how to know trend of option

[mkpandey]

today -06.07.11

nifty 5700 CE- price decline,but open interest increased and so the volume is.

is call being written

 

[TraderRavi]

today -06.07.11

nifty 5700 CE- price decline,but open interest increased and so the volume is.

is call being written

call written = call buying.........but who is smart buyer or seller........buyer thinks a moveup is due ...seller thinks of a move down.....

 

[rama_1000]

today -06.07.11

nifty 5700 CE- price decline,but open interest increased and so the volume is.

is call being written

Price decline of 5700 CE Nifty is due to decline in value of underlying security (i.e., Nifty), decline in time-value (i.e., number of days remaining for expiry decreasing). Sometimes, it may also be due to decrease in implied volatility.

On the other hand, increase in the Open Interest as well as increase in volume indicate the increasing interests of investors / traders. Increase in OI means that new contracts have been written / purchased in addition to ones already existing.

 

[Capricorn]

call written = call buying.........but who is smart buyer or seller........buyer thinks a moveup is due ...seller thinks of a move down.....

The winner of course ..:lol: