Trade with options data Part 2

[hemant_jpr20]

Kiran,

What are your thoughts for JPAssociates.70 seems to be Resistance level.Volume data suggest Call buying happening at 65 and 70 levels.

From the data it 's not clear that without any volume in 50 CE how there is change of 4000 OI.

Could anyone please help.

 

[Option.Trader]

OI for 1st October

Short Summary : Writing of 5800 Put with 20% increase in OI
Accumulation of 5900 Call with 20% inc in OI

 

[Option.Trader]

6300 CE highest change in OI, speculative accumulation going on
5600PE & 57000PE added 7L and 8L in OI .. Meaning bulls want to make 5600 as base for series

Per FII statistics
FII's bought 33707 index futures amounting to 970 crores with net OI incr by 28587. As Nifty future was up by 14 pts with incr in OI, meaning long positions initiated

In short go long!

 

[bkb]

Considering ~ three weeks to expiry, does Long strangle of 5900 CE & 5700 PE at CMP of ~ 89 for target of 112 makes sense?

 

[Option.Trader]

Yesterday we said "In short go long!" and what a day today.

Today's data
Speculative buying in higher calls 6100 and 6200CE (25, 40%). Bears got hammered with 5800 CE unwinding by 15%. Gap up wiped them out

On Put side, Massive 50% build up on OI in 5800 PE. If the OI goes above 50L be ready for a 6K

From FII statistics
Nift Futures contracts increased by 24911 while OI decreased by 1843. So FII's are taking profits.

Bottom Line " Caution Advised"

 

[Option.Trader]

Yesterday i said "Caution Advised"
I hope people would have heeded the warning.. although what happened was more of a freak trade, people would have been cautious to take position

Will update on todays status in the evening... appreciate your "thanks" in the posts :thumb:

 

[mangup]

Yesterday i said "Caution Advised"
I hope people would have heeded the warning.. although what happened was more of a freak trade, people would have been cautious to take position

Will update on todays status in the evening... appreciate your "thanks" in the posts :thumb:

Hi Option.Trader,

How u interpret Vol%, OI% & change in OI% in general?

 

[mangup]

deleted . . . .

 

[sridhar]

Hello Option Trader

How would you interpret the sudden build up in 5800CE & 5900CE positions?

I found, on the RT NEST platforn, that there was 10:1 ratio buying interest(vis a vis sell offers) in 5700CE in terms of actual offers for buying. On the other hand 5800CE & 5900CE buy sell offers were more or less evenly matched.

Could it be that 5700CE sell positions are being squared off & hence there is heavy buying interest that is not being met with corresponding fresh selling? If this assumption is correct then would it be that the market is expected to move up? How does this gel with sudden increase in open interest at 5800CE and some extent at 5900CE?

 

[manojborle]

Hello Option Trader

How would you interpret the sudden build up in 5800CE & 5900CE positions?

I found, on the RT NEST platforn, that there was 10:1 ratio buying interest(vis a vis sell offers) in 5700CE in terms of actual offers for buying. On the other hand 5800CE & 5900CE buy sell offers were more or less evenly matched.

Could it be that 5700CE sell positions are being squared off & hence there is heavy buying interest that is not being met with corresponding fresh selling? If this assumption is correct then would it be that the market is expected to move up? How does this gel with sudden increase in open interest at 5800CE and some extent at 5900CE?