PUT and CALL options
- Thread starter columbus
- Start date
Hi Madhusnair,
Good strategy,comments should come from specialists in this field.
I am not a specialist in Straddles and Strangles.Dan,linkon and AW are good
experts.I think Dan and Adityasaraf are doing good work at present.
My concentration at present is on Naked Options and Option Writing (to small
extent).
Good strategy,comments should come from specialists in this field.
I am not a specialist in Straddles and Strangles.Dan,linkon and AW are good
experts.I think Dan and Adityasaraf are doing good work at present.
My concentration at present is on Naked Options and Option Writing (to small
extent).
Re: JUL series Day-19 Nifty=5110 (-18)
This is example taken from Bank Nifty.It holds good for Nifty also.
http://www.traderji.com/options/70810-banknifty-puts-calls.html#post708702
This is example taken from Bank Nifty.It holds good for Nifty also.
http://www.traderji.com/options/70810-banknifty-puts-calls.html#post708702
AUG series Day=1 (start) Nifty=5100 (+57)
In this AUG series we have 1 UP day as follows:
U
The Expected Zone or Active Zone is (5000~5300)
The Active strikes are marked in this file.Both in CALL and PUT windows saw
addition of OPEN INTEREST in this zone.
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 AUG series we have 1 UP day as follows:
U
The Expected Zone or Active Zone is (5000~5300)
The Active strikes are marked in this file.Both in CALL and PUT windows saw
addition of OPEN INTEREST in this zone.
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)
AUG series Day=2 Nifty=5200 (+100)
In this AUG series we have 2 UP day as follows:
UU
The Expected Zone continues to be same at (5000~5300).
[This is strange after a massive gain]
In Expected Zone CALLs have NEGATIVE Open Interest but PUT side there
is massive OI addition as marked.Is it indicating some BAD news from RBI ?
Really do not know.Any way SubbaRao will reveal it ,tomorrow.Until then
be light on positions.
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 AUG series we have 2 UP day as follows:
UU
The Expected Zone continues to be same at (5000~5300).
[This is strange after a massive gain]
In Expected Zone CALLs have NEGATIVE Open Interest but PUT side there
is massive OI addition as marked.Is it indicating some BAD news from RBI ?
Really do not know.Any way SubbaRao will reveal it ,tomorrow.Until then
be light on positions.
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)
AUG series Day=5 Nifty=5228 (-13)
In this AUG series we have 4 UP & 1 DOWN days as follows:
UUUUD
The Expected Zone is at (5000~5300) as shown below:
The OI in both PUT & CALL window at different strikes is mixed.
The important additions/shedding are mentioned in the chart.
But the noteworthy accumulation of almost 1M is at 5000PE.
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.
In this AUG series we have 4 UP & 1 DOWN days as follows:
UUUUD
The Expected Zone is at (5000~5300) as shown below:
The OI in both PUT & CALL window at different strikes is mixed.
The important additions/shedding are mentioned in the chart.
But the noteworthy accumulation of almost 1M is at 5000PE.
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.
AUG series Day=6 Nifty=5216 (-12)
In this AUG series we have 4 UP & 2 DOWN days as follows:
UUUUDD
The Expected Zone continued to be at (5000~5300) as shown below:
Font in WHITE colour is used when PRICE is less than 10 Rs.
On CALL side the OI is mixed but on PUT side only ADDITION.
But noteworthy feature is strikes at this ZONE ,namely 5300CE and 5000PE have TODAY-OI is more than 1Million.
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 AUG series we have 4 UP & 2 DOWN days as follows:
UUUUDD
The Expected Zone continued to be at (5000~5300) as shown below:
Font in WHITE colour is used when PRICE is less than 10 Rs.
On CALL side the OI is mixed but on PUT side only ADDITION.
But noteworthy feature is strikes at this ZONE ,namely 5300CE and 5000PE have TODAY-OI is more than 1Million.
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)
Last edited:
AUG series Day=7 Nifty=5283 (67)
In this AUG series we have 5 UP & 2 DOWN days as follows:
UUUUDDU
The Expected Zone has moved to (5400~5000) from (5300~5000) as shown below:
5400CE and 5300PE have more than 1Million OI-today alone.
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)
2nd August 2012 07:30 PM
In this AUG series we have 5 UP & 2 DOWN days as follows:
UUUUDDU
The Expected Zone has moved to (5400~5000) from (5300~5000) as shown below:
5400CE and 5300PE have more than 1Million OI-today alone.
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)
2nd August 2012 07:30 PM
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