Tracking PUT CALL Open Interest

[chaitanyagoa]

Chaitanya, what u have mentioned is correct in general.
But the twist comes when u interpret it info as - If 25% more calls are written then there has been 25% more buyers for these calls as well.
So with OI, it is difficult to judge whether Smart Money is on the writing the call or buying the call. SMoney is also positional trader. So if they have to protect their portfolio at 5000 level, then they might be buying 5000 PUTs.
And other novice so called smart retail option trader might be writing these puts to SM buyers.

Hope this helps. Happy Trading

Ahh!!! Look this is the advantage of having veterans watching our Backs ......

 

[SriVijay]

Another approach option strategy people implemnt using far OTM option is collecting income.. The main concept here is sell the strike where market will not reach. It is lot easier to predict with higher accuracy where market will not reach before the expiry then predicting where it will expire. So 42/4300 levels are safe zone. So by buying 4100 put, and selling 4200 put (Bullish Put Credit Spreads), whatever premium I am collecting will be my income at month end. At today price, this puts 1.5 rs in the pocket. May not be intersting for retail traders due to higher brokerage..but for people who have almost 0 to few paise of brokerage, it still gives them free money in the mkt.

Dear Sir (Mr.Aw10)

In my opnion all writers are smart people.... as that 4100 put writers are also the same kind of those you write 4200 put ....there is a conflict of interest between two smart people....Which will benefit the buyers....

Am i confusing you or confused myself......?????

regards
Vijayakumar

 

[AW10]

In my opnion all writers are smart people.... as that 4100 put writers are also the same kind of those you write 4200 put ....there is a conflict of interest between two smart people....Which will benefit the buyers....

Am i confusing you or confused myself......?????

regards
Vijayakumar

Vijayakumar, you know what, trading is a profession where there is no differentiation between players. As a retail trader, we can also do what smart people do. We may not be able to move the market, but we can adopt their strategy, if it suits our requirement. So, if it is in yr mind that they are smart, then please get rid of this thought. As an individual, we can also play the same game that smart players are playing.. and stay away from what novice trader are doing. Infact we have the advantage of size.. cause with our order of few lots, trend of market doesn't change.. but with their order, market may change the direction. Their size has its own problems too.

And like in all fields, in smart money also you have some dumbos sitting there. Just an example, if that is the case then all MFund mgr would be beating the index, why some of them are underperformer ? They also don't agree with each other always. From our perspective, we call all of them as smart.. but among themselves, they know who is smart and who is dumb.. it is just relative terms.. As long as we know our trading plan/ game plan, it really doesn't matter who is there.

hope you are a bit more clear now..

Happy Trading

 

[MurAtt]

Words of Wisdom

Words of Wisdom.

Vijayakumar, you know what, trading is a profession where there is no differentiation between players. As a retail trader, we can also do what smart people do. We may not be able to move the market, but we can adopt their strategy, if it suits our requirement. So, if it is in yr mind that they are smart, then please get rid of this thought. As an individual, we can also play the same game that smart players are playing.. and stay away from what novice trader are doing. Infact we have the advantage of size.. cause with our order of few lots, trend of market doesn't change.. but with their order, market may change the direction. Their size has its own problems too.

And like in all fields, in smart money also you have some dumbos sitting there. Just an example, if that is the case then all MFund mgr would be beating the index, why some of them are underperformer ? They also don't agree with each other always. From our perspective, we call all of them as smart.. but among themselves, they know who is smart and who is dumb.. it is just relative terms.. As long as we know our trading plan/ game plan, it really doesn't matter who is there.

hope you are a bit more clear now..

Happy Trading

 

[hiteshsjoshi]

%chn 12/11_CE 13/11_CE Strike 13/11_PE 12/11_PE %chn pcr_13/11 pcr_12/11
								
			Nov 2009					
-1%	264950	263350	4000	1195850	1206950	-1%	4.54	4.56
4%	25450	26500	4100	877500	870900	1%	33.11	34.22
-3%	28900	28050	4200	1355700	1329700	2%	48.33	46.01
-2%	30750	30200	4300	2096600	2202900	-5%	69.42	71.64
-2%	80850	78850	4400	2863600	2831850	1%	36.32	35.03
-8%	289650	267750	4500	4656850	4586600	2%	17.39	15.83
-5%	923050	879550	4600	5687700	5519150	3%	6.47	5.98
-5%	2417800	2296400	4700	6189200	6206100	0%	2.70	2.57
0%	2689450	2684300	4800	6323550	5799600	9%	2.36	2.16
-13%	3599650	3137400	4900	5748350	4730450	[COLOR="Red"]22%	1.83	1.31[/COLOR]
-9%	4618300	4191700	5000	4662850	3787050	[COLOR="red"]23%	1.11	0.82[/COLOR]
4%	3236600	3362000	5100	1077250	765250	[COLOR="red"]41%	0.32	0.24[/COLOR]
3%	2662750	2732350	5200	198750	198050	0%	0.07	0.07
[COLOR="red"]12%[/COLOR]	1676900	1872200	5300	51200	53000	-3%	0.03	0.03
6%	1147700	1211100	5400	33700	33750	0%	0.03	0.03
0%	909950	907800	5500	102150	102200	0%	0.11	0.11
-3%	417900	405750	5600	46150	48350	-5%	0.11	0.12
0%	228350	227550	5700	42550	44900	-5%	0.19	0.20
-3%  25248950  24602800  Total  43209500  40316750  7%  1.76  1.60

Notice the increase in 4900, 5000 and 5100 Put OI. Indicates we are going to surpass 5100 next week

