PUT and CALL options

[columbus]

May.8 may-series Day.9 Nifty= 6660 (7)

The EXPIRY ZONE has moved to (6700~6800) from (6500~6800).
This is possible not because of massive movement in UP direction but because of
losing of Open Interest of 210K at 6500CE,just today itself.

Total strikes with Price over Rs.HUNDRED in CALL window: 8 (Prev:11)
Total strikes with Price over Rs.HUNDRED in PUT window : 11 (Prev:9 )


Avg Open Interest (Today) as shown ... CALL side: 19K /4 (Prev: 37K/4)
Avg Open Interest (Today) as shown..-.. PUT side: -3K /1 (Prev: -81K/4)


Average Implied Volatility in ZONE......CALL side : 37.04 (Prev:35.54)
Average Implied Volatility in ZONE.......PUT side : 40.11 (Prev:37.62)

(After deleting PENNY Strikes ,if any.Because they adversely affect the values.
Strikes above and below the CURRENT position are taken ,as shown)

Bold indicates Open Interest over 500k.(If ,any)
Italics indicate Open Interest over -500k.(If ,any)


Current position is indicated.

 

[columbus]

No.................

Wow !! That must be a record

@timepass,

During FEB-series it went on for 10 ten days.

This happens when multiple of 500 strike forms as one boundary of either CALL or PUT windows (generally) .They tend to have HIGH open interest.

Another reason could be if NIFTY is moving in a tight range.

 

[stock72]

Re: No.................

as below may be MAY too expire there .. :rofl::rofl::rofl::rofl:

@timepass,

During FEB-series it went on for 10 ten days.

This happens when multiple of 500 strike forms as one boundary of either CALL or PUT windows (generally) .They tend to have HIGH open interest.

Another reason could be if NIFTY is moving in a tight range.

 

[columbus]

Re: No.................

as below may be MAY too expire there ..

It is snapped today ,after running for 7 days in a row ,in this may series so far.

(Earlier I was referring to timepass message at #1191.)

 

[columbus]

May.9 may-series Day.10 Nifty= 6859 (199)

The EXPIRY ZONE has expanded UP to (6700~6900) from (6700~6800).

Total strikes with Price over Rs.HUNDRED in CALL window: 14 (Prev:8)
Total strikes with Price over Rs.HUNDRED in PUT window : 11 (Prev:11)


Avg Open Interest (Today) as shown ... CALL side: 333K /2 (Prev: 19K/4)
Avg Open Interest (Today) as shown..-.. PUT side: 187K /4 (Prev: -31K/1)


Average Implied Volatility in ZONE......CALL side : 42.69 (Prev:37.04)
Average Implied Volatility in ZONE.......PUT side : 44.07 (Prev:40.11)

(After deleting PENNY Strikes ,if any.Because they adversely affect the values.
Strikes above and below the CURRENT position are taken ,as shown)

Bold indicates Open Interest over 500k.(If ,any)
Italics indicate Open Interest over -500k.(If ,any)


Current position is indicated.

1.NIFTY ,BANK-NIFTY and SENSEX closed Life-high.

2.The UPWARD movement was so massive ,that Upper Circuits of some of the
Options were revised COUPLE of times in the day.

3.TODAY-OI on both sides sees a large accumulation.In particular 7200CE saw
accumulation of 2Million ,today.

4.I think today's market ,showed THUMPS UP to Modi.

 

[abcpankaj]

Dec 7900-8000 calls added big OI , just a day back.
May be that was some premonition.

http://economictimes.indiatimes.com...ies-surprises-market/articleshow/34800038.cms

 

[columbus]

Dec 7900-8000 calls added big OI , just a day back.
May be that was some premonition.

http://economictimes.indiatimes.com...ies-surprises-market/articleshow/34800038.cms

Hats off to SUCH long vision ,FIIs.

 

[Somatung]

Dec 7900-8000 calls added big OI , just a day back.
May be that was some premonition.

http://economictimes.indiatimes.com...ies-surprises-market/articleshow/34800038.cms

These levels mirror the pure results from a probability calculation. In this case it is the 65% level on the call side for December series, calculated from May 6660 Nifty level. After realizing this fact, a few questions still came up:

- Why December calls and why not May calls? Are they bullish and do they really know some thing in advance about the outcome of the event? Do they want to play only this event or do they plan to stay longer with this Dec calls?

Some views:

- Do they play only the event? Probably, and if so, then very successfully.
- Are they bullish and do they know some thing? Not necessarily about the outcome of the event. But maybe some thing about how Friday will be managed from the market makers
- Why Dec calls and not May calls? Most likely because of lower risk with the Dec calls, but still a good profit target potential.
- Are these gamblers on direction or are this players with an option strategy plan in the back? No gamblers and surely a clear option strategy plan behind this.

This buy orders where placed the day where Nifty touched a very good support line. So this was surely a decision based on good TA, clear strategy planing and professional MM which includes lowered risk. Even over here this support line was spotted and valued as strong. So up move was expected. Was it expected in such a strong way? Not really. Now why did they not just buy May calls at this 65% level they calculated, but this time with figures for May? Why did they buy December calls with there short time bullish view? As this is an institution who bought the calls, they probably play a synthetic strategy game in which the calls are needed as insurance. They seem to play a lower risk strategy, which will need this calls. If the market would have fallen, they could act quickly by hedging those calls. If they not could hedge it because of a big, quick drop, they would have a lot of time to bring this calls back into profit. Now if a strategy is played in which long calls are used as insurance, the other part of the strategy includes a short leg. Now the calls are already in profit. They already made a ton of money with them. What ever now happens after the results come out, those players will play the game further, if now up or down and this with lowered risk. Absolute pros. :thumb:

Have a nice weekend

 

[mukuldunnu]

what kind of chart is it perticulerly on starting of thread please clear ?

 

[columbus]

-Do they play only the event?

Really FEW questions are unanswered, FIIs.

1.Is it a mistake? It appears No ,since 3 orders were punched.

2.By the time ,we reach DECEMBER ,the effect of the event gets diluted.