Call Writing and Put Writing

#1

  • I would like to know how are the CNBC TV people are able to say that excess call writing / put writing has occurred today .

  • How are they able to say that Lot of Long positions have been added in futures of say "X" stock ? How are they able to differentiate between longs and shorts ?

Please suggest ways to find out this information.
 
#3
Dear Ankurpcl,

I understand it is based on OI but how are they able to say if more of Longs are there or more of shorts have added , how can they be so sure ? OI does not give long and short positions. It is a count of open "contract" and each contract has one Open long and One open Short ! If it was a count of Open positions only , and not open contracts then somehow one can try to evaluate ...

Moreover the IO is not refreshed dynamically at every tick , it is a slower update so even trending that value would not give a clear picture ... Please correct me and elaborate if possible.

Please explain if you can.

Thanks in advance.
 

ankurpcl

Active Member
#4
I only track nifty options, so can tell you from that perspective.

Lets Assume Nifty Future today close 6328.

And lets assume we have 20 lakh increase in OI in todays trade at 6300 Puts,
it means Long Positions have added in todays market with support levels of smwhere around 6250 in nifty

So you can plan your trades in coming days assuming Nifty wont break 6250 so easily.

On Upper side, its call that tells same picture. Accordingly you need to plan your trades if you have increase in CALLS OI at upper strikes which shows addition of short positions in market.

Hope this works for you and everyone who read it.
 

DanPickUp

Well-Known Member
#5
I only track nifty options, so can tell you from that perspective.

Lets Assume Nifty Future today close 6328.

And lets assume we have 20 lakh increase in OI in todays trade at 6300 Puts,
it means Long Positions have added in todays market with support levels of smwhere around 6250 in nifty

So you can plan your trades in coming days assuming Nifty wont break 6250 so easily.

On Upper side, its call that tells same picture. Accordingly you need to plan your trades if you have increase in CALLS OI at upper strikes which shows addition of short positions in market.

Hope this works for you and everyone who read it.
Hmm. Here you show off like you know every thing about futures and options and all other derivative: http://www.traderji.com/options/91914-call-writing-put-writing.html#post925599 and in the above post you suddenly say that you only track Nifty options. Hmm??????? Watch your words mister Senior. There are some other rules for future OI. Take care / DanPickUp
 

ankurpcl

Active Member
#6
Mr.DanPick Up
I would say you rather you are the most ignorant person in traderji forum.
You have no understanding of market dynamics and juggling how others are making money in the markets.

People like you will never ever understand dynamics of markets. So better you stay from the markets as much as possible.

Take care you too..
 

DanPickUp

Well-Known Member
#7
Mr.DanPick Up
I would say you rather you are the most ignorant person in traderji forum.
You have no understanding of market dynamics and juggling how others are making money in the markets.

People like you will never ever understand dynamics of markets. So better you stay from the markets as much as possible.

Take care you too..
 
#8
Mr.DanPick Up
I would say you rather you are the most ignorant person in traderji forum.
You have no understanding of market dynamics and juggling how others are making money in the markets.

People like you will never ever understand dynamics of markets. So better you stay from the markets as much as possible.

Take care you too..
Go ahead he is limited in books......:D
 

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