Tracking Nifty PC OI w.r.t Option Writer

[TTW]

Thank You Pralhad,
Regards,
TTW

 

[Pralhad]

 

[AW10]

I am not sure how to USE time value figure in actual trading or even it may be total waste, but I am trying to understand the effect of Volatility on Option Pricing (especialy Time Value) and how Time Value of Option depriciate each passing day in TOTALITY.

I am Accountant and have habit to write each bill value in words in last

Again its just experiment. Lets track its behaviour for few couple of week and see if we could formulate any meaningful Interpretation / Rule.

Here is link for latest updated Excel file. http://hotfile.com/dl/39076941/93f0f97/PC_OI_Analysis_Current_Month.xlsx.html
You can check that how I am calculating Time Value and if I am making any principle mistake please let me know.

If you have any Idea / Suggestion regarding this you are welcome to share with us.

Regards,

-Pralhad

Pralhad, I had looked at your excel sheet..and the calculation used to determine Timevalue. Calculation is correct.

But in my view, multiplying today's TimeVal to today's OI will distort the picture cause, whole OI is not created today. It has been created over a period of time at different TValue.

Moreover, the effect of volatility is high on ATM or near ATM strikes. Far OTM options will be least impacted by daily volatility.

Anyway, I will leave it to you to track it and make some interpretation on it.
I am looking forward for that analysis.

By the way, Have you read about option greeks ? and their behaviour pattern ? If not, then probably that shd be the starting point to understand their relationship.

All the best and continue with your great work.
Happy TRading.

 

[riteshkothari]

great work

 

[riteshkothari]

keep going dude ur good

 

[Pralhad]

 

[Pralhad]

 

[Pralhad]

 

[babblu]

Thank you,whats about Zandu when I will enter in this stock !!!!!!!!!!!

 

[karin_jack]

@pralhad

sir if possible do write few word on whats ur observation frm data and charts.

AW10,linkon and other guys also if can....

regards