PUT and CALL options

[columbus]

NOV series Day.2 Nifty=5665 (1)

In NOV series NIFTY (1D-1U) closed like this:
DU


There is no change in Expected Zone at (5800~5400).
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.
There is further drop in Total-OI of 5500 strike also.

THETA (time decay):
The option's theta is a measurement of the option's time decay.
The theta measures the rate at which options lose their value,
specifically the time value, as the expiration date draws nearer.
Generally expressed as a negative number, the theta of an option
reflects the amount by which the option's value will decrease every day.
(courtesy:theoptionguide.com)

 

[columbus]

NOV series Day.3 Nifty=5598 (-67)

In NOV series NIFTY (2D-1U) closed like this:
DUD


There is no change in Expected Zone at (5800~5400) for THIRD day.
Lot of accumulation is seen on CALL side.
The important strikes where accumulation/shedding took place were indicated
in Yellow colour.

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)

 

[Relish]

Re: NOV series Day.3 Nifty=5598 (-67)

In NOV series NIFTY (2D-1U) closed like this:
DUD


There is no change in Expected Zone at (5800~5400) for THIRD day.
Lot of accumulation is seen on CALL side.
The important strikes where accumulation/shedding took place were indicated
in Yellow colour.

Dear Columbus,

Can you give some more details about how we can trade by looking on this chart? I know I am asking very basic question since i didn't understand purpose of this thread?

Thanks

 

[columbus]

Re: NOV series Day.3 Nifty=5598 (-67)

Dear Columbus,

Can you give some more details about how we can trade by looking on this chart? I know I am asking very basic question since i didn't understand purpose of this thread?

Thanks

Dear Relish,

It will keep you in right side of the market but prediction is not possible because
market movement depends on various causes.

 

[Relish]

Re: NOV series Day.3 Nifty=5598 (-67)

Dear Relish,

It will keep you in right side of the market but prediction is not possible because
market movement depends on various causes.

So it means we should buy call or put option only in expected zone only. Can you share some idea how you trade in this zone. :thumb:

 

[columbus]

NOV series Day.4 Nifty=5620 (22)

In NOV series NIFTY (2D-2U) closed like this:
DUDU

 

[columbus]

NOV series Day.5 Nifty=5645 (25)

In NOV series NIFTY (2D-3U) closed like this:
DUDUU

The significant changes are marked in YELLOW.
The sentiment appears to be Bearish.
The OI-shedding at strike 6000CE appears to be less but it is a significant
one.Since it is to early to comment on the direction of market because we
are 5th day in this settlement.


THETA (time decay):
The option's theta is a measurement of the option's time decay.
The theta measures the rate at which options lose their value,
specifically the time value, as the expiration date draws nearer.
Generally expressed as a negative number, the theta of an option
reflects the amount by which the option's value will decrease every day.
(courtesy:theoptionguide.com)

 

[columbus]

Re: NOV series

So it means we should buy call or put option only in expected zone only. Can you share some idea how you trade in this zone. :thumb:

Hi Relish,

Sorry for replying you late as I was bit busy .
It shows the relative movement of Market vis-a-vis the Expected zone.
Before Expiry it shows how a strike become penny in this zone.
This zone indicates ACTIVE strikes.Of course this is expected so,generally
it covers above & below 2or more strikes.Sometimes taking OTM options in
heavy quantity but in trend direction will help immensely.

 

[columbus]

NOV series Day.6 Nifty=5698 (53)

In NOV series NIFTY (2D-4U) closed like this:
DUDUUU

Now Expiry zone stands at 5500~5800.
5400PE already turned PALE.(Less than 10/-)

Significant OI additions are marked in YELLOW color.
It appears CALLs are strong and PUTs are weak (BOX) looking at today's data.


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)

 

[muinali]

columbus sir
can u tell how can i update data in columus_2 ,i tried but failed ,dont hav experience in excel ,
thanx in adavnce
moin