PUT and CALL options

[columbus]

OCT series DAY.16 NIFTY=5717 (32)

In last 16 days (10-UP & 6-DOWN) NIFTY closed like this:
UUUUDDUDUDUDUUDU


We have entered EXPIRY week ,with EXPIRY zone at 5700.

Markets are interestingly poised ,with Today OI of 5800CE at 1M and 5600PE
at 1.5M.Today OI accumulations/sheddings are indicated in YELLOW colour.

Gamma

The option's gamma is a measure of the rate of change of its delta. The gamma of an option
is expressed as a percentage and reflects the change in the delta in response to a one point
movement of the underlying stock price.

Like the delta, the gamma is constantly changing, even with tiny movements of the underlying
stock price. It generally is at its peak value when the stock price is near the strike price of the
option and decreases as the option goes deeper into or out of the money. Options that are very
deeply into or out of the money have gamma values close to 0.

 

[kalpana09]

market will touch 5500 before expiry

 

[rey7271]

not possible nifty touch 5800 +

 

[columbus]

OCT series DAY.17 NIFTY=5691 (-26)

In last 17 days (10-UP & 7-DOWN) NIFTY closed like this:
UUUUDDUDUDUDUUDUD

Now the expiry zone stands at 5600~5700.
Once again 5600 ,is turned active ,with today's fall in market.
Strangely all four strikes in this ZONE showed shedding.

 

[columbus]

not possible nifty touch 5800 +

market will touch 5500 before expiry

Both appears to be wrong ,because we have JUST one day to go for Expiry.(24 OCT is a Holiday)
But watch out for this range 5650~5750 for Expiry.

 

[321Phani123]

The volatility in the market is for sure decreasing, that means, the Nifty is in a consolidation phase and will remain in that phase untill no great negative surprises come from earnings of big blue chip companies. So, far everything has been good and the good news in earnings have clearly factored in the Nifty.

Regards,
Phani

 

[columbus]

OCT series DAY.18 (END) NIFTY=5705(14)

NIFTY ENDED AT 5705 this series.

 

[columbus]

NOV series Day.1 (Start) Nifty=5664 (-41)

In NOV series NIFTY (1D) closed like this:
D
(Bad start ????)

The Expected Zone is (5800~5400) as per today's data.
The important strikes where accumulation/shedding took place were indicated
in Yellow colour.

Generally strikes like 5000,5500,6000,6500 etc show high OI interest but
strangely 5500CE showed less OI compared to 5400CE & 5600CE strikes,
may be due to fact that we are on day.1 of a new series.

 

[anup]

@columbus: Does monitoring OI gives a good sign for the market..If yes how many days we have to monitor...Plz explain more abt the purpose of this thread

 

[columbus]

@columbus: Does monitoring OI gives a good sign for the market..If yes how many days we have to monitor...Plz explain more abt the purpose of this thread

@anup,
Does monitoring OI gives a good sign for the market..If yes how many days we have to monitor.

Regarding OI and PCR ,I mentioned in this thread many times.

OPEN INTEREST-Interpretation

Open interest is usually used as an indication of the strength of a price
movement, but on its own it does not provide any indication of the direction
of the price movement.


Increasing open interest shows that there is strength behind the current price
movement, and decreasing open interest shows that there is a weakening of
the current price movement. For example, increasing open interest along with
increasing prices indicates that the upward price movement could continue,
but decreasing open interest along with increasing prices indicates that the
upward price movement may be about to reverse.

Open interest is also used to determine if a market is likely to be trending or
range bound (i.e. choppy). Increasing open interest shows that the rate of
new trades is increasing, which indicates that the market is being actively
traded. While decreasing open interest shows that the rate of news trades
is decreasing, which indicates that the market may be entering a time of
less active trading. (Courtesy:daytrading.about.com)

There are 2 schools of thought as far as PCR goes.

PCR:

It is the ratio of the volume of put options traded to the volume of call
options traded.Some believe that a high PCR means more number of Puts
have been written and markets should go ahead.Others believe in entire 
opposite view.

But the problem is both of them correct ,but only 50% times.


Plz explain more abt the purpose of this thread.

Since the windows and zone adjust themselves according to market
movement,we will be on right side of the market.