PUT and CALL options
- Thread starter columbus
- Start date
Re: OCT series DAY.12 NIFTY=5647 (-39)
Accumulation or Writing? I think people have written 5800CE with OI rising and price falling. It would have been accumulation if there was a corresponding increase in price. With OI reaching a Crore, it looks highly unlikely of crossing.
But if a miracle happens, short unwinding will take it much beyond
Accumulation or Writing? I think people have written 5800CE with OI rising and price falling. It would have been accumulation if there was a corresponding increase in price. With OI reaching a Crore, it looks highly unlikely of crossing.
But if a miracle happens, short unwinding will take it much beyond
OCT series DAY.13 NIFTY=5660 (13)
In last 13 days (8-UP & 5-DOWN) NIFTY closed like this:
UUUUDDUDUDUDU
Now the Expiry Zone is same as yesterday i.e.in the range (5600~5700).
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)
OMG,5400 strike is missing in today's data.
In last 13 days (8-UP & 5-DOWN) NIFTY closed like this:
UUUUDDUDUDUDU
Now the Expiry Zone is same as yesterday i.e.in the range (5600~5700).
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)
OMG,5400 strike is missing in today's data.
Last edited:
OCT series DAY.14 NIFTY=5718 (58)
In last 14 days (9-UP & 5-DOWN) NIFTY closed like this:
UUUUDDUDUDUDUU
Expiry zone is now shifted UP ,(5700~5800).
A lot of accumulation seen in PUT option and Writing in CALL option indicate
,a fall in Market in future.(Personal interpretation)
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 last 14 days (9-UP & 5-DOWN) NIFTY closed like this:
UUUUDDUDUDUDUU
Expiry zone is now shifted UP ,(5700~5800).
A lot of accumulation seen in PUT option and Writing in CALL option indicate
,a fall in Market in future.(Personal interpretation)
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)
OCT series DAY.15 NIFTY=5684 (-34)
In last 14 days (9-UP & 6-DOWN) NIFTY closed like this:
UUUUDDUDUDUDUUD
We have entered EXPIRY week ,with EXPIRY zone at 5700.
Since now onwards market movements are based on NEWS / RESULTS, better
to be light on Positions with no carry forward basis.
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 last 14 days (9-UP & 6-DOWN) NIFTY closed like this:
UUUUDDUDUDUDUUD
We have entered EXPIRY week ,with EXPIRY zone at 5700.
Since now onwards market movements are based on NEWS / RESULTS, better
to be light on Positions with no carry forward basis.
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.
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