PUT and CALL options

[SPI999999]

hey columbus...what does this means "UUUDDDUDDDDDUDUUUDDU
".....does this also shows anything

Its up & down denomination from the day started May Series

 

[columbus]

May Series Day=20 Nifty=4920 (-1)

Another PREMIUM eating day.Excepting 4800CE , all CALLs and PUTs lost quite
significantly.4900CE lost less than 1%,CALLs lost around 10~25% and PUTs
lost heavily 30~55% roughly.

OI is mixed on both CALL side and PUT side.

(4900 strike on opening further showed different OI value)

OPEN INTEREST-Interpretation

Open interest is usually used as an indication of the strength of a price
movement, but on its own it does not provide any indication of the direction
of the price movement.

Increasing open interest shows that there is strength behind the current price
movement, and decreasing open interest shows that there is a weakening of the
current price movement. For example, increasing open interest along with
increasing prices indicates that the upward price movement could continue,
but decreasing open interest along with increasing prices indicates that the
upward price movement may be about to reverse.

Open interest is also used to determine if a market is likely to be trending or
range bound (i.e. choppy). Increasing open interest shows that the rate of
new trades is increasing, which indicates that the market is being actively
traded. While decreasing open interest shows that the rate of news trades
is decreasing, which indicates that the market may be entering a time of
less active trading. (Courtesy:daytrading.about.com)


In this series we have 9 UP days and 12 DOWN days:
UUUDDDUDDDDDUDUUUDDUD
(After considering Previous Expiry day at the beginning)

 

[timepass]

4900CE gained in the last 15 min from 50 to 65, similarly 4900PE lost a goodly bit in the same period. Interestingly, 4900PE was gaining good momentum till about 3.15.

 

[jassinko]

4900CE gained in the last 15 min from 50 to 65, similarly 4900PE lost a goodly bit in the same period. Interestingly, 4900PE was gaining good momentum till about 3.15.

so is that means people sentiments changed in last 15 mins from bear to bull....???? or expecting expiry around 4950 instead of 4850....???

 

[timepass]

so is that means people sentiments changed in last 15 mins from bear to bull....???? or expecting expiry around 4950 instead of 4850....???

It means that EOD traders are buying. On 315 strategy also, 3EMA went in the opposite direction for 2nd consecutive day, so maybe some people squared their shorts. Maybe some eod strategies generated a buy signal. Anyway, 2nd day close above 4900 sounds positive.

 

[columbus]

hey columbus...what does this means "UUUDDDUDDDDDUDUUUDDU
".....does this also shows anything

http://www.traderji.com/options/66083-put-call-options.html#post682979

 

[columbus]

Re: May Series Day=19 Nifty=4921 (86)

market moving up and put OI increasing means puts written therefore bullish .....calls OI decreasing means calls covered....heavy put writing at 4800/4900 level indicates smart money thinks nifty will not go below these levels....but this can change on day to day basis ......I think expiry at 4850 - 4920 level...

http://www.traderji.com/options/66083-put-call-options-4.html#post678754

 

[columbus]

 

[columbus]

May Series Day=20 Nifty=4985 (65)

The Expiry Zone is further condensed to (4900~5000).
For the first time in this series ,this zone was closed from PUT side (4800 is
in white font).

On CALL side Total's OI was 9.4M whereas on PUT side it was 9.8M.

On CALL side TODAY's OI was -VE whereas on PUT side it was +VE.

OPEN INTEREST-Interpretation

Open interest is usually used as an indication of the strength of a price
movement, but on its own it does not provide any indication of the direction
of the price movement.

Increasing open interest shows that there is strength behind the current price
movement, and decreasing open interest shows that there is a weakening of the
current price movement. For example, increasing open interest along with
increasing prices indicates that the upward price movement could continue,
but decreasing open interest along with increasing prices indicates that the
upward price movement may be about to reverse.

Open interest is also used to determine if a market is likely to be trending or
range bound (i.e. choppy). Increasing open interest shows that the rate of
new trades is increasing, which indicates that the market is being actively
traded. While decreasing open interest shows that the rate of news trades
is decreasing, which indicates that the market may be entering a time of
less active trading. (Courtesy:daytrading.about.com)


In this series we have 10 UP days and 12 DOWN days:
UUUDDDUDDDDDUDUUUDDUDU
(After considering Previous Expiry day at the beginning)

 

[columbus]

May Series Day=21 Nifty=4990 (5)

Expiry Zone is now confined to 5000 strike.

Today's OI on CALL side is -3.8L and on PUT side is 5.4L.
Tomorrow market is likely choppy with slight NEGATIVE bias.

THETA (time decay):
The option's theta is a measurement of the option's time decay.
The theta measures the rate at which options lose their value,
specifically the time value, as the expiration date draws nearer.
Generally expressed as a negative number, the theta of an option
reflects the amount by which the option's value will decrease every day.
(courtesy:theoptionguide.com)

In this series we have 11 UP days and 12 DOWN days:
UUUDDDUDDDDDUDUUUDDUDUU
(After considering Previous Expiry day at the beginning)