http://www.nseindia.com/live_market...-&segmentLink=17&symbolCount=2&segmentLink=17
In the option chain look for MAXOI CE PE
SBIN
MAX OI
CE 290 -1,936,000
PE 250 -1,147,000
midpoint-270
what this MAX OI PE CE,indicates
Bulls protecting 250 LV,
Bears protecting 290 LV,
(this will be the range for JULY Expiry,For sbin the range is 250 to 290)
so one can take a position at this levels
EX
buy sbin at 250 LV.
sell sbin at 290 LV
if one get a buy signal at 250LV in chart buy with ST, target -270,290
if one get a sell signal at 290LV in chart sell with ST,target -270,250
what is midpoint, and how to use this point ?
MP-midpoint ((MP=MAXOICE+MAXOIPE/2)290+250/2=270)
sbin MP-270
now sbin trading at 265.20
one can use this MP for opportunity
if one get a buy signal in chart at 270,buy with ST,target is-290
if one get a sell signal in chart at 270,sell with ST,target is-250
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brief of Technical words
LV- levels
PE-Put
CE-Call
OI-open interest
MAX OI- levels that have max value
CHOI- change in open interest
MAX CHOI-level that have max value
MP-midpoint ((MP=MAXOICE=MAXOIPE/2)290+250/2=270)
ST-stop loss
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(its my view only)
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