Trade with options data

[contactomprakash2000]

trying to go long on hindalco

Dear Kiran,
I am waiting for your promised reply on "how to identify put accumulation and put writing?"
Regards
Om Prakash

 

[kiranjakka]

Hi Kiran

Nice thread and information on open interest... Good Going..

Can u recommend any books for open interest ?

http://www.investopedia.com/university/options/option4.asp#axzz1kRYowSVp

 

[kiranjakka]

the openintrest positions at 5000,5100 ces and 5200pe denotes the chances of nifty closing above 5100 is more in this series. it can even try to go close to 5200

nifty moved till 5174 today :thumb:

 

[IAtma]

thanks kiran.

ur thread given me an other tool, carry on buddy:thumb:

 

[kiranjakka]

Dear Kiran,
I am waiting for your promised reply on "how to identify put accumulation and put writing?"
Regards
Om Prakash

hi

different people interpret OI in different ways, OI is difficult to interpret when the market is very flat or with in a very narrow range.

one can decide the trend of the underlying security based on the OPTIONS OI data , when a security moves north :-

1.with increase in OI in call options
2.negative change in OI in call options are considered to be positive
3.very high positive OI in puts of specific price can also be considered

when a security moves south wards :
1.increase OI in put options
3.negative OI in put options
4.very high Positive OI in call options of specific price can be considered

we can only decide the whether it is put accumulation or call accumulation based only on the trend of the underlying security. if a security is going down with addition of OI PUT ACC if security is going up with OI addition then its CALL ACCU


we cannot exactly describe whether put accumulation or call accumulation is going on when trend of security is flat,, unless when there is abnormal change in oi

i generally take my decissions only when there is a change of more than 1/3rd of selected contract

 

[contactomprakash2000]

hi

different people interpret OI in different ways, OI is difficult to interpret when the market is very flat or with in a very narrow range.

one can decide the trend of the underlying security based on the OPTIONS OI data , when a security moves north :-

1.with increase in OI in call options
2.negative change in OI in call options are considered to be positive
3.very high positive OI in puts of specific price can also be considered

when a security moves south wards :
1.increase OI in put options
3.negative OI in put options
4.very high Positive OI in call options of specific price can be considered

we can only decide the whether it is put accumulation or call accumulation based only on the trend of the underlying security. if a security is going down PUT ACC if security is going up then its CALL ACCU


we cannot exactly describe whether put accumulation or call accumulation is going on when trend of security is flat,, unless when there is abnormal change in oi

i generally take my decissions only when there is a change of more than 1/3rd of selected contract

Dear Kiran,
HAPPY REPUBLIC DAY
Thanks. You have spared some of your precious moments for me. Anyhow your work is going to prove a new facet in the trading pattern of many a traders like me. Keep it up my friend.
Regards
Om Prakash

 

[novicetraders]

Thanks Kiran for the explanation.

Everyday learning a lot from u... Great Going... Keep Updating

 

[abhinkoi]

Hi Kiran,

I have been going through entire thread and I must say that you have been exceptionally good in explaining this concept to us. It is really great to see someone sharing his thoughts for the benefit of others. Your time & efforts in this matter is really appreciable.

In this above case of reliance, the data shows that Reliance should go down however it went up next day. What do you think should be the reason for the same and how can we avoid such scenarios to get into wrong trades?

Thanks again. Keep up the great work!

Cheers
Abhinav

 

[niftyrulez]

Hi Kiran,

I have been going through entire thread and I must say that you have been exceptionally good in explaining this concept to us. It is really great to see someone sharing his thoughts for the benefit of others. Your time & efforts in this matter is really appreciable.

In this above case of reliance, the data shows that Reliance should go down however it went up next day. What do you think should be the reason for the same and how can we avoid such scenarios to get into wrong trades?

Thanks again. Keep up the great work!

Cheers
Abhinav

same question for me too

 

[kiranjakka]

Hi Kiran,

I have been going through entire thread and I must say that you have been exceptionally good in explaining this concept to us. It is really great to see someone sharing his thoughts for the benefit of others. Your time & efforts in this matter is really appreciable.

In this above case of reliance, the data shows that Reliance should go down however it went up next day. What do you think should be the reason for the same and how can we avoid such scenarios to get into wrong trades?

Thanks again. Keep up the great work!

Cheers
Abhinav

the main thing we have to understand in any system or charts is we should not try to interpret the data or charts when a security is about to declare results or in scenarios of big events regarding the security. thats where i went wrong, tried to predict the results movement where data changes in a matter of seconds. sometimes we might be correct and some times wrong reliance declared the results on 20th so we tried to predict the data 3 days a head of results :annoyed: