PUT and CALL options

[columbus]

July.9 JULY-Series Day.8 NIFTY=5859 (47)

The Expected zone has expanded to (5600 ~ 6000) for SEVENTH day.

Total strikes in CALL window: 6+2(penny)[Yesterday=6+2(penny)]
Total strikes in PUT window : 6+3(penny)[Yesterday=6+3(penny)]






Total-OI in this Zone---(5600~6000)

CALL side: 21 M [Yesterday=20M]
PUT side : 27 M [Yesterday=25 M]
(Yesterday's figures are from database,sometimes it may vary from yesterday's POST,due to variation in number of strikes.)



Yellow colour indicates OI-Today more than +0.5M.
Grey colour indicates OI-Today less than -0.5M.


Current position is indicated.

 

[umesh12]

Sir

Even though I am asking some very basic and silly questions on options, please do reply. As, it is very confusing, so please reply in simple words.

1. How to read option data.
2. What is the effect on the underlying and market movement, when one says, lots of Puts are added.
3. And similarly by lots of Calls are added.
4. By Calls additions exceeds Puts
5. and by Puts additions exceeds Calls
6. Such a large additions (in millions) of Calls/Puts are done by buying the options or by writing the options.

Thanks

 

[columbus]

July.10 JULY-Series Day.9 NIFTY=5817 (-42)

The Expected zone has expanded to (5600 ~ 6000) for EIGHTH day.

Total strikes in CALL window: 5+3(penny)[Yesterday=6+2(penny)]
Total strikes in PUT window : 6+3(penny)[Yesterday=6+3(penny)]






Total-OI in this Zone---(5600~6000)

CALL side: 22 M [Yesterday=21M]
PUT side : 26 M [Yesterday=27 M]
(Yesterday's figures are from database,sometimes it may vary from yesterday's POST,due to variation in number of strikes.)



Yellow colour indicates OI-Today more than +0.5M.
Grey colour indicates OI-Today less than -0.5M.


Current position is indicated.

 

[columbus]

Sir

Even though I am asking some very basic and silly questions on options, please do reply. As, it is very confusing, so please reply in simple words.

1. How to read option data.
2. What is the effect on the underlying and market movement, when one says, lots of Puts are added.
3. And similarly by lots of Calls are added.
4. By Calls additions exceeds Puts
5. and by Puts additions exceeds Calls
6. Such a large additions (in millions) of Calls/Puts are done by buying the options or by writing the options.

Thanks

Two years back,when I started trading in OPTIONS my knowledge is almost
NIL.
The STRIKES in blue colour (intersection of PUT & CALL windows) are traded in huge volumes.Once we move away from the zone ,options are LOW priced
and similarly low price changes ,in general.
First of all ,one should accept the fact that MARKETS are hugely manipulated
and highly emotional driven.
Addition of CALLS indicate that market is likely to see UPWARD movement.
Similarly addition of PUTS will see likely downward movement.
Today,there is lot of YELLOW colour in CALL window indicating some good
CALL addition ,possible UP movement tomorrow.
However this can be negated by some bad news from any quarters????????
Since WRITING takes lot of MONEY ,only FII,DII and HNI can involve in this business.
Retail individuals can take bet in small quantities.

 

[umesh12]

Thanks Sir, for answering my queries.
Your answers will help me in understanding Options.
Thanks

 

[anup0212]

thank columbus nice explanation...just to add one more point ....keep watch for external events also..they also impact market...call it external forces ...once again thanks

 

[columbus]

July.11 JULY-Series Day.10 NIFTY=5935 (118)

The Expected zone has expanded to (5600 ~ 6000) for NINTH day.
This is quite strange that even after a move of more than 100 points ,there
is no change in the ZONE.

But observe the change in strikes.
Total strikes in CALL window: 6+2(penny)[Yesterday=5+3(penny)]
Total strikes in PUT window : 5+4(penny)[Yesterday=6+3(penny)]






Total-OI in this Zone---(5600~6000)

CALL side: 18 M [Yesterday=22M]
PUT side : 30 M [Yesterday=26 M]
(Yesterday's figures are from database,sometimes it may vary from yesterday's POST,due to variation in number of strikes.)



Yellow colour indicates OI-Today more than +0.5M.
Grey colour indicates OI-Today less than -0.5M.

Current position is indicated.

 

[timepass]

Re: July.11 JULY-Series Day.10 NIFTY=5935 (118)

The Expected zone has expanded to (5600 ~ 6000) for NINTH day.
This is quite strange that even after a move of more than 100 points ,there
is no change in the ZONE.

Must be the longest running streak since you started this thread.

 

[columbus]

Re: July.11 JULY-Series Day.10 NIFTY=5935 (118)

Must be the longest running streak since you started this thread.

Certainly YES.

 

[gmt900]

Re: July.11 JULY-Series Day.10 NIFTY=5935 (118)

Certainly YES.

What does this mean?
Is 6000 difficult to cross?