Nifty Open Interest Analysis

[jamit_05]

Hmm, trick?

What is a trick?

The trick is in trying to get the reasoning right so that it is repeatable

Hmm, is that a trick? Many times this will happen with not much effort of what ever. So could there be any thing else which really would be a trick?

For example to save profit we already made in such a trade? Maybe even to do something to have a god chance to even double that profit in case market does not move up any more. Would that be a trick?

Good trading / DanPickUp

Yes sir, that would be a trick. If one has a specific view of the market, like 6400 and 5900 won't be broken for at least till June expiry, how can one manage to double his profits? That would be a neat trick to learn.

Please provide your views Dan.

 

[manojborle]

Strikes from 5500 to 5900 both calls and puts are losing OI highest bein in call Side.
What does this indicate ?

 

[sridhar]

Strikes from 5500 to 5900 both calls and puts are losing OI highest bein in call Side.
What does this indicate ?

Does not seem to be significant activity. Seniors can comment.
Currently it looks like a range of 6000 to 6200 is being anticipated.

 

[jamit_05]

Strikes from 5500 to 5900 both calls and puts are losing OI highest bein in call Side.
What does this indicate ?

For market makers, the business is in premiums by the way of time decay. These far OTM and ITM have a smaller premium component against their investment compared to ATMs. So as SPs become far they book profit and divert the investment to ATMs.

 

[Option.Trader]

Interesting build up on OI... 6200 CE OI crosses 70L...
Trying out this

Writing 6300CE @35 and buying 6100 call @ current market price
as mentioned by Dan, looking for a spread in the view that upside is still there but limited to 6300.. (just taking a conservative view )

so effectively paying out 100 rs for 6100 call in the view that it may inch up to 6250-6300 on back of momentum

As before, my downside on call is protected for 30 pts with 6300 CE.. so essentially SL for 6100 is placed at 100

 

[jamit_05]

Interesting build up on OI... 6200 CE OI crosses 70L...
Trying out this

Writing 6300CE @35 and buying 6100 call @ current market price
as mentioned by Dan, looking for a spread in the view that upside is still there but limited to 6300.. (just taking a conservative view )

so effectively paying out 100 rs for 6100 call in the view that it may inch up to 6250-6300 on back of momentum

As before, my downside on call is protected for 30 pts with 6300 CE.. so essentially SL for 6100 is placed at 100

Buying a Bull Call Spread after a strong move up is a disadvantage. Waiting for Monday will benefit.

I think what Dan referred to is playing double-or-nothing on your profits. You could do that by buying OTM calls or Selling ATM PEs.

 

[javedk]

Interesting build up on OI... 6200 CE OI crosses 70L...
Trying out this

Writing 6300CE @35 and buying 6100 call @ current market price
as mentioned by Dan, looking for a spread in the view that upside is still there but limited to 6300.. (just taking a conservative view )

so effectively paying out 100 rs for 6100 call in the view that it may inch up to 6250-6300 on back of momentum

As before, my downside on call is protected for 30 pts with 6300 CE.. so essentially SL for 6100 is placed at 100

Before the profit booking 2 days before Call 6200 OI was above 80L.
current OI in Call 6200 is still above 70L, and the OI in PE 6000 is above 80L, does this indicate another correction before we have an upside above 6200.
your views please

 

[sridhar]

Before the profit booking 2 days before Call 6200 OI was above 80L.
current OI in Call 6200 is still above 70L, and the OI in PE 6000 is above 80L, does this indicate another correction before we have an upside above 6200.
your views please

6200CE means a break even of around 6250 ( very approx.). Now this is above where the bears expect to top out. Similarly Bulls are expecting 6000PE bottom out @ 5980 ( again very approx). But things could change on a dime.

 

[spkreddy]

no updates

 

[sridhar]

6200CE means a break even of around 6250 ( very approx.). Now this is above where the bears expect to top out. Similarly Bulls are expecting 6000PE bottom out @ 5980 ( again very approx). But things could change on a dime.

Things are changing on a dime. Looks like 5800-5850 may be tested. & the rest seem to be on holidays.