Trade with options data

[kiranjakka]

????
please comment.

trend up for hindalco you can see that today 130 puts written and there is covering in call options at 130 level. :thumb:

 

[pav]

trend up for hindalco you can see that today 130 puts written and there is covering in call options at 130 level. :thumb:

Kiran ji,

still i did not understand that how 130 puts written and how covering in call options at 130 level.
please explain in detail in step by step....still i cann't able to understand use of optionchain table so please explain in detail in step by step. i will be very gratefull to you.

 

[vssoma]

Kiran ji,

still i did not understand that how 130 puts written and how covering in call options at 130 level.
please explain in detail in step by step....still i cann't able to understand use of optionchain table so please explain in detail in step by step. i will be very gratefull to you.

dear,
look at strike price 130....in "change in OI" column @ put side it +86000 and @call side -114000
means more puts are added and call are covered ( closed ).... ( as of my understand )
i think this information is enough for U , if not ...we have to wait for kiranji ka answer

 

[pav]

????
please comment.

trend up for hindalco you can see that today 130 puts written and there is covering in call options at 130 level. :thumb:

Kiran ji,

still i did not understand that how 130 puts written and how covering in call options at 130 level.
please explain in detail in step by step....still i cann't able to understand use of optionchain table so please explain in detail in step by step. i will be very gratefull to you.

dear,
look at strike price 130....in "change in OI" column @ put side it +86000 and @call side -114000
means more puts are added and call are covered ( closed ).... ( as of my understand )
i think this information is enough for U , if not ...we have to wait for kiranji ka answer

Thanks dear swamy but i think that answer is not enough and not correct and we have to wait for Kiran ji answer.

 

[kiranjakka]

Thanks dear swamy but i think that answer is not enough and not correct and we have to wait for Kiran ji answer.

my thanks to VSSOMA itself denotes that he is right PAV :thumb:

 

[pav]

now i got it.....thanks Kiranji and vssoma.:thumb:

 

[prabhsingh]

I dont understand that how does 86000 on Put side means its Put Writing.It can also be meant that people are buying Put rather then Writing.Isnt it?

 

[TheDreamer]

I dont understand that how does 86000 on Put side means its Put Writing.It can also be meant that people are buying Put rather then Writing.Isnt it?

Your doubt will be cleared if you can figure out how much does it take to write a put and to buy a put.

 

[prabhsingh]

Your doubt will be cleared if you can figure out how much does it take to write a put and to buy a put.

When you buy a put the maximum loss that you can make is the premium amount whereas in case of writing a put without owning losses can be unlimited.In above example if people are writing the puts than "Change in OI" should not have been in negative.

 

[prabhsingh]

Your doubt will be cleared if you can figure out how much does it take to write a put and to buy a put.

We just need to remember following behaviour:

a) If OI and Price is UP,Long build up taking place
b) If OI is UP and Price is DOWN,Short build up taking place.
c) If OI is DOWN and Price is UP,Short Unwinding taking place.
d) If OI and Price is DOWN,Lond Unwinding taking place.

Now if you look at Hindalco 130 and 120 PUT,84000 and 98000 is the Change in OI which means Short Build is taking place.Now i am not saying its going to reach at those levels but those levels needs be watched closely as well.