PUT and CALL options

I trade in OPTIONS only.

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columbus

Well-Known Member

columbus

Well-Known Member
NOV.5 NOVseries Day.7 Nifty=5704 (6)

In NOV series NIFTY (2D-5U) closed like this:
DUDUUUU

Now Expiry zone stands at 5500~5800 for second day in row.

5700PE only showed a good accumulation.




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)
 
Re: NOV.5 NOVseries Day.7 Nifty=5704 (6)

5700PE only showed a good accumulation.
Goodness !! and a slight increase in the price too (though minor) despite the day ending in green. Seems like the next 2-3 days will be bombastic :D
 

columbus

Well-Known Member
Re: NOV.5 NOVseries Day.7 Nifty=5704 (6)

Goodness !! and a slight increase in the price too (though minor) despite the day ending in green. Seems like the next 2-3 days will be bombastic
Most of the day PUTs were in great demand,there after, may last hour or so,
CALLs gained.Important event to be watched is US election.
 

columbus

Well-Known Member
NOV.6 NOVseries Day.8 Nifty=5724 (20)

In NOV series NIFTY (2D-6U) closed like this:
DUDUUUUU

Now Expiry zone stands at 5500~5800 for third day in row.
The present position is indicated in the chart.
Positions over 0.5M are indicated in the chart ,it indicates the tussle between
bulls and bears.



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)
 

muinali

Well-Known Member
what is mean by NIFTY (2D-6U)?
 

columbus

Well-Known Member

columbus

Well-Known Member
NOV.7 NOVseries Day.9 Nifty=5760 (36)

In NOV series NIFTY (2D-7U) closed in this fashion:
DUDUUUUUU

Now Expiry zone stands at (5600~5900) for third day in row.
Positions over 0.5M are indicated in the chart ,near current value.



We can expect correction on 2 factors.(Personal view)

A.We have 6 days continuous run.

B.In market ,we have a rule BUY on suspense ,SELL on news.
OBAMA is re-elected.The suspense on American election is over.
 

columbus

Well-Known Member
NOV.8 NOVseries Day.10 Nifty=5739 (-21)

In NOV series NIFTY (3D-7U) closed in this fashion:
DUDUUUUUUD

Now Expiry zone stands at (5600~5900) for second day in row.
(Smal corection:"Now Expiry zone stands at (5600~5900) for third day in row." I forgot to delete "...for
third day in row."in my previous post)


Today OI over 0.5M are indicated in the chart .



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)
 
Last edited:

columbus

Well-Known Member
NOV.9 NOVseries Day.11 Nifty=5686 (-53)

In NOV series NIFTY (4D-7U) closed in this fashion:
DUDUUUUUUDD

Now Expiry zone stands at (5600~5800).

Interesting accumulation/shredding are indicated in YELLOW colour.



5700CE & 5800CE indicated some accumulation.
5700PE & 5800 PE indicated some shredding.

But the sum indicates UPWARD movement ????(Personal view)

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
 

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