Tracking Nifty PC OI w.r.t Option Writer

[AW10]

Just some observations from my side
on chart 4 - We rarely see such a high %change number in so many strikes on a sinble day. It does not take great skill to say that it is due to rollover where many new positions are
created for next month. Interesting is to watch the arrangement of these positions in chart 3.
This time we don't so many puts at 5000 level. but we have similar long bar like 5000 put in March for 5300 Calls. Also watch out for the tall bar in 3rd chart for 4800 PUT.

If 5000 was created as floor by smart money in March, then are they creating Roof at 5300 now ? Is 5300 to 4800 possible range for April ?
My guess is as good as yours. But I am sure market will tell us in days to come so lets keep our ear and eye open and trade what we see.

Personally I will be looking forward for changes in 5100/5200 puts and 5300/5400 calls in next few days, specially in 1st week of April after fund managers have closed their books and hence are over with their vested interest in holding mkt at high..

Happy Trading

 

[Pralhad]

Hello,

Thank you AW10 for sharing your observation.

I have mentioned somewhere in this thread that, This thread based on the Assumption that in most of the times Biggies / Smart Money Sell/Write the Option and Retail Trader/Investor/Newbie i.e. Aam Janta buys the option. At least for this month this assumtion hold good. Please see the following Expiry End Analysis.

Total 84.31% Option expire worthless. Please note one more point, out of total FnO OI, Option OI share was 83.60%.Therefore we can say that Smart Money prefer Option over Future to hedge and leverage theire investment.

This analysis and interpretation as per my understading and since I myself newbie, with more probability this may be wrong.

Edit
----

P.S. - Vix is at all time low

Regards,

-Pralhad

 

[Pralhad]

Chart for 26th March and Sorry for delayed Update.

 

[Pralhad]

 

[Pralhad]

 

[Pralhad]

 

[SwingKing]

Hello Respected TJ Member,

I am trying to track the Nifty Option Open Interest (OI). I am really inspired by SS http://www.traderji.com/derivatives/23534-food-thought-31.html#post416674 this post then further reading of http://www.traderji.com/options/34089-tracking-put-call-open-interest.html this thread, I am got interested to track Nifty OI.

Here is few guideline taken from above mentioned thread.

General Put / Call OI Rules on Option writers ( Sellers) Perspective
1. Highest Put OI at particular Strike Price --- Major Support Zone on that time
2. Highest Call OI at particular Strike Price --- Major Resistance Zone on that Time

OI Change Rule (taken from stocks.murtaza post)
1. Rising open interest in an uptrend is bullish.
2. Declining open interest in an uptrend is bearish or it may also mean just profit booking / short covering by buying back sold contracts which result in declining OI.
3. Rising open interest in a downtrend is bearish.
4. Declining open interest in a downtrend is bullish or it may also mean just profit booking / long covering by selling back bought contracts which result in declining OI.

Put Call Ratio Rule (taken from AW10 Post)
The way this PCR data at strike can be interpreted is by observing the trend in change. Simple interpretation of PCR at strike price is
- high PCR at a strike = Bullish at that strike i.e. Support zone,
- Low PCR at a strike = bearish i.e. Resistance zone.

I will Post some PC OI Analysis chart on EOD basis. I sincerely request to all senior member please contribute to this thread by making chart interpretation, giving suggestion for improving this thread..etc.

Edit
----

I am tracking Nifty PC OI throgh excel sheet. When you will Open this excel file it automatically download the current updated data from NSE site and update the chart. It also update every 5 min if you keep this file open. I am giving the link to download the same file. Please remove space between the URL

Please note that this is Excel 2007 file. It will not open in earlier version of excel.

http://h o t f i l e . com/dl/31900007/6500105/PC_OI_Analysis_Current_Month.xlsx.html

Regards,

-Pralhad

Excellent initiative. This was very much needed.

Tc.

 

[Pralhad]

Update for 1st April 2010

 

[Karanm]

Hello Respected TJ Member,

I am trying to track the Nifty Option Open Interest (OI). I am really inspired by SS http://www.traderji.com/derivatives/23534-food-thought-31.html#post416674 this post then further reading of http://www.traderji.com/options/34089-tracking-put-call-open-interest.html this thread, I am got interested to track Nifty OI.

Here is few guideline taken from above mentioned thread.

General Put / Call OI Rules on Option writers ( Sellers) Perspective
1. Highest Put OI at particular Strike Price --- Major Support Zone on that time
2. Highest Call OI at particular Strike Price --- Major Resistance Zone on that Time

OI Change Rule (taken from stocks.murtaza post)
1. Rising open interest in an uptrend is bullish.
2. Declining open interest in an uptrend is bearish or it may also mean just profit booking / short covering by buying back sold contracts which result in declining OI.
3. Rising open interest in a downtrend is bearish.
4. Declining open interest in a downtrend is bullish or it may also mean just profit booking / long covering by selling back bought contracts which result in declining OI.

Put Call Ratio Rule (taken from AW10 Post)
The way this PCR data at strike can be interpreted is by observing the trend in change. Simple interpretation of PCR at strike price is
- high PCR at a strike = Bullish at that strike i.e. Support zone,
- Low PCR at a strike = bearish i.e. Resistance zone.

I will Post some PC OI Analysis chart on EOD basis. I sincerely request to all senior member please contribute to this thread by making chart interpretation, giving suggestion for improving this thread..etc.

Edit
----

I am tracking Nifty PC OI throgh excel sheet. When you will Open this excel file it automatically download the current updated data from NSE site and update the chart. It also update every 5 min if you keep this file open. I am giving the link to download the same file. Please remove space between the URL

Please note that this is Excel 2007 file. It will not open in earlier version of excel.

http://h o t f i l e . com/dl/31900007/6500105/PC_OI_Analysis_Current_Month.xlsx.html

Regards,

-Pralhad

Sir, I have tried my best to download Excel file from the Link but failed,
Kindly help and provide some other to download the file.
Regards
Karanm

 

[Pralhad]