Trade with options data

[kiranjakka]

EvEN THOUGH THERE WAS A LOT OF CONFUSION IN TRADERS MIND THAT WHETHER MARKET CAN MOVE UP FROM HERE OR NOT NIFTY MARCH SERIES CAUGHT MY EYE AROUND4LK 5600PE OPTIONS CONTRACTS WERE WRITTEN IN MARCH SERIES WITH 50 CHANGE IN OI THIS MIGHT DOUBLE OR TRIPLE BY TUESDAY IF MARKET MOVES UP
MOST INTERESTING THING IS THAT THIS CONTRACT IS ONE OF THE HIGHEST TRADED IN MARCH SERIES. OVERALL TRADING VOLUMES WERE LOW IN CALL OPTIONS WHILE TRADING VOLUMES WERE HIGH IN PUTS

 

[rahul321]

Hello @kiranjakka,
hi have gone through all your posts, really amazing work and help done for newbies like us.

just need help with this data. how can the data in this image can be interpreted as i am confused with huge calls written at 5800 and 5900 levels.

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[kiranjakka]

I dont want to interpret 5800,5900 ces as we are heading for an expiry tomorrow. ....... but the 5400,5500,5600.Change in OI (negative) means profit booking or call writers covering their positions and as you interpreted 5600 put writing

 

[rajin90]

hey kiran i signed up at at ZERODH and they are showing 2 application printouts equity and commodity. both needed to send them ?

 

[trader15]

5600 put writing happening.... Markets will definitly move up 5600 significantly

 

[kiranjakka]

Markets will definitely be volatile because of expiry a head. there was a clear indication that the data since morning after 10.30 supporting the bulls and we made a high of 5620 by 12.3pm even in the later half of the day was supporting bulls only if we are long since morning with out shorting the market we should have made a decent money. all put options were punished even 5700put closed at 84 down 32rs while call options ended on positive note. which indicate bullishness.as a options trader we should know that he premiums will be down by 2.30 later half of the day just because tomorrow is expiry. and we should know that trading in feb options is very risky one should look at march series which will be less volatile to these conditions.

 

[SB2000]

click on this link

http://www.traderji.com/derivatives/67080-zerodha-challenge-anybody-me.html

I have been following your thread for sometime and its been a a great learnign expereince. I had one query though, the OI data from NSE has a 3 min lag (plz correct me if I am wrong), so is it useful to take a lag data into consideration for doing real trades? Also, one ( and I can think of the only) flip side to follow OI is when there is sudden spike in the market...say during the day when RBI announces its policies. How should one tackle this kind of a knee-jerk reaction? Or should someone just stay away till the news is broken?

 

[trader15]

5600 puts open interest seen 50% increase since morning 10 am: Time for take off to 5650+ levels

 

[TraderRavi]

5600 puts open interest seen 50% increase since morning 10 am: Time for take off to 5650+ levels

kab bhai ...3.30 pm ke baad...............

 

[bthakwani]

kab bhai ...3.30 pm ke baad...............

even i was observing the same thing..

5600 PE ka open interest lagataar badta jaa raha tha aur 5600 CE ka kam hota jaa raha tha.. from about 2 p.m.