Trade with options data Part 2

[Option.Trader]

Intersting day of trade. I think the flash crash helped in flushing the weak Bulls out.
FII's have initiated short position on Futures with net contracts decreasing
5800CE saw a rise in OI , indicating writing. is this the top for short term?
But wait, a bearish stance would have had the bulls covering their PE, but surprisingly that didnt happen with very low OI in all the PE less than 5%
So is this a game by FII's to buy low value PE, esp 5500? ... be ready for a launch next week

 

[trader15]

Intersting day of trade. I think the flash crash helped in flushing the weak Bulls out.
FII's have initiated short position on Futures with net contracts decreasing
5800CE saw a rise in OI , indicating writing. is this the top for short term?
But wait, a bearish stance would have had the bulls covering their PE, but surprisingly that didnt happen with very low OI in all the PE less than 5%
So is this a game by FII's to buy low value PE, esp 5500? ... be ready for a launch next week

I think mkt poised for newer high based on current data. Thats where FII's betting on while hedging risks at lower Puts or rather making even more money there by writing Puts

 

[Option.Trader]

I would say its the opposite. Starting a thread to exclusively track OI through options data and FII. Please follow the link below
Nifty OI Analysis

 

[kiranjakka]

Hi, all

Nifty is now positioned at 5723 and the range for nifty is 104 pts that is 5619 and 5827 below or above which we may see a good fall or another 100 pts rally

 

[pav]

Dear Kiran

(1)What is very high Positive OI and very high negative OI in call options and put options ? please give the definition.

(2)and what is difference between Positive OI and negative OI ?

Regards
Pav

 

[bkb]

Hi,

5700 CE NIFTY OCT expiry had negative chnage of OI (-7250) and volume of ~288,000as per EOD data today.
Does it provide any trend indication for coming session(s), as NIFTY seems to have moved within ~ 50 points range today and closed near 5700.

 

[timepass]

Hi,

5700 CE NIFTY OCT expiry had negative chnage of OI (-7250) and volume of ~288,000as per EOD data today.
Does it provide any trend indication for coming session(s), as NIFTY seems to have moved within ~ 50 points range today and closed near 5700.

Increasing price and decreasing OI generally indicate buying interest i.e. the traders expect Nifty to move up.

But I am seeing different figures for volume

 

[bkb]

Increasing price and decreasing OI generally indicate buying interest i.e. the traders expect Nifty to move up.

But I am seeing different figures for volume

Hi,

Thanks for the reply.

In reference to query related to volume, volume for NIFTY 5700 CE for October expiry, as per NSE site is 288,031. As per my understanding this volume number has Lots as unit.
If we multiple 288,031 with 50 (being lot size), then we get 14401550 as shown in screen shot posted below.

On another note, looking at weak closing in US markets today, what is your view on NIFTY direction tomorrow.

 

[kiranjakka]

 

[bkb]

Hi Kiran,
Considering the weak closing in US markets today and coming expiry week for NIFTY, what is your reading of options data? Thanks.