Do you believe in Open Interest change theory for Options?

Many traders believe that change of OI is one indicator of the market movement in case of Options. Even the lecturers at TV channels tells much about that.
However, I have doubts about the theory.
We know that change of OI will be mainly positive if stike becomes nearer to the market price. The reason is traders will take position for nearer strike. At the same time Open Interest will reduce if a strike becomes IN the money as many position holder will reduce position of square off.
Suppose Nifty was trading at 7800. If NF falls to day to 7650, we may see a OI increase for 7600 PE and 7700 CE.
Okay it may happen that Change of OI for 7600 PE will be more than 7700 CE, but can we belive that more people think market will fall? Are those 7600 writers fool (in case no hedging was done)?
At the same time you may see increase of OI for 7800 CE, because it becomes cheaper and many will buy in speculation of bounce back. Writers will also be happy to write it, because it will be far and Theta will benefit them.
So, how will you decide which way market likely to move tomorrow?

main point is to catch where volume is............
as per ppls that i believe who are like super intelligent in this forum they said..

If volume is increasing and open interest is decreasing means close eyes and buy it .
same goes if volume is decreasing and open interest is increasing then better to sell strike.

my another friend once said for overnight position look at NET OI
find the highest open interest in put side and compare it with highest open interest in call side
then ask which is high ? and part where it;s high means that side will go down ....
below is table indicating
which NET OI is high?
CE of 8000 so
:-- Bears says to bull we will not let u cross 8000 :xD
and bull saying to Bear we will not let u drag beow 7500
Time will tell who is going to give up
we looking at value at EOD ok END OF Days:clap:

downlaod link
o remeeebr we don;t control market. flow of money can change everything . so
lets say 40% of time this theory will work .beside Bald guy will never say hey today i am going to buy in market or today i m sell ^^^.


don;t be afraid to make mistake while are learning., Trade small for 6 months like 1 or 2 lot experiment . in end
Al theory goes wrong .coz
There is only 1 side to market and that's Right side.
Rule is simple if u are on right side u make money else u will die broke like rest.

And the day u think wow i made a perfect theory thats work b_i_t_ch hits u in stomach taking away lol all$$..
Thats where SL wil protect you. Sl can be profit blocker but it can save your capital .so mhm lol
GOOD luck

Option Bussiness is for not for normal people. You need to kill all your emotion and even after huge loss .your mindset should be able to take right next right decision.here only 2% of ppls will be in profit at end of of month

Welcome to option:xD

option resemblesse is with this guy .......................




jack ma he is brilliant guy .... search his you tube interviews ..truly courage to excellence .his videos directly touch your heart :xD

@ test 123

What option tool you posted is already with me. I am not new in options. It will be around 4 years now. Analysed every possible things...lost a truckload.
Still believe, options are better.
Till whatever things studied, based on that sometimes somethings are very hard to digest.
On CNBC one guy comes with option strategies. Once he told to sell straddle before 45 minutes (I don't recall what time was it, but was below 1 hr.). Price was around 2.5. So, for that 2.5 he was going naked. If suddenly Nifty makes a Hip-Hop dance, what will happen to the seller?

@ test123
Okay, you are fan of Enrique too?

lol i lisen to anything and everything.. u be amazed i like DBZ theme and katy perry and enrique and a lot of more lol.
I never sell option that's way too much more risk.

our moto is if u feel market is going to be down buy put
if u feel market up then buy call :xD

OI change theory don't work in options.
I mean for real traders it wont work.
There are many papers traders who write a lot on that. But practical trading is not possible based on change in OI theory.

You have good company,,, of N N Taleb. :thumb: