PUT and CALL options

[columbus]

DEC.10 DECseries Day.7 Nifty=5909 (2)

In DEC series ,NIFTY (5U2D) closed like this:
UDUUUDU

The Expiry Zone condensed to (6000~5800) from(6000~5700).
5700,5600&5500 strike of Expected zone were taken out.(WHITE font).
Yellow colour indicates OI greater than 0.5M.
The present STRIKE position is indicated.
6100CE has open Interest of -0.4M whereas 6000CE has OI more than 0.5M.

ALL GREEKS

One of the primary analysis techniques utilized in options trading is the Greeks –
measurements of the risk involved in an options contract as it relates to certain
underlying variables. Vega measures the sensitivity to the underlying instrument’s
volatility. Delta measures the sensitivity to the underlying instrument's price.
Gamma measures the sensitivity of delta in response to price changes in the
underlying instrument. Theta measures the time decay of the option.

COURTESY:investopedia

 

[timepass]

and the price of almost all the options has shrunk. Looks like the delta worked overtime today

 

[columbus]

and the price of almost all the options has shrunk. Looks like the delta worked overtime today

Yes, all OPTIONS ,both CALLs & PUTs lost value.In case of FLAT market,both
lose value ,but not alarmingly.

 

[columbus]

DEC.11 DECseries Day.8 Nifty=5899 (-10)

In DEC series ,NIFTY (5U3D) closed like this:
UDUUUDUD

The Expiry Zone condensed to (6000~5800) for a second time.

5600&5500 strike of Expected zone were taken out as 5500CE Total OI of more
than 1M was not taken into consideration.It is generally observed that multiples
of 500 (strikes 5500,6000,6500 etc ...tend to have more OI)

Yellow colour indicates OI greater than 0.5M.
The present STRIKE position is indicated.

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.

 

[columbus]

DEC.11 DECseries Day.8 Nifty=5888 (-11)

In DEC series ,NIFTY (5U4D) closed like this:
UDUUUDUDD

The Expiry Zone condensed to (6000~5800) for a third time.

5600&5500 strike of Expected zone were taken out as 5500CE Total OI of more than
1M was not taken into consideration.It is generally observed that multiples of 500
(strikes 5500,6000,6500 etc ...tend to have more OI)

Yellow colour indicates OI greater than 0.5M.

The present STRIKE position is indicated.

If no major fall/gain is expected ,the Expiry would like to take place at
5900/6000.

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)

 

[columbus]

DEC.13 DECseries Day.10 Nifty=5851 (-37)

In DEC series ,NIFTY (5U5D) closed like this:
UDUUUDUDDD

The Expiry Zone expanded downwards (6000~5700) from (6000~5800)
and due to deep fall.Once again 5700 has become a bit active.

CALLs have accumulations/shredding with PUTs having no major part.

Yellow colour indicates OI greater than 0.5M.

The present STRIKE position is indicated.

ALL GREEKS

One of the primary analysis techniques utilized in options trading is the Greeks
measurements of the risk involved in an options contract as it relates to certain
underlying variables. Vega measures the sensitivity to the underlying instruments
volatility. Delta measures the sensitivity to the underlying instrument's price.
Gamma measures the sensitivity of delta in response to price changes in the
underlying instrument. Theta measures the time decay of the option.

COURTESY:investopedia

 

[columbus]

DEC.14 DECseries Day.11 Nifty=5879 (28)

In DEC series ,NIFTY (6U5D) closed like this:
UDUUUDUDDDU

The Expiry Zone stands at (6000~5800) for a second time.

Yellow colour indicates OI greater than 0.5M.

Funny enough all CALLs except 6100CE,have shown shredding.Similarly PUTs
too,have shown Shredding.Nobody wants to take POSITION pending RBI policy.

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)

 

[columbus]

DEC.17 DECseries Day.12 Nifty=5858 (-21)

In DEC series ,NIFTY (6U6D) closed like this:
UDUUUDUDDDUD

The Expiry Zone starts converging to (6000~5800) for a third day in row..

Yellow colour indicates OI greater than 0.5M.

Only CALLs in this zone showed some good OI.But only far away PUT 5400PE
showed some accumulation.

Present strike position is also indicated.

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)

 

[bkb]

Hi,

Sorry to interrupt the flow.
Can you please explain why strike 5800 is out of expected expiry zone, since OI and price seems to fulfill your mentioned criteria's.

 

[columbus]

Hi,

Sorry to interrupt the flow.
Can you please explain why strike 5800 is out of expected expiry zone, since OI and price seems to fulfill your mentioned criteria's.

Hi bkb,

Thanks for correcting me.Yes,it is an error on my part.
The price of 5800PE has not turned penny.(22.35)
Perhaps the mistake may be ,the adjacent column showed 5.05.But it is
chance in price but not PRICE.