Need guidance on Open Interest

#1
Hi All !

I've some questions regarding Open Interest.The questions are :-

1) Which figure of O.I. to be given more importance? Absolute figure in Lakhs or % change? This is because,when I saw the Data yesterday,then Abosolut figure was highe fr 5300 PE,while % change was highest for 5400 PE.

2) How to understand the change with respect to Volatility?

3) Where can I get the daily data of Implied volatility? Can I prepare the Excel Sheet,so that i can draw he graph also.

Waiting for reply from the experts.

Thanks & Regards,
Mandar Datye.
 
#2
Hi All !

I've some questions regarding Open Interest.The questions are :-

1) Which figure of O.I. to be given more importance? Absolute figure in Lakhs or % change? This is because,when I saw the Data yesterday,then Abosolut figure was highe fr 5300 PE,while % change was highest for 5400 PE.

2) How to understand the change with respect to Volatility?

3) Where can I get the daily data of Implied volatility? Can I prepare the Excel Sheet,so that i can draw he graph also.

Waiting for reply from the experts.

Thanks & Regards,
Mandar Datye.
 

detrich

Active Member
#3
dear mandar, first of all the open intrest is a particular term to determine the total outstanding contracts at that particular strike price. So when you see the amount it reflects total money in absolute term involved and % is just the increase or rather decrease in the contract for e.g. Supposing in this market there r only 3 traders you sell 23 lots of nifty at 5300 and i buy 18 of them then the open intrest for that day would be considered 18 tommorow ms.x comes in and offers her 2 lots for sell and i buy 1 then it will add 1 to open intrest. Now for some reason i find the market bearish and execute 12 lots and manage to sell 2 lots then the total oi will come to 7. I hope this covers the 1st point you can download the data from www.nseindia.com. An increase indicates people are intrested in that contract combining with vix you can deuce to certain extent where big money is heading n how fast REMEMBER YOU CANNOT RELY ON ONE PIECE OR ONE COMBINATION OF DATA TO PREDICT MARKET. best of luck bro.
 

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