@Praba Hi I am not contradicting but clarifying my understanding increase in OI in PE would mainly mean writting is it not and seeing intraday graph the vol.is concentrated at higher rates suggestive of writting.
First thanks for your visit and comment. As i mentioned in JN, i am not an OI expert. I just produce the data for intraday reference.
The above OI data does not include/consider volume of the options. The Nifty trend is generated based on the below Price- Open Interest- Interpretation Rising- Rising- Bullish Rising- Falling- Market is Weakening Falling- Rising- Bearish Falling- Falling- Market is Strengthening
so if OI in PE increase and the price decrease then the put been written, so that to take advantage of writing the put by bringing down the price, which the Nifty moves up(bullish).
But if OI in PE increase and the price also increase along with OI, then the interpretation is that put being bought expecting that Nifty may come down(bearish), so that the put premium also increase to profit.
The above may be wrong. The better persons may be Sanjay Bhai or Mynac.
@Praba
ReplyDeleteHi
I am not contradicting but clarifying my understanding
increase in OI in PE would mainly mean writting is it not and seeing intraday graph the vol.is concentrated at higher rates suggestive of writting.
@Bhavan
ReplyDeleteFirst thanks for your visit and comment.
As i mentioned in JN, i am not an OI expert. I just produce the data for intraday reference.
The above OI data does not include/consider volume of the options. The Nifty trend is generated based on the below
Price- Open Interest- Interpretation
Rising- Rising- Bullish
Rising- Falling- Market is Weakening
Falling- Rising- Bearish
Falling- Falling- Market is Strengthening
so if OI in PE increase and the price decrease then the put been written, so that to take advantage of writing the put by bringing down the price, which the Nifty moves up(bullish).
But if OI in PE increase and the price also increase along with OI, then the interpretation is that put being bought expecting that Nifty may come down(bearish), so that the put premium also increase to profit.
The above may be wrong. The better persons may be Sanjay Bhai or Mynac.