nifty Futures just closed above 50 DMA low.

Huge addition of Calls OI compared to Puts.

Retail Nifty long - call long - put short as per volume.
But FII's are Nifty short - call short and Put long.
Likely Market makers - Call short and Put long.

Puts OI has lost significantly and call OI addition is seen.

So how to read the OI numbers ?
Still more downside or reversal again with a double bottom ???
(Since ET now analysts say 5800 - 5830 I am skeptical .

TIA.

 

[columbus]

Re: Just follow open interest

Columbus ji,

Last half an hour Nifty witnessed short covering on huge volumes.
Nifty Futures breached its previous swing low of 6008 but Spot didn't breach its previous low of 5972.

Nifty Futures just closed above 50 DMA low.

Huge addition of Calls OI compared to Puts.

Retail Nifty long - call long - put short as per volume.
But FII's are Nifty short - call short and Put long.
Likely Market makers - Call short and Put long.

Puts OI has lost significantly and call OI addition is seen.

So how to read the OI numbers ?
Still more downside or reversal again with a double bottom ???
(Since ET now analysts say 5800 - 5830 I am skeptical .

TIA.

jagankris ji,

True.Last half an hour ,today ,Nifty saw lot of Short Covering.
Accumulation on CALL side ,is, not mere indication of Bullish signal because of
Option Writing.These writers believe that market will go down still farther so
they SELL options first and Buy later.These will increase the Open interest.
But option writing takes a lot of money.My mindset is somewhat tuned to Retail Investor.

Almost everyday market throws door open to both players.(Not not be equal everyday).
Today market has shed -124 points.But it gave buying opportunity for profit also. Only our
Greed/Fear controls the overall performance.

Though I believe in some UPWARD movement as indicated by good numbers on CALL side and I too believe in TREND also.

 

[trade4joisar]

Re: Just follow open interest

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.

So when you say "sentiments" means what ?

Chart itself is drawn on basis of sentiments only right ?

What is CAVEAT?

 

[columbus]

Re: Just follow open interest

So when you say "sentiments" means what ?

Chart itself is drawn on basis of sentiments only right ?

What is CAVEAT?

Consider a case when Market on particular day is Strong Bull condition.
Say ,IIP numbers announced are BAD, or some IT raids on some brokers etc..,these
things easily knacks 50 or more Nifty points.Charts do capture SENTIMENTS.By the time
these things are captured ,the worse will happen.That is why Time Frame is also important.

CAVEAT= Warning/caution (Loosely LOOPHOLE)

 

[columbus]

NOV.22 nov-series day.14 NIFTY=5995 (-4)

The EXPECTED zone has condensed to (5950~6150) from (5950~6200).



Average Open Interest (Today) as shown ... CALL side: 645 K [previous:1441 K]
Average Open Interest (Today) as shown..-.. PUT side: 568 K [previous:199 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]

NOV.25 nov-series day.15 NIFTY=6115 (120)

The EXPECTED zone has moved UP to (6050~6200) from (5950~6150).



Average Open Interest (Today) as shown ... CALL side: -405 K [previous:645 K]
Average Open Interest (Today) as shown..-.. PUT side: 1446 K [previous:568 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.

Lot of Open Interest was seen on PUT side.
Anyway ,do not give too much importance to Open Interest during EXPIRY week.
Certainly a point to remember.

 

[mohan.sic]

Re: Just follow open interest

Consider a case when Market on particular day is Strong Bull condition.
Say ,IIP numbers announced are BAD, or some IT raids on some brokers etc..,these
things easily knacks 50 or more Nifty points.Charts do capture SENTIMENTS.By the time
these things are captured ,the worse will happen.That is why Time Frame is also important.

CAVEAT= Warning/caution (Loosely LOOPHOLE)

Columbus ji,

yes that was an example how markets react at times of bad news. market sentiment negates everything . But in general on day to day/intraday basis do you follow any method/indicators for gauging market sentiment.

thanks.

 

[columbus]

Re: Just follow open interest

Columbus ji,

yes that was an example how markets react at times of bad news. market sentiment negates everything . But in general on day to day/intraday basis do you follow any method/indicators for gauging market sentiment.

thanks.

Hi Mohan.sic,

I do follow Bollinger Bands.You find them in DAY TRADING section here.

 

[columbus]

NOV.26 nov-series day.16 NIFTY=6059 (-56)

The EXPECTED zone has moved DOWN to (6000~6100) from (6050~6200).




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

Current position is indicated.

Good Open Interest accumulation and shreddings are marked .
But do not give too much importance.

 

[columbus]

NOV.27 nov-series day.17 NIFTY=6057 (-2)

The EXPECTED zone has condensed to 2 strikes (6050~6100) from (6000~6100).


Current position is indicated.