 

[chaitanyagoa]

%chn 12/11_CE 13/11_CE Strike 13/11_PE 12/11_PE %chn pcr_13/11 pcr_12/11
								
			Nov 2009					
-1%	264950	263350	4000	1195850	1206950	-1%	4.54	4.56
4%	25450	26500	4100	877500	870900	1%	33.11	34.22
-3%	28900	28050	4200	1355700	1329700	2%	48.33	46.01
-2%	30750	30200	4300	2096600	2202900	-5%	69.42	71.64
-2%	80850	78850	4400	2863600	2831850	1%	36.32	35.03
-8%	289650	267750	4500	4656850	4586600	2%	17.39	15.83
-5%	923050	879550	4600	5687700	5519150	3%	6.47	5.98
-5%	2417800	2296400	4700	6189200	6206100	0%	2.70	2.57
0%	2689450	2684300	4800	6323550	5799600	9%	2.36	2.16
-13%	3599650	3137400	4900	5748350	4730450	[COLOR="Red"]22%	1.83	1.31[/COLOR]
-9%	4618300	4191700	5000	4662850	3787050	[COLOR="red"]23%	1.11	0.82[/COLOR]
4%	3236600	3362000	5100	1077250	765250	[COLOR="red"]41%	0.32	0.24[/COLOR]
3%	2662750	2732350	5200	198750	198050	0%	0.07	0.07
[COLOR="red"]12%[/COLOR]	1676900	1872200	5300	51200	53000	-3%	0.03	0.03
6%	1147700	1211100	5400	33700	33750	0%	0.03	0.03
0%	909950	907800	5500	102150	102200	0%	0.11	0.11
-3%	417900	405750	5600	46150	48350	-5%	0.11	0.12
0%	228350	227550	5700	42550	44900	-5%	0.19	0.20
-3%  25248950  24602800  Total  43209500  40316750  7%  1.76  1.60

Notice the increase in 4900, 5000 and 5100 Put OI. Indicates we are going to surpass 5100 next week

Hey,

If the big resistance at 5052 is taken out early in the week... then NIfty might take out the 5181 (October High) this week itself....... The 5015-5020 is proving to be quiet an effective resistance............

SM bhai aur AW10.... aapke kya vichaar hai????

 

[bajajdipesh]

%chn 12/11_CE 13/11_CE Strike 13/11_PE 12/11_PE %chn pcr_13/11 pcr_12/11
								
			Nov 2009					
-1%	264950	263350	4000	1195850	1206950	-1%	4.54	4.56
4%	25450	26500	4100	877500	870900	1%	33.11	34.22
-3%	28900	28050	4200	1355700	1329700	2%	48.33	46.01
-2%	30750	30200	4300	2096600	2202900	-5%	69.42	71.64
-2%	80850	78850	4400	2863600	2831850	1%	36.32	35.03
-8%	289650	267750	4500	4656850	4586600	2%	17.39	15.83
-5%	923050	879550	4600	5687700	5519150	3%	6.47	5.98
-5%	2417800	2296400	4700	6189200	6206100	0%	2.70	2.57
0%	2689450	2684300	4800	6323550	5799600	9%	2.36	2.16
-13%	3599650	3137400	4900	5748350	4730450	[COLOR="Red"]22%	1.83	1.31[/COLOR]
-9%	4618300	4191700	5000	4662850	3787050	[COLOR="red"]23%	1.11	0.82[/COLOR]
4%	3236600	3362000	5100	1077250	765250	[COLOR="red"]41%	0.32	0.24[/COLOR]
3%	2662750	2732350	5200	198750	198050	0%	0.07	0.07
[COLOR="red"]12%[/COLOR]	1676900	1872200	5300	51200	53000	-3%	0.03	0.03
6%	1147700	1211100	5400	33700	33750	0%	0.03	0.03
0%	909950	907800	5500	102150	102200	0%	0.11	0.11
-3%	417900	405750	5600	46150	48350	-5%	0.11	0.12
0%	228350	227550	5700	42550	44900	-5%	0.19	0.20
-3%  25248950  24602800  Total  43209500  40316750  7%  1.76  1.60

Notice the increase in 4900, 5000 and 5100 Put OI. Indicates we are going to surpass 5100 next week

Hi Hitesh,

I saw some anomaly in the calculations of change in OI. For Eg, if you go to NSE website for the 4900 PE, change in OI is quoted as 16.58% as on 13/11/2009 but your calculations are putting it at 22%. Also at NSE website OI is quoted as 5614200 but you are putting at 5748350. You may want to double check that.

 

[MurAtt]

You are right Dipesh. Thanks for pointing out but more for being watchful .... :clap:

Hitesh, pls recheck and edit your post above.
Also write on the first line of the post that you have edited the post and to re-read as the data has been changed so that ppl who have already read your post would know that there have been changes to the data.

Murtaza


btw Hitesh - where do you get your data from i.e. where do you get the OI from?

 

[WOD]

If market have done what most of its participants thinks

I doubt upto how much extent option OI would help to decide the trend of market!!!! for that even changing 6mn OI to 0.6mn will not take more than one trading session for Smart money....

 

[VJAY]

You are right Dipesh. Thanks for pointing out but more for being watchful .... :clap:

Hitesh, pls recheck and edit your post above.
Also write on the first line of the post that you have edited the post and to re-read as the data has been changed so that ppl who have already read your post would know that there have been changes to the data.

Murtaza


btw Hitesh - where do you get your data from i.e. where do you get the OI from?

Dear murtaz bhai,
I think it is same xl file which you give us some time before.....just some modifications.........

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