Trade with options data

[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 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

Dear Kiran,
I. WHEN A SECURITY MOVES NORTHWARDS
i. with increase in OI in call options
ii. negative change in OI in call options are considered positive.
Kindly clarify i. and ii. To me both looks to be opposite.
Similarily
II. WHEN A SECURITY MOVES SOUTH WARDS

 

[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 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

Dear Kiran,
I. WHEN A SECURITY MOVES NORTHWARDS
i. with increase in OI in call options
ii. negative change in OI in call options are considered positive.
Kindly clarify i. and ii. To me both looks to be opposite.
Similarly, for the other case you have pointed out here.
Regards
Om Prakash

 

[kiranjakka]

Dear Kiran,
I. WHEN A SECURITY MOVES NORTHWARDS
i. with increase in OI in call options
ii. negative change in OI in call options are considered positive.
Kindly clarify i. and ii. To me both looks to be opposite.
Similarly, for the other case you have pointed out here.
Regards
Om Prakash

1.no because if total OI of perticular stock is around 10000 and change in OI is increasing to around 3k++ or so with trend of stock in positive then it is call accumulation. here the trend of the stock is very important

2. second scenario regard less of the trend even if a stock is flat and there is negative change in OI then it should be considered as call writers covering their positions. along with the trend of the stock in positive, will give best results in this scenario

and viseversa for puts

 

[contactomprakash2000]

1.no because if total OI of perticular stock is around 10000 and change in OI is increasing to around 3k++ or so with trend of stock in positive then it is call accumulation. here the trend of the stock is very important

2. second scenario regard less of the trend even if a stock is flat and there is negative change in OI then it should be considered as call writers covering their positions. along with the trend of the stock in positive, will give best results in this scenario

and viseversa for puts

Dear Kiran,
Great Answer.
Regards
Om Prakash

 

[abhinkoi]

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:

I appreciate your response Kiran. However Im trying to put forward a different opinion here. I believe that through charts, price, volume and OI we can judge in advance what is going to happen next. Of course it requires a deeper amount of knowledge which comes by practice...so in this case we need to figure out what went wrong and how we cud do better...im sure there will be some clue somewhere...you are taking us in the right direction & I appreciate your efforts once again...

Here are my 2 cents based on OI calc of INFY before and after results day (12th Jan). With the help of the picture attached we can see that before the result day there were huge shorts built up in INFY futures...INFY was in bullish mode till 3rd Jan and after that price was moving sideways to down from 4th Jan onwards...which shows some weakness...on 10th Jan OI increased less than 1% which shows that there isnt much support from Smart Money in this upmove...Sign of weakness...on 11th Jan (previous day from result) huge shorts built up and price closing down towards the low of the day with OI increased almost 7% shows active shorts build up...and it fell badly next day...

Actually I am a student of VSA so I tried to club the smart money concept also into this...I havent got a chance to look at the Options data but I believe that must be supporting this weakness..

Please forgive me if I tried to deviate from the topic...Just thought to share what I feel...let me know your thoughts..

Take care
Abhinav

 

[HARESHRM]

thanks .... sirji ....

 

[kiranjakka]

I appreciate your response Kiran. However Im trying to put forward a different opinion here. I believe that through charts, price, volume and OI we can judge in advance what is going to happen next. Of course it requires a deeper amount of knowledge which comes by practice...so in this case we need to figure out what went wrong and how we cud do better...im sure there will be some clue somewhere...you are taking us in the right direction & I appreciate your efforts once again...

Here are my 2 cents based on OI calc of INFY before and after results day (12th Jan). With the help of the picture attached we can see that before the result day there were huge shorts built up in INFY futures...INFY was in bullish mode till 3rd Jan and after that price was moving sideways to down from 4th Jan onwards...which shows some weakness...on 10th Jan OI increased less than 1% which shows that there isnt much support from Smart Money in this upmove...Sign of weakness...on 11th Jan (previous day from result) huge shorts built up and price closing down towards the low of the day with OI increased almost 7% shows active shorts build up...and it fell badly next day...

Actually I am a student of VSA so I tried to club the smart money concept also into this...I havent got a chance to look at the Options data but I believe that must be supporting this weakness..

Please forgive me if I tried to deviate from the topic...Just thought to share what I feel...let me know your thoughts..

Take care
Abhinav

try to apply for some more large cap stocks during results season and i guess we can win a lump sum amount if everything goes well i will be on the same duty from now on. unless there is insider information to those options or futures writers i guess its difficult to predict the stock movement before any major event. that just my opinion, i always try to play safe.

thanks for your interest any way

 

[HARESHRM]

thanks for sharing ur option data learning tech

 

[abhinkoi]

try to apply for some more large cap stocks during results season and i guess we can win a lump sum amount if everything goes well i will be on the same duty from now on. unless there is insider information to those options or futures writers i guess its difficult to predict the stock movement before any major event. that just my opinion, i always try to play safe.

thanks for your interest any way

Thanks Kiran. I will keep an eye on this & will share my output.
BTW do u have any comments or suggestions on the analysis I did for INFY? Is my interpretation correct? Can we do it in any better way?

Appreciate your thoughts.

Thanks
Abhinav

 

[choudri]

try to apply for some more large cap stocks during results season and i guess we can win a lump sum amount if everything goes well i will be on the same duty from now on. unless there is insider information to those options or futures writers i guess its difficult to predict the stock movement before any major event. that just my opinion, i always try to play safe.

thanks for your interest any way

Dear sir

In TOTAL excellent simple method of explanations Goodluck :clapping:

Thanks and Regards