Nifty Open Interest Analysis

[pvamshikrishna]

Dear option trader,could you please help me in how to trade with nifty open interest analysis in real time?

 

[nune_siva]

Dear Option.Trader,

Kindly provide a link to download the excel sheet.It looks amazing.

 

[option writer]

here u can download http://www.4shared.com/office/dAbHfgEa/october_nse_now_2.html
u can view from that excel...
happy trading...:thumb:

 

[Option.Trader]

Dear option trader,could you please help me in how to trade with nifty open interest analysis in real time?

pvam, there are tools by nishant who has automated signals from OI for trade. My post is just a humble opinion on analysis of what happened in the market. This could be used to either decide on positions or get into one in conjunction with other technical indicators. On its own, its very volatile to trade with OI in real time...but do see Nishant's post for the same

 

[Option.Trader]

Date : Oct 17 2012
Sometimes it pays to just stay away from trade and let the market decide where it wants to go. From past 4 days nifty is trading in a narrow range, so its better to wait for market to move below 5600 or above 5740 to take position

 

[SexyTrader]

Date : Oct 17 2012
Sometimes it pays to just stay away from trade and let the market decide where it wants to go. From past 4 days nifty is trading in a narrow range, so its better to wait for market to move below 5600 or above 5740 to take position

Wondering about the huge OI thats formed in the 5800 CE ? Of course that "could" include the shorts as well.....that in itself should be enough to push the spot Nifty to 5850 or 5900 ?

This OI thing is confusing with the data presented....I dont know whether to call it accumulation or Coz I do not feel the markets moving below 5600 that fast!

But I feel the 5800 CE should rock, atleast my INSTINCTS tell me so....what do you think in terms of all the technicals ?

 

[Stock trendy]

My observation is a year or so market makes big move just at the end of expiry and till first few days of new series then it get to sideways and trade in a range of 100-150 points to exhaust out of money puts and calls
we have just 4 days left in this series 5700 Pe or 5600 Ce is staying alive to some extent rest other out of money are just keep evaporating in thin air..
I am not an option analyst i trade option for a day or two as per trend
I go through your thread it's very informative thank you...:thumb:

 

[SexyTrader]

My observation is a year or so market makes big move just at the end of expiry and till first few days of new series then it get to sideways and trade in a range of 100-150 points to exhaust out of money puts and calls
we have just 4 days left in this series 5700 Pe or 5600 Ce is staying alive to some extent rest other out of money are just keep evaporating in thin air..
I am not an option analyst i trade option for a day or two as per trend
I go through your thread it's very informative thank you...:thumb:

But the HUGE OI in the 5800 CE and rapidly rising is something so unique!!!

How can just one 5800 CE have all the OI in the world...and yet not move in price ? And even if its the shorts building up, why would anyone build shorts like that without a clue of where its heading ?

Even by my INSTINCTS, I have not seen anything like this....the OI in 5800 CE is so HUGE that it looks weird

I mean, based on just this OI....and the volume....I feel it can maybe just go shooting all upto 5850-5900 And if it had to go down, it would have broken 5600 by now and I do not see that happening so fast!

What a confusing OI :rofl: Technical/Fundamental all tals need to clarify whats happening here ? I need to understand how to interpret this CONFUSING data

 

[sjnanes]

eagerly awaiting todays analysis

 

[Option.Trader]

But the HUGE OI in the 5800 CE and rapidly rising is something so unique!!!

How can just one 5800 CE have all the OI in the world...and yet not move in price ? And even if its the shorts building up, why would anyone build shorts like that without a clue of where its heading ?

Even by my INSTINCTS, I have not seen anything like this....the OI in 5800 CE is so HUGE that it looks weird

I mean, based on just this OI....and the volume....I feel it can maybe just go shooting all upto 5850-5900 And if it had to go down, it would have broken 5600 by now and I do not see that happening so fast!

What a confusing OI :rofl: Technical/Fundamental all tals need to clarify whats happening here ? I need to understand how to interpret this CONFUSING data

Its pretty simple if you understand Option writers mindset. He is playing the high risk low reward game. For a limited profit, he is taking unlimited risk... so if you were in his shoes, you would take the path of least resistance. In this case, 5800 in Nifty is a foregone conclusion. But there are still people out there ready to pay a premium of 8rs for a gap of 140 points.. even then it wont be enough to put him in loss... so he is basically getting 8Rs on sum invested with a remote chance of it ever hitting

Look at Columbus's chart on Option convergence... you can see that expiry is between 5600-5700 range considering all other options are sub 10 rs