PUT and CALL options

[soft_trader]

I request all traders to please vote here.

Thanks for voting. :thumb:

 

[columbus]

JUL series Day-12 Nifty=5197 (-30)

In this JUL series we have 5 UP ,1 NO change and 6 DOWN days as follows:
UNUUUDDUDDDD

Now the Expiry zone reduced to (5100~5300).


OI is rather mixed in both CALL window & PUT window .
The significant additions/sheddings in this zone ,are indicated in the chart.

5500PE strike's Total OI has further reduced to 6.8L.


Delta

The option's delta is the rate of change of the price of the option
with respect to its underlying security's price. The delta of an option
ranges in value from 0 to 1 for calls (0 to -1 for puts) and reflects
the increase or decrease in the price of the option in response to
a 1 point movement of the underlying asset price.

Far out-of-the-money options have delta values close to 0 while deep
in-the-money options have deltas that are close to 1.

 

[columbus]

JUL series Day-13 Nifty=5193 (-4)

In this JUL series we have 5 UP ,1 NO change and 7 DOWN days as follows:
UNUUUDDUDDDDD

Now the Expiry zone has continued to be (5100~5300).

Though the loss appears to be very low,the impact is severe because the gapup was good in the morning.


OI is rather mixed in both CALL window & PUT window .
The significant additions/sheddings in this zone ,are indicated in the chart.
There was more than 1M OI at 5300CE today alone whereas it was
0.68M 5300PE strike.

Premium eating was seen in both PE and CE options because both have lost
values except 5200PE upwards.

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)

 

[columbus]

JUL series Day-14 Nifty=5216 (23)

In this JUL series we have 6 UP ,1 NO change and 7 DOWN days as follows:
UNUUUDDUDDDDDU

Now the Expiry zone has condensed to (5200~5300).


It appears 5200 & 5300 strikes ,are favourites.

Even,4200PE has total OPEN INTEREST over Million ,but ignored because 4300PE has Open Interest
less than Million.Anyway these OTM Options has no bearing on our observations.

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.Same thing holds good in case of OPEN INTEREST also.

 

[columbus]

Suggestion to NSE

NIFTY is moving UP.
Which one ,amply satisfy above statement, Left or Right.
Right is Right.

 

[columbus]

JUL series Day-15 Nifty=5243 (27)

In this JUL series we have 7 UP ,1 NO change and 7 DOWN days as follows:
UNUUUDDUDDDDDUU

Now the Expiry zone has continued to be (5200~5300).
5100 is in WHITE font so it is ignored as it turned PENNY.

In this ZONE ,PUTs showed addition whereas CALLs showed shedding.


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.Same thing holds good in case of OPEN INTEREST also.

 

[timepass]

Re: JUL series Day-15 Nifty=5243 (27)

In this JUL series we have 7 UP ,1 NO change and 7 DOWN days

It's a tie so far . Monthwise too, June closed at 5278 (spot). And even now we are hanging around in that region.

 

[columbus]

Re: JUL series Day-15 Nifty=5243 (27)

It's a tie so far . Monthwise too, June closed at 5278 (spot). And even now we are hanging around in that region.

Exactly.We moved down by 25 points in this series, hovering at 5250.

 

[columbus]

JUL series Day-16 Nifty=5205 (-38)

In this JUL series we have 7 UP ,1 NO change and 8 DOWN days as follows:UNUUUDDUDDDDDUUD


Now the Expiry zone has continued to be (5200~5300).

The TOTAL OI on CALL side is almost double on PUT side.



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.Same thing holds good in case of OPEN INTEREST also.

 

[columbus]

Why this difference between various sources?