PUT and CALL options

[columbus]

FEB.14 FEB-series Day.10 Nifty=5897 (-36)

Feb Series, Nifty (7D-3U) closed like this:
DDDUDDDUUD
[Small Correction: Nifty was 5933 instead of 5833 yesterday.Sorry.]


The Expiry zone has condensed to (6000~5900) with 6100
strike has turned penny .( that is,White font strike).

The current position of NIFTY is at the bottom boundary of Expiry zone.

Total strikes in CALL window:2+4(penny) [Yesterday=3+3]
Total strikes in PUT window :5+2(penny) [Yesterday=4+3]

Yellow colour indicates Today-OI greater than 0.5M.
Grey colour indicates Today-OI lesser than -0.5

CALL window has more YELLOW colour ,a Positive movement can be anticipated.(personal view)

 

[columbus]

FEB.15 FEB-series Day.11 Nifty=5887 (-10)

Feb Series, Nifty (8D-3U) closed like this:
DDDUDDDUUDD



The Expiry zone has condensed to (6000~5900) for SECOND day in row,
with 6100 strike has turned penny .( that is,White font strike).

The current position of NIFTY is at the bottom boundary of Expiry zone
5900 Strike.

Total strikes in CALL window:2+4(penny) [Yesterday=2+4]
Total strikes in PUT window :4+4(penny) [Yesterday=5+2]

Yellow colour indicates Today-OI greater than 0.5M.
Grey colour indicates Today-OI lesser than -0.5.

As Nifty is entering Penultimate week of Expiry,huge positions are built up
on both sides (Yellow colour) 5900.

 

[columbus]

FEB.18 FEB-series Day.12 Nifty=5898 (11)

Feb Series, Nifty (8D-4U) closed like this:
DDDUDDDUUDDU



The Expiry zone stands at (6000~5900) for THIRD day in row,
with 6100 strike has turned penny already.( that is,White font strike).

The current position of NIFTY is at the bottom boundary of Expiry zone
5900 Strike.

Total strikes in CALL window:2+4(penny) [Yesterday=2+4]
Total strikes in PUT window :4+4(penny) [Yesterday=4+4]

Yellow colour indicates Today-OI greater than 0.5M.

As YELLOW colour is concentrated in CALL window ,we can expect some
positive movement.Let us see.(Personal view)

 

[TraderRavi]

out of 12 days in feb only 4 updays and these 4 updays too are pathetic , hardly qualified as updays.....

 

[columbus]

out of 12 days in feb only 4 updays and these 4 updays too are pathetic , hardly qualified as updays.....

http://www.traderji.com/options/66083-put-call-options-2.html#post769268

Sometimes it so happens that ,through out the day markets are in NEGATIVE
Territory but after average ,it will turn out be POSITIVE by a couple of points.

 

[columbus]

FEB.19 FEB-series Day.13 Nifty=5940 (42)

Feb Series, Nifty (8D-5U) closed like this:
DDDUDDDUUDDUU



The Expiry zone expanded to (6100~5900) from (6000~5900).

The current position of NIFTY is at the bottom boundary of Expiry zone
5900 Strike.

Total strikes in CALL window:3+3(penny) [Yesterday=2+4]
Total strikes in PUT window :3+5(penny) [Yesterday=4+4]

Yellow colour indicates Today-OI greater than 0.5M.
Grey colour indicates Today-OI greater than -0.5M.

 

[columbus]

FEB.20 FEB-series Day.14 Nifty=5943 (3)

Feb Series, Nifty (8D-6U) closed like this:
DDDUDDDUUDDUUU



The Expiry zone expanded to (6100~5900) for SECOND day.

The current position of NIFTY is at the bottom boundary of Expiry zone
5900 Strike.

Total strikes in CALL window:3+3(penny) [Yesterday=3+3]
Total strikes in PUT window :3+5(penny) [Yesterday=3+5]

Yellow colour indicates Today-OI greater than 0.5M.
Grey colour indicates Today-OI greater than -0.5M.

The interpretation based TODAY-OI can be deceptive because of LOW price of
options.Have a look at 6200CE strike ,it has more than 1M options and it
has a price of Rs.2.10.

The TOTAL-OI in the zone had 20 million on CALL side versus 12 million on PUT side.

 

[lokanathpai]

RELIANCE:
Was in downtrend for many days. On 20.02.2012 it made an upmove. But all its calls open interest was -ve. Today the scrip is trading -ve. But its calls are +ve. What does it means?

 

[columbus]

FEB.21 FEB-series Day.15 Nifty=5852 (-91)

Feb Series, Nifty (9D-6U) closed like this:
DDDUDDDUUDDUUUD



The Expiry zone moved down to (6000~5800) from (6100~5900) with today's great fall.

The current position of NIFTY is at the bottom boundary of Expiry zone
5800 Strike.

Total strikes in CALL window:3+4(penny) [Yesterday=3+3]
Total strikes in PUT window :4+3(penny) [Yesterday=3+5]
A noticeable shift here also.

Yellow colour indicates Today-OI greater than 0.5M.
Grey colour indicates Today-OI greater than -0.5M.

The interpretation based TODAY-OI can be deceptive because of LOW price of options.

TOTAL-OI in E.zone
CALL side:18M (Yesterday:20M)
PUT side :16M (Yesterday:12M)

 

[columbus]

RELIANCE:
Was in downtrend for many days. On 20.02.2012 it made an upmove. But all its calls open interest was -ve. Today the scrip is trading -ve. But its calls are +ve. What does it means?

Hi lokanathpai,

Yes, on 20.02.2013 ,Reliance rose smartly.

I do not track Stock Options.But Reliance stock CALLs have lost anything
between 20~60 today,compared to Yesterday.

Refer to my previous day's post, during Expiry ,much importance need not
be given ,because by that time ,TIME DECAY takes heavy toll.


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)