PUT and CALL options

[gunsho]

Re: JUN series DAY-11 Nifty=5139(84)

5000PE-5100PE-5200PE OI are significant ,in particular
5100PE which showed more than 1M addition.

Curious to know. That might be because of people going for long and hedging with 5100 put right?
Lot of mixed comments about where the market is headed Guess everyone is hedging

 

[columbus]

Re: JUN series DAY-11 Nifty=5139(84)

Curious to know. That might be because of people going for long and hedging with 5100 put right?
Lot of mixed comments about where the market is headed Guess everyone is hedging

PCR:
It is the ratio of the volume of put options traded
to the volume of call options traded.Some believe
that a high PCR means more number of Puts have
been written and markets should go ahead.Others
believe in entire opposite view.

I think some view holds good ,in interpreting Open
Interest also.

 

[columbus]

JUN series DAY-12 Nifty=5064(-75)

In this JUN series we have 4 DOWN and 8 UP days as follows.
DUUUUUDUUDUD

PCR:

It is the ratio of the volume of put options traded
to the volume of call options traded.Some believe
that a high PCR means more number of Puts have
been written and markets should go ahead.Others
believe in entire opposite view.

The Expected Zone has continued to be in the range (4800~5200)
for a fifth day.This is strange because in last 3 days we had
2 fatal falls.(Day-10 & Day-12).This may due to Time Decay of options.

OI of Today in CALL & PUT window are rather mixed.
The significant ones are indicated in the picture.

FITCH's DOWNGRADE TO NEGATIVE ,going to affect the market in
bad way to some extent.

 

[niludeepak]

can some one pl tell me what is effective zone, or suggest some posts. i m new, tnx.

 

[columbus]

can some one pl tell me what is effective zone, or suggest some posts. i m new, tnx.

..in simple words it is intersection of PUT window and CALL window.

 

[columbus]

JUN series DAY-13 Nifty=5104 (40)

For the first time in this series 4800 is removed from expected zone.
(It is in white font).Now the EXPIRY zone stands at (4900~5200).

In this JUN series we have 4 DOWN and 9 UP days as follows.
DUUUUUDUUDUDU


PCR:

It is the ratio of the volume of put options traded
to the volume of call options traded.Some believe
that a high PCR means more number of Puts have
been written and markets should go ahead.Others
believe in entire opposite view.

In EXPIRY zone ,the OI of today on CALL side is
mixed,but on PUT side ,all strikes showed addition.

On contrary to expections PE did not show any Price addition
but premiums are eaten away.Fitch ditched.

 

[niludeepak]

..in simple words it is intersection of PUT window and CALL window.

columbus sir, (if u dont mind calling u sir), how do u figure out the windows

 

[niludeepak]

i assume u start calling the zones expiry zones after a particular date or so, pl. tell.

i do notice that the colored zone have Total OI in 7 figures, is it the thing that u look for, sorry if i sound totally absurd, one 4100 put has OI in 6 figures

also, i think u have chalked out 4800 is becoz there is no IMP VOL figure there am i right?

 

[sakiv]

..in simple words it is intersection of PUT window and CALL window.

what help one can get in trading decisions by this intersection range? As this range is changing daily.

 

[columbus]

i assume u start calling the zones expiry zones after a particular date or so, pl. tell.

i do notice that the colored zone have Total OI in 7 figures, is it the thing that u look for, sorry if i sound totally absurd, one 4100 put has OI in 6 figures

also, i think u have chalked out 4800 is becoz there is no IMP VOL figure there am i right?

The Total OI moves from Lakhs to Millions at strike.That is defined as one boundary.
Regarding 4100PE ,I manually changed it because 4000PE total OI is in millions
and all lower strikes are in Lakhs only.By doing so, we are do no injustice because
they are OTM options and penny also.